Thursday, 28 May 2020 18:32

Aitken Spence records Rs. 4.2 billion profit despite economic headwinds

Amidst unprecedented challenges Aitken Spence PLC has recorded a profit before tax of Rs. 4.2 billion in the financial year ended on 31 March 2020 compared to Rs. 7.3 billion last year.

Despite considerable economic headwinds the organisation’s agile strategy was reflected in the earnings from the overseas businesses that contributed 39% compared to 43% last year.

This underlined the exceptional relationships that have been built with global industry players across the key sectors
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The Group’s businesses from the domestic market derived 61% earnings of the Group’s PBT for 2019/2020 compared to 57% in the previous year.

The total revenue of the Group ending 31st March 2020 was Rs. 53.5 billion, a 4% drop from the previous year, primarily due to a reduction of revenue from the Tourism sector which was affected by the significant impacts mentioned above.

However, the drop was compensated by the commencement of the operations during the third quarter of the year of Heritance Aarah, the flagship hotel in the Maldives.

The total assets of the Group increased by 14 percent to Rs. 140 billion. The Group invested Rs. 10 billion in capital expenditure across many sectors.

The highest investment incurred in the power generation segment to fund the construction of the pioneering waste to energy power project, the first of its kind in Sri Lanka.

This reflects the organisation’s confidence in its future earnings growth capacity.

The Group’s expansion increased to 9 countries as the Maritime & Freight Logistics sector re-established its presence in South Africa whilst the Tourism sector commenced operations in Myanmar during the year.

The launch of Heritance Aarah was a key milestone in the Tourism portfolio as it was the first time that the Heritance brand was launched overseas.

Heritance Aarah is the first LEED certified building in the Maldives reflecting their commitment to sustainable and energy efficient design.

(LIN)

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