Sri Lanka’s Access Engineering profits, revenues slump
COLOMBO (EconomyNext) – Profits at Access Engineering Plc, a firm targeted by Sri Lanka’s new regime, plunged 39.3 percent to 531 million rupees in the December 2014 quarter from a year earlier, as revenues also slumped, interim accounts showed.
The group reported earnings of 53 cents per share. In the nine months to December it reported earnings of 1.71 rupees per share on total profits of 1.7 billion rupees which fell from 2.0 billion rupees.
Access Engineering stock has taken a beating over the last few weeks, following the change of administrations, but closed up 40 cents at 27.40 rupees amid a general recovery in the market.
Access Engineering Plc, a firm that has been given state construction contracts is one of the companies targeted by the Sirisena administration with a 25 percent extra income tax for the current financial year if profits exceed 2.0 billion rupees.
At standalone company level, profits fell to 1,456 million rupees in the nine months to December down from 1,871 million rupees a year earlier.
During the quarter profits slumped 58 percent to 316 million rupees, while revenues fell from 3.7 billion rupees from 2.3 billion rupees.
Revenues of construction companies can be volatile depending on when contracts are won, performed and project consultants certify that work has been carried out satisfactorily.
The Sirisena administration also suspended an expressway project to the country’s north saying prices were inflated.