HIKKADUWA BEACH RESORT PLC. Interim Financial Statements Six months ended 30 September 2017

Transcription

1 `y HIKKADUWA BEACH RESORT PLC Interim Financial Statements Six months ended 30 September 2017

2 STATEMENT OF COMPREHENSIVE INCOME Quarter Ended 30th September Six months ended 30th September Increase / Increase / 2017 Unaudited Unaudited (Decrease) Unaudited Unaudited (Decrease) Audited Rs. Rs. % Rs. Rs. % Rs. Increase / (Decrease) % Revenue 67,745,429 66,481,326 2% 128,868, ,078,435 27% 304,803,988-58% Cost of Sales (18,297,570) (18,325,959) 0% (34,318,657) (27,971,353) 23% (66,512,717) -48% Gross Profit 49,447,859 48,155,367 3% 94,550,054 73,107,082 29% 238,291,270-60% Other Income 234, ,336-60% 1,328,251 1,133,721 17% 3,170,718-58% Administrative Expenses (23,860,929) (22,320,262) 7% (50,160,462) (43,470,049) 15% (96,204,317) -48% Operating Expenses (16,435,200) (12,238,110) 34% (32,234,740) (25,403,133) 27% (57,145,058) -44% Selling and Marketing Expenses (4,612,011) (3,009,463) 53% (8,594,554) (6,543,424) 31% (17,445,728) -51% Operating Profit/ (Loss) 4,774,414 11,179,868-57% 4,888,549 (1,175,803) -516% 70,666,885-93% Finance Income 24,830,888 18,406,183 35% 46,767,293 33,793,359 38% 81,679,835-43% Finance Cost (20,870,348) (12,014,615) 74% (37,623,395) (24,814,042) 52% (51,161,344) -26% Profit Before Tax 8,734,954 17,571,437-50% 14,032,446 7,803,514 80% 101,185,376-86% Income Tax Expense (6,711,422) (1,065,871) 530% (12,635,113) (5,232,254) 141% (22,794,917) -45% Profit for the period 2,023,532 16,505,566-88% 1,397,333 2,571,260-46% 78,390,459-98% Other Comprehensive Income ,106,587 Total Comprehensive Income for the Period, net of tax 2,023,532 16,505,566 1,397,333 2,571,260 79,497,046 Earnings per share - Basic (Rs.) Page 2 of 10

3 STATEMENT OF FINANCIAL POSITION Unaudited Audited ASSETS Rs. Rs. Non Current Assets Property, Plant & Equipment 931,156, ,779,220 Intangible Assets 157, ,677 Amounts due from Related Party 853,982, ,520,701 1,785,296,332 1,652,493,598 Current Assets Inventories 7,729,519 6,053,559 Trade and Other Receivables 159,926, ,574,098 Advances & Prepayments 8,887,494 10,618,827 Cash and Bank Balances 48,333,080 48,600, ,876, ,847,300 TOTAL ASSETS 2,010,172,776 1,857,340,898 EQUITY AND LIABILITIES Capital and Reserves Stated Capital 778,568, ,568,197 Revaluation Reserve 124,178, ,178,742 Retained Earnings 349,609, ,394,193 Total Equity 1,252,356,814 1,256,141,132 Non-Current Liabilities Interest Bearing Loans and Borrowings 259,920, ,080,000 Retirment Benefit obligation 9,407,114 8,598,211 Deferred Tax Liability 5,421,878 5,421, ,748, ,100,090 Current Liabilities Trade and Other Payables 157,105,645 55,040,042 Income Tax Payable 16,671,469 28,794,950 Interest Bearing Loans and Borrowings 309,289, ,264, ,066, ,099,676 TOTAL EQUITY & LIABILITIES 2,010,172,776 1,857,340,898 These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of (0) Signed.. D. C. A. Sandanayake Group Accountant The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by, Signed.. E. P. A.Cooray Chairman Signed.. S. A. Ameresekere Director 14th November 2017 Colombo Page 3 of 10

