Archive | May, 2014

Aitken Spence records impressive profit growth of 12% for FY13/14

26 May

 

Aitken Spence, Vauxhall Street

Blue chip conglomerate Aitken Spence PLC reported its annual unaudited financial results 2013/14 to the Colombo Stock Exchange on Monday, reporting profit attributable to shareholders of Rs 3.7 billion, an increase of 11.7% over the previous year’s profit of Rs 3.3 billion. Profit before tax was Rs 5.4 billion and profit after tax was Rs.4.5, recording growth of 7.6% and 5.5% respectively. The diversified Group’s annual revenue declined marginally to Rs. 36.6 billion whilst earnings per share improved by 11.7% to Rs. 9.04 for the financial year.

The Group’s bottom line was driven primarily by the Tourism sector. Sri Lanka welcomed over 1.27 million tourists during the year 2013, with a target of 1.5 million set for 2014.The boom in the tourism industry was reflected in the Group’s performance with the revenue of the Tourism sector for the financial year growing by 9.4 % to Rs. 16.9 billion and profit before tax surging by 26.3 % to Rs. 4.4 billion. During the period, Aitken Spence Hotel Holdings PLC, the Group’s hotel owning strategic business unit, entered into a shareholders’ agreement with RIU Hotels of Spain to build a 500-room luxury resort in Ahungalla, costing approximately USD 100 million. The construction of the hotel is expected to commence during the second half of the financial year 2014/15.

Annual revenue for the Maritime Cargo Logistics sector increased 15.3% to Rs. 7.3 billion whilst profits before tax for the sector increase by 26% to Rs. 709 million. Entry into a strategic partnership in Fiji for port management services through the acquisition of a 51% shareholding in Ports Terminal Ltd – the first- ever public-private partnership overseas by a Sri Lankan company recorded to date, was a highlight for the year.

Services sector reported a revenue of Rs. 819.6 million for the financial year under consideration which was a growth of 11.5 %, and a profit before tax of Rs 180.5 million, a growth of 10.2% compared to the previous year. Strategic Investments sector reported a year on year decrease of 16.1% in revenue to Rs. 15.3 billion, while the profit before tax dropped by 81.1% to Rs. 159.8 million for the financial year primarily due to the Aitken Spence power plants in Matara and Horana not being operational during the reporting period consequent to the cessation of the Power Purchase Agreements. Further, a provision for impairment of approximately Rs. 400 million was made in respect of the remaining assets of these two companies, which dragged down the profits of the sector.

The company disposed of the Horana power plant during the financial year, while the 100 MW power plant at Embilipitiya remained operational, albeit with lower generation due to excessive rainfall during the first nine months of the financial year. During the period under review the Group inaugurated a land mark project by investing in a luxury retirement homes complex that will comprise of 140 villas and associated high-end facilities located at a 30 acre site in Negombo. The project aims to attract Sri Lankans living overseas who wish to return to their homeland as well as foreign nationals who wish to retire and live in Sri Lanka.

“The Company has been able to deliver consistent results through a combination of strategic foresight and the capacity to transform challenges into opportunities. These qualities have been underpinned by a well-diversified business model that supports the Company’s growth trajectory” said the Chairman, Deshamanya D H S Jayawardena. “Our strategies for the long term and exploration of potential new areas of business factor in the Company’s responses to some of the key future trends” he added.

The Group announced a dividend of Rs. 2 per share which is a 33% increase over the previous year subject to approval by the shareholders at the Annual General Meeting. Aitken Spence PLC is among Sri Lanka’s leading and most respected corporate entities with operations in South Asia, the Middle East, Africa and South Pacific. It is an industry leader in hotels, travel, maritime services, logistics, power generation and printing, with a significant presence in plantations, financial services, insurance, information technology and apparel.

Aitken Spence Hotels joins the digital revolution with its app for iPads

23 May

Aitken Spence Hotels broke new ground recently with the launch of its first digital application for iPads. The application was designed to provide a comprehensive snapshot of the Aitken Spence Hotels portfolio spread across four diverse destinations; and covers the fundamental facets used by guests to decide on their preferred hotel or resort.

 

A holistic integration of the information of 21 hotels is presented in an interactive seamless platform enabling ease of navigation for the user. The app provides a brief description of each hotel affording guests a glimpse to the roots of the property. The types of accommodation that can be enjoyed by guests are also listed with pictorial representations of the room and its amenities. Information on hotel facilities, dining options, event spaces and excursions can be accessed at the tip of a finger. The information is complimented by an extensive gallery complimenting the sensory journey one engages with when browsing the app. It also provides a unified platform for feedback and reservation inquiries creating easy interaction between Aitken Spence Hotels and potential guests.

 

“The digital revolution has created a fundamental need for businesses to evolve their practices. The launch of an iPad app for Aitken Spence Hotels is one of the many initiatives lined up to evolve our practices to offer our guests an engaging and seamless experience The app is the perfect tool to create brand awareness amongst tour operators, destination management companies and tourists from around the world. We plan to evolve the services that can be offered through the app creating ease of access to the modern traveler” says Mr. Althaf Mohamed Ali, Vice President, Sales and Marketing, Aitken Spence Hotels.

Aitken Spence is Sri Lanka’s largest resort operator and the largest international hotel operator in the Maldives. The Group also manages a portfolio of hotels in India and Oman. The company’s premier resorts operate under the brand Heritance.

 

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Aitken Spence Logistics opens its new Container Repair and Rigging Facility

23 May

Aitken Spence Logistics further strengthened its service portfolio by opening its new, state-of–the-art container repair and rigging facility at the Aitken Spence Inland Container Terminal located in Mabole, Wattala recently.

The new container repair and rigging facility was declared open by Mr. J M S Brito Deputy Chairman and Managing Director of Aitken Spence PLC together with Dr. Parakrama Dissanayake, Chairman of Aitken Spence Maritime and Director Aitken Spence PLC with the presence of Ms. Stasshani Jayawardena, Director of Aitken Spence PLC, Mr. Nilantha Wakwella, Managing Director of Aitken Spence Logistics and several Directors of Aitken Spence.

Dedicated to catering to the new era of container conversions and repair services – the 24×7 operated, all-weather and under shed facility boasts of high quality standards by handling heavy repairs of containers, GOH conversions and container washing. The EDI and CEDEX computerized information systems in the facility provides instant reports on container history and repair details, repair statistics, estimates as well as projections for future bookings.

“Having pioneered the concept of logistics in Sri Lanka, we will continue to provide demand chain management solutions” noted Dr. Dissanayake, at the ceremony.

Aitken Spence is Sri Lanka’s largest logistics operator with a longstanding track record of superior performance and pioneering services covering the whole gamut of logistic operations from container handling, cargo, courier and supply chain management. Its maritime services arm represents leading shipping lines and manages container terminal operations in the Africa and the Pacific.

With its future developments in mind, Aitken Spence Logistics intends to provide, high quality repairs of Reefer Containers, pre-trip inspections and monitoring.

Logistics Opening - Group Photo

Aitken Spence Logistics is a subsidiary of Aitken Spence PLC which is among Sri Lanka’s leading and most respected corporate entities with operations in South Asia, the Middle East, Africa and the Pacific. Listed in the Colombo Stock Exchange since 1983, Aitken Spence has major interests in hotels, travel, maritime services, logistics and power generation. The group also has a significant presence in plantations, printing, financial services, insurance, information technology and garments.