Capital Reach shows good results

Capital Reach Leasing Ltd (CRLL) and Capital Reach Credit Ltd (CRCL) says they have shown good results for the first three quarters of financial year 2006-‘07 with the pre tax profit growing several times in comparison to the similar period in the previous financial year.

The pre-tax profit of CRLL in the first 9 months was Rs 14.1 million compared to Rs 4.4 million for the 9 months ending 31st December ‘05. CRCL recorded a pre-tax profit of 5.7Mn compared to Rs 0.66 million for the 9 months ending December 31, 2005.
CRLL recorded post tax profits of Rs 13.1 million and CRCL recorded post tax profits of 2.9 million for the 9 months ending December 31, 2006. “These results are generated by the significant growth of the lending portfolios and the resultant revenue. The portfolios have doubled over the last one year and the quarter on quarter revenue growth during that period is over 30%. CRLL which is a registered finance company expects the growth of business volumes to grow further with their ability to attract public deposits,” an official statement said.

Despite the growth in portfolios the gearing of both companies remains low and Capital Reach aims to increase the gearing in the next few quarters which will result in a further increase in profitability. The statement said the companies have identified niche markets which will enable them to expand their business activities and these will be targeted through the branch network which is expected to grow in the next financial year. Capital Reach has branches in Kandy, Galle, Matara, Rathnapura, Chilaw, Nuwara Eliya, Badulla and Kaduruwela.

Commenting on the company strategy, Chairman Capital Reach Mayura Fernando said “We are very focused on maintaining the quality of our lending portfolios. Both subsidiaries are at the top of the industry standards with less than 1% non performing loans. We will not sacrifice the asset quality to achieve growth in volumes.”