Ambeon Group triples pre-tax profit to Rs. 286 m in FY18

Leading multi-discipline diversified conglomerate, the Ambeon Group yesterday reported remarkable and sustained growth throughout the 2017/2018 financial year.

Overall, Ambeon Capital PLC posted impressive financial results during 2017/2018, starting with the Company’s PBT of Rs. 286 million for 2017/18, which was almost thrice its 2016/2017 PBT of Rs. 102 million. Even more noteworthy is that the Company’s PAT was Rs. 372 million compared to a loss of Rs. 23 million only a year prior.  The total comprehensive income for the Company for 2017/2018 was Rs. 907 million, which was more than four times that of the year before, wherein earned income was Rs. 224 million.

Its main subsidiary, Ambeon Holdings PLC’s total comprehensive income climbed to Rs. 1.1 billion, which was more than double the profits that were incurred in 2016/2017, which was Rs. 494 million.  An annual profit before tax (PBT) of Rs. 571 million this year was also posted, which was a significant increase over the Group’s PBT of Rs. 367 million in 2016/2017. Further, the Group’s profit after tax (PAT) more than doubled to Rs. 670 million in 2017/2018. This is in comparison to the Group’s PAT of Rs. 263 million achieved last year.  Ambeon Holdings further recorded revenues of Rs. 12,272 million in 2017/2018, which was a growth of 14.04% over the corresponding period in 2016/2017. 

These impressive financial results in 2017/2018 came at the end of a financial year marked by renewal, as well as a number of positive changes, that spanned the Group. The biggest milestone for the year was undoubtedly the acquisition of Millennium Information Technologies Ltd. (MillenniumIT ESP), which has already contributed Rs. 1.5 billion in revenues and a healthy PBT to the Group.

Excitingly, the acquisition has helped accelerate the Group’s international growth strategy, positioning it ideally to take full advantage of global opportunities posed by fintech and other enterprise businesses by creating a world-class brand portfolio.

 “We are pleased that our extensive restructuring initiatives continue to lead to exceptional financial results. This is particularly apparent with the Group’s acquisition of MillenniumIT ESP, which is a direct outcome of our strategic decision to invest in the tech sector and drive techno-consumerism within the country,” Ambeon Capital PLC and Ambeon Holdings PLC Group Managing Director/Chief Executive Officer Murali Prakash said.

He added: “These future-oriented investments in technology, as witnessed by our acquisition of MillenniumIT ESP, will extend our already widely diversified portfolio. Our overarching goal is to remain a catalysing force for positive change across our business units with an eye toward the industries in which we wish to participate. The Group is now well-poised and has grown to encompass a more technological footing with a view towards tomorrow.” 

The 2017/2018 financial year also witnessed a revitalisation of Dankotuwa Porcelain with the opening of its new signature showroom, along with a wide-ranging rebranding for DI, the leader in the leather and fashion footwear industry, both of which fall under the Group’s main Ambeon Holdings PLC. In fact, Dankotuwa Porcelain and DI, both iconic Sri Lankan brands, have been optimised to better compete against international brands within the domestic and global marketplaces. In particular, Dankotuwa Porcelain, a strong and well-recognised Sri Lankan export brand, has already benefited from improved design elements, the addition of decals and decorations and even the introduction of new and innovative shapes.”

 “Along with our future focus, we still intend to be prepared for today with a wide overhaul and re-positioning of key brands in our portfolio, allowing them to better compete in a more globalised world. Our continued investment in the respective manufacturing sectors ensures that we maintain our coveted market leadership - even giving us the tools needed to keep leveraging these brands into new markets whenever international opportunities arise,” said Prakash.

In addition, 2017/2018 saw Ambeon Holdings PLC subsidiaries South Asia Textiles and Royal Fernwood perform admirably as well. 

South Asia Textiles Lanka Ltd., a leading manufacturer of exceptional quality weft knitted fabric while also specialising in knitting, dyeing, finishing, printing, brushing, sueding, and preshrunk fabric for leading global brands such as Victoria’s Secret, Next, Marks and Spencer, Tesco, Calvin Klein, Decathlon and Adidas, increased its year-on-year company revenue by 12%, while its 2017/2018 PBT far surpassed its prior results.

At the same time, Royal Fernwood Porcelain Ltd., too, showed excellent growth. The Company’s revenue grew by 11% year-on-year, with 2017/2018 PBT growth of 239% over the prior year.

Ambeon Holdings PLC recently declared its first interim dividend in several years - no better indicator that the Group’s major and strategic business transformation drive continues to be headed in the right direction, which is particularly underscored by the Group’s consistent and proven track record of financial success.

Prakash highlighted the role of employees in the Group’s success so far, and just a few of the initiatives undertaken by the Group to support them in return. 

“Significant progress has been achieved in creating a more cohesive and cleaner organisational structure geared towards moving first, channelling teamwork, seeing beyond and actioning results.  These corporate values have been additionally supplemented by HR systems to enable our employees to work better, faster and smarter. Systems are in place to empower our people to be astute, driven, nimble and visionary, enabling the Group to always remain at the forefront as an employer of choice. This includes better compensation and benefits for our loyal and dedicated employees, with professional benefits such as substantial training programs encompassing industrial exposure, etc., thrown in for good measure,” revealed Prakash.

The Ambeon Capital PLC Board of Directors comprise of eminent personalities Sanjeev Gardiner (Chairman/Non-Independent Non-Executive Director), Ajith Devasurendra (Deputy Chairman/ Non-Independent Non-Executive Director), Murali Prakash (Group Managing Director/ Chief Executive Officer), Priyantha Fernando ( Independent Non-Executive Director), Harsha Amarasekera P.C. (Non-Independent Non-Executive Director), Ranil Pathirana (Non-Independent Non-Executive Director), Sarinda Unamboowe ( Independent Non-Executive Director), and Desamanya Deva Rodrigo (Independent Non-Executive Director), while the Board of Directors of Ambeon Holdings PLC include A.G. Weerasinghe (Chairman/Non-Independent Non-Executive Director), Murali Prakash (Group Managing Director/Chief Executive Officer), Ruwan Sugathadasa (Non-Independent Non-Executive Director), Mangala Boyagoda (Independent Non-Executive Director), and Priyantha Maddumage (Non-Executive Director).