13-May-2013 Interim financial statements 31-03-2013

HAYLEYS MGT KNITTING MILLS Interim Financial Statements for the period ended 31-03-2013 have been uploaded on the CSE website.
http://www.cse.lk/cmt/upload_report_file/403_1368415274.pdf

HOTEL SERVICES (CEYLON)
http://www.cse.lk/cmt/upload_report_file/543_1368443535.pdf

HATTON NATIONAL BANK
http://www.cse.lk/cmt/upload_report_file/373_1368440829973.pdf

MERCHANT BANK OF SRI LANKA
http://www.cse.lk/cmt/upload_report_file/380_1368443747.pdf

REGNIS (LANKA)
http://www.cse.lk/cmt/upload_report_file/682_1368437973321.pdf

SINGER FINANCE (LANKA)
http://www.cse.lk/cmt/upload_report_file/1041_1368443644.pdf

UNION CHEMICALS LANKA &
http://www.cse.lk/cmt/upload_report_file/500_1368432055.pdf

UNION ASSURANCE
http://www.cse.lk/cmt/upload_report_file/450_1368437453.pdf
- Interim Financial Statements for the period ended 31-03-2013 have been uploaded on the CSE website.

May 13, 2013 (LBO) - Sri Lanka's Hayley's MGT Knitting Mills Plc, a knit fabric maker has cut losses 32 percent to 2.0 million US dollars in the March 2013 quarter and is expecting to turnaround this year.

The firm reported losses of one US cents per share, the firm said in interim accounts filed with the Colombo Stock Exchange.

Revenues rose 15 percent to 8.9 million US dollars and expenses rose at a slower 10 percent allowing gross losses to fall to 47 percent to 467,949 dollars.

Chairman Mohan Pandithage said the company was now focusing on customers who wanted higher value added products.

Administration expenses were reduced to 922,665 dollars from 2.0 million the previous year, which came partly from one off provisioning.

The troubled company is being turned around by new chief executive Rohan Goonetilleke who has made process changes which had reduced wastage, Pandithage said.

"The Order Book for the coming six months looks promising and I am confident that a turnaround is imminent during the ensuing year," he said.
http://www.lankabusinessonline.com/news/Sri_Lanka_knitting_mill_cuts_losses/1650280307

Most financial press reporting is misleading giving a fake positive spin to published results. MGT losses from operations up from 110Mn for Dec 12 quarter to 263Mn for March 13 quarter with a drop in top line as well. On top of that MGT has stated its LKR equity down by LKR 769Mn with a restatement of the Exchange fluctuation reserve. Overall Book value a share has lost 40%!
Share is chronically overvalued! Only savior now is of TJL wants to acquire it anywhere close to current market price!

HNB Group net profits fell 3.78 percent to Rs. 1.27 billion for the first quarter of 2012/13 from Rs. 1.32 billion a year earlier while at bank level, net profit fell 5.69 percent to Rs. 1.16 billion from Rs. 1.23 billion a year ago.

Profit before tax of HNB for Q1 2013 was Rs. 1.69 billion, down 7.14 from Rs. 1.82 billion recorded in Q1 2012 while group pre-tax profits stood at Rs. 1.81 billion, down 5.23 percent from Rs. 1.91 billion a year ago.

Commenting on the performance, Dr. Ranee Jayamaha, Chairperson of HNB PLC stated that HNB has recorded good firstquarter results despite challenging market conditions and sluggish credit growth.

However, with the expected turnaround, HNB is poised to take advantage of all opportunities available to grow its business.

"Q1 2013 continued to be challenging for the banking sector with demand for credit slowing down further, nevertheless HNB recorded a growth of 36 percent in interest income to Rs. 13,683 million in Q1 2013 from Rs.10,035 million in Q1 2012 due to 11 percent yoy expansion in its loan book and relatively higher rates of interest," the bank said in a statement.

Interest expenses too increased by 46 percent from Rs. 5,187 million in Q1 2012 to Rs. 7,584 million for Q1 2013 on account of the increase of Rs. 34 billion in the deposit base, which is a growth of 11 percent yoy as well as the higher rate of interest compared to the previous period and the shift witnessed towards high yielding deposits.

As a result, HNBs Net interest income witnessed a growth of 26 percent for Q1 2013 as against the corresponding period of 2012.

The net income from fees and commission recorded an improvement of 10 percent despite, slowdown in foreign trade during the period.

However, the Bank incurred a loss of Rs. 1,022 million, compared to the gain of Rs. 805 million made in 2012 on account of the revaluation of forward contracts and swaps. The gain made in 2012 was largely on account of the significant depreciation of the rupee witnessed during Q1 2012 while exchange rate volatility in the current period resulted in the loss due to revaluation of forwards and swaps. HNBs other operating income grew by Rs. 1,210 million during the first quarter of 2013 from a loss of Rs. 379 million during first 3 months of 2012 due to exchange gains/losses from non-derivative assets and liabilities. The fluctuation in the exchange rates as well as the change in composition of the Bank’s non-derivative assets / liabilities,resulted in the Bank posting an exchange gain in the current period compared to 2012.

