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Business

Conventions Asia poised for coporate activity
Conventions Asia (Pte) Ltd, a leading company in the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry, is gearing itself for a significant influx of corporate activity in coming months.

Conventions Asia (Pte) Ltd is a professional organisation, which excels in handling seminars, exhibitions, conferences and conventions. It offers specialised expert services in event organisation and management for Sri Lanka as well as the regional corporate community. Recognised by the Sri Lanka Conventions Bureau of the Ministry of Tourism, Conventions Asia has positioned itself to take a greater market share in the MICE industry, a statement from the company said.

Manoj Rajayah, a veteran in the industry with over 12 years experience, will spearhead the Conventions Asia (Pte) Ltd. team. He has a MBA in Finance, and a qualification from the International Association of Professional Convention Organisers (IAPCO), Switzerland, which is the highest recognition in the field of conference and exhibition management. Conventions Asia (Pte) Ltd, is a subsidiary of Hemtours (Pte) Ltd, the Leisure arm of Hemas Group.

Annual convention of construction contractors
The 32nd annual Convention of the International Federation of Asian and Western Pacific Contractors' Association (IFAWPCA) takes place in Colombo from August 18 to 22.

Hosted by Sri Lanka, incumbent IFAWPCA President Patrick Jayewardene said that around 250 foreign delegates together with 150 local delegates from the 15 member countries in the Asia Pacific region will participate in this event. They come from Australia, Bangladesh, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Nepal, New Zealand, Philippines, Singapore, Sri Lanka and Thailand.

Power and Energy Minister Karu Jayasuriya will open the meeting with Enterprise Development, Industrial Policy and Investment Promotion and Constitutional Affairs Minister Prof. G.L. Peries and Housing and Plantation Infrastructure Minister Arumugam Thondaman as the guests of honour.

Prof. Peries will deliver the keynote address based on the convention's theme of 'Social Responsibility in Construction', an official statement from the conference organisers said.

The second annual 'Construct 2002 Exhibition' will be concurrently held from August 18 to 20 at the BMICH in Colombo and features a total of 100 local and foreign contractors. Apart from showcasing Sri Lanka's construction industry, this exhibition is expected to be a networking platform and resource centre for the building and construction industry of the whole of South East Asia, the statement added.

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Pre-tax profit surge at Carsons Group
Pre-tax profits at the Carsons Group surged a whopping 345 percent to Rs. 226 million in the first quarter of the current financial year ending June 30 from a mere Rs. 51 million in the same period last year.

Consolidated turnover of Carson Cumberbatch and Co. and its subsidiaries and associates for the quarter was Rs. 1.07 billion, a growth of 36 percent over the first quarter of the previous year, the company said in a statement.

Group profit after tax was Rs. 224.74 million for the quarter, up almost 400 percent.

"Brewery, oil palm plantations and investment holding sectors were the main contributors to revenue and profit," the statement said. "Carsons invested heavily in expanding capacity in both the brewery and plantation sectors, and has become one of the key players in the Colombo Stock Exchange within the last five years."

The performance of the plantation business was strengthened by the recovery in palm oil prices in world markets, following the reduced supplies of edible oils and increased demand from the major consuming markets of India and China. "These prices are expected to hold for the next few months, enabling the sector to generate a reasonable return this year," Carsons said.

The company commissioned its new oil processing facility and completed planting its 15,000-hectare oil palm plantation in Central Kalimantan, Indonesia, in the last financial year.

With the entire plantation coming into maturity and an increase in commercial production of processed palm oil, this operation has been successful in recording a positive return this quarter, the statement said.

Sector turnover was Rs. 272.72 million and profit before tax was Rs. 11.17 million for the first quarter.

However, the company warned that adverse weather conditions as well as increased field maintenance and fertiliser costs could erode profits to some extent.

The Malaysian plantations of the Group are undergoing a planned replanting programme in order to ensure competitiveness in the long term. The Group's brewery business recorded a consolidated turnover of Rs. 604.68 million and profit before tax of Rs. 156.69 million.

Carsons said there was a "modest growth" in sales, which together with the cost savings resulting from consolidation of operations at one location, translated to better performance for the quarter, when compared with the previous year.

But, the company said low consumer purchasing power and regulatory constraints continued to affect shareholder returns.

The industry is expected to benefit in the long term from the removal of the Excise Special Provisions tax in the last budget.

In what it called "a display of its commitment to the soft liquor industry", the brewery reduced the prices of its products with an alcohol content of less than five percent by a wider margin than the actual tax reduction. Prices of its beers with a higher alcohol content remain unchanged.

"The Lion Brewery has been a long time advocate of a liberalised regime governing soft alcohol as a measure to combat the prevalence of illicit liquor in the country," the statement said.

It called for the reduction of prohibitive excise taxes on beer and the granting of more "beer only" retail licences in order to make soft liquor price-competitive and easily accessible compared with illicit liquor. In its investment holdings sector, Carsons profited from "selective trading for capital gain".

It said that the gradual recovery in the stock market presented some opportunities for this sector to enhance the quality of its holdings through acquisitions to the strategic and trading portfolios.

"Several blue chip stakes acquired previously for trading purposes were disposed of to realise capital gains and thereby enhance shareholder returns," Carsons said.

The investment holding sector, which mainly comprises The Ceylon Guardian Investment Trust Limited and its subsidiaries, recorded a turnover of Rs. 249.32 million and profit before tax of Rs. 139.53 million.

Carsons' real estate sector continued to earn "stable returns", the statement said.

The Group is considering getting out of the hotels sector, which has been consistently incurring losses

"The airlines business, on the other hand, is an area for which the company sees much future potential, given the expected liberalisation of the country's aviation policy," Carsons said.

It is also exploring opportunities in the infrastructure sector, as a possible diversification strategy.

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