4 Hikkaduwa Beach Resort PLC STATEMENT OF CHANGES IN EQUITY 06 month ended 30th September 2017 Stated Revaluation Retained Capital Reserves Earnings Total Rs. Rs. Rs. Rs. Balance as at 01 April ,568, ,178, ,654,537 1,182,401,476 Profit for the year ,390,459 78,390,459 Other Comprehensive Income - - 1,106,587 1,106,587 Dividends Paid - - (5,757,390) (5,757,390) Balance as at 31 March ,568, ,178, ,394,193 1,256,141,132 Balance as at 01st April ,568, ,178, ,654,537 1,182,401,476 Profit for the period - - 2,571,260 2,571,260 Balance as at 30 September ,568, ,178, ,225,797 1,184,972,736 Balance as at 01 April ,568, ,178, ,394,193 1,256,141,132 Profit for the period - - 1,397,333 1,397,333 Dividends Paid - - (5,181,651) (5,181,651) Balance as at 30 September ,568, ,178, ,609,875 1,252,356,814 Page 4 of 10

5 STATEMENT OF CASH FLOW Period Ended Period Ended Unaudited Unaudited Rs. Rs. CASH FLOWS USED IN OPERATING ACTIVITIES Profit before Taxation 14,032,446 7,803,514 ADJUSTMENTS FOR Depreciation 17,526,497 16,664,746 Amortisation of Intangible Assets 36,543 36,543 Provision for Retirement Benefit Obligation 900, ,000 Finance Income (46,767,293) (33,793,359) Finance Cost 37,623,395 24,814,042 Operating Profit before Working Capital Changes 23,351,589 16,125,486 Increase in Inventories (1,675,960) (737,518) Decrease in Trade and Other Receivables 22,669,854 28,672,778 (Increase) / Decrease in Advances and prepayments 1,732,749 (2,158,071) Increase/(Decrease) in Trade and Other Payables 98,189,005 (153,360) Cash Generated from Operations 144,267,237 41,749,315 Finance Costs Paid (32,008,232) (24,581,292) Taxes Paid (24,758,594) (101,330) Gratuity Paid (91,096) (869,554) Net Cash from Operating Activities 87,409,314 16,197,139 CASH FLOWS USED IN INVESTING ACTIVITIES Acquisition of Property, Plant and Equipment (7,902,307) (21,590,747) Net Finance to Related Parties (142,462,183) 7,947,023 Finance Income Received 2,003,921 1,172,862 Net Cash used in Investing Activities (148,360,569) (12,470,862) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds From Interest Bearing Loans and Borrowings 34,912,500 - Repayment of Bank Loans (31,160,000) (27,901,068) Finance from Related Parties - 2,883,137 Dividend Paid (5,181,651) - Net Cash used in Financing Activities (1,429,151) (25,017,931) Net Decrease in Cash & Cash Equivalents (62,380,406) (21,291,651) Cash & Cash Equivalents at the beginning of the period (101,141,499) (21,600,502) Cash & Cash Equivalents at the end of the period (163,521,905) (42,892,153) Cash and Cash Equivalents comprise; Cash at Bank and in Hand 30,175,449 42,158,083 Bank Overdraft (193,697,354) (85,050,236) (163,521,905) (42,892,153) Page 5 of 10

6 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER Corporate Information Hikkaduwa Beach Resort PLC, is a public limited liability company incorporated and domiciled in Sri Lanka listed on the Colombo Stock Exchange. 02 Approval of Financial Statements The interim condensed financial statements of the company for the six months ended 30th September 2017 were authorised for issue by the Board of Directors on 14th November Basis of Preparation The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS) LKAS 34 - Interim Financial Reporting and also provide the information required by the Colombo Stock Exchange. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 March The company has adopted consistent accounting policies and method of computation as disclosed in the Annual Report for the year ended 31st March The Interim condensed Financial Statements are presented in Sri Lankan Rupees and all values are rounded to the nearest Rupee except when otherwise indicated. 6 Months Ended 6 Months Ended Year Ended 04 Share information Basic Earnings Per Share (Rs.) As at As at Net Assets Per Share (Rs.) / /17 2nd Quarter 2nd Quarter 4.3 Market Price Per Share (Rs.) Highest Lowest Closing Per Share information has been calculated for all periods, based on fully paid Ordinary Shares in issue as at 30th September 2017, amounting to 57,573, Stated Capital Ordinary Shares Amount (Rs.) Number As at ,568,197 57,573,897 As at ,568,197 57,573, The percentage of the shares held by public as at 30 September 2017 was 11.15% 715 shareholders (As at 30 September 2016 was 679 shareholders). (As at 30 September 2016 was 11.15%) comprising Page 6 of 10

