Aitken Spence successful expansion helps counter tourism dilemma

Forays into India, selling off two ships, superior performance in tourist resorts in the Maldives and cross border expansion in hospitality management, port services and power generation overseas, saw Aitken Spence post its highest ever profits.
For the financial year 2006/07, which most companies are reporting this month, the conglomerate showed a pre-tax profit of Rs. 2.6, up 35.1% increase over the previous year.

The shift in strategic helped the company to cushion the exposure and impact on the adverse tourism climate in the country. This visionary expansion has been credited to the Group’s business portfolio, according to a company statement announcing the results.

The expansion of the Group’s business activity and the global reach taken by the Group in the recent past contributed to the 45.4% increase in Group revenue to Rs. 19.8 billion for 2006/07, being the highest ever revenue recorded, it said.

Deputy Chairman & Managing Director Rajan Brito was quoted as saying that whilst not diluting the interests in Sri Lanka, the company looked to a strategy of cross border expansion within the spheres of hospitality management, port services and power generation overseas. “I am pleased to note that in the current year our vision to explore global prospects became a reality borne through fortitude and an attitude attuned to accomplishment. Innovation and transformational changes in attitude have been the hallmarks that characterized this change in the organisation’s future outlook,” he said. The statement said the company’s unrivalled leadership in service quality and product excellence in the hotel sector facilitated the entry into the Indian hospitality industry. Aitken Spence in the year under review successfully sourced and finalized management contracts with several properties in India whilst negotiations are underway to finalize agreements for further properties. Some of the properties are set to commence operations under the premier Heritance brand.

The Group’s Maldivian resorts, recently rebranded under the name Adaaran performed exceptionally well with latest addition being Adaaran Select Huduranfushi.

In the logistics sector the company became the first Sri Lankan company to venture into port efficiency development with a ground-breaking project being undertaken in the port of Durban, South Africa.With a strategic shift away from ship owning, the group has divested two ships whilst carrying out plans to divest the remaining ships during the current year.