Business
Extraordinary impairment charges drive Ceylon Tea Brokers into the red
Company however able to declare a modest dividend
Ceylon Tea Brokers PLC, listed on the Colombo Stock Exchange as the first standalone tea broking company in 2010, has reported a negative bottom line in the year ended Mar. 31, 2020, despite posting an overall performance its chairman, Mr. CPR Perera, saw as encouraging in the face of lower production and declining tea prices.
The loss was the result of an extraordinary impairment charge of Rs. 119.85 million (Rs. 21.45 million the previous year), on account providing for loans and advances to tea suppliers in accordance with SLFRS standards. This has been charged to the company’s marketing expenses of Rs. 133.3 million.
“This had a significant impact on the company’s bottom line (down to a loss of Rs. 62.5 million from a profit of Rs. 21.54 million the previous year) resulting in a much lower PAT compared to 2018/19,” Perera said.
However, the company’s tea business had posted a profit of Rs. 21.5 million during the year, down from Rs. 115.3 million a year. Despite the negative bottom line, the directors have proposed a modest dividend of eight cents per share against the previous years 35 cents per share involving a payout of Rs. 14.5 million absorbing 67.75 of the distributable profit.
Perera reported that they had done well to post a 18% increase in the volume of tea it handled in the year under review although the value of the tea marketed had shown only a marginal increase on account of the decline in tea prices during the year.
Ceylon Tea Brokers’ fully owned subsidiary, Logicare (Pvt) Ltd. had commence operations during the year. This company operates state-of-the-art warehousing complex providing over 12,000 pallet locations. It primary caters to the warehousing requirements of the parent’s producer clients adding value at both ends of the supplier chain.
“With state-of-the-art infrastructure, modern equipment, cutting edge technology and a team of expert, Logicare is equipped as one of the best one-stop logistic service providers with a strong ability to serve various industry verticals,” Perera said.
“During the year under review Logicare partnered with some of the leading companies in Sri Lanka as well as Multi-national corporations as their strategic 3PL (third party logistics) service provider covering various industry verticals such as FMCG (fast moving consumer goods), apparel, stationary, telecommunications and e-commerce.”
He was confident that this company, in the context of the growing demand for 3PL services globally, would significantly contribute to group revenue and profitability in the future.
The company’s CEO/Director Waruna de Silva explained that the impairment charges arose from some tea producers scaling down operations of account of lower production and operations but on a positive note, a few factories that have closed down had re-opened.
Ceylon Tea Brokers origins go back to 2005 when the Captal Alliance Group acquire the long established produce broking firm of De Silva, Peiris and Abeywardena subsequently listing it on the CSE.
The company’s major shareholders are Ashthi Holdings (Private) Ltd. (30.39%), Mr. WAT Fernando (26.78%), Jetwing Travels ( 18.68%), Ms. Shiromal Cooray (5.98%), Associated Electrical Corporation (2.96%), and Mr. CPR Perera/Mrs. D. Perera (1.92%)
The directors of the company are: Messrs. CPR Perera (Chairman), RJN de Mel (Deputy Chairman), WAT Fernando (MD), DGW de Silva (CEO), KHS Deshapriya (COO),Ms. Shiromal Cooray,, HMS Perera, BRL Fernando, DH Madawala, KAD Fernando, HTD Nonia and Z Mohamed.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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