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Friday Apr 26, 2024
Tuesday, 22 July 2014 00:01 - - {{hitsCtrl.values.hits}}
Capital Alliance Ltd. (CALT), a primary dealer in Government securities recorded an impressive profit after tax of Rs. 331.9 million for the financial year of 2013/2014.
This year’s financial performance showed a 17% increase in profitability from the previous financial year which helped CALT maintain its position as a dynamic leader in the trading sphere. CALT’s ability to refocus business and management strategies and maximise on opportunities in an extremely active trading climate resulted in the company achieving higher capital gains and momentous growth.
The company’s total assets were valued at Rs. 5.13 billion, an 8% rise from the previous financial year. Earnings per share were recorded at Rs. 22.12 and increased by 17%. Total shareholder’s funds were recorded at Rs. 1 billion with an increase of 27% over the previous financial year. Due to a turbulent financial year and the challenges of QE tapering, markets were in shock and only recently recovered. Despite a tough economic climate and various ongoing challenges, CALT delivered a consistent financial performance that exceeded expectations.
CALT Chief Executive Officer Gehan Hemachandra completed his first tenure as CEO of the company this year. Some of the key changes he implemented included revising the company’s strategic focus and developing CALT’s dynamic marketing and dealing teams.
Commenting on the measures taken to strengthen CALT’s operational prowess, he stated: “People are at the core of CALT’s business operations and the company invested in recruiting high performing professionals to head our marketing and treasury divisions. We developed a new marketing team from scratch and recruited senior management to ensure the growth and development of the division. Thereafter, both our marketing and dealing teams performed exceptionally and their efforts contributed significantly to our high financial performance this year.”
Under new rules created by the Colombo Stock Exchange (CSE) the company became the first-ever primary dealer to obtain a debt-broker license from CSE, the new license has enabled CALT to significantly diversify income revenues.
CALT was initially focusing on the government securities market and is now applying the same model in the corporate debt space. Corporate debt trading is a market that is still in its infant stages and although it will face many challenges, it also has great potential for growth. Due to a burst of activity in corporate debt, aided by interest rate fluctuations, CALT is now developing corporate debt trading into a vibrant secondary market.
Capital Alliance commenced operations in 2000 and began dealing in fixed income securities and corporate finance advisory services. The company has become a dominant force in trading and developing financial services and has acquired an impressive client portfolio.
In 2003, CALT was issued with a primary dealer license from the Central Bank of Sri Lanka (CBSL). Thereafter in 2013, the company was appointed as Sri Lanka’s first registered debt dealer in the primary dealer category. With an innovative and assertive approach to trading, CALT continuously capitalises on market trends and developments to secure high returns for its diverse client base.
As one of the six non-bank licensed primary dealers in the country, CALT is authorised to distribute fixed income securities to all investor categories including individual, corporate and institutional investors in Sri Lanka.
CALT has gradually evolved into a multi-faced organisation offering a sophisticated selection of structured government debt-based instruments including Treasury bills, Treasury bonds, agreements and reverse purchase agreements, corporate debt, leveraging and interest rate swaps. As the company looks ahead to the future, it remains committed to delivering excellence and maintaining its position as the leading secondary market dealer in the country.
Capital Alliance Ltd. is part of the CAL Group which also includes Capital Alliance Partners (CALP, the company’s corporate finance arm which specialises in investment banking, fund management and securities broking).
The group also includes Capital Alliance Securities (an equity brokerage firm), Capital Alliance Investments (a fund management firm), Capital Alliance Finance PLC (a leasing company) and the Ceylon Tea Brokers PLC.
All CAL business units leverage the strength of the group to deliver integrated and customised solutions for diverse clientele. The CAL Group comprises a dynamic team of individuals with extensive local and international market experience. Since its inception in 2000, the CAL Group has built a reputation for itself as a market leader, capable of continuously meeting client expectations and delivering excellence in research, ethical dealing, confidentiality and product innovation.
