Ceylon Tea Brokers brews 130% rise in 1H net profit

Wednesday, 17 November 2010 01:37 - - {{hitsCtrl.values.hits}}

Ceylon Tea Brokers Plc has increased its net profit by a high 130% or Rs. 9.6 million to Rs. 17 million in the first half ended on 30 September, 2010.

Pre-tax profit more than doubled to Rs. 28 million from Rs. 12.5 million in the first half of 2009/10 financial year.

Apart from impressive growth in the bottom line, Ceylon Tea Brokers also reported healthy improvement in turnover which amounted to Rs. 126 million in the first half of 2010/11 as against Rs. 100.8 million a year earlier. Gross profit was Rs. 126 million, up from Rs. 100 million whilst profit from operations grew from Rs. 47.2 million to Rs. 68.3 million.

The Company had seen an increase in finance cost, from Rs. 34.7 million to Rs. 40.3 million.

Post Balance Sheet date; Ceylon Tea Brokers recently raised Rs. 50 million via an issue of 500,000 Unsecured Redeemable Two Year (2010-2012) Debentures at a par value of Rs. 100 each with interest payable bi-annually at 14%.

This was to further enhance the working capital of the Company enabling it to lend more funds to tea estates and factories which would facilitate an increase in the market share.

The total assets of Ceylon Tea Brokers amounted to Rs. 698.7 million (of which shareholders funds amounted to Rs. 158.4 million) as at 30 September, 2010, up from Rs. 610 million as at 31 March, 2010 and Rs. 542.5 million as at last year’s first half. Total liabilities grew to Rs. 698.7 million, up from Rs. 610 million as at 31 March, 2010 and Rs. 542.5 million as at 30 September, 2009. Current liabilities amounted to Rs. 519 million of which interest bearing borrowings were Rs. 286.3 million.

Ceylon Tea Brokers, 84% control of which is held by Capital Alliance, saw its share price peak to a highest of Rs. 4.70 during the quarter ended 30 September, whilst the lowest was Rs. 3.70 before closing the quarter at Rs. 4.30. Yesterday the stock traded at a high of Rs. 4.70 before closing unchanged at Rs. 4.40.

The Board of Directors of Ceylon Tea Brokers comprises C. P. R. Perera (Chairman), W. A. T. Fernando

(Managing Director), B. R. L. Fernando, R. E. P. Abeywardena, W. de Silva, N. T. M. S. Cooray, H. M. S. Perera, D. A. de Zoysa and M. J. C. S. Perera.