Access gearing to begin construction on Access Tower 2
View(s):By Duruthu Edirimuni Chandrasekera
The Access Group, which just signed a letter of intent to import Land Rover/Range Rover international vehicle brands under the umbrella of its latest acquisition, Sathosa Motors is gearing to begin construction on Access Tower 2, officials said.
“Our subsidiary, Access Realties (Pvt) Ltd, the catalyst for the iconic Access Tower, will soon begin construction on Access Tower 2, yet another state of the art office complex. It’ll have 25 stories and will cost Rs 2.7 billion,” Sumal Perera, Chairman Access told the Business Times, adding that the Urban Development Authority has granted them the preliminary planning approval. He said the company is planning to get the building approval soon and by May will start construction. Mr. Perera said this will be completed within 24 months.
He said the Land Rover brand will complement Sathosa Motors’ current brand, Isuzu. He said that Access has also signed a deal with Sunny – a Chinese construction and machine and equipment manufacturer.
Access acquired Sathosa Motors PLC in February 2012 and Mr. Perera noted this company has significant potential to contribute to the growth of Access. “We hope to benefit from the envisaged synergies in the coming years.” The Sathosa Motors portfolio includes the importation and sale of Isuzu commercial vehicles which was ranked 76 among the 100 leading brands in Sri Lanka in 2012.
“We’re also eyeing construction contract opportunities abroad,” Mr. Perera added. While conceding that during the next two to three years the company will see growth, he stressed that their limiting factor is human resource challenge. “Right now, capacity building is our main challenge,” he added.
As per the financial results released to the Colombo Stock Exchange, turnover for the nine months ended 31st December 2012 stood at Rs. 9.862 billion and Rs. 8.011 billion, which was a growth of 118 per cent and 82 per cent at group and company level over the corresponding period. Highways construction, building construction, water and drainage construction have contributed most to the turnover at the company level.
At group level, the company’s subsidiary Sathosa Motors PLC has contributed Rs. 1.7 billion to the top line. The company’s fully owned subsidiary, Access Realties (Pvt) Ltd also contributed to the top line with a turnover of Rs.104 million. Stemming from the top line growth, the company’s pre-tax profit of Rs.1.888 billion and Rs.1.634 billion witnessed a growth of 70 per cent and 59 per cent at group and company level. Further, the company’s After Tax Profit for the 9 months ended at Group and Company level stood at Rs. 1.671 billion and Rs.1.476 billion, respectively, which was a growth of 73 per cent and 67 per cent over the corresponding period of the previous year. “This makes Access Engineering one of the very few companies which delivered the expectations promised during the course of obtaining a listing on the national bourse,” according to a company statement. Access Engineering also doubled its turnover during the financial year 2011/2012 compared to 2010/2011, thus delivering on the theme of ‘New Hope’ to its multifaceted stakeholders.
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