August, 8, 2018
Leading multi-discipline diversified conglomerate the Ambeon Group have shown remarkable and sustained growth throughout the 2017/2018 financial year, according to annual financial results released to the Colombo Stock Exchange recently.
Overall, Ambeon Capital PLC posted impressive financial results during 2017/2018, starting with the Company’s PBT of Rs. 286 million for 2017/18, which was almost thrice its 2016/2017 PBT of Rs.102 million. Even more noteworthy is the Company’s PAT was Rs. 372 million compared to a loss of Rs. 23 million only a year prior. The total comprehensive income for the Company for 2017/2018 was Rs. 907 million, which was more than four times that of the year before, wherein earned income was Rs. 224 million.
Its main subsidiary, Ambeon Holdings PLC’s total comprehensive income climbed to Rs. 1.1 billion, which was more than double the profits that were incurred in 2016/2017, which was Rs. 494 million. An annual Profit Before Tax (PBT) of Rs. 571 million this year was also posted, which was a significant increase over the Group’s PBT of Rs. 367 million in 2016/2017. Further Group Profit After Tax (PAT) was more than doubled to Rs. 670 million in 2017/2018. This is in comparison to a Group PAT of Rs. 263 million achieved last year. Ambeon Holdings further recorded Revenues of Rs. 12,272 million in 2017/2018, which was a growth of 14.04% over the corresponding period in 2016/2017.
These impressive financial results in 2017/2018 came at the end of a financial year marked by renewal, as well as a number of positive changes, that spanned the Group. The biggest milestone for the year was undoubtedly the acquisition of Millennium Information Technologies (Pvt) Ltd (MillenniumIT ESP), which has already contributed Rs.1.5 billion in Revenues and a healthy PBT to the Group.
Excitingly, the acquisition has helped accelerate the Group’s international growth strategy, positioning it ideally to take full advantage of global opportunities posed by fintech and other enterprise businesses by creating a world-class brand portfolio.
“We are pleased that our extensive restructuring initiatives continue to lead to exceptional financial results. This is particularly apparent with the Group’s acquisition of Millennium IT ESP, which is a direct outcome of our strategic decision to invest in the tech sector and drive techno-consumerism within the country,” said Mr. Murali Prakash, Group Managing Director/Chief Executive Officer – Ambeon Capital PLC and Ambeon Holdings PLC.
He also added that these “Future oriented investments in technology, as witnessed by our acquisition of Millennium IT ESP, will extend our already widely diversified portfolio. Our overarching goal is to remain a catalyzing force for positive change across our Business Units with an eye toward the industries in which we wish to participate. The Group is now well poised and has grown to encompass a more technological footing with a view towards tomorrow.”
The 2017/2018 financial year also witnessed a revitalization of Dankotuwa Porcelain with the opening of its new Signature Showroom, along with a wide-ranging re-branding for DI, the leader in the leather and fashion footwear industry, both of which fall under the Group’s main Ambeon Holdings PLC. In fact, Dankotuwa Porcelain and DI, both iconic Sri Lankan brands, have been optimized to better compete against international brands within the domestic and global marketplaces. In particular, Dankotuwa Porcelain, a strong and well-recognized Sri Lankan export brand, has already benefited from improved design elements, the addition of decals and decorations and even the introduction of new and innovative shapes.
“Along with our future focus, we still intend to be prepared for today, with a wide overhaul and re-positioning of key brands in our portfolio, allowing them to better compete in a more globalized world. Our continued investment in the respective manufacturing sectors ensures that we maintain our coveted market leadership. Even giving us the tools needed to keep leveraging these brands into new markets whenever international opportunities arise,” said Mr. Prakash.
2017/2018 further saw Ambeon Holdings PLC subsidiaries South Asia Textiles and Royal Fernwood perform admirably as well.
