Aitken Spence Hotel Holdings PLC. Interim Financial Statement - 3rd Quarter ( For the nine months ended 31st December 2017 )

Transcription

1 Interim Financial Statement - 3rd Quarter ( For the nine months ended 2017 )

2 Income Statement Quarter ended Nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Revenue 4,624,443 4,431,595 11,920,160 10,444,749 Revenue Tax (127,163) (111,384) (333,653) (281,581) Net Revenue 4,497,280 4,320,211 11,586,507 10,163,168 Other Income 21, , , ,363 Staff Costs (783,303) (745,594) (2,296,238) (2,002,655) Depreciation (425,328) (477,685) (1,278,128) (1,043,400) Amortisation (28,197) (27,958) (83,997) (85,034) Other Operating Expenses - Direct (1,098,214) (1,000,086) (2,793,078) (2,311,485) Other Operating Expenses - Indirect (1,447,342) (1,522,276) (4,459,806) (3,869,178) Profit from Operations 736, ,187 1,123, ,779 Finance Income 73,580 29, , ,035 Finance Expenses (223,662) (226,710) (715,840) (530,862) Net Finance Income/(Expenses) (150,082) (197,344) (528,686) (426,827) 586, , , ,952 Share of Profit /(Loss) of equity accounted investees net of tax (42,154) 81,658 (130,401) (123,342) Profit/(Loss) before Tax 544, , , ,610 Income Tax Expense (125,290) (55,734) (324,893) (271,288) Profit/(Loss) for the period 419, , , ,322 Attributable to: Equity Holders of the Parent Company 288, , ,216 57,289 Non - controlling interests 130,897 94,747 (33,708) 105, , , , ,322 Earnings/(Loss) per share for the period - Rs (Basic / Diluted) Colombo 08th February

3 Company Income Statement Quarter ended Nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Revenue 211, , , ,072 Revenue Tax (4,664) (4,201) (11,063) (9,360) Net Revenue 206, , , ,712 Other Income 1, , ,706 Staff Costs (43,972) (38,667) (130,721) (110,884) Depreciation (15,729) (14,242) (47,272) (42,433) Amortisation (215) (44) (482) (58) Other Operating Expenses - Direct (60,110) (46,100) (155,292) (121,104) Other Operating Expenses - Indirect (80,016) (80,866) (232,881) (211,914) Profit from Operations 8,874 7, , ,025 Finance Income 38,625 10,524 68,352 26,569 Finance Expenses (56,957) (47,786) (166,149) (115,406) Net Finance Income/(Expenses) (18,332) (37,262) (97,797) (88,837) Profit /(Loss) before Tax (9,458) (29,342) 284,160 49,188 Income Tax Expense (3,100) 3,992 15,086 7,189 Profit /(Loss) for the period (12,558) (25,350) 299,246 56,377 Earnings per share for the period - Rs. (0.05) (0.09) (Basic/Diluted) Colombo 08th February

4 Statement of Comprehensive Income GROUP Quarter ended Nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Profit for the period 419, , , ,322 Other Comprehensive Income Items that will never be reclassified to profit or loss Revaluation of property, plant and equipment Share of other comprehensive income of equity accounted investees Actuarial gains/ (losses) on defined benefit obligations Income tax on actuarial gains / (losses) arising from retirement benefit obligations Items that are or may be reclassified to profit or Loss Foreign Currency translation differences of foreign operations 71, , , ,910 Net movement in cashflow hedging (2,394) (746,894) Net change in fair value of available for sale financial assets - - (75,745) 69, ,523 (580,216) 530,165 Other comprehensive income for the period net of tax 69, ,523 (580,216) 530,165 Total comprehensive income for the period net of tax 488, ,290 (440,708) 692,487 Attributable to: Equity Holders of the Parent Company 330, ,999 (173,748) 481,125 Non -controlling interests 158, ,291 (266,960) 211, , ,290 (440,708) 692,487 3

