Carsons Group - growth in post tax profits

Carsons Group recorded a turnover of Rs. 746.64mn for the first quarter of the financial year 1998/99, up from Rs. 509.11mn, an increase of 47%.

Group's operating profit before finance charges amounted to Rs. 209.94mn compared to Rs. 105.87mn of the preceding period, showing an increase of 98.3% while profit after interest amount to Rs. 192.54mn reflecting a growth of 151%. A significant level of profits was earned from the investment sector of the Group, owing to restructuring the investment portfolios, thus contributing substantially towards Group performance. However, the same level of contribution towards Group profitability canot be envisaged from this sector in the future. Furthermore, Group's pre-tax profits including the share of associate companies' profits amounted to Rs. 201.69mn, up from Rs. 81.62mn registering a growth of 147% over the period.

The market value of the investment portfolio including the Group's subsidiaries amounted to Rs. 5.19bn for the period under review as against the preceding period's value of Rs. 5.82bn. Group's net assets increased by 174%, up from Rs. 2.06bn in the preceding year to Rs. 5.65bn as a result of the revaluation of Malaysian properties which contributed signi-ficantly in enhancing the asset base.

The investment sector of Carsons Group restructured its holdings in the respective companies which resulted in The Ceylon Guardian Investment Trust Ltd. increasing its stake in The Ceylon Investment Company Ltd, thus becoming a subsidiary company of the former in the period under review. Furthermore, due to this change in structure, Carson Cumberbatch & Co. Ltd's stake in Ceylon Guardian Investments increased to 42.04% effective 11th June 1998, and the Group Holdings remain at 57.38%.

Most of the Sri Lankan expansion projects undertaken by the Group have already been completed and are expected to make a significant contribution towards Group profitability in the current financial year. Furthermore, a higher level of contribution towards future Group profitability is expected in the long run, with Carsons Group envisaging to expand its activities in the overseas plantation sector.

The Lion Brewery Ceylon Ltd., which commenced production in the first quarter of the financial year, will brew Lion and Carlsberg brands. With the commencements of production, the company is well positioned to make use of market opportunities thus, making a substantial contribution to group turnover and profitability.

The legislation envisaged in the National Alcohol Policy is of grave concern to the company, particularly, in the context of its Rs. 1.7bn investment in the Lion Brewery coming on stream. The project was initiated on the basis of the liberalised policy stance by the Administration in its budget of 1996, where excise duty on beer was reduced by 70%. This reversal of policy orientation on the beer industry is likely to slow down growth of the industry. Moreover, the policy measures envisaged do not effectively address the issue of illicit liquor which should be the immediate concern of the policy makers.

Interbatch Porcelain Ltd., a company managed by Interkiln Corporation of America, in which the group holds a 15% investment, commenced commercial operations and is expected to meet its export performance targets.

Equity two building which commenced operations after the completion of the refurbishment was successful in renting five out of the eight floors, and is expected to contribute enhance profits towards group performance in the future.

The directors of the company are Messrs. Wijaya Unamboowe (Chairman), Hari Selvanathan (Deputy Chairman), Mano Selvanathan, Israel Paulraj, D. Chandima R. Gunawardena and Mrs. R. L. Nanayakkara.

HNB wins International Award again

HNB won the SAFA award for the best published Corporate Accounts for 96/97 in the Financial & Banking sector for the second consecutive year.

This award is presented annually by the South Asian Federation of Accountants (SAF) for the best presented accounts in the SAARC region.

The presentation ceremony of the award for the best published Corporation Accounts for 96/97 was held at Hotel Sonargaon, Dhaka, Bangladesh on 22nd August 1998 in conjunction with the inaugural function of the 13th SAFA Conference.

HNB which has a proud record of success in the competition for the best Corporate Report and accounts organized by the Institute of Chartered Accounts of Sri Lanka is the only Sri Lankan bank to earn a place for the second consecuctive year in the competition.

Research for marketers - Sept. 4, 5

A Management Development Work-shop on 'Research for Marketers', organised by the Sri Lanka Institute of Marketing, would be held on Friday 4th and Saturday 5th September 1998 at the Hotel Taj Samudra in Colombo from 8.15 a.m. to 5.30 p.m. each day.

The objectives of this workshop are to demonstrate how a Market Research Agency should be briefed and how the best agency should be selected for your company/client's research needs. It would also help participants understand, use and evaluate the techniques of quantitative and qualitative research and enable them design and analyse a field research project, interpret and evaluate a research report and increase their awareness of advertising and media research through qualitative advertising evaluation.

Interactive sessions with participants, group work and presentations will help participants acquire practical 'hands-on' exposure to market research.

Designed for Marketing Managers, Marketing Services Managers, Account and Client Services Managers and Executives, Market Research Personnel, Brand Managers and Marketing Executives, the presentations, would be made by resource persons who are professional market researchers. Resource persons include Mr. Ravi Bamunusinghe, Managing Director, Market Behaviour Lanka (Pvt,) Limited and Mr. Nihal de Silva, DGM, Lanka Market Research Bureau.

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of September 01, 1998 were as follows:

The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System on September 01, 1998 were as follows:

Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers at mid-day on September 01, 1998 were as follows:

Average Weighted Prime Lending Rate (AWRP) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended August 28th, 1998 was 15.0 per cent for all banks. The Lowest Prime Rate among banks during this week was 13.7 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended July 31st, 1998 was 9.6 percent.

* Ex Dividend Price