Malwatte faithful to rubber replanting during earlier ‘poor’ years

The company has approximately 5,000 hectares of tea in plucking and 2,000 hectares of rubber in tapping at present. The COP of both crops are benchmarks for the industry, the statement said.

Malwatte Valley Plantations Ltd said last week that it made substantial profits for the first half to June 2006 financial year totalling Rs 147.8 million against Rs 23.9 million in the previous 2005 period, a sharp rise of 89 percent.

In provisional results released, company director Lucas Bogtstra said the figures underscored the promise made by the chairman to all stakeholders at the last AGM where it was said that no management fees would be paid to the former managing agents, Wayamba Plantations Ltd from 2006.

The EPS ratio of 6.8 percent is among the highest published so far by any plantation company during this period, Bogtstra said in a statement.

He said trading results subsequent to June 2006 are also so far extremely satisfactory and “if the present prices remain satisfactory and if no unreasonable demands are made on inputs, shareholders can expect attractive returns.”

The company has approximately 5,000 hectares of tea in plucking and 2,000 hectares of rubber in tapping at present. The COP of both crops are benchmarks for the industry, the statement said.

“During the recent slump in rubber prices the company pursued an accelerated programme of replanting as opposed to many companies diversifying large extents into other crops and the benefits of this decision will see a large extent of young rubber coming into tapping over the next few years,” it said.