Access Engineering assets top Rs. 4 b in successful 2009/10 financial year

To continue aggressive growth plan, enter new businesses and markets locally and overseas

Access Engineering Ltd. has completed a successful 2009/10 financial year with its assets topping the Rs. 4 billion mark and gross profit reaching a new high.

Group assets which amounted to Rs. 3.92 billion in 2008/9 financial year had grown to Rs. 4.38 billion in 2009/10 whilst at Company level it grew from Rs. 2.95 billion to Rs. 3.54 billion. Net asset per share improved from Rs. 23.64 to Rs. 30.03 at Company level. Retained earnings at Company level topped the Rs. 2 billion mark from Rs. 1.3 billion in 2008/9 as well.

Unlike some of its competitors and some other corporate, Access Engineering has managed to reduce its liabilities as well. Total liabilities had reduced to Rs. 619.5 million at Group level from Rs. 636.7 million in the previous year whilst those of the Company declined from Rs. 595 million to Rs. 541.4 million.

Group turnover amounted to Rs. 3.17 billion, though down from Rs. 3.4 billion in 2008/9 whilst profit before amounted to Rs. 988 million, marginally lower in comparison to Rs. 983 million. After tax profit was Rs. 850.3 million, down from Rs. 868 million whilst net profit attributable to equity holders was Rs. 807.6 million, down from Rs. 858.5 million. The 2009/10 performance was on top of Access Engineering’s best results achieved in 2008/9.

The decline in turnover and net profit is a result of the billing cycle of certain projects, which will be reflected positively in the 2010/11 financial year, Access Engineering said.

“From humble beginnings, this company in a short time frame emerged as one of the most dynamic and progressive entities in the field of engineering in Sri Lanka. Our achievements thus far would in all probability be more than enough for most companies but certainly not for us because Access Engineering is manned by one of the most dynamic teams in the country for whom raising the bar continuously is habitual,” said Chairman Sumal Perera, in his review in the Company’s 2009/10 Annual Report.

According to him Access Engineering’s short and long term goals remain the same as the Company will nurture its strengths and improve competencies permeating this to strengthen existing business units.

“We also aim to continue our aggressive growth plan, entering vital new businesses and markets with innovative value engineered products and services,” Sumal added.

This confidence stems from the fact that post-war Sri Lanka economy is at a very significant juncture and infrastructure development is taking place at an unprecedented pace, the Chairman noted.

“We believe that Access Engineering is well poised to be in the forefront of this development,” he added.

It was pointed out that the performance of the company in 2009/10 is clearly aligned to this and demonstrates Access Engineering’s ability to consistently perform for the benefit of its all stakeholders whilst being able to take up the challenges and opportunities that arise in this new era.

“Today we are a recognized force in numerous areas. Plans of consolidating these and expanding even more into other areas are made with supreme confidence in our ability to succeed. While ten years ago this gung ho mentality and the ensuring success would have been difficult to fathom, I do know that in the next decade all these traits are simply a part of our DNA and challenges are simply opportunities for us to succeed,” the Chairman stressed.

Joint Managing Director Ranjan Gomez in his review said that Access Engineering had surpassed all expectations not just financially but also in providing high quality engineering services in infrastructure development projects carried out by the state as a postlude to the conclusion of the 30 year long war.

Joint Managing Director and CEO Christopher Joshua said that in 2009/10 construction industry began seeing momentum with the emphasis showcased via major infrastructure development projects, funded primarily with bilateral funding an executed by international contractors, which did have cascading spillover advantages for the local construction industry.

“For our company due to the unprecedented growth posted during the past few years, 2009/10 saw us face fresh challenges compelling us to push boundaries to maintain our leadership and dynamism as one of the leading civil engineering companies in the country and consolidating our position within the industry. This energized us to focus constantly on venturing into progressive business areas within our core business in order to strengthen our position,” Joshua added.

According to him Access Engineering’s joint venture partnerships with international contractors continued its upward growth curve, continuing to contribute substantially towards the Company’s bottom line.

Chief Operating Officer and Director Rohana Fernando said that with Access Engineering grading as a C1 contractor in seven of eight major disciplines of civil construction by ICTAD, the company’s focus in diversifying in existing business portfolio in order to further consolidate leadership position is additionally augmented. This has gained more fillip with Access Engineering’s piling unit obtaining P1 grading.  Access is the first civil engineering firm to obtain ISO 14001 certification.

He said that in addition to tapping new opportunities in emerging markets of North and East provinces, Access Engineering is currently investigating potential for business in overseas as well.

During 2009/10, among projects completed by Access Engineering were the Dehiwela Flyover, in partnership with Mabey and Johnson from UK, Mannar-Thalaimannar road, and the Kadawatha Town Development project.

Access also made significant progress in its water sector operations too with projects in Hambantota and Batticaloa in partnership with China Geo-Engineering Corporation of China and Salcon Engineering Berhad of Malaysia. ADB funded Unnichchai Tan Augmentation project which rehabilitated and reconstructed the Unnichchai Tank to provide drinking water for the people of Batticaloa and suburbs. This was in partnership with China Geo-Engineering Corporation.

Access Engineering is also involved in rehabilitation projects based within the newly liberated Northern and Eastern provinces. One of these is the French Government funded Batticaloa-Trincomalee road project in partnership with China Harbour Engineering Corporation. Construction of the Aruvi Aru Bridge had commenced in 2009/10 as well.

The installation of approximately 200 kilometres of fibre optic cable for Sri Lanka’s premier mobile service provide within the Colombo metropolitan areas and the Southern Province is continuing as planned, Access Engineering said.

Board of Directors of Access Engineering comprises Sumal Perera (Chairman), Ranjan Gomez (Joint Managing Director), Christopher Joshua (Joint Managing Director and CEO), Rohana Fernando (Chief Operating Officer), Dilhan Perera, Dharshana Munasinghe, Shevantha Mendis and Gratian Fernando.