JKH ends FY 11 with best results

Sri Lanka’s premier blue chip John Keells Holdings (JKH) yesterday reported outstanding performance for Financial Year 2011, with consolidated pre-tax profit up by 63% to a whopping Rs. 10.6 billion and bottom line higher by 59% to Rs. 8.24 billion despite the latter suffering a slip in the fourth quarter largely on account of higher capital gain in corresponding period of 2010 FY.

As per interim results released yesterday, JKH had achieved a 26% increase in Group revenue to Rs. 60.5 billion whilst gross profit had improved by 23% to Rs. 13.6 billion. Profit tax before tax crossed the Rs. 10 billion mark to end at Rs. 10.62 billion, reflecting a high 63% increase.

Other operating income had increased by 22% to Rs. 6.1 billion whilst change in fair value of investment property had brought in Rs. 468 million and a 3% increase in share of associates results to Rs. 2.6 billion.

The 2010/11 accounts also include Rs. 1.3 billion capital gain arising out of the sale of 11.6 million shares in Asian Hotels and Properties for Rs. 2 billion and Rs. 500 million on sale of 37.5 million shares in John Keells Hotels for Rs. 800 million.

During the year JKH Group had managed its administrative expenses with it increasing by only 3% to Rs. 7.4 billion whilst distribution expense rose by 17% to Rs. 2.4 billion.

                         

A 42% dip in finance expenses to Rs. 796 million had also helped to boost pre-tax profit figure.

JKH’s tax expenses had increased by 59% to Rs. 1.56 billion, bringing the post-tax profit figure to Rs. 0.06 billion in 2010/11, up by 63% from Rs. 5.5 billion a year earlier. Profit attributable to equity holders rose by 59% to Rs. 8.24 billion.

In the fourth quarter the bottom line however had declined by 10% to Rs. 2.55 billion whilst post-tax profit was down by 3% to Rs. 2.9 billion. This was after tax expense had increased to Rs. 374 million in 4Q from Rs. 158 million a year earlier.

Group pre-tax profit in the fourth quarter was up 4% to Rs. 3.3 billion despite FY 4Q results other operating income being down by 40% to Rs. 1.08 billion from Rs. 1.8 billion. The latter figure was high in 4Q of 2010 on account of an estimated Rs. 940 million capital gains arising out of the sale of Rights in Keells Hotels. Share of associates’ results had dipped by 18% to Rs. 522 million.

However, top line in the 4Q had seen robust growth of 29% to Rs. 18 billion whilst gross profit had increased by 17% to Rs. 4.3 billion.

In 2010/11 FY, all key sectors of JKH had reported impressive increase in pre-tax profits with transport delivering Rs. 3 billion up from Rs. 2.3 billion in FY2010, leisure Rs. 2.5 billion up from Rs. 1 billion, financial services Rs. 1.3 billion up from Rs. 868 million, property Rs. 831 million, up from Rs. 378 million, consumer foods and retail Rs. 579 million, up from Rs. 288 million and IT Rs. 114.4 million up from Rs. 13.6 million in FY 2010.

Group assets as at 31 March 2011 amounted to Rs. 110.3 billion, up from Rs. 98.6 billion a year earlier. Capital commitments approved and contracted as at the balance sheet date, but not provided for in financial statements amounted to Rs. 4.4 billion, (2010 Rs. 2.65 billion) and Rs. 451 million (2010 Rs. Nil) for the group and company respectively.

Earnings per share increased by 54% to Rs. 13.01 and Cash earnings per share increased by 30% to Rs. 15 whilst total shareholder return was 56.8%. Return On Capital Employed (ROCE) was 14.7% compared to 10.8% in the previous year and Return On Equity (ROE) was 15.1% compared to 10.9 % in the previous year. Net assets per share as at 31 March 2011 was Rs. 94.63, up from Rs. 79.14 a year earlier.

JKH announces 3 into 4 share sub division; Re.1 final dividend

Premier blue chip John Keells Holdings (JKH) yesterday announced a sub division of its share on the basis of three into four and a one rupee final dividend for 2010/11 financial year.

Post sub division, JKH’s number of shares in issue will increase approximately to 839.73 million from 629.8 million as at present. The move is subject to shareholder approval at the EGM fixed for June 24.

With the final dividend, the full amount for 2010/11 is Rs. 3 per share, same as in the previous year. Payment of the final dividend is 9 June.               

JKH announces

Results (see main story) of JKH were announced after the market was closed, hence investor reaction to the performance couldn’t be assessed. However JKH’s announcement of three in to 4 sub division of its share and one rupee final dividend originally saw the share price rise to Rs. 304.90 from Thursday’s close of Rs. 299. Profit taking saw JKH close down by Rs. 1.20 to Rs. 297.80 with only 0.65 million shares traded.