Aitken Spence posts 22 % growth in pre-tax profit for 2017/18

Aitken Spence PLC recorded a steady financial performance for the financial year ending March 2018 with a 22 per cent year-on-year growth in profit-before-tax to Rs. 6.4 billion, its highest ever, from Rs. 5.2 billion.

In a media release, the leading conglomerate said it recorded an increase in its annual revenue by 14.9 per cent to Rs. 52.7 billion from Rs. 45.9 billion. The company also reported the highest ever profit-after-tax of Rs. 5.1 billion, an increase of 27.3 per cent from the previous year.

The diversified group concluded the reporting period with a strong fourth quarter performance during which both revenue and profit-before-tax figures showed strong growth trajectories.

The holding company’s revenue growth reflected across all key operational sectors including tourism, maritime and logistics, strategic investments and services.

Tourism recorded a growth of 18.2 per cent in revenue to Rs. 28.5 billion, while the maritime and logistics, strategic investments, and services sectors reported revenues of Rs. 10.7 billion, Rs. 19.3 billion and Rs. 1.9 billion respectively, indicating a growth of 7.7 per cent, 6.3 per cent and 16.8 per cent respectively, over the year.

Aitken Spence PLC reported a profit attributable to shareholders of Rs. 3.6 billion, a rise of 23.2 per cent while earnings per share also rose by 23.2 per cent from Rs. 7.12 to Rs. 8.77.

Sri Lankan hotels ended the year with a satisfactory performance. All properties under the group’s flagship Heritance brand achieved revenue targets, with Kandalama, Tea Factory and Ayurveda Maha Gedara reporting good results despite being affected by a slow start to the year. Despite severe competition facing beach properties Heritance Ahungalla recorded a satisfactory performance, while the newest addition to the portfolio – Heritance Negombo, shows great promise for the future. Meanwhile Turyaa Kalutara made steady progress towards a turnaround, as did Hotel RIU, where the group has a 60 per cent shareholding.

“Despite challenges posed by a turbulent operating environment, our prudent and astute strategies continued to hold Aitken Spence in good stead. In the year under review, we switched gears and accelerated the pace to reach the next phase of our growth agenda,” stated Aitken Spence Deputy Chairman and Managing Director, J.M.S. Brito.

Meanwhile Turyaa Kalutara made steady progress towards a turnaround, as did Hotel RIU, where the group has a 60 per cent shareholding.