|Total no of shares||34,234,060||34,234,060||34,234,060||34,234,060|
Company recorded a Gross Revenue of Rs. 1.0 billion for the year as against Rs. 1.6 billion in the previous year, a drop of 35.9 %. This drop is due to reasons already explained earlier. Drop in revenue resulted in heavy under absorption of Factory overheads resulting in the Gross Profit dropping to 14.8 % in the current year. Other expenses increased sharply to Rs. 659.6 Million vs Rs. 63.7 Million in the previous year due to the impairment of Palla & Co. investment. Loss for the year was Rs. 647.5 Million as a result of the impairment of Palla and the drop in Revenue.
Ceylon Leather Products PLC - Group Results Group recorded a Gross Revenue of Rs. 6.9 billion for the year vs Rs 6.7 billion in the prior year, a growth of 3.4 %. This is in spite of the heavy drop in revenue at the Company level. The strong revenue growth at South Asian Textile Industries Lanka (Pvt) Ltd single handedly accounted for this growth. Group net profit for the year was Rs. 74.8million as against Rs. 120.0 million in the previous year. The strong Net Profit contribution from South Asian Textile Industries Lanka (Pvt) Ltd was negated by the loss at the Company level, which arose due to the Impairment of the Palla & Co Investment.
South Asia Textile Industries Lanka (Pvt ) Ltd (SAT) As mentioned in my last year’s message, South Asia Textile Industries Lanka (Pvt ) Ltd, successfully completed their Rights Issue of Shares. Consequent to the Rights Issue of shares Ceylon Leather Products PLC now owns 80.4 % of the Issued Share Capital of South Asia Textile Industries Lanka ( Pvt ) Ltd. These funds are being utilized for modernization of the Factory. Machinery is on order and the modernisation & expansion programme will be complete by third Quarter of 2015 – 16. SAT completed a very successful year recording a Turnover Growth of 20 %, and a Net Income of Rs 379.4 Million. The Net income attributable to Ceylon Leather Products PLC out of this amounts to Rs. 257.4 Million. We expect SAT to better this performance this year with the modernization of the Factory. They have started the year on a good note.