South Asia Textiles Lanka (Pvt) Ltd, (a leading manufacturer of exceptional quality weft knitted fabric that also specializes in Knitting, Dyeing, Finishing, Printing, Brushing, Sueding and Preshrunk fabric for leading global brands such as Victoria Secret, Next, Marks & Spencer, Tesco, Calvin Klein, Decathlon and Adidas) increased its year-on-year Company Revenue by 12%, while its 2017/2018 PBT far surpassed its prior results.
At the same time, Royal Fernwood Porcelain Limited too showed excellent growth. The Company’s Revenue grew by 11% year-on-year, with 2017/2018 PBT growth of 239% over prior year.
It is also noteworthy that Ambeon Holdings PLC recently declared its first interim dividend in several years. No better indicator that the Group’s major and strategic business transformation drive continues to be headed in the right direction, which is particularly underscored by the Group’s consistent and proven track record of financial success.
Concluding, Mr. Prakash highlighted the role of employees in the Group’s success so far, and just a few of the initiatives undertaken by the Group to support them in return.
“Significant progress has been achieved in creating a more cohesive and cleaner organizational structure geared towards moving first, channeling teamwork, seeing beyond and actioning results. These corporate values have been additionally supplemented by HR systems to enable our employees to work better, faster and smarter. Systems are in place empower our people to be astute, driven, nimble and visionary - enabling the Group to always remain at the forefront as an employer of choice. This includes better compensation and benefits for our loyal and dedicated employees, with professional benefits such as substantial training programs encompassing industrial exposure, etc. thrown in for good measure,” revealed Mr. Prakash.
Ambeon Capital PLC is the Holding company of Ambeon Holdings PLC, while Ambeon Holdings PLC is a holding and management company. The subsidiaries of Ambeon Holdings PLC include Taprobane Capital Plus (Pvt) Ltd (a leading financial services provider with a wealth of experience in capital markets in Sri Lanka), South Asia Textiles Limited, (leading manufacturer of exceptional quality weft knitted fabric. The company also specializes in Knitting, Dyeing, Finishing, Printing, Brushing, Sueding and Preshrunk fabric for leading global brands such as Victoria Secret, Next, Marks & Spencer, Tesco, Calvin Klein, Decathlon and Adidas), Dankotuwa Porcelain PLC and Royal Fernwood Porcelain Ltd., (manufacturers of porcelain tableware and gift items for global giants such as Oneida, Macy’s, Country Road, Lenox, John Lewis, Crate & Barrel, Megros, Jashanmal, Ralph Lauren, the Walt Disney Company and Dilmah), Ceylon Leather Products Limited (manufacturer of leather footwear and accessories), Millennium Information Technologies (Pvt) Ltd (Sri Lanka’s leading information systems solutions providers delivering IT solutions for many industries; including banks and finance, telecommunications, apparel and leading conglomerates) and Colombo City Holdings PLC (real estate).
The Ambeon Capital PLC Board of Directors comprise of eminent personalities – Sanjeev Gardiner (Chairman/Non-Independent Non-Executive Director), Ajith Devasurendra (Deputy Chairman/ Non-Independent, Non-Executive Director), Murali Prakash (Group Managing Director/ Chief Executive Officer), Priyantha Fernando ( Independent Non-Executive Director), Harsha Amarasekera P.C (Non-Independent Non-Executive Director), Ranil Pathirana (Non-Independent Non-Executive Director), Sarinda Unamboowe ( Independent Non-Executive Director), Desamanya Deva Rodrigo (Independent Non-Executive Director), while the Board of Directors of Ambeon Holdings PLC include – A.G. Weerasinghe (Chairman/Non-Independent Non-Executive Director), Murali Prakash (Group Managing Director/ Chief Executive Officer), Ruwan Sugathadasa (Non- Independent Non-Executive Director), Mangala Boyagoda (Independent Non-Executive Director), and Priyantha Maddumage (Non-Executive Director).
Photo captions: Mr. Sanjeev Gardiner – Chairman, Ambeon Capital PLC & Mr Murali Prakash – Group Managing Director/Chief Executive Officer, Ambeon Capital PLC and Ambeon Holdings PLC