Swisstek bags US$4.5 mn Cinnamon Life flooring contract

Swisstek (Ceylon) PLC has secured a US$4.5 million contract for the supply and installation of solid wood flooring for the John Keells Holdings’ Cinnamon Life project, which is the single largest ever timber flooring project to be awarded in the country.

A top official of Swisstek told Mirror Business that the contract was awarded during the last financial year to supply and install solid wood flooring for approximately 350,000 square-feet of the Cinnamon Life mixed development project.

The Cinnamon Life project is scheduled to be completed in 2021.

Swisstek’s timber wooden flooring and installation segment performed exceptionally well during last financial year, supported by awarding of the contract.

The segmental revenue rose to Rs.296.2 million for the year ended March 31, 2019, compared to Rs.86 million recorded at the end of 2017/18 financial year. Similarly, segmental gross profits also rose to Rs.128.9 million from Rs.31 million.

As a percentage, segmental gross profit’s contribution rose to 15.7 percent of overall gross profit in the 2018/2019 financial year compared to a mere 2.7 percent contribution in 2017/18 financial year.

The timber flooring and installation segment is the third largest segment of Swisstek followed by aluminium and tile related products.

Billionaire businessman Dhammika Perera controls Swisstek through Lanka Tiles PLC, Lanka Walltiles PLC, and Royal Ceramics Lanka PLC with a 66 percent stake.