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**Overview:-FREE LANKA CAPITAL HOLDINGS LIMITED(FLCH)

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SLMarketWatch


Senior Equity Analytic
Senior Equity Analytic

Group Financials at a Glance
After all FLCH has reported sound financial results in the year 2010-2011.

Revenue: 33% Growth in to Rs. 6.5 Billion (6,513,357,000)
Profit after Tax: 319% Growth in to Rs. 1.2 Billion (1,270,256,000)
EPS has improved from 0.09 to 0.46 - over 500% increase year on year.

Diversified Portfolio

FLCH has a well diversified portfolio into many areas of business including Plantation, Hydropower, Leisure and Property Management.

Hydropower
Hydro Power Free Lanka PLC is already supplying a total of 3.2 Mw to the National Grid from its Sanquhar and Delta Power Plants. With the expansion of the hydro power projects HPFL has formed three subsidiary companies in order to supply another 15 Mw. One of the subsidiaries, Free Lanka Power 1 (Pvt) Ltd owns two mini hydro power projects - Halgran Oya I & II. HPFL 2 owns the Thebuwana Project and the Stellenberg project is owned by HPFL 3.

Plantations

57,000 Acres of land across the country
9,200 Acres of land in the district of Colombo
19,000 Acres of tea
13,000 Acres of rubber
3,500 Acres of commercial timber
12.5 million kg of made tea per annum
4.0 million kg of rubber per annum

The group's earnings are mainly from the plantation sector that is Maturata and Pussellawa Plantations. These two plantations comprise around 19,000 acres of tea and 13,000 acres of rubber. The group has completed an aggressive replanting programme in order to take advantage of increasing high rubber prices which commenced in 2005 where Rs.1 Billion has been invested in new planting and replanting of rubber.

Property Development
Free Lanka Properties (Pvt) Ltd is in the process of developing a commercial complex in fast moving Borella with 80,000 sq. ft of rentable space.

Leisure
Tea Leaf Resort Holding (Pvt) Ltd., which will develop two, 3 star boutique hotels in Pussellawa which offer accommodation up to a total of 100 rooms. They also have 20% stake in Rain Forest Eco Lodge through Maturata Plantations Ltd.


References:

Last Quarterly Report:
http://www.cse.lk/cmt/upload_report_file/1048_1305185889765.pdf
FLCH Prospectus:
http://www.cse.lk/270808/pdf/FLC_Prospectus.pdf
Company Website:
http://freelankacapital.com/our-profile.php

suja


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Most important most of the big guns are shareholders

Twenty Largest Shareholders
As at
%
05.05.2011 Held Nos.
1 Free Lanka Capital (Pvt) Ltd747,600,0005 4.65
2Browns Investments (Pvt) Ltd 43,978,217 3.21
3 Perpetual Holdings Ltd 43,953,090 3.21
4 Lanka ORIX Leasing Co. PLC 32,250,096 2.36
5 Mr. A L Devasurendra 12,059,197 0.88
6 Lexinton Holdings (Pvt) Ltd 11,267,000 0.82
7 Miss. B M Damayanthi 11,000,000 0.80
8 Next Ventures Ltd 10,640,000 0.78
9 Mr. I C Nanayakkara 10,638,298 0.78
10 Bartleet Finance Ltd 10,638,297 0.78
11 Mr. S. Somasundaram 10,000,000 0.73
12 Dr. R R De Silva 6,740,048 0.49
13 Perpetual Capital (Private) Ltd 6,000,000 0.44
14 Thurston Investments Ltd 5,325,000 0.39
15 Hi-Line Trading (Pvt) Ltd 5,320,000 0.39
16 Amaya Leisure PLC 5,320,000 0.39
17 Vallibel Finance Ltd 5,320,000 0.39
18 Phoenix Ventures Limites 5,160,000 0.38
19 Life Insurance Corporation (Lanka) Ltd 5,000,048 0.37
20 Mr. L U D Fernando 4,800,850 0.35

SLMarketWatch


Senior Equity Analytic
Senior Equity Analytic

suja wrote:Most important most of the big guns are shareholders

Twenty Largest Shareholders
As at
%
05.05.2011 Held Nos.
1 Free Lanka Capital (Pvt) Ltd747,600,0005 4.65
2Browns Investments (Pvt) Ltd 43,978,217 3.21
3 Perpetual Holdings Ltd 43,953,090 3.21
4 Lanka ORIX Leasing Co. PLC 32,250,096 2.36
5 Mr. A L Devasurendra 12,059,197 0.88
6 Lexinton Holdings (Pvt) Ltd 11,267,000 0.82
7 Miss. B M Damayanthi 11,000,000 0.80
8 Next Ventures Ltd 10,640,000 0.78
9 Mr. I C Nanayakkara 10,638,298 0.78
10 Bartleet Finance Ltd 10,638,297 0.78
11 Mr. S. Somasundaram 10,000,000 0.73
12 Dr. R R De Silva 6,740,048 0.49
13 Perpetual Capital (Private) Ltd 6,000,000 0.44
14 Thurston Investments Ltd 5,325,000 0.39
15 Hi-Line Trading (Pvt) Ltd 5,320,000 0.39
16 Amaya Leisure PLC 5,320,000 0.39
17 Vallibel Finance Ltd 5,320,000 0.39
18 Phoenix Ventures Limites 5,160,000 0.38
19 Life Insurance Corporation (Lanka) Ltd 5,000,048 0.37
20 Mr. L U D Fernando 4,800,850 0.35

erpetual holding in FLCH should be 30.975%.

According to March 2011 financials...

Perpetual Holdings Ltd = 03.210 %
Perpetual Capital (Private) Ltd = 00.440 %
Free Lanka Capital (Pvt) Ltd (54.65/2) = 27.325 %
Total (Perpetual Related) Holdings = 30.975 %

Free Lanka Capital (Pvt) Ltd is a 50-50 partnership between Perpetual (Aloysius Family) & Browns Investments.

cse.alpha


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

But Directors sold 43.9 mn FLCH shares in early June.

Read more at : http://forum.srilankaequity.com/t4835-why-directors-selling-flch?

suja wrote:Most important most of the big guns are shareholders


Most of top FLCH shareholders are however related entities such as Free Lanka Capital, Browns Investments, Perpetual Holdings, LOLC, Lexington Holdings,Thurston Investments, Perpetual Capital, etc.

There are no unit trusts and no foreign institutional investors in Top 20 shareholders.

Next Ventures and Bartleet Finance were in Top 10 shareholders even when FLCH listed (page 16 of prospectus), they probably got shares at Rs 4-70 during private placement in December 2010.

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