Kalamazoo posts Rs. 2.4 mn. profit

Kalamazoo Systems Limited, a member of the Ceylon Printers group selling Kalamazoo stationery and equipment and also engaging in printing, have posted a group after-tax profit of Rs. 2.3 million in the year ended March 31, 2003, down from Rs. 2.4 million a year earlier.

The company’s Chairman, Selvam Canagaratna has reported that group turnover had declined during the year but prudent management had helped limit the decline in operational profitability to 15%.

"The reduction in finance costs and increases in non-operational income helped improve the net profit after taxation from 7.8% of turnover in the year 2002 to 9.2% of turnover during the period under review," he said.

Canagaratna reported that the sale of equipment and stocks continued to contribute substantially to group revenue and the management was committed to meet the requirements of long-standing and loyal customers of the company.

Measures to develop the human resources of the organization have been implemented and options to upgrade existing facilities and increase capacity were being evaluated while diversifying into other specialized areas in the field of printing is also being considered," Canagaratna said.

The directors have recommended a 25% dividend for the year.

The company which has an issued share capital of Rs. 0.5 million has a capital reserve of Rs. 27.1 million and a negative revenue reserve of Rs. 2.1 million.

Millers Limited is the major shareholder of the company with 19.5% of its equity. The Ratnanather family and Cyril Gardiner interest are among the other major shareholders.

The directors held 25.5% of the shares while the public held 74.5%.

The company had an earnings per share of Rs. 46.82 during the year under review, down from Rs. 48.77 a year earlier. Net assets per share were Rs. 510 and the share was transacted once during the year at Rs. 200.

The directors of the company are: Messrs. Selvam Canagaratna (Chairman/MD), P. T. Chinniah (Deputy Chairman), L. C. G. Ratnanather, J. P. S. Ratnanather, Anthony A. Page, R. G. L. de Silva and J. A. S. Ratnasabapathy (alternate to J. P. S. Ratnanather).