John Keells PLC Interim Financial Statements 30 th September 2017

Transcription

1 Interim Financial Statements 30 th September 2017

2 CONSOLIDATED INCOME STATEMENT Quarter ended 30th September Six months ended 30th september For the six months ended 30th September Change % Change % Revenue 198, , , , Cost of sales (71,373) (57,852) 23 (132,094) (104,386) 27 Gross profit 126,878 92, , , Other operating income , ,467 Distribution expenses (2,669) 3,446 (177) (5,609) 2,755 (304) Administrative expenses (57,052) (58,519) (3) (118,276) (109,277) 8 Results from operating activities 67,236 37, ,921 86, Finance costs (20,568) (14,460) 42 (44,919) (30,493) 47 Finance income 9,540 6, ,546 30,886 (17) Net finance (costs) / income (11,028) (8,339) 32 (19,373) 393 (5,030) Share of results of equity-accounted investees 573 1,703 (66) 1,123 2,328 (52) Profit before tax 56,781 30, ,671 89, Tax expense (9,418) (11,117) (15) (34,428) (24,150) 43 Profit for the period 47,363 19, ,243 64, Attributable to : Equity holders of the parent 47,287 20, ,063 66, Non-controlling interests 76 (1,539) (105) 1,180 (1,921) (161) 47,363 19, ,243 64, Earnings per share Rs. Rs. Rs. Basic Dividend per share

3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Quarter ended 30th September Six months ended 30th September For the six months ended 30th September Profit for the period 47,363 19, ,243 64,945 Other comprehensive income Share of other comprehensive income of equity-accounted investees - (1,084) - (1,216) Net (loss)/gain on available-for-sale financial assets (11,579) 19,556 (23,416) (15,954) Other comprehensive income for the period, net of tax (11,579) 18,472 (23,416) (17,170) Total comprehensive income for the period, net of tax 35,784 37,818 84,827 47,775 Attributable to : Equity holders of the parent 35,708 39,357 83,647 49,696 Non-controlling interests 76 (1,539) 1,180 (1,921) 35,784 37,818 84,827 47,775 2

4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30th September As at ASSETS Non-current assets Property, plant and equipment 324, , ,237 Lease rentals paid in advance 37,479 38,569 38,024 Investment property 227, , ,750 Intangible assets Equity accounted investments 100,538 97,244 99,632 Other non-current financial assets 2,332,230 2,520,166 2,408,119 Other non-current assets 6,329 4,314 6,636 Deferred tax assets 30,445 26,837 29,118 3,059,210 3,199,456 3,130,608 Current assets Inventories Trade and other receivables 1,405,091 1,075,946 2,061,480 Amounts due from related parties 1,997 4,373 30,155 Income Tax Refunds - 1,401 1,489 Short Term Investment 226, , ,030 Other current assets 17,759 4,433 5,140 Cash in hand and at bank 178, , ,234 1,830,962 1,598,854 2,494,984 Total assets 4,890,172 4,798,310 5,625,592 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Stated capital 152, , ,000 Revenue reserves 2,722,166 2,608,672 2,736,703 Other components of equity 500, , ,270 3,375,108 3,314,166 3,402,973 Non-controlling interests 36,352 23,069 33,781 Total equity 3,411,460 3,337,235 3,436,754 Non-current liabilities Deferred tax liabilities 35,473 34,836 35,060 Employee benefit liabilities 70,359 65,023 65, ,832 99, ,423 Current liabilities Trade and other payables 584, ,769 1,379,257 Amounts due to related parties 3,458 3,023 3,153 Income tax payable 32,345 4,898 30,303 Short term borrowings Other current liabilities 2,318 1,785 2,125 Bank overdrafts 750, , ,577 1,372,880 1,361,216 2,088,415 Total equity and liabilities 4,890,172 4,798,310 5,625,592 Rs. Rs. Rs. Net assets per share I certify that the financial statements comply with the requirements of the Companies Act No.7 of P.A.P.Perera Sector Financial Controller The Board of Directors is responsible for the preparation and presentation of these financial statements. 27 th October, 2017 A.D.Gunewardene Director J. R. F. Peiris Director 3

