Company Registration PQ 203 No:48, Janadhipathi Mawatha Colombo-01 Interim Financial Statements For the nine months ended 31st December 2017
Corporate Information NAME OF COMPANY The Kingsbury PLC (A public limited company, incorporated in Sri Lanka in 1969) AUDIT COMMITTEE Mr.L.N. De Silva Wijeyeratne - Chairman Ms.R.N.Ponnambalam Mr.J.P.Van Twest COMPANY NUMBER PQ 203 REMUNERATION COMMITTEE Mr.L.N. De Silva Wijeyeratne - Chairman Ms.R.N.Ponnambalam STOCK EXCHANGE LISTING The ordinary shares of the Company are listed with the Colombo Stock Exchange of Sri Lanka SECRETARIES Hayleys Group Services (Private) Limited 400, Deans Road, Colombo 10, Sri Lanka REGISTERED OFFICE Telephone: (94-11)2627650 48, Janadhipathi Mw, Facsimile: (94-11)2627645 Colombo 01, Sri Lanka E-mail: info.sec@hayleys.com Please direct any queries about the administration of shareholdings to the Company Secretaries DIRECTORS Mr.A.M.Pandithage Executive Chairman Mr.K.D.D.Perera - Co- Chairman (Non-Executive) Mr.L.T.Samarawickrama - Managing Director Mr.S.C.Ganegoda Mr.S.J.Wijesinghe Mr.N.J. De Silva Deva-Aditya Mr.L.N. De Silva Wijeyeratne Ms.R.N.Ponnambalam Mr.J.P.Van Twest Ms.I. Jamaldeen Mr.D.E.Silva Ms. A.A. K.Amarasinghe (Alternate Director to Mr. K.D.D.Perera)
Income Statement (All amounts in Sri Lanka Rupees thousands) Unaudited Unaudited Unaudited Unaudited Audited 9 months ended 9 months ended Change 3 months to 3 months to Change Year ended 31.12.2017 31.12.2016 % 31.12.2017 31.12.2016 % 31.03.2017 Turnover 2,331,871 2,263,050 3 844,740 850,288 (1) 3,061,048 Turnover tax/ Nation Building Tax (74,857) (71,305) 5 (28,868) (26,289) 10 (96,226) Net turnover 2,257,014 2,191,745 3 815,872 823,999 (1) 2,964,822 Cost of sales (1,179,656) (1,022,932) 15 (425,666) (373,870) 14 (1,373,125) Gross profit 1,077,358 1,168,813 (8) 390,206 450,129 (13) 1,591,697 Other income 8,704 4,460 95 3,397 1,658 105 (4,503) Administrative expenses (802,261) (684,615) 17 (286,896) (259,199) 11 (919,108) Marketing expenses (105,066) (97,207) 8 (37,307) (31,441) 19 (129,346) Operating profit 178,735 391,451 (54) 69,400 161,147 (57) 538,740 Finance income 7,077 15,116 (53) 1,783 4,379 (59) 20,905 Finance expenses (61,829) (103,887) (40) (19,695) (40,658) (52) (134,629) Profit before Tax 123,983 302,680 (59) 51,488 124,868 (59) 425,016 Taxation (24,001) (37,873) (37) (2,605) (19,000) (86) (44,670) Profit for the period 99,982 264,807 (62) 48,883 105,868 (54) 380,346 Basic Earnings per share (Rs.) 0.41 1.09 0.20 0.44 1.57 The notes on page 6 forms an integral part of these Financial Statements. Figures in brackets indicate deductions or losses. 1
Statement of Comprehensive Income (All amounts in Sri Lanka Rupees thousands) Unaudited Unaudited Audited 9 months ended 9 months ended Change Year ended 31.12.2017 31.12.2016 % 31.03.2017 Profit for the period 99,982 264,807 (62) 380,346 Re-measurement gain/(loss) on defined benefit plans - - - (4,508) Income tax effect on defined benefit plans - - - 541 Other Comprehensive Income/(loss) for the year,net of tax - - (3,967) Total Comprehensive Income/(loss) for the year, net of tax 99,982 264,807 (62) 376,379 2
Statement of Financial Position ( All amounts in Sri Lanka Rupees thousands) Unaudited Unaudited Audited As at 31.12.2017 As at 31.12.2016 As at 31.03.2017 ASSETS Non-current assets Property Plant and Equipment 3,799,579 3,765,526 3,814,140 Capital Work in Progress 47,196 28,808 46,750 Intangible assets 18,390 20,760 25,517 3,865,165 3,815,094 3,886,407 Current assets Inventories 87,573 90,333 73,004 Trade and other receivables 163,808 148,023 127,901 Other current assets 109,858 105,316 92,570 Tax recoverable 46,828 35,555 34,077 Cash and bank 117,277 93,207 148,793 Short term deposits 97,550 312,890 347,949 622,894 785,324 824,294 Total Assets 4,488,059 4,600,418 4,710,701 EQUITY AND LIABILITIES Capital and reserves Stated capital 836,000 836,000 836,000 Revaluation reserves 940,907 908,090 940,907 Retained earnings 713,628 583,961 613,646 2,490,535 2,328,051 