- PBT growth of a whopping 118%, revenue growth at 45%
- Major improvements in operating cashflow before working capital changes surpassing Rs. 1.39 b across the Group for the reporting year
- Repositioning and transformational initiatives working positively, propelling positive financial results across all subsidiaries
Sri Lanka’s leading medium-sized conglomerate reputed for its market dominance in the areas of financial services, manufacturing, real estate, technology and strategic investments, Ambeon Holdings PLC has recorded an impressive growth throughout the 2018/2019 financial year.
The diversified Group posted impressive financial results during 2018/2019, starting with the Holding Group posting a PBT of 1.25 billion for 2018/19, almost 118% growth when compared to its 2017/18 PBT of Rs. 571 million. The operating cashflow before working capital changes surpassing Rs. 1.39 billion was achieved during the reporting year when compared to Rs. 918 million, a growth of 52%.
The Group further recorded revenue surpassing Rs. 17.73 billion compared to that of Rs. 12.27 billion in 2017/2018, which was a whopping growth of 45%. Group Profit After Tax (PAT) was Rs. 864.5 million, a growth of 27% when compared to the Rs. 681 million recorded last year.
The manufacturing cluster comprising porcelain, textile and leather continued to lead the contributions with a healthy 62% towards the group revenues, followed by the technology cluster which accounted for 37% with financial services and strategic investments making up for the rest in a volatile market situation.
“Ambeon Holdings is now well poised and financially stable to compete amongst the elite conglomerates in the country,” stated Ambeon Holdings PLC Chairman A.G. Weerasinghe.
“FY 2018/19 marked the transformation of the Group in our journey to build on our foundation of re-engineering success. As a dynamic and diversified Group of Companies, Ambeon Holdings have reaped the benefits of positive transformation through its financial results as reported, which act as testimony to achievement. True to our commitment, we will continue our journey to enhance the overall wealth and value creation of our shareholders and all other stakeholders beyond ambition,” Weerasinghe concluded.
These impressive results in 2018/2019 came at the end of a financial year marked by renewal, as well as a number of future centric positive changes, that spanned the Group.
“In FY 2018/19, Ambeon Group embraced change and experienced extensive restructuring initiatives including efficiency building measures and market development initiatives along with collective focus on optimised investments thereby increasing shareholder value,” stated Ambeon Capital PLC and Ambeon Holdings PLC Group Managing Director/Chief Executive Officer Murali Prakash.
“We are pleased to state that our new positioning along with acquisitions in technology and financial sectors paved the way for greater growth and financial results during the year. I am proud to state that the Ambeon Group is now well focused and stable in all true sense – a conglomerate with diversified businesses, an expanded range of products, strong globalised local brands, premier technology and innovation platforms, positioned to extend its footprint across new businesses, markets and regions,” Prakash stressed.
The acquisition of Millennium IT ESP has steered the Group positively with greater penetration through the tech business. Acquired in December 2017, this financial year marks the company’s first full year of operations under the parent. Millennium IT ESP as a company contributed 37% towards the Group revenue during the year 2018/’19 proving the positive outcome of the Groups’ strategic decision to invest in the tech space and drive techno consumerism within the country and across the region.
Elaborating further, Prakash stated: “At Ambeon Group, we are constantly challenging ourselves to look beyond, catalysing future opportunities through readiness. Future oriented investments in technology, as witnessed by our acquisition of Millennium IT ESP has proved our intuition correct contributing positively towards our widely diversified portfolio. We also continue our focus on manufacturing with the view of being relevant for tomorrow as we have embarked on a journey of capacity and capability building in a digital era. The Group is now well poised and has grown to encompass a more technological footing backed by strong financial services with a view towards sustainability and future-proof business models.”
The 2018/2019 financial year also witnessed the revitalisation of the Porcelain sector, comprising Dankotuwa Porcelain PLC and Royal Fernwood Porcelain Ltd., contributing 12.3% towards overall Group revenue. Greater penetration in the distribution system along with product innovations such as the Ivory range and Diyas coupled with efficiency-based manufacturing process reengineering resulted in the positive results obtained. In addition to local market expansion, the Group’s porcelain companies also welcomed back old global partners from the US, thus taking pride in exporting Sri Lankan porcelainware to over 50 countries across the globe.
South Asia Textiles Ltd. perform admirably as the textile giant, which was acquired by the Group in 2012/13, has grown at a Compound Annual Growth Rate of 14% over a period of six years. South Asia Textiles contributed 47% towards overall Group revenue. Despite challenging market and economic conditions, streamlined and improved programs on speed and efficiencies, loyalty amongst existing customer base, maintenance of high-quality standards and ethical business practices saw the company grow impressively when compared to its previous results.
The leather subsidiary contributed 3% which was less than expected to the Group’s revenue basket owing to the decline in demand for leather products and accessories by the B2B market segment. Whilst the Property performed well with a healthy contribution, Financial Services and Strategic Investment businesses contributed marginally towards the Group’s revenue due to the volatile global and local market conditions leading to negative sentiments which impacted this business segment. However, as individual businesses, the respective companies’ results were subdued but posted positive results during the year.
Prakash highlighted the role of employees in the Group’s success so far. “Significant progress has been achieved in creating a more cohesive organisational structure built on the platforms of moving first, channelling teamwork, seeing beyond and actioning results as the core values. These are built on a robust platform firmly anchored onto governance, risk and compliance (GRC). Customer centricity is the ultimate objective of our value congruence thus we will continue to build sustainable business models for all stakeholders in the years ahead,” revealed Prakash.
Ambeon Capital PLC is the holding company of Ambeon Holdings PLC, while Ambeon Holdings PLC is a holding and management company. The subsidiaries of Ambeon Holdings PLC include Taprobane Capital Plus Ltd. (a leading financial services provider with a wealth of experience in capital markets in Sri Lanka), South Asia Textiles Ltd. (leading manufacturer of exceptional quality weft knitted fabric. The company also specialises in knitting, dyeing, finishing, printing, brushing, sueding and preshrunk fabric for leading global brands such as Victoria’s Secret, Next, Marks & Spencer, Tesco, Calvin Klein, Decathlon and Adidas), Dankotuwa Porcelain PLC and Royal Fernwood Porcelain Ltd. (manufacturers of porcelain tableware and gift items for global giants such as Oneida, Macy’s, Country Road, Lenox, John Lewis, Crate & Barrel, Megros, Jashanmal, Ralph Lauren, the Walt Disney Company and Dilmah), Ceylon Leather Products Ltd. (manufacturer of leather footwear and accessories), Millennium Information Technologies Ltd. (Sri Lanka’s leading information systems solutions providers delivering IT solutions for many industries; including banks and finance, telecommunications, apparel and leading conglomerates) and Colombo City Holdings PLC (real estate).
The Ambeon Holdings PLC Board of Directors comprises Chairman/Non-Independent Non-Executive Director A.G. Weerasinghe, Group Managing Director/Chief Executive Officer Murali Prakash, Non-Independent Non-Executive Director Ruwan Sugathadasa, Independent Non-Executive Director Mangala Boyagoda and Non-Executive Director Priyantha Maddumage.