Access Engineering records phenomenal 83% growth in 1Q bottom line

Monday, 5 August 2013 00:19 -     - {{hitsCtrl.values.hits}}

Access Engineering PLC recorded an impressive growth in bottom line based on projections the company had for the three months ended 30 June 2013. As per the financial results released to the Colombo Stock Exchange, turnover for the three months ended 30 June 2013 stood at Rs. 3,152 million and Rs. 2,535 million, which was a growth of 13% and 20% at group and company level over the corresponding period. Highways construction, building construction, water and drainage construction have contributed most to the turnover at the company level. At group level, the company’s subsidiary Sathosa Motors PLC has contributed Rs. 581 million to the top line. The company’s fully-owned subsidiary, Access Realties Ltd. also contributed to the top line with a turnover of Rs.47 million. Stemming from the top line growth, the company’s pre-tax profit of Rs. 638 million and Rs. 564 million recorded a phenomenal growth of 64% and 83% at group and company level. The company also recorded an impressive profit attributable to equity holders of Rs. 2,382 million for the financial year ending 31 March 2013. Furthermore, turnover for the year ended 31 March 2013 recorded at Rs. 13,900 million and Rs. 11,447 million at group and company level is a growth of 90% and 64% respectively over the corresponding period. Based on the sound performance, the company declared a final dividend of Rs. 0.25 per share for the year ended 31 March 2013. This is in addition to the interim dividend of Rs. 0.25 per share paid in February 2013. This totals to a total dividend of Rs. 500 million paid to the shareholders for the year ended 31 March 2013. The total asset base of the group stood at Rs. 17, 277 million. Equity attributable to owners of the company was Rs. 13,037 million which translates into a net asset per share of Rs. 13.04. Based on the three months’ results, the annualised earnings per share of the group is Rs. 2.20. This makes the company’s share trade at an earnings multiple of approximately 9.18 times, which is an approximate 45% discount to the equity market earnings multiple of 16.58 as of 28 June 2013 as reported by the CSE.    Owing to the high investments taking place in the infrastructure sphere in the country and in view of the confirmed order book for the next two to three years, the company can look forward with confidence to the sustainability of its growth in the short to medium term while the Board of Directors and management have given high priority to sustainable growth.  The Board of Directors of AEL comprises of Sumal Perera (Chairman/CEO), Christopher Joshua (Managing Director), Rohana Fernando (COO), Shevantha Mendis, Dharshana Munasinghe, Gration Fernando, Ranjan Gomez, Malik Ranas-inghe, Niroshan Gun-arathna and Alexis Lovell.