5 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30th September Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before working capital changes A 185, ,014 (Increase) / Decrease in inventories (44) (88) (Increase) / Decrease in amounts due from Related Parties 28,158 (1,738) (Increase) / Decrease in trade and other receivables 656, ,899 (Increase) / Decrease in other current assets (12,619) (403) (Increase) / Decrease in other non-current assets 56,643 (99,378) Increase / (Decrease) in trade and other payables (794,820) (142,240) Increase / (Decrease) in amounts Due to Related Parties Increase / (Decrease) in other current liabilities 193 (3,227) Cash generated from operations 119, ,041 Finance income received 18,598 12,359 Finance costs paid (44,919) (30,493) Dividend received 6,948 19,689 Tax paid (31,197) (5,328) Gratuity (paid)/ transfers In (131) (12,238) Net cash flow Used in operating activities 69, ,030 CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (14,851) (1,256) Proceeds from sale of property, plant and equipment - - Net cash flow used in investing activities (14,851) (1,256) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES Dividend paid to equity holders of parent (121,600) (60,800) Dividend paid to shareholders with non-controlling interest - (180) Proceeds from Short Term borrowings - - Repayment of long term borrowings - - Net cash flow used in financing activities (121,600) (60,980) NET DECREASE IN CASH AND CASH EQUIVALENTS (67,394) 202,794 CASH AND CASH EQUIVALENTS AT THE BEGINNING (277,313) (306,406) CASH AND CASH EQUIVALENTS AT THE END (344,707) (103,612) ANALYSIS OF CASH AND CASH EQUIVALENTS Favourable balances Short term investments 226, ,170 Cash in hand and at bank 178, , , ,129 Unfavourable balances Bank overdrafts (750,322) (615,741) Cash and cash equivalents (344,707) (103,612) 4

6 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30th September A. Profit before working capital changes Profit before tax 142,671 89,095 Adjustments for: Finance income (18,598) (12,359) Finance costs 44,919 30,493 Dividend income (6,948) (19,689) Share of results of equity-accounted investees (1,123) (2,328) Depreciation of property, plant and equipment 11,703 11,297 (Profit) / loss on sale of property, plant and equipment and intangible assets (3,677) (63) Share base payment expenses 11,479 12,872 Gratuity provision and related costs 5,127 4, , ,014 5

7 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 6 Attributable to equity holders of parent Other Components of Equity Stated Revenue Revaluation Available Other Total Non-controlling Total Capital Reserves Reserves for sale capital interest Equity Reserve Reserves As at 1 April ,000 2,602, , ,060 64,736 3,312,398 23,820 3,336,218 Profit for the period - 66, ,866 (1,921) 64,945 Other comprehensive income (17,170) - (17,170) - (17,170) Total comprehensive income - 66,866 - (17,170) - 49,696 (1,921) 47,775 Exercise Share base of payment share option expenses 12,872 12,872 1,350 14,222 Final dividend paid /16 - (60,800) - - (60,800) - (60,800) Subsidiary dividend to non-controlling interest (180) (180) As at 30 September ,000 2,608, , ,890 77,608 3,314,165 23,069 3,337,235 As at 1 April ,000 2,736, , ,514 86,760 3,402,973 33,781 3,436,754 Profit for the period - 107, ,063 1, ,243 Other comprehensive income (23,416) (23,416) (23,416) Total comprehensive income - 107,063 - (23,416) 83,647 1,180 84,827 Share base payment expenses 10,088 10,088 1,391 11,479 Final dividend paid /17 - (121,600) - - (121,600) - (121,600) Subsidiary dividend to non-controlling interest Subsidiary dividend to non-controlling interest As at 30 September ,000 2,722, , ,098 96,848 3,375,108 36,352 3,411,460

8 COMPANY INCOME STATEMENT Quarter ended 30th September Six months ended 30th September For the Six months ended 30th September Change % Change % Revenue 130,927 98, , , Cost of sales (40,311) (35,344) 14 (71,703) (56,096) 28 Gross profit 90,616 63, , , Dividend income 6,750 1, ,698 20,202 (32) Other operating income (10) 13 (177) 3, ,085 Distribution expenses (2,271) 3,907 (158) (4,182) 3,670 (214) Administrative expenses (25,821) (24,392) 6 (52,473) (51,624) 2 Results from operating activities 69,264 43, , , Finance costs (20,437) (14,454) 41 (44,609) (30,486) 46 Finance income 2,150 1, ,039 3, Net Finanace Costs (18,287) (12,745) 43 (40,570) (27,198) 49 Profit before tax 50,977 31, ,355 85, Tax expense (6,671) (9,838) (32) (27,194) (21,625) 26 Profit for the period 44,306 21, ,161 63, Rs. Rs. Dividend per share

