THE LIGHTHOUSE HOTEL PLC Company Registration Number - PQ 73. INTERIM REPORT Fourth Quarter

Transcription

1 Company Registration Number - PQ 73 INTERIM REPORT Fourth Quarter TWELVE MONTHS ENDED 31ST MARCH 2018

2 CORPORATE INFORMATION NAME OF COMPANY The Lighthouse Hotel PLC Company Number PQ 73 LEGAL FORM A Quoted Public Company with Limited Liability incorporated in Sri Lanka in 1994 BOARD OF DIRECTORS N.J.H.M.Cooray - Chairman R.A.E.Samarasinghe - Managing Director N.T.M.S.Cooray (Ms) N.Wadugodapitiya C.S.R.S.Anthony Ranil de Silva E.P.A.Cooray A.M.Ondaatjie (Ms) C.Pathiraja (Dr) T.Nadesan A.T.P.Edirisinghe SECRETARIES Corporate Services (Pvt) Ltd 216, De Saram Place Colombo 10. Phone : AUDITORS Messrs Ernst & Young Chartered Accountants 201, De Saram Place Colombo 10. HOTEL OPERATION & MARKETING Jetwing Hotels Ltd "Jetwing House" 46/26, Nawam Mawatha Colombo 2. Phone : resv.lighthouse@jetwinghotels.com Web : REGISTERED OFFICE "Jetwing House" 46/26, Nawam Mawatha Colombo 2.

3 Market Value of Shares (Rs.) (Rs.) Closing price on Highest price recorded for the twelve months ending Lowest price recorded for the twelve months ending Highest price recorded for the three months ending Lowest price recorded for the three months ending Market Capitalisation (Rs.Mn.) 1,831 2,254 Ratios THE LIGHTHOUSE HOTEL PLC INVESTOR INFORMATION Net assets per share Share trading for the twelve months ended Number of transactions Number of shares traded 141, ,905 Value of shares traded (Rs.) 6,045,711 34,442,323 Twenty Largest Shareholders as at 31st March, 2018 Name of Shareholder No of Shares as at % JETWING HOTELS MANAGEMENT SERVICES (PVT) LTD 18,970, MERCANTILE INVESTMENTS AND FINANCE PLC 7,736, EMPLOYEES PROVIDENT FUND 5,084, BANK OF CEYLON- A/C NO - 2 4,474, MRS. A.M.J. COORAY 1,211, NATIONAL SAVINGS BANK 1,175, JETWING TRAVELS (PRIVATE) LIMITED 840, MS N.T.M.S. COORAY 789, MR. N.J.H.M. COORAY 748, DEE INVESTMENTS (PVT) LTD 668, JETWING ECO HOLIDAYS (PVT) LTD 595, THE NUWARA ELIYA HOTELS COMPANY PLC 520, MR. D.J. DE SILVA WIJEYERATNE 347, CONFIFI MANAGEMENT SERVICES (PRIVATE) LTD 275, CONFIFI INVESTMENTS (PVT) LTD 250, FERN HOLDINGS (PRIVATE) LIMITED 238, MISS. A.M. WIKRAMANAYAKE 105, MR. S. MENDIS 100, MRS C.A.D.S WOODWARD 100, MR. I.A.R. PERERA 100, TOTAL 44,334, There were no non voting shares as at 31st March, 2018 The percentage of shares held by public as per Colombo Stock Exchange Rules as at 31st March, 2018 was 31.44% Further the number of public shareholders as at 31st March, 2018 was 1,158. Directors' shareholding. Directors Directors' Direct Share holding as at 31st March, 2018 Ms. N.T.M.S. Cooray 789,803 Mr. N.J.H.M. Cooray 748,803 Mr. R.A.E.Samarasinghe 50,000 Mr. R. de Silva 10,000 Mr. C.S.R.S.Anthony 1,000 Mr. A.T.P. Edirisinghe 1,000 There has been no change in the Directors' shareholding during the 12 months ended 31st March, 2018

