Parquet cuts losses sharply but remains deep in the red

Parquet (Ceylon) Limited has succeeded in sharply reducing losses in the year ended March 31, 2002, but the company remains in the red with accumulated losses now up to Rs. 143.6 million and the net assets per share a negative Rs. 6.24, against a negative Rs. 3.19 a year earlier.

According to unaudited figures now with shareholders, the company had boosted turnover to Rs. 155.4 million from Rs. 88.8 million the previous year and posted an operational profit of Rs. 19.9 million against a loss of Rs. 10.1 million a year earlier.

But finance cost continued to be a drag swallowing up all earnings. Interest at Rs. 24.9 million during the year under review compared with Rs. 24.4 million a year earlier.

This drove the bottom line into the red, with a loss of Rs. 5 mn. compared to the previous year’s Rs. 35.6 mn. loss. There was no tax liability on account of brought forward losses.

Parquet has an issued share capital of Rs. 16.6 million, a capital reserve of Rs. 96.9 million and a general reserve of Rs. 19.8 million.

The company has been in recent years seeking without success a fresh capital infusion.