Financial Times

Galadari’s first profits after blast
Galadari Hotel Lanka Limited earned a profit of Rs. 146 million, or 80 cents per share, for the six months ended June 30, 2005, its first profits since a 1997 Tamil Tiger terrorist bomb blast that wrecked part of the hotel.

The result compared with a Rs 352 million loss, or Rs. 1.93 loss per share, suffered in the same period a year before.The results show a dramatic improvement in the company’s performance and shows the hotel has turned around since it was bombed in 1997.

The government, which had a 24.19 percent stake in the hotel, sold their entire shares in the company recently in accordance with its policy decision.
The hotel reported revenue of Rs. 460 million for the six months ending June 30, up 44 percent.

According to interim financial statements released by the company finance costs rose by Rs. 24 million to Rs 107 million in the period and an exchange gain of Rs 198 million was recorded as against an exchange loss of Rs. 238 million in the same period a year ago.

Administrative and other operating expenses were also increased in the same direction of sales. The improved performance also moved the company’s shareholders funds to Rs. 206.5 million, an increase of 404 percent compared to that of Rs. 41 million a year ago.

Back to Business