J.L. Morison Son & Jones (Ceylon) PLC, manufacturers of pharmaceuticals and toiletry products and importers and distributors of pharmaceuticals, toiletries, agro chemicals, medical aid etc., has completed a major portion of a factory improvement program during the year ended March 31, 2008, and hopes to expand production once this work is completed, the company’s Chairman Mr. R. Abeyawira, has told shareholders in the company’s annual report.

The year under review had seen the Morison’s increase revenue at company level to Rs.1.47 billion from Rs.1.39 billion a year earlier while group revenue was up to Rs.1.84 billion from Rs.1.69 billion.

The company reported an attributable profit after-tax of Rs.63.4 million, up from the previous year’s Rs.52.5 million while the group posted a profit after-tax of Rs.74.6 million, up from Rs.71.8 million a year earlier.

This translated to an earning per share of Rs.83.92 for the company, up from Rs.69.52 the previous year, and a earning of Rs.98.84 for the group, up from Rs.95.08 a year earlier.

The directors have recommended a first and final dividend of Rs.10.40 per share for approval at the annual general meeting.

Abeyawira said that the year under review was "calamitous" for Sri Lanka with increased incidence of terrorism and violence and disastrous publicity.

"With the increase in the price of energy and the overall increase in the cost of living, and income unable to keep pace with inflation, the household budgets have been pressurized. Despite these adversities, the Sri Lanka economy maintained its resilience to report a GDP growth of 6.7%," he said.

Abeyawira reported that the current environment was difficult with diminishing income and it was not possible to foretell the future.

"Your directors remain committed to continue to focus on a strategy of advancement and they have, with their dedicated staff, confidence to assure that the shareholders will have a favourable return," he said.

J.L. Morison’s has a very modest stated capital of Rs.7.9 million, reserves of Rs.454.6 million and retained earnings of Rs.51.8 million in its books. Interest bearing loans and borrowings were running at Rs.3.7 million.

Net assets per share had grown during the year to Rs.1,169.45 from Rs.1,078.61 the previous year and the voting share traded at a high of Rs.450 and a low of Rs.300 while the non-voting share traded at a high of Rs.290 and a low of Rs.162.

Abeyawira Investments Ltd. with 24.14%, Smythe & Vickers Ltd. with 23.78% and Abeyawira Benevolent Investment Custodial Services (Pvt) Ltd. with 9.23% are the major shareholders.

Mr. A.S. Abeyewardene, a chartered accountant with wide experience who sits on a number of company boards has joined the board as an independent director.

The directors of the company are: Messrs. R. Abeyawira (Chairman), B.M. Amarasekera (Independent Director), N.P. de A. Samaranayake, A.M. Prematilleke, N.C. Keppetiwalana, A.S. Abeyewardene (Independent Director) and Mrs. S.I. Abeyawira.