Cargo Boat Development Company PLC has succeeded in maintaining full occupancy on all its floors of its commercial building located very close to President’s House in Colombo and as a result posted what it’s Chairman Mr. Ravi Thambiayah called "a satisfactory year for the company."

In previous years, the company had to struggle to find tenants for its building due to security restrictions around its location.

The company’s annual report posted a revenue of Rs.32.2 million, up from Rs.25.2 million a year earlier and a profit after-tax of Rs.39.8 million, down from Rs.68.6 million the previous year.

Thambiayah said that interest and non-operating income had contributed Rs.31.6 million to its pre-tax profit during the year under review with non-operating income comprising dividends and share trading profits.

"The company continued to maintain its investment portfolio in outside enterprises, and the cost of such investments increased from Rs.282.3 million to Rs.295.6 million at the year end. The market value of the investments showed an increase of 37.9% over cost as at 31.03.2008. Investment income during the year 2007/2008 recorded a figure of Rs.25.4 million," he said.

The company had reduced administrative expenses during the year to Rs.5.2 million from the previous year’s Rs.7.6 million and also slightly reduced finance costs to Rs.0.1 million from Rs.0.2 million a year earlier. But the tax charge had nearly doubled to Rs.10.5 million from the previous year’s Rs.5.5 million.

The cash flow statement indicates that there was a sharp reduction in share trading profits to Rs.1.3 million during the year under review from Rs.53.5 million the previous year.

Cargo Boat Development has a stated capital of Rs.119 million, a general reserve of Rs.219 million and retained earnings of Rs.17.5 million in its books.

The company’s share had a net asset value of Rs.34.85 at year end, up from Rs.32.50 a year earlier and traded at a high of Rs.26 and a low of Rs.20 during the year. This compared to a trading range of Rs.27.50 to Rs.22 the previous year.

Lancaster Holdings Limited with 30.13%, Renuka Properties with 22.11% and Taprobane Fund Management with 16.13% are the major shareholders.