The highlights of the year ended March 31, 2011 shows that the group which is into retail, financial services, healthcare, information and communication technology, travel and leisure and automobiles had posted spectacular results in the year prior to its listing on the Colombo Stock Exchange.
Group revenue was up 122% to Rs.10.79 billion, profit before-tax up 84% to Rs.1.9 billion and profit after-tax up 528% to Rs.970.8 million and the profit attributable to equity holders of the parent was Rs.829.2 million, up 438% from the previous year.
The group’s Chairman, Mr. Ashok Pathirage, said in the annual report that Softlogic had leveraged on opportunities that presented themselves through the year under review "positioning ourselves for a phase of expansion and consolidation of the existing lines of business."
"Our solid experience in the retail sector and the entrepreneurial culture within the group enabled us to identify valuable opportunities and to form excellent business alliances during the year, further strengthening the group’s balance sheet," Pathirage said.
Against the backdrop of post war macro economic growth, Softlogic had acquired controlling interest of the Asiri group of hospitals and Capital Reach Holdings Limited now re-branded as Softlogic Capital which was listed on the CSE last week.
"We successfully strengthened our market share in the diversified sectors of retail, healthcare, information and communication technology, financial services, automobiles, and travel & leisure sectors in 2010/11," Pathirage told his shareholders.
They were now number one in private healthcare with the most number of beds in the country. The Asiri group of hospitals had posted record profits with the gross profit from the healthcare alone increasing 27% to reach Rs.2.2 billion, Pathirage said.
He revealed that they are on track to meet the target of opening 150 retail outlets by December this year and 250 by December next year.
"These well-appointed showrooms will showcase the world’s best brands in consumer electronics, branded apparel and furniture. Softlogic has built up a vast network of partnerships with reputed global brands, acquiring distributorships for some of the most high profile retail brand names in the world over the years – and these will find pride of place in our showrooms," Pathirage said.
The group recently took control of Asian Alliance Insurance PLC with Pathirage saying that having this company under their banner offers perfect synergies with existing business lines such as financial services, healthcare and automobiles.
The group is the authorized Ford dealer here and also handles the Daihatsu agency.
The year under review saw Nokia maintaining its market leadership of mobile phones selling 767,325 hand sets against the previous year’s 370,390.
The group has also aggressively entered the leisure sector with the takeover of Hotel Sea Sands in Bentota last year. The hotel will be closed for a year from October to be re-launched as what Pathirage called "a world class beach resort and spa under Centara International management in time for the peak winter season next year."
"The beachfront property will be extensively developed and transformed into a luxury 4-star plus resort with 160 well appointed world-class rooms and a full suite of amenities. Guests will have access to both the sea and the lagoon, and water sports will feature heavily in the hotel’s recreation options," he said.
The group has also finalized plans for a 24-storey, 220-room five-star city hotel in Colombo’s business centre in partnership with Movenpick, one of the world’s leading hotel chains.
Pathirage said that their business portfolio "has great balance, with solid cash flows being generated from the healthcare sector."
Softlogic has a stated capital of nearly Rs.1.1 billion, capital reserves of Rs.684.9 million and revenue reserves of nearly Rs.1.3 billion with total assets running at over Rs.29.1 billion.
Non-current liabilities stood at Rs.4.1 billion and current liabilities at nearly Rs.18 billion according to the last published balance sheet.
Pathirage has the controlling shareholding of 50.23% followed by Messrs. H.K. Kaimal (10.08%), R.J. Perera (9.12%) and G.W.D.H.U. Gunawardena (8.91%).
Both Ceylon Investment PLC and Ceylon Guardian Investment PLC are substantial shareholders together owning slightly under 5% of the company.
Softlogic has net assets of Rs.4.75 per share and earnings per share during the last financial year was Rs.1.30. The company was listed on the CSE last July and had 142 shareholders in its register prior to the listing.
The directors of the company are: Messrs. A.K. Pathirage (Chairman/MD), G.W.D.H.U. Gunawardena, R.J. Perera, H.K. Kaimal, M.P.R. Rasool, S.A.B. Rajapaksa, Dr. S. Selliah, P.D. Rodrigo and P.L. de Alwis.