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER The number of shares held by the Board of Directors are as follows, Director Name As at As at Mr. R. Seneviratne - - Mr. D.S Jayaweera - - Mr.E.P.A Cooray 1 1 Mr.P.V.S. Premawardhana - - Mr. S. A. Ameresekere - - Chief Executive Officer Mr. P.C.B Talwatte 5,000 5, Twenty Largest Ordinary Shareholders of the Company as follows; No. Shareholder As at 30th September Citrus Leisure PLC 51,127, % 2 Pan Asia Banking Corporation PLC/C N Samarathunga 5,222, % 3 Ventura Crystal Investments Ltd 195, % 4 Mr W V Jagath Pushpa Kumara 96, % 5 Colombo Trust Finance PLC/ B R Fernando 61, % 6 Mr A G S Swaminathan 57, % 7 Dee Sanda Holdings (Pvt) Ltd 41, % 8 Union Investment Pvt Ltd 33, % 9 Mr C N Samarathunga 26, % 10 Mr W S E Feranando and Mrs S K Fernando 26, % 11 Mr N L Wickramage 25, % 12 Mr V R A S Sovis 23, % 13 Mr K J S S Fernando 22, % 14 Mr S H Amaresekara 20, % 15 Tranz Dominion L L C 20, % 16 H D K Investments (Pvt) Ltd 19, % 17 Divasa Equity (Pvt) Ltd 17, % 18 Mr I P C Jayawardana 16, % 19 Mr N A Withana 15, % 20 Mr G Rajendren 12, % 57,080, % Others 493, % Total 57,573, % Page 7 of 10

