Ceylon Hospitals PLC, owners of the Durdans Hospital in Colombo is proceeding apace with a US$ 15 million BOI-approved investment to add 160 beds to the existing healthcare facility and also many new high-tech services, the company’s just released annual report for the year ended March 31, 2008 reveals.

Construction of the new facility comprising two towers including a basement and 12 floors together with a three-storied car park has already commenced and approximately 15% of the total project has been completed up to now.

The new unit will be equipped with contemporary state-of-the-art facilities, technology and equipment expected of a hospital conforming to international standards, Durdans Chairman Ajith Tudawe said in the annual report.

He said that the new development will alleviate some of the severe capacity constraints existing within Durdans and also the hospital industry.

The year under review saw the company boost turnover 15% to Rs.1.9 billion although the net profit was down 25% to Rs.0.15 billion partly due to a sharp increase in finance cost due to the new development now on stream

Tudawe explained that a debenture issue and interest payments for loans received for the construction of Durdans Medical and Surgical Hospital (Pvt) Limited had impinged on the bottom line.

"Further, considerable investment on the cardiac catheterization laboratory and the increase in administration overhead mainly due to staff salaries and other utility costs, has caused the net profit after tax to decline in the current financial year," he said.

Durdans has already commissioned a new cardiac catheterization laboratory in May last year and a new operating theatre complex last January. Durdans Heart Centre had enjoyed a high net profit margin and this facility was expected to increase revenue by 30% to 35% in the next financial year and thereafter, Tudawe said.

He said that the hospital will also be introducing new disciplines hitherto unavailable at Durdans in the areas of neurological, genito-urinary and orthopaedic services and also have plans for the installation of advanced imaging equipment including a CT Scanner and a MRI unit.

The new facility will include five operating theatres, enhanced and expanded cardiac and paediatric and care facilities, pathology lab, a radiology and imaging lab, audiology lab, therapy units and diversified channeling service areas for various specialities.

The year under review saw Durdans with a stated capital of Rs.395.4 million, a revaluation reserve of Rs.746.7 million and revenue reserves of Rs.471.9 million posting a group net profit of Rs.147 million, down from Rs.195 million the previous year.

This translated to an earning per share of Rs.4.87, down from Rs.6.57 the previous year but the company is maintaining it previous year’s dividend payment level of Rs.1.50 per share for the year under review as well.

The major shareholders of Durdans are: (Voting) Durdans Management Services Ltd. (64.55%), Employees’ Provident Fund (3.16%), Ceylon Investment PLC A/c 1 (2.39%), Lawrence Tudawe Management Services (Pvt) Ltd. (2.35%), Y.N.R. Piyasena (2.16%) and Mercantile Investments Ltd. (2.07%) and (Non-Voting) Employees’ Provident Fund (13.76%), M.J.F. Holdings Ltd. (7.7%), Samurdhi Authority of Sri Lanka (7.14%), DFCC Bank A/c 1 (4.71%) and Mr. D.K. Subasinghe (3.61%).