4 STATEMENT OF FINANCIAL POSITION Group Company Unaudited Audited Unaudited Audited As at Rs.'000 Rs.'000 Rs.'000 Rs.'000 ASSETS Non - Current Assets Property, Plant and Equipment 3,185,405 2,939,788 2,896,395 2,855,701 Prepaid Lease Rent 2,303 2,333 2,303 2,333 Intangible Assets 1, Investment in Subsidiary , ,000 Other Non-Current Financial Assets 87,287 87,402 87,287 87,402 3,276,299 3,030,152 3,161,204 3,046,065 Current Assets Inventories 28,964 32,451 28,435 32,451 Trade and Other Receivables 139, , , ,233 Cash at Bank and in Hand 12,903 13,231 12,469 12, , , , ,540 Total Assets 3,457,654 3,210,975 3,332,551 3,219,605 EQUITY AND LIABILITIES Equity Attributable to equity holders of the Parent Stated Capital 460, , , ,001 Reserves 2,076,460 2,084,684 2,066,756 2,081,644 Retained Earnings 328, , , ,748 2,865,163 2,852,339 2,874,103 2,863,393 Non Controlling Interest Total Equity 2,865,163 2,852,339 2,874,103 2,863,393 Non-Current Liabilities Post-Employment Benefit Liability 31,618 30,088 31,499 30,088 Interest Bearing Loans & Borrowings 99,955 18,396 6,372 18,396 Deferred Tax Liabilities 122, , ,277 48, ,119 48,484 Current Liabilities Trade and Other Payables 142, , , ,874 Current portion of Interest-bearing Loans & Borrowings 192, , , ,991 Income Tax Payable 4,033 2,863 4,033 2, , , , ,728 Total Liabilities 592, , , ,212 Total Equity and Liabilities 3,457,654 3,210,975 3,332,551 3,219, The Statement of Financial Position as at 31st March 2018, the Statement of Profit or Loss, Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement for the Twelve months then ended as well as the Statement of Profit or Loss and Statement of Comprehensive Income for the three months are drawn up from the unaudited financial statements of the Group/Company and they provide the information required by the Colombo Stock Exchange. It is certified that the financial statements have been prepared in compliance with the requirements of the Companies Act No. 7 of C.S.R.S. Anthony Director The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by. N.J.H.M. Cooray Chairman N T M S Cooray Director 09th May 2018 Colombo

5 STATEMENT OF PROFIT OR LOSS - GROUP 12 months ended 31st Variance 3 months ended 31st Variance March Favourable March Favourable Unaudited Audited (Unfavourable) Unaudited Unaudited (Unfavourable) Rs.'000 Rs.'000 Rs.'000 Rs.'000 Revenue 836, ,219 5% 299, ,850 18% Cost of Sales (154,961) (146,879) -6% (47,254) (40,830) -16% Gross Profit 681, ,340 4% 251, ,020 18% Other Income & Gains 1,059 2,486-57% 413 1,782-77% Marketing & Promotional Expenses (30,438) (25,424) -20% (10,978) (9,676) -13% Administrative Expenses (486,803) (469,077) -4% (138,775) (126,039) -10% Finance Cost (16,864) (8,994) -88% (4,200) (2,387) -76% Finance Income % % Profit Before Tax 148, ,147-2% 98,683 76,785 29% Income Tax Expenses (15,881) (14,963) -6% (5,698) (4,468) -28% Net Profit for the Period 132, ,184-3% 92,985 72,317 29% Attributable to: Equity holders of the Parent Company 132, ,184 92,985 72,317 Non-controlling Interest , ,184 92,985 72,317 Earnings per share for the period (Basic)-Rs. Notes 1. Operating profit/(loss) is after Charging following Depreciation 94,650 85, Stated Capital Issued and fully paid 46,000,000 Ordinary Shares 460, , Figures in brackets indicate deductions

6 STATEMENT OF PROFIT OR LOSS - COMPANY 12 months ended 31st Variance Variance March Favourable 3 months ended 31st March Favourable Unaudited Audited (Unfavourable) Unaudited Unaudited (Unfavourable) Rs.'000 Rs.'000 Rs.'000 Rs.'000 Revenue 821, ,219 3% 286, ,850 13% Cost of Sales (152,622) (146,879) -4% (45,389) (40,830) -11% Gross Profit 668, ,340 2% 240, ,020 13% Other Income & Gains 1,044 13,462-92% 398 1,782-78% Marketing & Promotional Expenses (29,180) (25,424) -15% (9,842) (9,676) -2% Administrative Expenses (473,220) (469,000) -1% (127,931) (125,961) -2% Finance Cost (14,083) (8,994) -57% (2,059) (2,387) 14% Finance Income % % Exchange Gain/(Loss) from Conversion of Foreign Currency Loan - Profit Before Tax 153, ,201-6% 101,937 76,864 33% Income Tax Expenses (16,510) (14,963) -10% (6,327) (4,468) -42% Net Profit for the Period 137, ,238-7% 95,610 72,396 32% Notes 1. Operating profit/(loss) is after Charging following Depreciation 90,959 85, Stated Capital Issued and fully paid 46,000,000 Ordinary Shares 460, , Figures in brackets indicate deductions

