Carson Cumberbatch and Co. Ltd., among the richest Sri Lanka companies, has reported an extraordinarily strong first quarter during the current financial year with after tax profits over three times those earned a year earlier.

Despite its massive assets including Malaysian plantations, a controlling stake in the beer industry here, real estate, hotels, investment companies with valuable share portfolios and other interests, Carsons have an ordinary share capital of only Rs. 10.2 million. The company recently issued Rs. 300 million worth of preference shares.

The consolidated turnover during the quarter under review was up to Rs. 746.6 million from Rs. 509.1 million a year earlier. The operating profit of Rs. 209.9 million compared with Rs. 105.9 million in the comparative quarter last year.

The net profit after tax for this period at Rs. 175.7 million compared with Rs. 57.4 million earned a year earlier. After discounting minority interest, profits attributable to the shareholders of Carsons were Rs. 65.2 million, up from Rs. 19.3 million a year earlier.

Shareholders have been informed that companies within the Carsons Group have transferred their holdings in the Ceylon Investment Co. Ltd. to the Ceylon Guardian Investment Trust Ltd. giving Guardian a 52.58% stake in Ceylon Investments and making it a holding company.

Similarly, Carsons companies have transferred their holdings in The Ceylon Guardian Investment Trust Ltd. to Carson Cumberbatch and Co. Ltd. resulting in Carson's stake in Guardian going up to 42.04%.

Carson's holding in Guardian and Ceylon Investments provoked rumours of a possible takeover bid for blue chip Hayleys in which the two investment companies have large shareholdings. Carson's denied any such intentions but continuing fears of such a possibility partly influenced Hayleys creation of an Employees Share Trust earlier this year.

Although Guardian and Ceylon Investments could have stalled the creation of this trust which needed the support of 75% of Hayleys' shares, they eventually supported the employees share trust by giving their proxies to the Hayleys directors. Emotions whipped-up on the issue influenced Carson's decision.

The directors of Carson Cumberbatch are Messrs. W. Unamboowe (chairman), H. Selvanathan (deputy chiarman), M. Selvanathan, I. Paulraj, Chandima Gunawardena and Mrs. Rohini Nanayakkara.