5 Statement of Comprehensive Income Company Quarter ended Nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Profit for the period (12,558) (25,350) 299,246 56,377 Other Comprehensive Income Items that will never be reclassified to profit or loss Revaluation of property, plant and equipment Actuarial gains/ (losses) on defined benefit obligations Income tax on actuarial gains / (losses) arising from retirement benefit obligations Items that are or may be reclassified to profit or Loss Foreign currency translation differences of foreign operations Net change in fair value of available for sale financial assets Other comprehensive income for the period net of tax Total comprehensive income for the period net of tax (12,558) (25,350) 299,246 56,377 Attributable to: Equity Holders of the Parent Company (12,558) (25,350) 299,246 56,377 Non -controlling interest (12,558) (25,350) 299,246 56,377 4

6 Consolidated Statement of Financial Position As at Rs. 000 Rs. 000 Rs. 000 ASSETS Non Current Assets Property, plant and equipment 40,124,984 36,064,129 37,687,160 Leasehold properties 2,009,551 2,028,459 2,042,460 Prepaid operating leases 1,762,306 1,784,676 1,791,169 Intangible assets 408, , ,612 Investment in equity accounted investees 1,164,026 1,273,483 1,294,427 Other financial assets 203, , ,650 Deferred tax assets 189, , ,760 45,862,154 41,804,714 43,504,238 Current Assets Inventories 439, , ,821 Trade and other receivables 1,584,564 2,234,508 1,946,990 Amount due from ultimate holding company 1,596, , ,663 Amount due from parent s group entities 974, , ,096 Prepaid operating leases 595,517 67, ,549 Deposits and prepayments 49, ,794 71,557 Current tax receivable 32,370 12,956 11,077 Other financial assets 916,072 2,411,989 2,349,518 Cash and cash equivalents 959,275 2,171,800 2,315,478 7,147,713 8,633,418 8,673,749 TOTAL ASSETS 53,009,867 50,438,132 52,177,987 EQUITY AND LIABILITIES Equity Attributable to equity holders of the Parent Stated capital 3,554,587 3,554,587 3,554,587 Reserves 3,946,531 4,070,036 4,352,819 Retained earnings 11,373,292 10,817,560 11,254,420 18,874,410 18,442,183 19,161,826 Non Controlling Interests 7,990,732 7,957,981 8,270,862 Total Equity 26,865,142 26,400,164 27,432,688 Non Current Liabilities Interest - bearing borrowings 15,819,968 15,718,794 14,450,707 Government grants Deferred tax liabilities 484, , ,880 Other Liabilities 801, , ,833 Employee benefits 182, , ,462 17,288,392 16,680,890 15,595,025 Current Liabilities Trade payables 723, , ,690 Other provisions and payables 2,674,655 3,366,271 2,847,517 Amount due to ultimate holding company 486, , ,329 Amount due to parent s group entities 113, , ,916 Interest bearing borrowings 2,866,677 1,780,653 3,311,162 Current tax payable 167, , ,341 Short term bank borrowings 1,824,049 1,062,975 1,746,319 8,856,333 7,357,078 9,150,274 Total Liabilities 26,144,725 24,037,968 24,745,299 TOTAL EQUITY AND LIABILITIES 53,009,867 50,438,132 52,177,987 Net Asset value per share (Rs.) The Chief Financial Officer certifies that the Financial Statements have been prepared in compliance with the requirement of the Companies Act No. 07 of D.H.S Jayawardena J.M.S Brito D.G.P Ekanayake Chairman Managing Director Assistant Vice President - Finance Colombo 08th February