7 STATEMENT OF COMPREHENSIVE INCOME-GROUP Unaudited Audited Unaudited Unaudited Year Year 3 months 3 months ended ended ended ended Rs.'000 Rs.'000 Rs.'000 Rs.'000 Profit for the Year 132, ,184 92,985 72,317 Other Comprehensive Income Other Comprehensive Income to be reclassified to Statement of Profit or Loss in subsequent periods : Loss on Available for Sale-Financial Instruments (115) (190) (115) (190) Other Comprehensive Income not to be reclassified to Statement of Profit or Loss in subsequent periods : Actuarial Losses on Post-Employment Benefit Liabilities 3,784 (770) 3,784 (770) Deferred Tax Attributable to Post Employment Benefit Liability (454) - (454) - Revaluation Surplus of Freehold Land 113, ,614 - Deferred Tax Attributable to Revaluation Surplus (121,723) (121,723) - Other Comprehensive Income/ (Loss) for the Year (4,894) (960) (4,894) (960) Total Comprehensive Income for the Year 127, ,224 88,091 71,357 Attributable to: Equity holders of the Parent Company 127, ,224 Non-controlling Interest , ,224 STATEMENT OF COMPREHENSIVE INCOME-COMPANY Unaudited Audited Unaudited Unaudited Year Year 3 months 3 months ended ended ended ended Rs.'000 Rs.'000 Rs.'000 Rs.'000 Profit for the Year 137, ,238 95,610 72,396 Other Comprehensive Income Other Comprehensive Income to be reclassified to Statement of Profit or Loss in subsequent periods : Loss on Available for Sale-Financial Instruments (115) (190) (115) (190) Other Comprehensive Income not to be reclassified to Statement of Profit or Loss in subsequent periods : Actuarial Losses on Post-Employment Benefit Liabilities 3,784 (770) 3,784 (770) Deferred Tax Attributable to Post Employment Benefit Liability (454) - (454) - Revaluation Surplus of Freehold Land 105, ,865 - Deferred Tax Attributable to Revaluation Surplus (120,638) - (120,638) - Other Comprehensive Income/ (Loss) for the Year (11,558) (960) (11,558) (960) Total Comprehensive Income for the Year 125, ,278 84,052 71,436

8 STATEMENT OF CHANGES IN EQUITY GROUP Attributable to Equity Holders of parent Stated Revaluation Available Special Retained Total Non Total Capital Reserve for Sale Reserve Earnings Controlling Equity Reserve Interest Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at 01st April , , ,325, ,240 2,923,115-2,923,115 Profit for the Period , , ,184 Other Comprehensive Income - - (190) - (770) (960) - (960) Total Comprehensive Income - - (190) - 136, , ,224 Dividends 2015/ Rs per share (115,000) (115,000) - (115,000) Dividends 2016/ Rs per share (92,000) (92,000) (92,000) Balance as at 31st March , , ,325, ,654 2,852,339-2,852,339 Profit for the Period , , ,717 Other Comprehensive Income - (8,109) (115) - 3,330 (4,894) - (4,894) Total Comprehensive Income - (8,109) (115) - 136, , ,824 Dividends 2017/ Rs per share (115,000) (115,000) - (115,000) Balance as at 31st March , , ,325, ,702 2,865,163-2,865,163

9 STATEMENT OF CHANGES IN EQUITY COMPANY Stated Revaluation Available Special Retained Total Capital Reserve for Sale Reserve Earnings Equity Reserve Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Balance as at 01st April , , ,325, ,240 2,923,115 Profit for the Period , ,238 Other Comprehensive Income - - (190) - (770) (960) Total Comprehensive Income - - (190) - 147, ,278 Disposal of Land - (3,040) - - 3,040 - Dividends 2015/ Rs per share (115,000) (115,000) Dividends 2016/ Rs per share (92,000) (92,000) Balance as at 31 st March , , ,325, ,748 2,863,393 Profit for the Period , ,268 Other Comprehensive Income - (14,773) (115) - 3,330 (11,558) Total Comprehensive Income - (14,773) (115) - 140, ,710 Dividends 2017/ Rs per share (115,000) (115,000) Balance as at 31st March , , ,325, ,346 2,874,103