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER First and final dividend of Rs per share for the financial year 2016/17 was paid on 28th September 2017 computed based on 57,573,897 shares on issue. 06 Utilisation of funds raised through the Initial Public Offering (IPO) As previously disclosed, of the Rs Million of the IPO funds remaining with the Company, Rs. 26 Million was utilized to enhance the live-in experience of the hotel guests. Further, at the Annual General Meeting held on the 28th of September 2017, the shareholders of the Company unanimously approved to utilize the remaining IPO funds of Rs Million for the purpose of upgrading the hotel in order to be compliant with the recently introduced requirements set out in Gazette (Extraordinary No.1963/28 dated 20th April 2016) for star classification as presently enjoyed by the hotel. Thus far, a sum of Rs. 8.6 Million has been spent as a part of such upgrades. 07 Citrus Group Restrcuture Pursuant to the Announcement made on 27th September, 2016, pertaining to the Citrus Group Restructure, (i) Hikkaduwa Beach Resort PLC (CITH) made an Application to the Colombo Stock Exchange (CSE) to list 151,891,561 ordinary voting shares of CITH to be allotted to the Shareholders of Waskaduwa Beach Resort PLC, Kalpitiya Beach Resort PLC and Passikudah Beach Resorts Limited, arising from the Amalgamation of Kalpitiya Beach Resort PLC and Passikudah Beach Resorts Limited with CITH, and the Voluntary Offer to be made by CITH to the shareholders of Waskaduwa Beach Resort PLC; and (ii) CITH made an Application to the Securities and Exchange Commission of Sri Lanka (SEC), for a waiver under Rule 5.4(b) of the CSE Listing Rules for the issue of the said 151,891,561 ordinary voting shares. The SEC, by its letter dated 25th May 2017, advised CITH to revert to the SEC, upon the respective companies satisfying the conditions referred to in the application made by CITH, in order that the SEC consider the application made by CITH for the waiver aforesaid. The CSE by their letter dated 26th May 2017, approved in principle, the Application for the listing of 151,891,561 ordinary voting shares of CITH as aforesaid subject to CITH ensuring compliance with the conditions set out in the said letter. At the Extraordinary General Meetings of shareholders of Citrus Leisure PLC, Kalpitiya Beach Resort PLC, Passikudah Beach Resorts Limited and CITH convened as per the request of the SEC, held on 03rd July 2017, all the Special Resolutions placed before the shareholders were passed as required by the Companies Act, No. 07 of CITH, having complied with the several conditions referred to in the CSE s letter of 26th May 2017, on 17th day of July 2017 provided to the SEC the information as required by the SEC in order to process the waiver under Rule 5.4 (b) of the Listing Rules of CSE. As per SEC s letter dated 1 st November 2017, the SEC at its 398th Commission Meeting held on 26th October 2017 granted approval for the waiver in terms of Rule 5.4 (b) of the Listing Rules of the Colombo Stock Exchange (CSE) for Hikakduwa Beach Resort PLC to issue new shares to the shareholders of Kalpitiya Beach Resort PLC, Passikudah Beach Resorts Ltd and Waskaduwa Beach Resort PLC and for Hikkaduwa Beach Resort PLC to continue with its voluntary offer to the shareholders of Waskaduwa Beach Resort PLC. However, the approval was granted subject to two conditions by SEC. Hikkaduwa Beach Resort PLC has acknowledged and replied to the SEC in this regard by its letter dated 07th November Further, as per the SEC s letter dated 14th November 2017, the SEC has granted the approval for the waiver in terms of Rule 5.4 (b) of the Listing Rules of the CSE and therefore the Citrus Group will proceed with the aforementioned Group Restructure shorty. Page 8 of 10

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER Events Subsequent to the Reporting Date No circumstances have arisen since the Statement of Financial Position date, which would require adjustments to or disclosure in the Financial Statements except disclosed in Notes 06 and Contingencies There has not been a significant change in the nature of the contingent liabilities, which were disclosed in the Annual Report for the year ended 31st March Comparative Figures Where necessary, comparative figures have been re-stated to conform with SLFRS/LKAS. 11 Tax Expense The profit relating to the hotel operation is exempt from income tax for 6 years reckoned from the commencement of the year of assessment in which such undertaking commences to make profits from transactions entered into in that year of assessment or from the commencement of the year of assessment immediately succeeding the year of assessment in which such undertaking completes a period of two years reckoned from the date on which such undertaking commences to carry on commercial operations, whichever occurs earlier. Accordingly tax exemption will expire in 2017/18. Page 9 of 10

10 Corporate Information Name of Company Legal Form : Hikkaduwa Beach Resort PLC : Public Quoted Company with limited liability Incorporated in Sri Lanka. Stock Exchange Listing : Company Registration No. : PB 4520 Q Registered Office : No: 7/5, Gregory's Road, Colombo 07 Telephone : Fax : direct@citrusleisure.com Website : Board of Directors : Mr.E.P.A Cooray (Chairman ) Mr. D.S Jayaweera Mr. S.A. Ameresekere Mr. P.V.S Premawardhana Mr. R. Seneviratne The issued ordinary shares of the Company are listed on Colombo Stock Exchange of Sri Lanka. Chief Executive Officer Company Secretaries Auditors Bankers : Mr. P. C. B. Talwatte : P W Corporate Secretarial (Pvt) Ltd. No.3/17, Kynsey Road, Colombo 08. : Ernst & Young Chartered Accountants 201, De Saram Place, Colombo 10. : Sampath Bank PLC Commercial Bank of Ceylon PLC Bank of Ceylon Pan Asia Banking Corporation PLC Nations Trust Bank PLC Hatton National Bank PLC Page 10 of 10