9 COMPANY STATEMENT OF COMPREHENSIVE INCOME Quarter ended 30th September Six months ended 30th September For the six months ended 30th September Profit for the period 44,306 21,412 94,161 63,688 Other comprehensive income Net (loss)/gain on available-for-sale financial assets (11,579) 19,556 (23,416) (15,954) Other comprehensive income for the period, net of tax (11,579) 19,556 (23,416) (15,954) Total comprehensive income for the period, net of tax 32,727 40,968 70,745 47,734 8

10 COMPANY STATEMENT OF FINANCIAL POSITION As at 30th September As at ASSETS Non-current assets Property, plant and equipment 26,732 20,390 18,162 Investment property 227, , ,750 Investment In Subsidiaries 158, , ,570 Equity accounted investments 24,000 24,000 24,000 Other non-current financial assets Other non-current assets 2,321,918 4,701 2,510,818 3,095 2,397,665 5,082 Deferred tax assets 16,703 18,788 15,380 2,780,374 2,879,891 2,846,609 Current assets Inventories Trade and other receivables 1,282, ,725 1,268,496 Amounts due from related parties Income Tax Refunds 1,905-4,291-4,314 - Other current assets 1, ,992 Cash in hand and at bank 146, , ,633 1,432,605 1,119,148 1,433,767 Total assets 4,212,979 3,999,039 4,280,376 EQUITY AND LIABILITIES Stated capital 152, , ,000 Revenue reserves 2,552,178 2,455,039 2,579,617 Other components of equity 278, , ,305 Total equity 2,982,288 2,946,184 3,027,922 Non-current liabilities Employee benefit liabilities 34,223 32,782 31,833 34,223 32,782 31,833 Current liabilities Trade and other payables 417, , ,026 Amounts due to related parties 5,433 5,843 8,471 Income Tax Payable 29,755 4,229 1,707 Other current liabilities 1, ,050 Short term borrowings Bank overdrafts 742, , ,367 1,196,468 1,020,073 1,220,621 Total equity and liabilities 4,212,979 3,999,039 4,280,376 Rs. Rs. Rs. Net assets per share I certify that the financial statements comply with the requirements of the Companies Act No.7 of P.A.P.Perera Sector Financial Controller The Board of Directors is responsible for the preparation and presentation of these financial statements. 27 th October, 2017 A.D.Gunewardene Director J. R. F. Peiris Director 9

11 COMPANY CASH FLOW STATEMENT For the six months ended 30th September CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 121,355 85,313 Adjustments for: Finance income (4,039) (3,288) Dividend income (13,698) (20,202) Finance costs 44,609 30,486 Depreciation of Property, plant and equipment 4,780 3,821 Profit on sale of property, plant and equipment (3,534) (13) Gratuity provision and related costs 2,390 2,784 Share base payment expenses 5,221 6,833 Profit before working capital changes 157, ,734 (Increase) / Decrease in inventories 64 (47) (Increase) / Decrease in trade and other receivables (14,005) 322,570 (Increase) / Decrease in other non-current assets 56,452 (104,685) (Increase) / Decrease in amounts due from Related Parties 2,409 (1,591) (Increase) / Decrease in other current assets Increase / (Decrease) in amounts Due to Related Parties (3,038) 41 Increase / (Decrease) in Other Current Liabilities (566) (444) Increase / (Decrease) in trade and other payables (91,381) (87,623) Cash generated from / (used in) operations 107, ,424 Finance income received 4,039 3,288 Finance expenses paid (44,609) (30,486) Dividend received 13,698 20,202 Tax paid (27,979) (736) Gratuity (paid)/ Transfers in - (12,387) Net cash flow from operating activities 52, ,305 CASH FLOWS FROM/ (USED IN) INVESTING ACTIVITIES Purchase and construction of property, plant and equipment (13,389) (348) Net cash flow used in investing activities (13,389) (348) CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES Dividend paid (121,600) (60,800) Proceeds from Short Term borrowings - - Net cash flow used in financing activities (121,600) (60,800) NET DECREASE IN CASH AND CASH EQUIVALENTS (82,183) 153,157 CASH AND CASH EQUIVALENTS AT THE BEGINNING (513,734) (562,392) CASH AND CASH EQUIVALENTS AT THE END (595,917) (409,235) ANALYSIS OF CASH & CASH EQUIVALENTS Favourable balances Cash in hand & at bank 146, ,155 Unfavourable balances Bank overdrafts (742,494) (576,390) (595,917) (409,235) 10

