• Rise of 11.4% in revenue mainly attributed to the hotel industry (+25.2%).
• Segmental revenue analysis:
• Marginal increase of 1.2% in net profit for the quarter ending March 2018.
• Segmental PAT analysis:
• EPS fell by 5.4%.
• Net cash generated from operating activities dropped significantly by 66.8%.
• Net cash used in investing activities decreased by 72.8%.
• During the quarter, the Group converted all its Redeemable Convertible Non-Voting NMH Preference Shares into ordinary shares resulting in a shareholding of 22.9%.
• Ascencia acquired the 15% minority shareholding of Bagaprop in exchange for the issue of new Ascencia class A shares to Atterbury Mauritius Consortium (Pty) Ltd, following which Ascencia owns 100% of Bagaprop.
Quarterly Earnings news – United Basalt Products LTD
• Revenue increased by 8.13% with main contribution from the building materials from the retail segment (+11.5%)
• Operating profit dropped significantly by 78.3% due to the poor performance of the building materials from the core and retail business. This could be attributed to projects sales and significant stock clearance actions as well as an increase in administrative and selling expenses.
• Net profit reduced by 61.6%. This is attributed to production-related costs incurred due to bad weather conditions prevailing since the beginning of the year in the country. To ensure adequate supply and satisfy customer needs, additional transport costs between various production sites were incurred. The increase in effective tax rate during the period under review also had adverse impact on the Group’s profit.
• Adverse impact of exceptional severance allowances paid to retiring employees and legal fees incurred in relation to our case at the Privy Council.
• Losses reported by subsidiary operating in Madasgascar due to increase in production costs and the unavailability of raw-materials while in Sri Lanka our subsidiary restarted its operations in March but the net result for the period under review was still loss-making.
• Net cash flow generated from operating activities increased by 34.4%.
Segmental revenue information
Segmental operating profit:
Following the announcement of several major projects in the construction industry for 2018, the Group remains confident about the medium and long-term promising future performance of the business which remains dependent on the level of investment in property development.
The only fear is the delay concerning the realization timing of such projects.
Earning News – ABC Motors Company LTD
• Revenue dropped by 22.6% to stand at Rs 356m.
• Operating profit declined significantly by 65.4%.
• Net profit fell by 68.6% to settle at Rs 7.84m.
• EPS share fell by 69.3% from Rs 4.04 to Rs 1.24.
• Net cash flow used in operating activities increased by 267%.
• NAV per share rose by 7.85% to stand at Rs 124.26.