7 Company Statement of Financial Position As at Rs. 000 Rs. 000 Rs. 000 ASSETS Non Current Assets Property, plant and equipment 1,535,468 1,389,066 1,541,933 Intangible assets 1,679 1,556 1,423 Investments in subsidiaries 7,584,780 4,659,200 7,585,526 Investment in equity accounted investees 1,094,994 4,059,336 1,094,994 Other financial assets 76, Deferred tax assets 51,796 16,123 24,356 10,345,384 10,125,281 10,248,232 Current Assets Inventories 30,607 29,728 22,836 Trade and other receivables 133, , ,119 Amount due from ultimate holding company 3, Amount due from parent s group entities 923, , ,952 Deposits and prepayments 16,257 26,496 23,410 Current tax receivable 2,775 1,283 3,433 Other financial assets 23, , ,000 Cash and cash equivalents 586,375 48, ,323 1,720, ,609 1,324,073 TOTAL ASSETS 12,066,223 10,756,890 11,572,305 EQUITY AND LIABILITIES Equity Attributable to equity holders of the parent Stated capital 3,554,587 3,554,587 3,554,587 Reserves 722, , ,139 Retained earnings 5,297,625 4,665,256 5,082,452 Total Equity 9,574,351 8,881,982 9,359,178 Non Current Liabilities Interest - bearing borrowings 733,600 1,000, ,400 Employee benefits 32,963 36,312 29, ,563 1,036, ,761 Current Liabilities Trade creditors 28,414 29,918 27,109 Other Provisions and payables 135, , ,339 Amount due to ultimate holding company 481, , ,530 Amount due to parent s group entities 769, , ,903 Interest bearing borrowings 266,400 66,600 Current tax payable 8,894 6,934 - Short term bank borrowings 35, , ,885 1,725, ,596 1,250,366 Total Liabilities 2,491,872 1,874,908 2,213,127 TOTAL EQUITY AND LIABILITIES 12,066,223 10,756,890 11,572,305 Net Asset value per share (Rs.) The Chief Financial Officer certifies that the Financial Statements have been prepared in compliance with the requirement of the Companies Act No. 07 of D.H.S Jayawardena J.M.S Brito D.G.P Ekanayake Chairman Managing Director Assistant Vice President - Finance Colombo 08th February

8 Statement of Changes in Equity For the nine months ended 2017 GROUP Attributable to Equity Holders of the parent Stated Reserves Foreign Available for Cashflow hedge Revaluation Retained Total Non Total Capital Currency Sale Reserve Reserve Earnings Controlling Equity Translation Reserve Interest Reserve Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Balance as at 01st April ,554,587 22,929 1,206,039 38,630 2,378,602 11,205,005 18,405,792 5,429,111 23,834,903 Profit/(Loss) for the period 57,289 57, , ,322 Other comprehensive income 462,466 (38,630) 423, , ,165 Total Comprehensive Income 462,466 (38,630) 57, , , ,487 Share of net assets of equity accounted investees (9,521) (9,521) (9,521) Effect of acquisitions, disposals and change to percentage holding in subsidiaries 2,368,393 2,368,393 Dividends -2015/16 (435,213) (435,213) (435,213) Dividends of Subsidiaries to non controlling interest (50,885) (50,885) Balance as at ,554,587 22,929 1,668,505 2,378,602 10,817,560 18,442,183 7,957,981 26,400,164 Balance as at 01st April ,554,587 22,929 1,718,952 2,610,938 11,254,420 19,161,826 8,270,862 27,432,688 Profit/ (Loss) for the period 173, ,216 (33,708) 139,508 Other comprehensive income 101,172 (448,136) (346,964) (233,252 (580,216) Total Comprehensive Income 101,172 (448,136) 173,216 (173,748) (266,960) (440,708) Transfers (59,324) 59,324 Effect of acquisitions, disposals and change to percentage holding in subsidiaries (29,595) (29,595) 29,595 Dividends /17 (84,073) (84,073) (84,073) Dividends of subsidiaries to non controlling interest (42,765) (42,765) Balance as at ,554,587 22,929 1,820,124 (448,136) 2,551,614 11,373,292 18,874,410 7,990,732 26,865,142 7

