Ceylinco Group shares not for trading

None of the Ceylinco Group of companies’ shares is for speculative trading as these are meant for long term investments, Chairman of Ceylinco Group Dr Lalith Kotelawela says.

He was responding to shareholder’s questions at the recent annual general meeting of The Finance Company Plc which is part of the Ceylinco Group.

A shareholder asked why The Finance Company declared only Rs. 1.80 dividend per share when the company earned Rs. 37.34 per share for the year ended March 31, 2007. The chairman went on to explain that the dividend policy of the group companies are the same irrespective of earning and told the shareholder not to speculate on dividends. “We continue to maintain a constant rate of dividend for all our group companies irrespective of earning,” he said, adding that apart from the dividend “we provide so many other benefits to shareholders such as additional interest rates on fixed deposits and reduction on interest on loans obtained by shareholders.”

The Finance Co. AGM attracted a house full of shareholders and many shareholders praised both Dr and Mrs. Kotelawela for their contribution to the nation and the former as a remarkable business leader. One shareholder acclaimed that Kotelawela is the “Father of the Nation” for his outstanding contribution to the nation.

Kotelawela said innovation is the key to success for all its group of companies and Ceylinco continues to innovate many products and services to the nation. He said the Finance Co. has recently introduced palm top based transaction to its customers.

The palm top transaction enables the customer do business transactions while at home. He said the company will continue to innovate new products for the benefit of the customers.

The Finance Co. made a net profit of Rs. 762 million for the year ended March 31, 2007, a growth of 30.7 % over the previous year. The net revenue reached Rs.10.9 billion showing an increase of 39.3 % when compared with the previous year.

The fixed deposit base increased from Rs 17.1 billion in the year 2005/2006 to 21.8 billion during the year under review reflecting an increase of 27.1 %. The company also established a remarkable achievement in savings deposits which was introduced in 2005/2006. Savings deposits as at March 31, 2007 was Rs. 744 million an unprecedented growth of 165.8 % over the earlier year.