HIKKADUWA BEACH RESORT PLC. Interim Financial Statements For the Year Ended 31 March 2017

Transcription

1 `y HIKKADUWA BEACH RESORT PLC Interim Financial Statements For the Year Ended 31 March 2017

2 STATEMENT OF COMPREHENSIVE INCOME Quarter Ended 31st March Year Ended 31 st March Increase / Unaudited Unaudited (Decrease) Unaudited Audited Rs. Rs. % Rs. Rs. Increase / (Decrease) % Revenue 115,580, ,887,425 4% 304,803, ,689,297 3% Cost of Sales (18,709,682) (18,881,611) -1% (66,512,717) (63,024,262) 6% Gross Profit 96,871,050 92,005,814 5% 238,291, ,665,035 2% Other Income 835,449 3,563,994-77% 2,307,649 5,248,459-56% Administrative Expenses (27,314,017) (34,071,034) -20% (98,609,040) (95,301,827) 3% Operating Expenses (15,904,008) (9,655,476) 65% (57,145,058) (61,174,446) -7% Selling and Marketing Expenses (5,900,868) (7,899,334) -25% (17,221,165) (22,882,558) -25% Finance Income 26,544,228 15,273,165 74% 80,149,188 40,343,664 99% Finance Cost (13,116,057) (12,125,480) 8% (51,161,344) (30,165,865) 70% Profit Before Tax 62,015,777 47,091,649 32% 96,611,499 68,732,461 41% Income Tax Expense (10,491,456) (3,304,585) 217% (22,440,598) (10,370,620) 116% Profit for the period 51,524,321 43,787,063 18% 74,170,901 58,361,842 27% Other Comprehensive Loss (675,704) Total Comprehensive Income for the Period, net of tax 51,524,321 43,787,063 74,170,901 57,686,138 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 936,557, ,905,896 Intangible Assets 193, ,491 Amounts due from Related Party 707,556, ,247,357 1,644,307,397 1,565,401,744 Current Assets Inventories 6,053,559 5,696,231 Trade and Other Receivables 139,736, ,606,420 Advances & Prepayments 10,068,825 4,273,027 Cash and Bank Balances 50,737,002 43,520, ,595, ,096,262 TOTAL ASSETS 1,850,902,911 1,760,498,006 EQUITY AND LIABILITIES Capital and Reserves Stated Capital 778,568, ,568,197 Revaluation Reserve 124,178, ,178,742 Retained Earnings 348,068, ,654,537 Total Equity 1,250,814,987 1,182,401,476 Non-Current Liabilities Interest Bearing Loans and Borrowings 278,800, ,200,000 Retirment Benefit obligation 9,332,083 9,001,637 Amounts Due to Related Parties - 2,196,025 Deferred Tax Liability 5,345,243 5,345, ,477, ,742,905 Current Liabilities Trade and Other Payables 52,662,800 42,231,994 Income Tax Payable 28,478,817 8,580,761 Interest Bearing Loans and Borrowings 225,468, ,540, ,610, ,353,625 TOTAL EQUITY & LIABILITIES 1,850,902,911 1,760,498,006 These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of Signed.. Chameera 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 30th May 2017 Colombo Page 3 of 10

4 STATEMENT OF CHANGES IN EQUITY Revaluation Retained Stated Capital Total Reserve Earnings Rs. Rs. Rs. Rs. Balance as at 01 st April ,568, ,178, ,877,267 1,131,624,206 Profit for the year ,361,842 58,361,842 Dividends Paid - - (6,908,868) (6,908,868) Other Comprehensive Loss - - (675,704) (675,704) Balance as at 31st March ,568, ,178, ,654,537 1,182,401,476 Balance as at 01 st April ,568, ,178, ,654,537 1,182,401,476 Dividends Paid - - (5,757,390) (5,757,390) Profit for the year ,170,901 74,170,901 Balance as at 31st March ,568, ,178, ,068,048 1,250,814,987 Page 4 of 10

