Dunamis PLC records strong growth to post 9-month PAT of Rs. 992.4 m

Thursday, 19 February 2015 00:00 -     - {{hitsCtrl.values.hits}}

Dunamis Capital PLC has announced profits after tax of Rs. 992.4 million for the nine months ended 31 December 2014, a more than eight-fold improvement over the corresponding period of last year. The Group, comprising of First Capital Holdings PLC, Kelsey Developments PLC and Premier Synthetic Leather Manufacturers Ltd., attributed this noteworthy growth principally to the contribution of its financial services unit, First Capital Holdings PLC. Revenue for the nine months, at Rs. 2.46 billion was up 88%. Gross profit more than quadrupled to Rs. 1.4 billion and was supplemented by other income of Rs. 471 million, Dunamis PLC said in its provisional financial statements. Profit before tax recorded a seven-fold increase to Rs. 1,084 million for the period. Reviewing these results, the Group’s Executive Chairperson Manjula Mathews said after-tax profits of First Capital Holdings PLC were Rs. 1.09 billion compared with Rs. 263 million in the previous year. “The unit’s primary dealer arm remained the key contributor to profits. The continued decline in secondary market interest rates coupled with favourable macro-economic factors created trading opportunities which yielded exceptional returns,” she said. Kelsey Developments PLC, the property development arm of the Group reported consolidated after tax losses of Rs. 29 million for the period, compared with profits of Rs. 162 million in the corresponding period of the previous year, in which a one-off capital gain of Rs. 177 million had been realised. “The Company was unable to recognise any of the revenues attributable to its most recent housing development, ‘Templer’s Square’ but had to recognise a substantial part of the overheads due to the revenue recognition policy adopted, which resulted in losses,” Mathews said, but disclosed that Templer’s Square is expected to yield a profit of approximately Rs. 250 million over the next two years. “Kelsey has also entered into an agreement to purchase land in Negombo for a consideration of Rs. 487 million, on which the Company expects to launch a housing development within the first half of the next financial year,” she added. The Group’s most recent venture Premier Synthetic Leather Manufacturers Ltd reported operating losses of Rs. 66 million for the first nine months of 2014-15. “Since commencing commercial operations in June 2014 the Company has made steady progress in its sales efforts and we expect it to strengthen its distribution network and become a strong contributor to group profits in the coming years,” Mathews stated. The Board of Directors of Dunamis Capital PLC comprises of M. Mathews (Executive Chairperson) and Messrs D. Schaffter, N.E. Rodrigo, A.D.E.I. Perera, C.L. de Silva, S. Wickramasuriya and N.C. de Mel.