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Stock market downturn depresses John Keells profits

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Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

John Keells PLC, the produce and share broking company from which the John Keells Holdings conglomerate grew, has posted group revenue of Rs.223.6 million in the September quarter this year, up a marginal one percent from a year earlier but seen six months revenue in the current financial year down 8% to Rs.424.4 million.

Group profit after-tax for the half year was down 45% to Rs.138.7 million despite the September quarter seeing the after-tax profit grown 11% to Rs.82.7 million.

This was largely on account of the downturn in the stock market depressing earnings of the group’s stock broking subsidiary.

The earnings for the half year translated to Rs.2.21 per share, down slightly from Rs.2.22 a share a year earlier.

At company level six months revenue was up 15% to Rs.281.1 million and the profit after-tax down 24% to Rs.187.7 million translating to an earning of Rs.4 per share.

Segmentally, information published in the interim financial report indicated that the pre-tax profit of the company’s produce broking and warehousing activity had grown to 128.2 million during the six months ended September 30, 2012 from Rs.101 million a year earlier.

Share broking profits before-tax was down sharply to Rs.26.8 million from Rs.94.4 million a year earlier while real estate earned Rs.45.6 million during the six months under review, up from Rs.36 million a year earlier.

John Keells owns the JKH group’s headquarters building at Glennie Street, Slave Island.

JKH with 86.90% of John Keells is the dominant shareholder followed by Mr. H.S.D. Soysa with 1.04%. All other shareholders individually own less than one percent.

John Keells has a stated capital of Rs.152 million, revenue reserves of Rs.2.1 billion and other equity components of Rs.58.6 million.

Total assets ran at Rs.3.4 billion and total liabilities at Rs.1.1 billion.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=66820

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