Sri Lanka’s Kingsbury hotel Sept net down 46-pct

ECONOMYNEXT – Profits at Sri Lanka’s The Kingsbury Plc, the city hotel of listed conglomerate Hayleys Plc, fell 46 percent in the September quarter from a year earlier to 41.8 million rupees, on flat revenue growth and rising costs, interim accounts showed.

The hotel reported earnings of 32 cents a share in the quarter.

In the six months to end September – the off-season for tourism – earnings were 14 cents a share on a profit of 34.5 million rupees, down 32 percent from a year earlier.

The stock closed 1 rupee lower on Wednesday at 15.30 rupees.

During the quarter, revenue growth was flat from a year earlier at 834 million rupees, cost of sales fell 5 percent to 382.4 million rupees and turnover tax grew a marginal 1 percent to 26.6 million rupees resulting in gross profits growing 4 percent to 425 million rupees.

Administrative costs rose 5 percent to 282.7 million rupees.

Net finance cost increased 261 percent to 50.9 million rupees despite borrowings shrinking  11 percent from a year earlier to 1.2 billion rupees at end September 2018 and cash deposits held with banks growing 180 percent to 266.6 million rupees. (COLOMBO, 01 November 2018)

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