10 STATEMENT OF CASH FLOWS GROUP COMPANY Unaudited Audited Unaudited Audited 12 months 12 months 12 months 12 months ended ended ended ended Rs.'000 Rs.'000 Rs.'000 Rs.'000 Cash Flows from Operating Activities Profit before Tax 148, , , ,201 Adjustments for Depreciation 94,650 85,726 90,959 85,726 Amortization of Prepaid Lease Rental (Income) from Investments-Interest Income (600) (816) (600) (816) (Profit)/Loss on Disposal of Property Plant & Equipment (1,378) (966) (1,378) (966) Capital Gain on Dispisal of Asset (10,975) Finance Costs 16,864 8,993 14,083 8,993 Provision for Defined Benefit Plans 6,283 5,495 6,180 5,495 Allowance for Doubtful Debts Amortization of Intangible Assets Exchange (Gain)/Loss from conversion of foreign currency loans 1,049 4, ,121 Operating Profit before Working Capital Changes 266, , , ,785 (Increase)/Decrease in Inventories 3,487 (2,771) 4,016 (2,771) (Increase)/Decrease in Trade and Other Receivables (4,900) (17,777) (2,592) (10,869) Increase/(Decrease) in Trade and Other Payables 4,849 11,500 (7,406) 9,076 Cash Generated from Operations 269, , , ,221 Income Tax Paid (13,960) (16,827) (13,960) (16,827) Finance Cost Paid (16,864) (8,993) (14,083) (8,993) Defined Benefit Plan Costs Paid net of transfers (968) (6,941) (984) (6,941) Net Cash from Operating Activities 238, , , ,460 Cash Flows from/(used in) Investing Activities Acquisition of Property, Plant & Equipment (235,985) (91,810) (35,292) (40,998) Proceeds from Government Grants 4,749 4,749 Proceeds from Sale of Property, Plant & Equipment 5,908 2,178 5,908 2,178 Proceeds from Sale of Property, Plant & Equipment to Subsidiary ,250 Interest Income Investment in Unawatuna Properties (Pvt) Ltd - - (75,000) (100,000) Net Investment in Other Current Financial Asset - 2,500-2,500 Acquisition of Intangible Assets (1,157) Net Cash Flows from/(used in) Investing Activities (225,885) (86,316) (99,035) (91,254) Cash Flows from/(used in) Financing Activities Proceeds from Interest Bearing Loans & Borrowings 100,011 2,992 6,981 2,992 Repayment of Interest Bearing Loans & Borrowings (66,104) (46,893) (66,104) (46,893) Dividends Paid (115,000) (207,000) (115,000) (207,000) Net Cash Flows Used in Financing Activities (81,093) (250,901) (174,123) (250,901) Net Increase/(Decrease) in Cash & Cash Equivalents (68,974) (123,320) (43,828) (123,695) Cash and Cash Equivalents at the beginning of the period (108,495) 14,825 (108,870) 14,825 Cash and Cash Equivalents at the end of the period (177,469) (108,495) (152,698) (108,870) Cash and Bank Balance 12,903 13,231 12,469 12,856 Bank Overdraft (190,372) (121,726) (165,167) (121,726) (177,469) (108,495) (152,698) (108,870)

11 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 31 MARCH Principal Activities and Nature of Operations The Company owns and operates Jetwing Lighthouse Hotel, which is targeted at the up market leisure travellers. During the period under review, the fully owned subsidiary namely Unawatuna Properties (Pvt) Ltd commenced commercial operations on 01 st December Basis of Preparation The interim financial statements have been prepared in accordance with the Sri Lanka Accounting Standard (LKAS) 34- Interim financial reporting. 3. Changes in Accounting Policies These interim financial statements have been prepared in accordance with the accounting policies set out in the Annual Report for the year ended There are no significant contingent liabilities as at 31 st March 2018 except for the following: a. Contingencies of the Company as at the reporting date on account of guarantees issued on behalf of subsidiary company amounted to US$ 600,000 and Rs 190 Mn. b. A local authority has claimed a fee amounting to 1% of turnover for the issuance of trade license for the year 2018 from the company in March The company does not agree with such claim as it has paid only 0.5% of turnover for the issuance of trade license for the year The estimated contingent liability as at 31 March 2018 is Rs 5.1 Mn. 5. Information published for the twelve months to 31 st March, 2017 has been reclassified to conform with the current presentation where applicable. 6. There are no distinguishable components to be identified as segments for the Company. 7. No circumstances have arisen since the reporting date, which would require adjustments to or disclosure in the Financial Statements. 8. Interim dividend payment of Rs per share amounted to Rs 115,000,000/- paid on 29 th March 2018 after it was approved by the Board of Directors.

12 NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED 31 MARCH The Lighthouse Hotel PLC LHH has made a total equity investment in Unawatuna Properties (Pvt) Ltd of Rs 175 million as at Operating Lease agreement with Lanciawatta (Private) Limited (to operate Era Beach Hotel) was terminated with effect 31 March 2018.