12 COMPANY STATEMENT OF CHANGES IN EQUITY Other Components of Equity Stated Revenue Available Other Total capital Reserves for sale Capital Equity Reserve Reserves As at 1 April ,000 2,452, ,844 45,422 2,952,417 Profit for the period - 63, ,688 Other comprehensive income - - (15,954) - (15,954) Total comprehensive income - 63,688 (15,954) - 47,734 Share base payment expenses - 6,833 6,833 Final dividend paid /16 - (60,800) - - (60,800) As at 30 September ,000 2,455, ,890 52,255 2,946,184 As at 1 April ,000 2,579, ,514 57,791 3,027,922 Profit for the period - 94, ,161 Other comprehensive income - - (23,416) - (23,416) Total comprehensive income - 94,161 (23,416) - 70,745 Share base payment expenses - 5,221 5,221 Final dividend paid /17 - (121,600) - - (121,600) As at 30 September ,000 2,552, ,098 63,012 2,982,288 11

13 OPERATING SEGMENT INFORMATION OPERATING SEGMENTS The following tables present revenue and profit information regarding the Group's operating segments. Produce Broking Warehousing Share Broking Group Total For the three months ended 30th September External Revenue 130,926 98,647 24,064 19,090 43,261 32, , ,002 Inter segment revenue - 1,329 1, ,329 1,254 Segment Revenue 130,926 98,647 25,393 20,344 43,261 32, , ,256 Eliminations of inter segment revenue (1,329) (1,254) Net Revenue 198, ,002 Segment Profit / (loss) 62,512 53,376 9,255 5,643 (4,531) (21,918) 67,236 37,100 Finance expenses (20,437) (14,454) (1) (1) (130) (5) (20,568) (14,460) Finance income 2,150 1,709 1, ,255 3,755 9,540 6,121 Share of results of equity-accounted investees 573-1,703- Profit / (loss) before tax 44,225 40,631 10,389 6,299 1,594 (18,168) 56,781 30,463 Tax expense (9,418) (11,117) Profit/ (loss) for the period 47,363 19,346 12

14 OPERATING SEGMENT INFORMATION OPERATING SEGMENTS The following tables present revenue and profit information regarding the Group's operating segments. Produce Broking Warehousing Share Broking Group Total For the Six months ended 30th September External Revenue 273, ,346 44,091 36,745 95,950 63, , ,039 Inter segment revenue - 2,651 2, ,651 2,457 Segment Revenue 273, ,346 46,742 39,202 95,950 63, , ,496 Eliminations of inter segment revenue (2,651) (2,457) Net Revenue 413, ,039 Segment Profit / (loss) 148,225 92,309 15,367 10,712 (2,671) (16,647) 160,921 86,374 Finance expenses (44,609) (30,486) (1) (2) (309) (5) (44,919) (30,493) Finance income 10,986 21,815 2,135 1,140 12,425 7,931 25,546 30,886 Share of results of equity-accounted investees 1,123 2, Profit before tax 114,602 83,638 17,501 11,850 9,445 (8,721) 142,671 89,095 Tax expense (34,428) (24,150) Profit for the period 108,243 64,945 13

