Laugfs expands operations, increase asset base profits up at Rs.1.3 bln
View(s):Laugfs Gas PLC has enjoyed a good year with further expansions in the leisure and energy sectors that contributed to more costs however. The group recorded a 25 per cent growth to top Rs. 1.3 billion in profits for the year.
In its Annual Report 2014, the company stated that the group’s revenue moved up to an all time high of Rs.11.6 billion which is an increase of 10 per cent over the previous year. The organisation earned Rs.1.6 billion reporting an increase of 26 per cent over the previous financial year. The Group’s Total Comprehensive Income for the year, net of tax recorded a noteworthy increased of Rs.1.2 billion as against Rs.1 billion reported last year being an increase of 25 per cent. Profit for the year was recorded at Rs.1.3 billion as against Rs.1 billion last year and the company recorded profits at Rs.1.3 billion up by 16 per cent compared to 2013 figure of Rs.1.2
Chairman/Group CEO W.K.H. Wegapitiya and other directors at the AGM held on Wednesday in Colombo.
billion. The AGM of the company was held on Wednesday with the media invited, a rare occasion in a sector where companies avoid the glare of publicity of the annual meeting because it sometimes turns into bitter arguments between shareholders and directors.
Investments made in property, plant and equipment was a core contributor to increase in assets and will result in capacity building, increased production capabilities, more robust and efficient processes and productivity enhancements in the long term, the company’s Chairman/Group CEO W.K.H. Wegapitiya stated in his financial review. In this respect it was noted that total asset of the group was reported at Rs.13.1 billion which is an increase of 24 per cent over the corresponding period in the previous year.
He noted that the company needs to exert pressure on the authorities to ensure there is increased dependency on the liquefied petroleum gas (LPG) as the preferred choice of energy resource for all purposes. Laugfs Gas PLC is the core business of the group and it was noted that the difficulty in promoting LPG in Sri Lanka was mainly due to its “affordability,” Mr. Wegapitiya explained. The company’s leisure and tourism sector expanded with the opening of its Chilaw property “Anantaya” with 87 rooms and was expected to open two more properties earmarked in the short to medium terms, and will be located at Passikudah and Wadduwa. Construction has commenced in Passikudah and its designs have been competed for a 250-roomed resort and spa on the south coast destination.
Laugfs aims at developing and commissioning a chain of good four star plus hotel properties around 80-250 rooms each, in popular destinations which could be considered value propositions in a true sense and in this regard, the company was expected to build up a good hotel base in a category with minimum risks and establish a professional hotel operations arm.
The company also progressed on its nine storey commercial property on Maya Avenue, Colombo 5 scheduled for completion this year.