Access Engineering 3Q net up 2.6%

Slow down in construction sector continues 

Diversified Access Engineering PLC saw its net profit for the quarter ended December 31, 2015 (3Q16) edging up 2.6 percent year-on-year (YoY) to Rs.544.8 million.
The earnings per share improved by just one cent to 54 cents.
A slow down in the country’s construction sector appears to have impacted the group’s performance in the period under review.
Reflecting this phenomenon, the top line of the group grew only 2.8 percent YoY to Rs.4.2 billion. 
The gross profit for the period rose 5.8 percent YoY to Rs.1 billion as the costs only grew 1.9 percent YoY to Rs.3.2 billion. 
Meanwhile, for the nine months ended December 31, 2015, the group’s net profit rose 6.7 percent YoY to Rs.1.82 billion.
The earnings per share improved 12 cents to Rs.1.83.
The group revenue for the period rose 10.6 percent YoY to Rs.13.1 billion.
A segmental analysis for the nine months showed the construction sector revenue falling to Rs.6.91 billion from Rs.7.53 billion YoY.

The post-tax profit of the sector, helped by higher finance income, rose to Rs.1.22 billion, from Rs.1.18 billion YoY.
The construction material production business of the group recorded healthy gains as the revenue rose to Rs.1.19 billion from Rs.810.4 million YoY.
The sector’s post-tax profit improved to Rs.298.4 million from Rs.271.8 million YoY.
The real estate arm of the group, Access Realties (Pvt.) Ltd, saw its revenue edging up to Rs.118.7 million from Rs.114.3 million. 
The post-tax profit of the sector stood at Rs.112.9 million, up from Rs.105 million YoY.
The group’s motor subsidiary Sathosa Motors recorded a revenue of Rs.2.73 billion, up from Rs.2.42 billion YoY and the profits rose to Rs.250.5 million from Rs.174.4 million YoY.
As at December 31, 2015, Access Chairman Sumal Perera held 25 percent of the issued shares of the company as the single largest shareholder of the company.
State-controlled private sector pension fund, the Employees’ Provident Fund, as the seventh single largest shareholder held 2.5 percent. 
Norwegian Central Bank, Norges Bank, as the 11th single largest shareholder, held a 1.65 percent stake. The bank didn’t feature among the top 20 shareholders as at September 30, 2015.