Richard Pieris Exports Limited has emerged from a loss making situation and posted an attributable profit of Rs. 20.9 million for the half year ended September 30, 2001, up from a loss of Rs. 24.9 million a year earlier, an interim financial statement from the company now with shareholders reveals.

Despite a marginal 1% drop in turnover to Rs. 393.2 million during the period under review, the group was able to increase its gross profit 20% to Rs. 165.4 million. However, the operational profit was down 4% to Rs. 53.3 million.

The major factor that has returned the group to profitability during the current financial year was that the previous year’s provision of Rs. 44.7 million for a doubtful debt was a one-off and not repeated during he current financial year.

This resulted in a pre-tax profit of Rs. 39.9 million, up from a loss of Rs. 12 million the previous year and an after-tax profit of Rs. 35.2 million, up from a loss of Rs. 12 million the previous year.

After discounting minority interest of Rs. 14.3 million, the attributable profit to shareholders of the company was Rs. 20.9 million during the half year. At company level, the attributable half-year profit was Rs. 15.4 mn., up from a loss of Rs. 26.4 mn. a year earlier.

The first half earning had enabled the group to wipe off Rs. 2 million retained losses brought forward and carry Rs. 18.9 million profit available for appropriation as at September 30, 2001.

The Richard Pieris Exports group consolidates Richard Pieris Natural Foams and Micro Mineral (Pvt) Ltd. in its accounts. Playcraft Lanka had not been consolidated as the company had ceased production and operations from August last year.

"The directors are considering disposing the assets of the company," shareholders have been told.

Richard Pieris Exports has an issued capital of Rs. 110.5 million, capital reserve of Rs. 106.8 million land revenue reserves of Rs. 228.2 million.

Net assets value per share (group) stood at Rs. 40.30 as at September 30, 2001, up from Rs. 36.17 a year earlier. The share traded at a high of Rs. 20 and a low of Rs. 14 during the third quarter compared to a trading range of Rs. 19.50 to Rs. 14.75 a year earlier.