With the implementation of SLFRSs the Bank replaced the CBSL time based provision with an impairment loss computed based on incurred loss model and accordingly the Individual impairment on individually significant loans improved by 27 percent while Collective impairment on individually insignificant loans increased by 119 percent for the Q1 2013.

Operating expenses for Q1 2013 increased by 12 percent primarily due to salary revision to all grades of staff, fair valuation of the liability under Employee Share Benefit Trust under SLFRS and increase in general charges.

Jonathan Alles, the Acting CEO of HNB PLC commented that he was happy with HNB’s performance in what could be termed a somewhat flat first quarter. He too stated that HNB had made good progress in technology and process enhancements and that the execution of the 2013/15 strategic plan is on course. The launch of Mobile Banking is one such initiative in 1Q2013 and is in line with HNB’s strategy to advance in technology with a view to maximize operational efficiency.

The price of the voting share of HNB improved by 13 percent during the first quarter 2013, with the price at Rs.167.30 as at end of the first quarter 2013 compared to Rs. 148.00 at the end of December 2012 while the non-voting share recorded a gain of 17.2 percent to Rs.131.80 from Rs.112.50 at the end of 2012.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=78950

May 14, 2013 (LBO) - Profits at Union Assurance Plc, a unit of Sri Lanka's John Keells Holdings rose 31 percent to 111.3 million rupees in the March 2013 quarter from a year earlier, helped by investment income and fair value gains.

The firm reported earnings of 1.30 rupees per share. The stock closed at 103.10, down 2.90 rupees Monday.

Gross written premium rose 11 percent to 2.66 billion rupees and net benefits and claims rose 20 percent to 1.8 billion rupees.

Investment income rose 13 percent to 592 million rupees and fair value gains were 51 million rupees compared to a loss of 171 million rupees last year.

Gross assets rose to 26.7 billion rupees in March 2013 quarter from 25.8 billion rupees in December. Net assets fell to 3.9 billion rupees from 4.3 billion rupees after paying a 375 million rupee dividend.
http://www.lankabusinessonline.com/news/Sri_Lankas_Union_Assurance_net_up_31-pct/791592032

The Merchant Bank of Sri Lanka PLC (MBSL), controlled by state banking giant Bank of Ceylon, saw group level losses contract during the quarter ending March 31, 2013 to Rs. 39 thousand, down 99.5 percent from Rs. 8.75 million a year earlier, interim financial statements filed with the Colombo Stock Exchange showed.

At company level, MBSL saw profits grow to Rs. 9.79 million during the quarter, up 18 percent from Rs. 8.29 million a year ago.

At group level, income grew to Rs. 1.36 billion from Rs. 918.8 million a year earlier. Net interest income amounted to Rs. 362.6 million, up from Rs. 349 million a year ago.

Total operating income amounted to Rs. 441.6 million, up from Rs. 350.11 million a year ago.

Group profits before income tax amounted to Rs. 15.83 million, compared to Rs. 7.8 million a year earlier. Income tax amounted to Rs. 15.87 million, down from Rs. 16.55 million a year ago.

MBSL group’s balance sheet grew by 20.9 percent year-on-year to Rs. 23.9 billion as at March 31, 2013.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=79022

Singer Finance (Lanka) PLC (SFL), a unit of Singer (Sri Lanka) PLC reported a net profit of Rs. 235.4 million for the year ended March 31, 2013, up 7 percent from Rs. 219.5 million a year earlier while profits fell 17 percent to Rs. 57 million during the March quarter.

Net interest income grew 9 percent to Rs. 811.2 million while total income grew 37 percent to Rs. 1,748 million, interim financial statements filed with the Colombo Stock Exchange showed.

Personnel costs fell 47 percent to Rs. 171.9 million while administration and selling expenses fell 2 percent to Rs. 437.2 million.

Impairment on loans receivables grew 579 percent to Rs. 62.5 million from Rs. 9.2 million while loan loss recoveries amounted to Rs. 7.2 million, up 193 percent from a year earlier.

VAT on financial services grew 39 percent to Rs. 16.15 million while income tax grew 29 percent to Rs. 90 million.

The company’s balance sheet grew by 7.27 percent to Rs. 7.23 billion as at end March 2013, from Rs. 6.74 billion a year ago.

Public deposits stood at Rs. 3.17 billion as at March 31, 2013, up from Rs. 2.64 billion a year earlier.

SFL’s borrowings fell to Rs. 1 billion from Rs. 1.21 billion a year earlier. Loans from related parties amounted to Rs. 661.65 million, up from Rs. 490 million.

Hire purchase receivables amounted to Rs. 2.18 billion, down from Rs. 2.3 billion a year ago. Finance lease receivables picked up to Rs. 3.45 billion from Rs. 2.46 billion and loans and advances amounted to Rs. 915.4 million, down from Rs. 1.37 billion.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=79021