5 STATEMENT OF CASH FLOW Year Ended Year Ended Unaudited Audited Rs. Rs. CASH FLOWS USED IN OPERATING ACTIVITIES Profit before Taxation 96,611,499 68,732,461 ADJUSTMENTS FOR Depreciation 39,267,120 40,304,888 Amortisation of Intangible Assets 73,086 43,851 Provision for Retirement Benefit Obligation 1,200,000 1,593,903 Finance Income (80,149,188) (40,343,664) Finance Cost 51,161,344 30,165,865 Operating Profit before Working Capital Changes 108,163, ,497,305 Increase in Inventories (357,327) (348,263) (Increase) / Decrease in Trade and Other Receivables 78,343,139 (5,433,998) (Increase) / Decrease in Advances and prepayments (5,795,798) 517,724 Decrease in Trade and Other Payables 6,570,000 3,987,183 Cash Generated from Operations 186,923,875 99,219,952 Finance Costs Paid (47,300,538) (27,953,939) Taxes Paid (2,542,542) (1,005,555) Gratuity Paid (869,554) (413,812) Net Cash (used in)/from Operating Activities 136,211,241 69,846,646 CASH FLOWS USED IN INVESTING ACTIVITIES Acquisition of Property, Plant and Equipment (29,915,957) (9,017,946) Financed to Related Parties (88,308,829) (395,567,467) Finance Income Received 3,655,268 1,754,885 Net Cash (used in)/from Investing Activities (114,569,517) (402,830,528) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds From Interest Bearing Loans and Borrowings - 480,000,000 Repayment of Bank Loans (73,400,000) (35,481,000) Principal Payment under Finance Lease Liabilities (459,784) (614,969) Financed from Related Parties (2,196,025) (5,584,570) Dividend Paid (5,757,390) (6,908,868) Net Cash from/(used in) Financing Activities (81,813,199) 431,410,593 Net Increase/(Decrease) in Cash & Cash Equivalents (60,171,476) 98,426,711 Cash & Cash Equivalents at the beginning of the year (21,600,502) (120,027,213) Cash & Cash Equivalents at the end of the year (81,771,978) (21,600,502) Cash and Cash Equivalents comprise; Cash at Bank and in Hand (60,171,476) 43,520,584 Bank Overdraft (21,600,502) (65,121,086) (81,771,978) (21,600,502) Page 5 of 10

6 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 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 year ended 31st March 2017 were authorised for issue by the Board of Directors on 30th May 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. 3 Months Ended Year Ended Year Ended 04 Share information Basic Earnings/(Loss) Per Share (Rs.) As at As at Net Assets Per Share (Rs.) / /16 4th Quarter 4th 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 31st March 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 31 March 2017 was 11.15% (As at 31 March 2016 was 11.15%) comprising 696 shareholders (As at 31 March 2016 was 645 shareholders). Page 6 of 10

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 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 31st March 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 Dee Sanda Holdings (Pvt) Ltd 41, % 6 Mr A K A K S Senarathne 35, % 7 Union Investment Pvt Ltd 33, % 8 Mr M M Fuad 32, % 9 Mr J S A Perera and Mrs R N Perera 31, % 10 Mr C N Samarathunga 26, % 11 Mr W S E Feranando and Mrs S K Fernando 26, % 12 Mr N L Wickramage 25, % 13 H D K Investment (Pvt) Ltd 25, % 14 Mr V R A Sovis 23, % 15 Mr K J S S Fernando 22, % 16 Mr S H Amarasekara 20, % 17 Tranz Dominion L L C 20, % 18 Divasa Equity (Pvt) Ltd 17, % 19 Mr K P Premadasa And Mrs H N Fernando 16, % 20 Mr I P C Jayawardana 16, % 57,053, % Others 519, % Total 57,573, % Page 7 of 10