9 Statement of Changes in Equity For the nine months ended 2017 COMPANY Stated Reserves Revaluation Retained Total Capital Reserve Earnings Rs 000 Rs 000 Rs 000 Rs 000 Rs 000 Balance as at 01st April ,554,587 22, ,210 5,044,092 9,260,818 Profit for the period 56,377 56,377 Other Comprehensive Income Total Comprehensive Income 56,377 56,377 Dividends /16 (435,213) (435,213) Balance as at 30th September ,554,587 22, ,210 4,665,256 8,881,982 Balance as at 01st April ,554,587 22, ,210 5,082,452 9,359,178 Profit for the period 299, ,246 Other Comprehensive Income Total Comprehensive Income 299, ,246 Dividends /17 (84,073) (84,073) Balance as at ,554,587 22, ,210 5,297,625 9,574,351 8

10 Cash Flow Statement GROUP COMPANY For the nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Cash flow from operating activities Profit/(Loss) before taxation 464, , ,160 49,188 Adjustments for Depreciation 1,278,128 1,043,400 47,272 42,433 Amortisation 83,997 85, Amortisation of government grant (117) (117) Provision for impairment of debtors 627 8,810 3, Interest expense 715, , , ,406 Interest income (187,154) (104,035) (68,352) (26,569) Loss on disposal of investments Profit on disposal of Subsidiaries (307,616) (409,961) - Profit/(Loss) on sale of property, plant and equipment (181) 1,559 Provision for Employee Benefits 33,859 30,355 6,346 5,910 Share of (Profit)/Loss of equity accounted investees net of tax 130, ,342 2,212,501 2,152,820 29, ,753 Operating profit before working capital changes (Increase) / Decrease in Inventories 33,228 (214,432) (7,771) (11,095) (Increase) / Decrease in Trade and other receivables 349,290 (963,318) (26,366) (20,771) (Increase) / Decrease in Amount due from ultimate Holding Company (1,240,660) (168,048) (3,563) 14,436 (Increase) / Decrease in Amount due from Parents Group Entities (532,517) 34,320 (602,029) 83,151 (Increase) / Decrease in Deposits and Prepayments 106,581 15,156 7,153 (21,323) Increase / (Decrease) in Trade Creditors 82, ,860 1,305 (3,500) Increase / (Decrease) in Provisions and other Payables (132,372) 1,014,823 (34,792) 87,307 Increase / (Decrease) in Amount due to ultimate Holding Company 138,241 (52,954) 273,634 79,185 Increase / (Decrease) in Amount due to parents Group Entities (16,730) 141, ,250 (410,683) Cash Generated/ (used in) from Operations 1,000,433 2,218,873 (254,490) (16,540) Interest Paid (715,840) (530,862) (166,149) (115,406) Gratuity Paid (22,536) (33,528) (2,743) (2,533) Income Tax Paid (215,465) (442,794) (2,802) (2,315) Net Cash generated /(used in) from operating activities 46,592 1,211,689 (426,185) (136,794) (Carried Forward to next page) 9

