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 previous year.

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. Brito

“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 responsibility.

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 last quarter.