SMB Leasing to reduce stated capital via Rs. 628 m loss writeoff

Tuesday, 10 May 2011 00:42 - - {{hitsCtrl.values.hits}}

SMB Leasing Plc is to reduce its stated capital by writing off Rs. 628.6 million from the brought forward losses as at 31 December 2010.

The move subject to shareholder and regulatory approval will bring down the stated capital of SMB Leasing to Rs. 518.27 million from Rs. 1,146 billion.

The reduction will be without effecting any change to the number of issued and fully paid voting and non-voting shares in accordance with the provisions of section 59 of the Companies Act No. 7 of 2007.

SMB voting share yesterday closed unchanged at Rs. 1.90.

In 2010, SMB Leasing’s Group revenue dipped by 77% to Rs. 141 million whilst profit before VAT was down 81% to Rs. 46.5 million. Profit before tax was Rs. 47.5 million down from Rs. 84 million in 2009. Net profit attributable to equity holders was Rs. 46.7 million, lower in comparison to Rs. 93 million.

High networth investor Dr. T. Senthilverl owns over 20% stake in SMB Leasing which was originally part of Seylan Merchant Bank Group.