11 Cash Flow Statement GROUP COMPANY For the nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Net Cash generated/(used in) from operating activities 46,592 1,211,689 (426,185) (136,794) Cash Flows from Investing Activities Investments made during the period (100,000) (35,000) (407,000) (459,780) Purchase of property, plant and equipment (3,924,382) (3,786,606) (40,807) (60,688) Purchase of intangible assets (4,847) (9,521) (738) (1,600) Proceeds from sale of property, plant and equipment 2,419 4,905 Net cash inflow on divesment of subsidiary (Note A) 722,725 Proceeds from disposal of investments 22, ,707 Proceeds / (Purchase) of term deposits 1,433,446 (260,726) 100,000 (100,000) (Assets)/Liabilities vested on business combination 2,948,687 Interest received from deposits 181,166 91,975 67,297 25,887 Net cash used in investing activities (1,666,500) (1,046,286) 436,459 (596,181) Cash Flows from financing activities Proceeds from long term borrowings 6,060,966 2,976,700 1,000,000 Repayment of long term borrowings (6,034,727) (2,040,149) Dividends paid (84,073) (435,213) (84,073) (435,213) Dividend paid to shareholders of non-controlling interest (42,765) (50,885) Net cash flow/(used in) from financing activities (100,599) 450,453 (84,073) 564,787 Net Increase/(Decrease) in cash & cash equivalents (1,720,507) 615,856 (73,799) (168,188) Cash & cash equivalents at the beginning of the period 855, , ,438 97,865 adjusted for effect of exchange rate change Cash & cash equivalents at the end of the period (864,774) 1,108, ,639 (70,323) Analysis of cash & cash Equivalents at the end of the period Cash at Bank and in hand and short term deposits 959,275 2,171, ,376 48,158 Bank Overdrafts (1,824,049) (1,062,975) (35,737) (118,481) (864,774) 1,108, ,639 (70,323) Note A - Divestment of Investment of a Subsidiary The Company divested its investment in M.P.S Hotels (Pvt) Ltd during the period. The fair value of assets and liabilities divested are as follows: Rs. 000 Property, plant and equipment 444,877 Inventories 4,486 Trade and other receivables 18,497 Deposits and prepayments 2,451 Taxes receivable 1,655 Deferred tax (6,873) Employee benefits (9,494) Trade and other payables (40,490) Cash and cash equivalents (5,018) Total identifiable net assets 410,091 Gain on disposal of subsidiary 307,616 Cash and cash equivalents divested 5,018 Net cash inflow on divestment of subsidiary 722,725 10

12 Notes to the Interim Financial Statements Aitken Spence Hotel Holdings PLC 1 Segmental Results 1.1 Revenue GROUP External Intra Group Total Total For the nine months ended Rs. 000 Rs. 000 Rs. 000 Rs. 000 Sri Lanka Sector Resorts and Hotels 3,660,865 3,659 3,664,524 3,071,135 Others 28, , , ,022 Total Sri Lanka Sector 3,689, ,200 3,956,398 3,386,157 South Asian and Middle East Sector 8,230,962 89,046 8,320,008 7,418,570 Intra Group 11,920, ,246 12,276,406 10,804,727 (356,246) (359,978) Total 11,920,160 10,444, Profit/(Loss) before taxation GROUP For the nine months ended Rs. 000 Rs. 000 Sri Lanka Sector Resorts and Hotels 145,878 19,465 Others 85,025 85, , ,130 Share of results of equity accounted investees (130,401) (123,342) Total Sri Lanka Sector 100,502 (18,212) South Asian and Middle East Sector 363, ,822 Total 464, , Total Assets GROUP For the nine months ended Rs. 000 Rs. 000 Sri Lanka Sector Resorts and Hotels 23,160,906 22,447,703 Others 817, ,169 23,978,713 23,199,872 Share of assets of equity accounted investees (13,220) 1,252,008 Total Sri Lanka Sector 23,965,493 24,451,880 South Asian and Middle East Sector 29,044,374 25,986,252 Total 53,009,867 50,438,132 11

