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Extraordinary impairment charges drive Ceylon Tea Brokers into the red

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Company however able to declare a modest dividend

Ceylon Tea Brokers PLC, listed on the Colombo Stock Exchange as the first standalone tea broking company in 2010, has reported a negative bottom line in the year ended Mar. 31, 2020, despite posting an overall performance its chairman, Mr. CPR Perera, saw as encouraging in the face of lower production and declining tea prices.

The loss was the result of an extraordinary impairment charge of Rs. 119.85 million (Rs. 21.45 million the previous year), on account providing for loans and advances to tea suppliers in accordance with SLFRS standards. This has been charged to the company’s marketing expenses of Rs. 133.3 million.

“This had a significant impact on the company’s bottom line (down to a loss of Rs. 62.5 million from a profit of Rs. 21.54 million the previous year) resulting in a much lower PAT compared to 2018/19,” Perera said.

However, the company’s tea business had posted a profit of Rs. 21.5 million during the year, down from Rs. 115.3 million a year. Despite the negative bottom line, the directors have proposed a modest dividend of eight cents per share against the previous years 35 cents per share involving a payout of Rs. 14.5 million absorbing 67.75 of the distributable profit.

Perera reported that they had done well to post a 18% increase in the volume of tea it handled in the year under review although the value of the tea marketed had shown only a marginal increase on account of the decline in tea prices during the year.

Ceylon Tea Brokers’ fully owned subsidiary, Logicare (Pvt) Ltd. had commence operations during the year. This company operates state-of-the-art warehousing complex providing over 12,000 pallet locations. It primary caters to the warehousing requirements of the parent’s producer clients adding value at both ends of the supplier chain.

“With state-of-the-art infrastructure, modern equipment, cutting edge technology and a team of expert, Logicare is equipped as one of the best one-stop logistic service providers with a strong ability to serve various industry verticals,” Perera said.

“During the year under review Logicare partnered with some of the leading companies in Sri Lanka as well as Multi-national corporations as their strategic 3PL (third party logistics) service provider covering various industry verticals such as FMCG (fast moving consumer goods), apparel, stationary, telecommunications and e-commerce.”

He was confident that this company, in the context of the growing demand for 3PL services globally, would significantly contribute to group revenue and profitability in the future.

The company’s CEO/Director Waruna de Silva explained that the impairment charges arose from some tea producers scaling down operations of account of lower production and operations but on a positive note, a few factories that have closed down had re-opened.

Ceylon Tea Brokers origins go back to 2005 when the Captal Alliance Group acquire the long established produce broking firm of De Silva, Peiris and Abeywardena subsequently listing it on the CSE.

The company’s major shareholders are Ashthi Holdings (Private) Ltd. (30.39%), Mr. WAT Fernando (26.78%), Jetwing Travels ( 18.68%), Ms. Shiromal Cooray (5.98%), Associated Electrical Corporation (2.96%), and Mr. CPR Perera/Mrs. D. Perera (1.92%)

The directors of the company are: Messrs. CPR Perera (Chairman), RJN de Mel (Deputy Chairman), WAT Fernando (MD), DGW de Silva (CEO), KHS Deshapriya (COO),Ms. Shiromal Cooray,, HMS Perera, BRL Fernando, DH Madawala, KAD Fernando, HTD Nonia and Z Mohamed.



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Newly developed Sathosa Motors Service Complex to service all vehicle brands

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Sathosa Motors PLC and its new state-of-the-art vehicle service complex, is now serving not just Isuzu but also any brand of vehicle.

Pioneering automotive specialist, Sathosa Motors is the sole authorized agent for the world-renowned Isuzu brand, but the newly developed service complex will now undertake all kinds of services required for any brand of vehicle.

 The internationally trained specialists are ready to serve you at the Sathosa Motors Service Complex now on weekdays from 8.00 am to 5.00 pm and on Saturday from 8.00 am to 1.00 pm at No 25, Vauxhall Street, Colombo 02.

Sathosa Motors PLC guarantees its customers reliable and convenient service and will undertake vehicle inspections, periodic maintenance, body and under carriage washing, interior cleaning and beautification, engine tuning, error diagnosis, accident repairs, air condition repairs, and many more at a highly affordable rate.

