Aitken Spence continues steady progress
Aitken Spence PLC released its third quarter financial results to the
Colombo Stock Exchange, reporting Rs 2.1 billion as pre-tax profit and
Rs 1.3 billion as profit attributable to the shareholders for the nine
months ended December 31, 2008, an increase of 11.5 % and 15.1% over the
Group Turnover has increased by 21.4% to Rs 23.5 billion, up from Rs
19.4 billion last year. Earnings per share increased 15.1% from Rs 40.63
to Rs 46.78.
J. M. S.
“We have been able to sustain our steady progress mainly due to our
excellent management team who have stayed focused and maintained the
momentum despite the challenges posed by the world economic meltdown.
Internationally, Aitken Spence has continued their overseas track
record in superior management by obtaining the management of more
hotels, inbound travel companies, port efficiency enhancement and port
management services, HR and IT projects in Southeast Asia, the Middle
East and Africa by leveraging on our own brand value”, said Deputy
Chairman and Managing Director of Aitken Spence PLC J. M. S. Brito.
“In power generation we are expecting future growth in renewable
energy and in overseas expansion opportunities”, he said.
The Group’s plantation companies were affected by the declining
global commodity prices which had an adverse effect especially in the
third quarter. During the period under review, the Group’s operations in
the inward remittance market saw volumes grow by 25% mainly from the
Middle East and Europe.
In addition to the pressure on rates in the last quarter due to the
global recession, high energy costs owing to high fuel prices for the
most part of the nine months, as well as refurbishment costs and
financing costs of new investments contributed to the decline in profits
from the Maldives. Adverse travel advisories and results of the global
recession have substantially affected tourism operations in Sri Lanka.
“Given the improved levels of stability, especially in the North and
the East, we are keen to look at business opportunities that would
contribute to the economic revival of the provinces”, said Brito.
The adverse results in the tourism sector were partly mitigated by
the strong growth reported by the Integrated Logistics, Strategic
Investments and Maritime Services, including profits generated from
operations in South Africa.
During the period under review, Aitken Spence was recognized as the
runner-up at the Best Corporate Citizens Awards organized by the Ceylon
Chamber of Commerce, for its exemplary record in corporate social
The company’s drive to effectively manage its impact on the
environment and proliferation of global best practices in the tourism
sector was recognized by being awarded the winner of the environmental
category at the awards.
Aitken Spence PLC became the winner under the category for
“Diversified Group Companies Sector” at the National Business Excellence
Awards 2008 organised by the National Chamber of Commerce of Sri Lanka,
during the last quarter.
During the period under review, the Group disposed a company which
operated a resort in the Maldives.
Aitken Spence launched two new properties in Oman and India in the