13 Notes to the Interim Financial Statements 2 The Financial statements of the Company and those consolidated with such for the interim period have been prepared on the same accounting policies and methods of computations as in the most recent audited financial statements and are in compliance with LKAS 34-Interim Financial Reporting. 3 The accounting policies have been consistently applied by the Group and are consistent with those used in the previous year. The presentation and classification of the financial statements of the previous year have been amended where relevant to be comparable with those of the current year. 4 The company paid a final ordinary dividend of cts. 25 per share for the year ended 31st March 2017 on 11th July 2017 after it was approved by the board. Total interim ordinay dividend payment amounted to Rs. 84,072,503/-. 5 Cash flow hedging During the period under review Ahungalla Resorts Ltd., a group companym designated its identified foreign currency loan as the hedging instrument in order to hedge against the company exposure to the changes in foreign exchange rates on the variable cash flows from the highly probable future foreign currency revenue. Consequently the effective portion of gain or loss on the hedging instrument will be recognised in the cash flow hedge reserve, through other comprehensive income while any ineffective portion will be recognised immediately in the statement of profit or loss. 6 The Company divested its entire holding in its fully owned subsidiary M.P.S Hotels (Pvt) Ltd on 21/9/2017. The resultant gain on disposal of this subsidiary is reflected under other income. 7 Tax Expense The Inland Revenue Act, No 24 of 2017 which was certified on the 24th of October 2017 will be effective from 1st April The deferred tax asset/ liability of the Company and the Group for 2017/2018 is accounted based on the income tax rates that would be applicable as per the above Act, other than for any deferred tax impact arising from the revaluation of land pending further guidance and clarification. The income tax provisions for the period ending 2017 were made based on the rates applicable for the year of assessment 2017/ There were no material events subsequant to the end of the reporting date which require disclosure in the interim financial statements. 9 Six months of the period under review relates to the off season of the tourism industry both in Sri Lanka and overseas, the group operates. 10 There were no material change in contingent liabilities which were disclosed in the Annual Report for the year ended 31st March There was no liability to management fees or any other similar expenditure not provided for in the interim financial statements. Investor Information 1 Share Information For the Quarter Ended Market Price per Share - Highest Lowest Last Traded Price (Rs.) Number of shares represented by the stated capital - Ordinary 336,290, ,290,010 - Preference 16,500,000 16,500,000 2 Percentage of shares held by the public as at 2017 is 25.40%. Number of public shareholders as at 31st December 2017 was 3, Shares held by the Directors are as follows: Name of the Director Position No of Shares No of Shares D.H.S Jayawardena Chairman - - J.M.S Brito Managing Director 314, ,596 Ms. D.S.T Jayawardena Director 16,000 6,000 C.M.S Jayawickrama Director - - R.N Asirwatham Director 1,000 1,000 C.H Gomez Director - - N.J. de Silva Deva Aditya Director - -

14 Notes to the Interim Financial Statements Aitken Spence Hotel Holdings PLC 4 Twenty Largest Shareholders as at 2017 Name of the Share Holder No of Shares % Aitken Spence PLC - A/C No ,472, % Employees Provident Fund 31,501, % Sri Lanka Insurance Corporation Ltd. - Life Fund 5,518, % Ace Cargo (Pvt) Ltd 4,423, % Aitken Spence Hotel Managements (Pvt) Ltd 3,530, % Aitken Spence Aviation (Pvt) Ltd. 2,604, % Bank of Ceylon No 01 Account 2,547, % Employees Trust Fund Board 2,370, % The Ceylon Guardian Investments Trust PLC A/C # 02 2,245, % National Savings Bank 2,102, % G.C Wickremasinghe 2,082, % Ceylon Investments PLC # 02 1,283, % A.T Wickramasinghe 1,245, % Bank of Ceylon A/C Ceybank Century Growth Fund 1,039, % F. A.A Mack 1,004, % M.J Fernando 1,000, % K Fernando 991, % Ceylon Investments PLC # , % Phoenix Ventures Private Ltd 831, % Rubber Investment Trust Ltd A/C # , % 307,607, % 13

15 Corporate Information as at Directors D.H.S Jayawardena (Chairman) J.M.S Brito LLB, FCA, MBA (Managing Director) Ms. D.S.T. Jayawardena C.M.S Jayawickrama FCMA G.P.J Goonewardena - (resigned with effect from ) R.N Asirwatham FCA C.H Gomez N.J. de Silva Deva Aditya DL, FRSA, MEP Legal Form A public quoted Company with limited liability Incorporated in Sri Lanka on 14th March 1978 Company registration No. PQ 97 Secretaries P.W Corporate Secretarial (Pvt) Ltd 3/17, Kynsey Road, Colombo 8 Tel: (9411) Fax: (9411) Registered Address No 315, Vauxhall Street Colombo 02 Sri Lanka Tel: (9411)