Swisstek (Ceylon) PLC, a member of the CT Holdings PLC group of companies, has posted a group profit of Rs.25 million during the year ended March 31, 2012, up from a loss of Rs.12.2 million the previous year and appears to be on the road to recovery despite accumulated losses of Rs.147.4 million, down from Rs.199.2 million the previous year, in its balance sheet.
The company which under its previous name of Parquet Ceylon manufactured wooden flooring at its factory in Bellumahara is now mainly into the manufacture and sale of tile grout and tile mortar.
These products, now well established in the market, are expected to contribute handsomely to future profitability of the company, its Chairman, Mr. Anthony A. Page, has said in the recently released annual report.
He said that the company is now the market leader in the manufacture and sale of tile grout and mortar which are now its main line of business.
"The Swisstek range of products saw a continuous growth in demand during the year, which is a positive sign for the future. During the year, the company invested over Rs.45.5 million in a sand grinding plant to improve the quality and achieve higher yields in the manufacture of tile mortar and tile grout," Page said.
The year had seen the group topping Rs.1 billion turnover, an increase of 251% from Rs.0.31 billion reported the previous year and its subsidiary, Swisstek Aluminium Limited (formerly Ceykor Aluminium Industries Limited), had contributed significantly to the increase in group turnover.
Turnover of this subsidiary was up 218% to Rs.933 million during the year under review and Page said that it had seen a positive turnaround during the year as predicted.
"If not for increases in global aluminium prices and the unexpected level of depreciation of the Sri Lanka rupee towards the end of the financial year, even better results would have been possible," he said.
Swisstek Aluminium ended the year with a small loss of Rs.4.9 million against the previous year’s Rs.103 million loss and the group had closed the year with a net profit.
"It is significant to note the group profit of Rs.42 million in the last quarter, in spite of the steep depreciation of the rupee adversely affecting our imports," Page said.
With their tile grout and tile mortar products now well established, they are expected to contribute handsomely to future profitability of the company, he said. They also continued to offer imported timber such as Burma teak, Merbau, Pyinkado and walnut for flooring requirements in the local market.
The contribution made by this division during the year was encouraging and prospects remained good for the future as well, Page said.
The year had also seen the company introducing to the local market a new tile cleaner product under the Swisstek brand. This, together with Swisstek decorative pebbles is expected to generate additional revenue during the coming year.
"The company intends to continue investing in developing the Swisstek brand image," Page said.
He also announced that during the coming year Swisstek Aluminium will invest in the latest technology to powder coat aluminium profiles and also introduce to its range value added products such as wood-finish and bright-finish aluminium.
"Planned advertising and promotional campaigns are expected to enhance the profitability of the subsidiary in the coming year and contribute significantly towards healthy results and growth of the group," he said.
Swisstek at group level posted a profit after-tax of Rs.20.1 million while at company level the profit was Rs.25 million. Stated capital stood at Rs.368.3 million with reserves of Rs.354.4 million plus a general reserve of Rs.19.8 million.
On December 30, 2010 the company offered 16.42 million new ordinary shares to existing shareholders in the proportion of three new ordinary shares for every two existing shares at a price of Rs.15 per share infusing new capital of Rs.256.3 million into the company.
Lanka Floor Tiles PLC with 47.81% and Lanka Walltiles PLC with 11.48% followed by Mr. J.A.P.M. Jayasekera, MD/CEO of the company (6.81%) are the major shareholders. Lanka Floor Tiles and Lanka Walltiles are both members of the Ceylon Theatres group.
The directors of the company are: Messrs. Anthony A. Page (Chairman), J.A.P.M. Jayasekera (MD), Dr. S. Selliah and K.Y. Choi.