2,390,553 Non- current liabilities Interest-bearing borrowings 540,414 1,020,926 942,101 Post employment benefit obligation 45,228 36,052 39,519 Deferred tax liability 230,807 199,979 206,808 816,449 1,256,957 1,188,428 Current Liabilities Trade and other payables 401,592 363,362 262,855 Interest-bearing borrowings 627,542 515,977 568,755 Other current liabilities 151,941 136,071 300,110 1,181,075 1,015,410 1,131,720 Total equity and liabilities 4,488,059 4,600,418 4,710,701-0.40 0 I certify that these financial statements have been prepared in compliance with the requirements of the companies Act No 7 of 2007. Sgd. A Wijesiriwardana Director Finance Signed for and on behalf of the Board Sgd. A M Pandithage Executive Chairman Sgd. L T Samarawickrama Managing Director The notes on page 6 forms an integral part of these Financial Statements. Figures in brackets indicate deductions or losses 30th January 2018 Colombo 3
Statement of Changes in Equity (All amounts in Sri Lanka Rupees thousands) Stated Revaluation Retained Total Capital and other Earnings reserves Balance as at 01.04.2016 836,000 905,830 440,154 2,181,984 Profit for the 9 months ended 31.12.2016 264,807 264,807 Other comprehensive income - - Total comprehensive income 264,807 264,807 Deferred tax on transfer 2,260 2,260 Interim Dividends to equity holders (121,000) (121,000) Balance as at 31.12.2016 836,000 908,090 583,961 2,328,051 Balance as at 01.04.2017 836,000 940,907 613,646 2,390,553 Profit for the 9 months ended 31.12.2017 - - 99,982 99,982 Other comprehensive income - - Total comprehensive income 99,982 99,982 Deferred tax on transfer - - Interim Dividends to equity holders - - Balance as at 31.12.2017 836,000 940,907 713,628 2,490,535 The notes on page 6 forms an integral part of these Financial Statements. Figures in brackets indicate deductions or losses. 4
Cash Fow Statement (All amounts in Sri Lanka Rupees thousands) Unaudited Unaudited Audited 9 months ended 9 months ended Year ended 31.12.2017 31.12.2016 31.03.2017 Operating activities Cash generated from operations (Note A) 416,863 641,714 849,740 Interest received 7,077 15,115 20,905 Interest paid (71,812) (96,685) (109,080) Tax Paid (12,574) (10,652) (15,644) Retirement benefits paid (2,740) (1,942) (2,123) Net cash generated from /(used in) operations 336,814 547,549 743,798 Investing activities Capital work in progress (446) 19,566 1,624 Purchase of property plant & equipment (168,758) (196,930) (243,400) Purchase of property plant & equipment (Intangible) (311) (197) (6,214) Proceeds from disposal of property plant & equipment 6,621 1,006 1,181 Net cash (used in)/ generated from investing activities (162,894) (176,555) (246,809) Financing activities Payments on interest-bearing borrowings (403,847) (383,930) (430,128) Dividends Paid (121,000) (121,000) (121,000) Net cash used in financing activities (524,847) (504,930) (551,128) Net increase/decrease in cash and cash equivalents (350,926) (133,936) (54,139) Movement in cash and cash equivalents 0.21 0.37 (0.12) At start of the year 403,035 457,174 457,174 Net increase / decrease (350,926) (133,936) (54,139) At end of the Period 52,109 323,238 403,035 Note A Unaudited Unaudited Audited Year ended 9 months ended Year ended 31.12.2017 31.12.2016 31.03.2017 Cash flows from operating activities Profit/(loss) before tax 123,983 302,681 425,016 Adjustments for: Net Finance Expenses 54,752 88,770 113,723 Depreciation on property, plant & equipment 170,617 164,664 218,305 Amortization of intangible assets 8,074 3,545 4,806 Provision for Bad & doubtful debts 821 (569) (1,796) Loss on disposal of property, plant & equipment 754 9,975 33,024 Operating profit/(loss) before working capital changes 359,001 569,066 793,077 (Increase)/Decrease in trade and other receivables (51,676) (23,010) 6,089 (Increase)/Decrease in inventories (14,568) (24,898) (7,569) Increase/(Decrease) in trade and other payables 115,658 113,271 51,712 Gratuity provision 8,448 7,286 6,431 Cash generated from operations 416,863 641,714 849,740 The notes on page 6 forms an integral part of these Financial Statemen Figures in brackets indicate deductions. 5
