John Keells PLC, the produce and share broking company out of which the JKH conglomerate grew, has posted 44.68% profit growth to Rs.902 million in the year ended March 31, 2012 according to the company’s recently released annual report.
However, the profit includes Rs.581 million on account of a gain from the change in fair value of investment property, JKH (and John Keells) Chairman Susantha Ratnayake has said.
John Keells PLC own the Glennie Street headquarters of the group and is also into real estate in addition to their produce and share broking business and the running of the largest state-of-the-art warehousing complex in the country.
Ratnayake has said in his report that the year under review saw the Colombo share market reversing some of the gains made during the post war period and "settling down to some realistic valuations."
"This followed a speculative frenzy in the market that witnessed significantly higher trading volumes and active retail participation during the first half of the financial year," he said.
With the average daily market turnover levels declining by 32% during the year under review compared to a year earlier, John Keells Stockbrokers had reported lower turnover and profitability.
"The company however recorded a healthy improvement in market share with strong growth in the foreign segment," Ratnayake said.
John Keells Stockbrokers in which John Keells has a 76% holding saw its pre-tax profit dip sharply to Rs.171.4 million during the year from Rs.321 million a year earlier.
Produce broking also saw the PBT down to Rs.189.6 million from Rs.214.1 million while real estate increased to Rs.662.4 million from Rs.477.4 million.
John Keells has a stated capital of Rs.152 million and revenue reserves of Rs.2.4 million in its books. Total assets were running at Rs.3.63 billion, non-current liabilities at Rs.95.3 million and current liabilities at Rs.914.4 million.
JKH with 86.90% is the dominant shareholders with all other shareholders excluding Dr. H.S.D. Soysa with 1.02% owning less than one percentage point of the company.
The company’s share traded at a high of Rs.104 and a low of Rs.59 during the year under review closing at Rs.66.20. This compared with a trading range of Rs.371 to Rs.160 a year earlier when the share closed at Rs.185.20. A one for one bonus issue was made the previous year.
The directors of the company are: Messrs. Susantha Ratnayake (Chairman), A.D. Gunewardene, J.R.F. Peiris, R.S. Fernando, T. de Zoysa, K.D.W. Ratnayaka, Ms. Y.A. Hansen and Ms. S.T. Ratwatte.