Project delays hurt Access 4Q net profits

25 May 2015 03:41 am - 0 - {{hitsCtrl.values.hits}}

A A A

The diversified group, Access Engineering PLC (Access), saw its net profit for the quarter ended March 31, 2014 (4Q15) falling by 20 percent year-on-year (yoy) to Rs.675.7 million, the interim financials released to the Colombo Stock Exchange showed.
The performance was weighed down by the group’s construction related segments. The earnings per share (EPS) deteriorated to 66 cents against 74 cents a year ago.
The leading infrastructure developer in the country during the previous regime, Sumal Perera-controlled Access appears to have lost its glory days since the new regime started reviewing all projects to ascertain their transparency.
From Rs.32.10 on December 31, 2014 Access share price has declined by Rs.11.10 (or close to 35 percent) until its last close of Rs.21.
The Group Managing Director, Christopher Joshua attributed the fall in profits to delays in project implementation and not necessarily linked to the regime change.
“The significant delay in the Kadawatha-Nittambuwa road widening project started under the previous government in 2013 has been a major drag on our company,” he said.
Asked if the company is making progress in forging positive relationships with the current regime, Joshua responded positively.
“Construction happens in cycles. So, going forward things will average out,” he added.
Joshua further said his group is not overly leaned towards state-sector projects as they have a well balanced order book with projects both from the private sector as well as the public sector.
“If you look at our order book, 50 percent of our projects are of the private sector and the balance is the public sector,” he remarked.
Meanwhile, for the year ended March 31, 2015 group net profits declined by as much as 20 percent to Rs.2.38 billion. The EPS was Rs.2.37 against Rs.2.83 a year ago.
The top line remained virtually flat at Rs.16.4 billion while the cost of sales rose by 3 percent to Rs. 12.57 billion leaving with a gross profit of Rs.3.86 billion, down 7.7 percent.
Other incomes were up 118 percent to Rs. 190.1 million.
Administrative expenses rose 19 percent to Rs.1.24 billion while other expenses more than doubled to Rs.110 million.
The segmental results showed that the performance of the construction segment and the segment involved in production of construction related material has weakened.
Construction segment net profit declined by 32 percent to Rs. 1.34 billion while the construction material segment’s net profit declined 21 percent to Rs.435.4 million.
The automobile arm, Sathosa Motors PLC saw its net profits edging down to Rs. 278.3 million from Rs.285.8 million last year, and according to Joshua the company underwent an internal restructuring during the financial year. Access Projects (Private) Limited, the recently acquired related party company made a Rs.155.7 million contribution to the group.
As of March 31, 2015 the Group Chairman, Sumal Perera held 25 percent of the stake in the group being the single largest shareholder.
The state-controlled private sector pension fund, the Employees Provident Fund held 1.54 percent stake of the company being the eleventh largest shareholder.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Project delays hurt Access 4Q net profits

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

SL on alert on possible genocide allegations by Canada

Sri Lankan among NASA’s new crew for next simulated Mars journey

Street food vendor arrested for verbally harassing foreigner

New Visa procedure implemented

Two racing drivers arrested over Fox Hill tragedy

Former MP Palitha Thewarapperuma dies from electrocution

MIRROR CRICKET

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

TODAY'S HEADLINES

SL took minimal steps to punish officials who committed human rights abuses: US report

Iranian President’s visit Sri Lanka withstands western pressure

25 tons of solid waste disposed along Sri Pada route

Temperature rises to ‘Caution’ level

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations