Vision Investments Ltd Continues To Grow
Shareholders of Vision Investments Limited (VIL) were happy with the returns for the last financial year.
This was discussed at the company’s Annual General Meeting (AGM) on Tuesday held at the Vision Motors Showroom in Suva.
Chairman Dilip Khatri said the company listed significant growth through increased dividend payout compared to November, 2018.
Group chief executive officer PL Munasinghe said dividend share value for the company increased to $6.49 million since June 26, 2019 higher than $4.15m for November 16 last year which shows the company has done well.
Mr Munasinghe highlighted:
■The Group showed strong growth with revenue increasing to $196.3million (2018: $180.4m) and profit after tax increasing to $24m (2018: $20.2m).
■The operating result for the year was impaired due to a $2.19m charge taken to the Income Statement with the adoption of three new International Financial Reporting Standards (IFRS) and the resulting change in accounting policy.
■The adoption of these new IFRS standards, a charge of $4.95m was taken to retained earnings, which reduced shareholder equity.
■Despite this charge however, the shareholder equity increased to $94.2m (2018: $85.7m). These impacts however are expected to reverse out in the Income Statements in future periods.
■The company’s Balance Sheet was bolstered with the acquisition of a large five-acre property at Laqere Suva. The property is strategically located at the very midst of our customer base in the Suva region.
■The intention is to develop a commercial and logistics complex to principally consolidate the Company’s scattered operations in the Suva area.
■This consolidation of operations is expected to yield significant cost savings and operational efficiencies.
■In the months May to July 2018, the Courts business store outlets in Western Viti Levu benefited from the Homes Care Program initiated by Government to provide relief to households affected by climatic events.
■The PNG Subsidiary – Vision Homecentres Limited operating as “Home & More”, although incurring a loss as anticipated, made satisfactory progress over the preceding year’s result.
■We are encouraged by the announcements made by the new administration in PNG Government and hopeful that meaningful measures will be taken to rebalance the economy.
■We believe new investments in the resource and construction sectors, will bring about a new growth cycle in the economy.
■Out of the net earnings for the financial year, the Directors declared a total dividend of $10,636,366 equivalent to 10.25cents per share compared to 10.00cents per share paid out in the previous year.
■We continue to follow a prudent dividend policy that allows retention of profits to reinvest to grow the Company’s business, whilst at the same time providing an acceptable return to Shareholders.
■The Company’s share price on the South Pacific Stock Exchange continue to show significant gains and was $4.55 per share as at July 17, 2019.
■The Management Agreement with Vision Services Pte Limited expires in 2020. The Company is now in negotiations with Vision Services Pte Limited to renew this Agreement.
■It is important that this Agreement is renewed, so that the Group continues to benefit from the management services provided by Vision Services Pte Limited.
■The Board Subcommittees continue to make strong contributions in enhancing the important areas of corporate governance, compliance, risk identification and mitigation and people development.