Financial Times

Carsons shareholdings valued at Rs 6.8 bln

The investment portfolio of the Carsons conglomerate, mainly through The Ceylon Guardian Investment Trust Group, has risen sharply in value owing to last year's bull run on the Colombo bourse and was valued at Rs 6.8 billion at the end of the financial year March 31, 2004.

"The returns to shareholders of The Ceylon Guardian Investment Trust has been around 91 percent over the last one year," a Carsons statement said.

Key holdings in this sector are an eight percent stake in the Hayleys conglomerate, a three percent holding in the John Keells Holdings conglomerate, a 18 percent stake in JKH subsidiary Ceylon Cold Stores, a 10 percent stake of John Keells Ltd, JKH tea broking subsidiary.

These were in addition to Carsons holdings in The Ceylon Brewery, The Lion Brewery and the oil palm plantation companies.

The Guardian Group, comprising of The Ceylon Guardian Investment Trust Ltd., The Ceylon Investment Company Ltd. and Rubber Investment Trust Ltd., reported a consolidated profit of Rs. 297 million for the financial year ending March 31, 2004.

"The total market value of the portfolio comprising mainly equities was Rs.6.3 billion as at the close of the year, a growth of 210 percent over the previous year," Carsons said. "This can be compared with the growth in the ASPI during the same period of 74 percent."

The growth was mainly attributed to the boom in the stock market last year.

"However, the initial momentum could not be sustained due to the change in investor sentiments following political uncertainty and general elections during the fourth quarter of the financial year," the statement said.

During the year, the portfolio of the Guardian Group was strengthened with the acquisition of significant holdings in John Keells Holdings for Rs.180 million, a 12 percent stake in Union Assurance for Rs.178 million, and shares in Ceylon Cold Stores for Rs.30 million.

Through The Ceylon Brewery and The Ceylon Guardian Group, it also spent Rs 51 million for a 15 percent stake in International Grocers Alliance, the consortium of investors which acquired a 40 percent stake and management control of Sathosa Retail Limited. Others in the consortium are Ceylon Biscuits Limited and the Richard Pieris Group.

"These acquisitions are expected to add considerable value to the Guardian portfolio since they represent interests in growing sectors of the economy such as retailing, insurance, food and beverages and consumer products," the company said.

The Guardian group owns the following stakes of key blue chip firms quoted on the Colombo Stock Exchange:

Hayleys Limited - 7.93% valued at Rs.460.9 million

John Keells Holdings - 3.18% valued at Rs. 1.05 billion

John Keells Limited - 10.89% valued at Rs. 107 million

Ceylon Cold Stores Limited - 18.07% valued at Rs. 456 million

Union Assurance - 12% valued at Rs.135 million

Lion Brewey - 3.8% valued at Rs.134 million

Ceylon Brewery - 8.3% valued at Rs. 165 million

Varied stakes of Malaysian oil palm plantation companies valued at Rs. 3.8 billion

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