15 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 1 CORPORATE INFORMATION John Keells PLC, is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. 2 INTERIM CONDENSED FINANCIAL STATEMENTS The financial statements for the period ended 30 September 2017, includes the Company referring to John Keells PLC. as the holding company and the Group referring to the companies whose accounts have been consolidated therein. 3 APPROVAL OF FINANCIAL STATEMENTS The interim condensed financial statements of the Group and the Company for the 6 months ended 30th September 2017 were authorised for issue by the Board of Directors on 27th October BASIS OF PREPARATION The interim condensed financial statements have been prepared in compliance with Sri Lanka Accounting Standard (SLAS) LKAS 34 Interim Financial Reporting. These interim condensed financial statements should be read in conjunction with the annual financial statements for the year ended 31 st March The presentation and classification of the financial statements of the previous year have been amended, where relevent, for better presentation and to be comparable with those of the current year. The interim condensed financial statements are presented in Sri Lankan Rupees and all values are rounded to the nearest thousand except when otherwise indicated. 5 OPERATING SEGMENTS For management purposes, the group is organised into business units based on their products and services and has three reportable operating segments as follows: 5.1 Produce Broking This includes tea and rubber broking. 5.2 Warehousing This includes tea and rubber pre-auction produce warehousing. 5.3 Stock Broking This includes the stock Broking segement. 6 RELATED PARTY TRANSACTIONS Group Company For the six months ended 30 th September Transactions with related parties Ultimate Parent (Receiving) / Rendering of services 15,496 15,482 7,636 8,500 Subsidiaries Renting of stores space for which rent is paid - - 2,651 2,457 Key management personnel (Receiving) / Rendering of services Close family members of KMP (Receiving) / Rendering of services Companies under common control Purchases of goods for a fee Receiving of Services for which fees are paid 5,743 2,869 3,724 2,330 Lending/investing Money for which interest is received (10,142) (6,736) - (476) Renting Office space for which rent is received (844) (842) (844) (842) Providing of Services for which fees are received (14,942) (11,143) (13,755) (11,143) 14 Post employment benefit plan Contributions to the provident fund 5,729 5,323 5,729 5,323

16 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 7 SHARE INFORMATION 7.1 Public share holdings The percentage of shares held by the public as at 30 September 2017 was 13.10% (30 June %). The number of shares held by the Public as at 30 th September 2017 was 1,235. (30 th June ,213) 7.2 Directors' share holdings The number of shares held by the Board of Directors are as follows: As at S C Ratnayake Chairman Nil Nil A D Gunewardene Nil Nil J R F Peiris Nil Nil V. A. A.Perera Nil Nil A. K Gunawardhana Nil Nil C. N. Wijewardane Nil Nil B.A.I Rajakarier Nil Nil H.G.R.De Mel - CEO Nil Nil 7.3 Twenty largest shareholders of the company are as follows: As at Number of shares % Number of shares % 1 John Keells Holdings Plc 52,834, % 52,834, % 2 H. S.D. Soysa 620, % 620, % 3 Bank of Ceylon No 2 a/c 338, % 338, % 4 Bank of Ceylon No 1 a/c 250, % 250, % 5 H. G. S.Ansell 240, % 240, % 6 Est. of Late M Radhakrishnan 232, % 232, % 7 M. L. De Silva 207, % 207, % 8 A. M. Weerasinghe 179, % 179, % 9 H.A.Van Starrex 174, % 179, % 10 Catholic Bishops Conference in Sri Lanka 171, % 171, % 11 Employees trust Fund Board 169, % 169, % 12 Waldock Mackenzie Ltd - H. S. D. Soyza 151, % 151, % 13 N S De Mel 137, % 137, % 14 N Tirimanne 133, % 133, % 15 Peoples; Leasing & Finance PLC/ L.P Hapangama 130, % 130, % 16 Waldock Mackenzie Ltd - Mrs G Soyza 130, % 130, % 17 F A A Mack 130, % 121, % 18 Sisira Investors Ltd 114, % 114, % 19 Com Bank-Colombo Fort Investments Ltd 112, % 112, % 20 Pinnacle Trust (Pvt) Ltd 110, % 110, % 56,570, % 56,567, % 7.4 Stated capital Stated capital is represented by number of shares in issue as given below: As at Ordinary shares 60,800,000 60,800, Net assets per share Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30 September Market price per share For the quarter ended 30 September Rs. Rs. Highest Lowest Last traded DIVIDENDS PAID A final dividend of Rs 2.00 per share for the financial year ended 31 st March 2017 was paid on 14 th June CONTINGENCIES, CAPITAL AND OTHER COMMITMENTS There has been no significant change in the nature of the contingencies and other commitments, which were disclosed in the annual report for the year ended 31 March 2017 and no circumstances have arisen since the Statement of Financial Position date, which would require adjustments to or disclosure in the financial statements. 10 EVENTS AFTER THE REPORTING PERIOD. There have been no events subsequent to the reporting date. 15