In addition, genuine spare parts, as well as lubricants and industrial services are available at discounted prices at the Service Complex.

Sathosa Motors PLC aims to provide high quality services at all times and all services are carried out strictly under health guidelines due to the prevailing COVID-19 pandemic situation.

Sathosa Motors announces that it has decided to keep all branches of the Sathosa Motors service network open to continue to serve its customers.

 

(Sathosa Motors)

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CSE trading bullish despite rupee hitting historic low against dollar

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By Hiran H.Senewiratne 

CSE trading activities were bullish despite Sri Lanka’s rupee registering a historic slump against the US dollar   at 202/205 to the one month dollar in mid morning trade yesterday, after opening at around 200/203.The stock market moved up, though, anticipating March quarterly results to be exceptional. This is expected to be particularly true of the Hayleys Group and Expolanka. Accordingly, investors seem to be re-entering the market after January, stock market analysts said.

Further, approval of the US $ 500 million Chinese loan and the fact that the Port City Bill has been tabled in parliament have lifted investor sentiment in a significant direction of the stock market, market analysts said. Amid those developments, both indices moved upwards, especially the All Share Price Index went up by 1.22 percent. The All Share Price Index rose by 92.35 points and S and P SL20 went up by 19.21 points. Turnover stood at Rs. 4.72 billion with four crossings. 

Those crossings were reported in JKH, which crossed 922,000 shares to the tune of Rs. 137.8 million, its shares traded at Rs. 149.25, Commercial Bank 950,000 shares crossed for Rs. 82.7 million, its shares traded at Rs. 87, HNB 155,000 shares crossed for Rs. 26.5 million, its shares traded at Rs. 132 and Ceylon Cold Stores 33,500 shares crossed for Rs. 20.1 million, its shares fetching Rs. 600.

In the retail market, five companies that mainly contributed to the turnover were, Browns Investments Rs. 793.6 million (123.1 million shares traded), LOLC Rs. 463.4 million (1.32 million shares traded), Royal Ceramic Rs. 442 million (1.2 million shares traded), Hayleys Rs. 442 million (five million shares traded), Dipped Products Rs. 372.3 million (6.2 million shares traded). During the day 197.3 million share volumes changed hands in 30480 transactions. 

The market was quite bullish from the beginning and LOLC Group companies led the market. It is said that LOLC contributed 25.5 points to the All Share Price Index. Browns Investments 9.8 points and Vallibel One contributed 8 points to the All Share Price Price Index while Commercial Leasing contributed six points.    

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‘Embark on that long-awaited getaway with Emirates and enjoy special fares’

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Emirates is launching seasonal fares that enable aspiring globetrotters to plan exciting adventures around the world as well as for students preparing to travel overseas. With Emirates’ generous booking policies, customers have the option to lock in these special fares and extend ticket validity for up to three years, enjoying greater flexibility and confidence when planning travel during unprecedented times.

Travellers in Sri Lanka can look forward to flight deals on all routes in Emirates’ global network, with return fares starting at only Rs 68,700 in Economy Class or Rs 257,500 in Business Class. These special seasonal fares are available for bookings made from 13 to 26 April 2021, and are valid for travel between 16 April and 30 September 2021*.

Featured destinations and starting Economy Class fares include: US$ 342 (about Rs 68,700 at current exchange rates) to Dubai, US$ 654 (about Rs 131,300) to Milan, US$ 644 (about Rs 129,300) to Paris, US$ 1,117 (about Rs 224,200) to New York, US$ 1,303 (about Rs 261,500) to Toronto and US$ 966 (about Rs 193,900) to Nairobi.

Special Business Class fares start at US$ 1,283 (approximately Rs 257,500) to Dubai, from US$ 3,127 (about Rs 627,600) to Milan, US$ 2,860 (about Rs 574,000) to Paris, US$ 3,618 (about Rs 726,100) to New York, US$ 3,654 (about Rs 733,300) to Toronto and US$ 2,179 (about Rs 437,300) to Nairobi. All fares in Rupees are subject to the rate of exchange on the day of purchase.

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