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH First and final dividend of Rs per share for the financial year 2015/16 was paid on 14th October 2016 computed based on 57,573,897 shares on issue. 06 Utilisation of funds raised through the Initial Public Offering (IPO) The remaining IPO funds of the Company (approximately Rs million) were to be utilized to enhance the "live-in experience" of the hotel guests. Accordingly funds have been thus far utilized as set out below. i. ii Upgrading the ground floor rooms was curtailed to a cost of Rs. 6.3 Million and completed by 1 st June Furthermore, in November and December 2016 additional rooms were identified and upgraded in line with the above incurring a cost of Rs. 4.1 Mn. iii iv Improvement of the swimming pool and attendant areas was curtailed to a cost of Rs. 7.5 Million and completed by 1 st June Thereafter in November 2016, the pool structure, pool deck and service areas were reinforced and upgraded incurring a cost of Rs. 2.5 Mn. Construction of an Aqua Themed Beach Bar was curtailed to a cost of Rs. 2.5 Million by modifying the existing beach bar and was completed by 1 st June 2016 In addition a mobile unit was created as an extension to the Beach Bar incurring a cost of approximately Rs. 0.5 Mn in November The further enhancement of the Beach Bar area which was scheduled to be completed before 31 st March 2017 costing approximately Rs. 2 Mn has been ear-marked to be done in parallel with the mandatory upgrades required as directed by Sri Lanka Tourism Development Authority for star classification which is to be completed within the next six (06) months. An upscale amenity retailer was secured to our satisfaction and a shop space was created and rented in December Since only a part of the area allocated for shop space was utilized, the cost incurred was only Rs. 2.6 Mn. However, negotiations are on the way with another promising retailer for Accessories & Amenities shop so that the remaining allocated space can be utilized. v Construction of a water activity area for children has been deferred during this financial year. Hence, approximately Rs Mn (as at date) of the funds raised through the IPO which remains unutilized is held in fixed deposits. The shareholders are informed that, due to the actual costs incurred for the aforesaid items of expenditure being less than originally anticipated, the unutilized funds are proposed to be channelled for upgrading the Hotel to be in compliance with the recently introduced requirements of the Sri Lanka Tourism Development Authority to maintain the Hotel s star classification as per Gazette (Extraordinary) No. 1963/28 dated April 20, The Board proposes to seek the approval of the shareholders for the aforesaid variation. 07 Citrus Group Restrcuture Pursuant to the Announcement made on 27th September, 2016, pertaining to the Citrus Group Restructure, Hikkaduwa Beach Resort PLC made an Application to the Colombo Stock Exchange (CSE) to list 151,891,561 ordinary voting shares of Hikkaduwa Beach Resort PLC 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 Hikkaduwa Beach Resort PLC, and the Voluntary Offer to be made by Hikkaduwa Beach Resort PLC to the shareholders of Waskaduwa Beach Resort PLC. Hikkaduwa Beach Resort PLC also made an Application to the 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 CSE by their letter dated 26th May 2017, have approved in principle, the Application for the listing of 151,891,561 ordinary voting shares of Hikkaduwa Beach Resort PLC as aforesaid subject to Hikkaduwa Beach Resort PLC ensuring compliance with (i) SEC letter dated 26th April, 2017, [including (a) to (d)], (ii) the response of Hikkaduwa Beach Resort PLC to SEC, by their letter dated 09th May, 2017, (iii) SEC letter dated 25th May, 2017 and (iv) SEC granting a waiver to Hikkaduwa Beach Resort PLC, of the Rule 5.4(b) of CSE Listing Rules, for the issue of the said shares. Extraordinary General Meetings of Shareholders of Citrus Leisure PLC, Hikkaduwa Beach Resort PLC, Kalpitiya Beach Resort PLC and Passikudah Beach Resorts Limited, will be convened to be held on 03rd July, 2017 to place before the Shareholders of the relevant Companies the requisite Resolutions and to obtain the approvals as required by the Companies Act No.7 of 2007, and the Listing Rules of the CSE (as applicable). Page 8 of 10

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 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 Note 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 : Hikkaduwa Beach Resort PLC Legal Form Stock Exchange Listing : Company Registration No. : PB 4520 Q : Public Quoted Company with limited liability Incorporated in Sri Lanka. The issued ordinary shares of the Company are listed on Colombo Stock Exchange of Sri Lanka. 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 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