Commercial Credit and Finance notches Rs. 1 b profits in 1H

Friday, 14 November 2014 01:56 -     - {{hitsCtrl.values.hits}}

Commercial Credit and Finance PLC, one of Sri Lanka’s leading finance companies has reported better than expected first six months in 2014-15 with a 191% increase in post-tax profits. Profits from the first six months increased from Rs. 345 m to Rs. 1 b. Profit After Tax (PAT) increased to a commendable Rs. 514 m in the three months ending September 2014, from Rs. 172 m a year ago. The results reflect the 87% increase in Net Interest Income in the quarter to Rs. 1.6 b. The quarter’s results also positively impacted the company’s six months results, with Net Interest Income growing to Rs. 3.2 b, up 87%, while PAT rose 191% to cross the Rs. 1 b mark. Total assets of the company notched up to Rs. 41 b as at 30 September 2014, up from Rs. 32 b as at 31 March 2014. The boost to assets came from growth in Loans and Advances moving up at a healthy pace of 7.4% to close the quarter from 31 March 2014 to 30 September 2014 at Rs. 18.4 b. Lease rentals receivable and stock out on hire showed more robust growth with a 31% increase to Rs. 11.4 b, up from Rs. 8.7 b six months prior. Continuing with the current wave of performance, the company expects to report significantly improved earnings in the next six months compared to the corresponding period in the previous financial year. During the first six months of the current financial year, fuelled by the satisfactory level of liquidity, Company expects to accelerate investments. In the quarter, Commercial Credit and Finance PLC acquired 55,037,157 Ordinary Voting Shares (Representing 96.89%) of Trade Finance and Investment PLC (TFI) on 4 August at a price of Rs. 28 per share at a value of over Rs. 1.5 b. Subsequently a mandatory offer was made to buy up the remaining shares and closed on 14 October. At the end of the mandatory offer, the company held 98.34% of TFI shares. The Board of Directors of Commercial Credit and Finance PLC decided to acquire the remaining 1.65% of the shares as per the provision in the Company’s Act.