George Steuart Finance Plc-Annual Report 2011/2012

SRIAS · 1 George Steuart Finance Plc-Annual Report 2011/2012 Thu Jan 17, 2013 10:36 am

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http://www.cse.lk/cmt/upload_report_file/1204_1358335118994.pdf

sriranga · 2 George Steuart Finance profits down 45% Fri Jan 18, 2013 3:24 am

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2011/12 Annual Report just out:
* ‘Reflects a more sustainable business model’ says CEO

George Steuart Finance PLC, formally Divasa Finance Ltd, this week releasing its annual report for the year ended March 31, 2012 says profits fell substantially.

"Profits after tax declined from Rs.68 million to Rs. 37 million mainly due to the fact that Rs.82 million of non interest income was derived from the sale of shares during the previous year. This year’s profits, whilst being lower than the previous year, reflect a more sustainable business model with the majority of the income being derived from net interest income compared to more volatile sources of income in the previous year," Lakshman Uduwara, Director/CEO told shareholders.

Assets grew by 54% to Rs.1.197 billion due to increases in business volumes for mainly loans, leases and hire purchase facilities. Liabilities also grew by 79% mainly due to the increase in fixed deposits. The asset quality has been maintained, necessitating only a modest increase in provisions although volumes increased significantly. Borrowings were reduced substantially during the year declining to 12% of total liabilities. Total equity increased by 13% to Rs.333.8 million due to profits and this is well above the core capital requirement for LFCs of Rs.300 million by 31 December 2012. The cash position at the end of the financial year was a healthy Rs.155 million and Net cash generated from operating activities amounted to Rs.456 million.

"GSF recorded an impressive income growth of 41% mainly due to increased business volumes enabled by the license to operate as a finance company. The net interest income to non interest income was 89% which is a significant improvement from the similar ratio for the prior year which was a mere 22% and therefore was subject to a high degree of volatility in earnings," Uduwara said.

The latest interim results filed with the Colombo Stock Exchange is for the September 2012 quarter.

Net profits for the six months ending September 30, 2012 fell 45 percent to Rs. 15.1 million.

As at end September 2012, a 51 percent stake in the company was held by Divasa Equity (Pvt) Ltd, controlled by Dilith Jayaweera.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=70583