Guardian Capital to shed hospitality businesses
View(s):Guardian Capital Partners PLC, earlier known as Watapota Investments, will explore avenues to exit one of its investments – a step which would conclude over the next couple of quarters, the company has said.
The company, part of the Carson Cumberbatch group, reported a loss of Rs. 29.9 million in the six months to September 2017, compared with a Rs. 16 million net profit the year before.
During the 1Q18, a provision of Rs. 42.1 million was made against the entire investment in start-up, Swiss Institute for Service Industry Development (Pvt) Ltd early this year. “Swiss Institute is a start-up venture focused on providing vocational training to the hospitality and banking sector. The institute has entered into partnerships with the Swiss Hotel Management Academy of Lucern and the Swiss Banking Consulting and Training Academy, which will provide certification and curriculum,” the company has said in a previous management review.
However Guardian Capital Partners PLC and the other co-investors of the investee company filed a complaint with the Criminal Investigation Department with respect to alleged misappropriation of funds by the Managing Director and promoter of the said investee company. Legal proceedings have been initiated against him by the CID in the Magistrates Court of Colombo, the company has said in their recent results.
Guardian Capital Partners has attributed its loss in the first half of this year to impairment charges arising from alleged fraud at investee firm, Swiss Institute for Service Industry Development (Pvt) Ltd.
For the September 2017 quarter, Guardian Capital Partners said net profit was almost Rs. 7 million, down 13 per cent from a year ago.