Financial Times - Nawaloka reports net loss

Nawaloka reports net loss

Nawaloka Hospitals reported a net loss of Rs.84 million for first quarter 2007, compared to a net profit of Rs.23 million in the same period in 2006, resulting primarily due to the investment made at Galadari Hotel.

“It is only a provisioning of Rs.110 million (set aside for the Galadari investment) and the true value of the company has not receded,” Jayantha Perera, Chief Financial Officer Nawaloka Hospital, told The Sunday Times FT.

NHL acquired a 24 percent stake in Galadari Hotels Lanka at Rs.19.0 per share in August 2005 and also provided to the hotel, Rs.284 million in 2006 and an additional Rs.110 million in the first quarter. However the company’s revenue was up by 13 percent year on year to Rs.439 million, while both gross profit and operational profit margins have improved, resulting in the first quarter operating profit rising 52 percent to Rs.62 million.

Total net debt has increased from Rs. 300 million as at June 2005 to Rs. 860 million as at June 2006.

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