Notes to the Financial Statements 1 The Interim Financial Statements are unaudited and have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34-Interim Financial Reporting. These Interim Financial Statements should be read in conjunction with the Annual Financial Statements for the year ended 31 st March 2017. 2 The Statement of Financial Position of the Company as at 31st December 2017 & The Income Statement for the nine months ended are drawn up from the unaudited accounts of the Company and provides information required as per rule 8 of the Colombo Stock Exchange. 3 Other income and expenses 31.12.17 31.12.16 (Rs.000) (Rs.000) Profit/(loss) on disposal of property, plant and equipment (298) (1,194) Sundry income 9,002 5,654 8,704 4,460 The upfront fee paid to the Iconic Entertainment Pte. Ltd (Ce-la-vi) of USD 250,000/- was paid during Oct'17,which will be brought to P&L upon completion of Sky Lounge & 4 Japanese restaurant. Estimation of Refurbishment cost of Sky lounge has increased with change in design (awaiting information).japanese restaurant estimation remains at 50Mn. 5 Market price per Ordinary share recorded during the quarter 31.12.17 31.12.16 Highest price (Rs.) 15.20 18.00 Lowest price (Rs.) 13.00 15.00 Closing Price (Rs.) 13.50 15.20 We confirm that there are no material contingent liabilities or contingent assets which require disclosure in the interim financial statements for the nine 6 months ended 31st December 2017. 7 Revenue & net profit/(loss) comparison Revenue & Profit for the nine months ended 31st December '17 Rs.Mn 3,000 2,500 2,000 Profit for the 6 months ended 30.09.2016 1,500 214 218 265 100 1,000 1,763 1,896 2,192 2,257 500 Net Profit - Revenue 2014 2015 2016 2017 Year 8Ratios 31.12.17 31.12.16 Basic Earnings per share 0.41 1.09 Net assets per share 10.29 9.62 9 Stated Capital No. of Shares Ordinary Shares (thousands) Rs '000 As At 31st March'2017 242,000 836,000 As At 31st December'2017 242,000 836,000 6
20 Major Shareholders THE KINGSBURY PLC Quarterly Accounts Information as at 31st December 2017 Name of the Shareholder No. of Shares as at 31.12.2017 1 HAYLEYS PLC NO 3 SHARE INVESTMENT ACCOUNT 112,307,057 46.41 2 CARBOTELS (PVT) LIMITED 31,625,000 13.07 3 EMPLOYEES PROVIDENT FUND 25,559,947 10.56 4 BANK OF CEYLON A/C CEYBANK UNIT TRUST 8,627,967 3.57 5 BANK OF CEYLON NO2 A/C 7,833,500 3.24 6 MR. K.D.A.PERERA 6,581,352 2.72 7 NATIONAL SAVINGS BANK 4,669,876 1.93 8 MR. K.D.D.PERERA 3,216,146 1.33 9 RENUKA HOTELS LIMITED 2,371,300 0.98 10 RENUKA CITY HOTELS PLC 2,260,300 0.93 11 ASSOCIATED ELECTRICAL CORPORATION LTD 2,133,400 0.88 12 MERCHANT BANK OF SRI LANKA & FINANCE PLC 01 1,937,727 0.80 13 RENUKA CONSULTANTS & SERVICES LIMITED. 1,835,100 0.76 14 MR. K.D.H.PERERA 1,453,567 0.60 15 PEOPLE'S LEASING & FINANCE PLC /MR. L.P. HAPANGAMA 1,227,700 0.51 16 MR. M.H. JAMALDEEN 1,186,583 0.49 17 MR. A.P.SOMASIRI 1,100,000 0.45 18 CARGO BOAT DEVELOPMENT COMPANY PLC 1,010,100 0.42 19 SAMPATH BANK PLC/MRS PRIYANI DHARSHINI RATNAGOPAL 1,000,000 0.41 20 MRS.V.R.JAYASINGHE 904,111 0.37 TOTAL 218,840,733 90.43 % Director's Shareholdings Name No. of Shares 1 Mr.A.M.Pandithage Nil 2 Mr.L.T.Samarawickrama Nil 3 Mr.S.C.Ganegoda 55,713 4 Mr.S.J.Wijesinghe Nil 5 Mr.N.J.De Silva Deva - Aditya Nil 6 Mr.L.N De Silva Wijeratne Nil 7 Mr.K.D.D Perera 3,216,146 8 Ms.R.N Ponnambalam Nil 9 Mr.J.P.Van Twest Nil 10 Ms.I Jamaldeen Nil (Mr.M.H.Jamaldeen-spouse-1,186,583 - No.of shares) 11 Mr.D.E.Silva Nil 12 Ms. A.A.K. Amarasinghe (Alternate Director To Mr. K.D.D.Perera) Nil * Mr.K.D.D.Perera holds 50.44% directly and indirectly of the total issued shares of Hayleys PLC which holds 112,307,057 shares in The Kingsbury PLC *Mr.M.H.Jamaldeen,spouse of Mrs.I.Jamaldeen holds 1,186,583 shares PERCENTAGE OF PUBLIC HOLDING AS AT 31.12.2017 38.68% TOTAL NO. OF SHAREHOLDERS REPRESENT IN THE PUBLIC HOLDING 3,956 7