Cargo Boat Development Company PLC has posted a first quarter profit surge thanks to substantial share trading profit and dividend income in the period ended June 30, 2008.

The profit of Rs.86.5 million for the period under review was up 623% from Rs.12 million earned a year earlier on account of non-operating income comprising a fat profit of Rs.75.4 million from the disposal of shares and dividends of Rs.8.8 million received.

In a provisional financial statement now with shareholders, Cargo Boat posted an operational income of Rs.8.1 million, up 4% from a year earlier and an operating profit of Rs.3.9 million, down 34% from Rs.5.9 million earned during the first quarter of the previous year.

But the non-operating income (share trading profits and dividends) had grown to Rs.84.1 million in the quarter under review from Rs.7.1 million a year earlier.

The company’s first quarter pre-tax profit of Rs.88.8 million was up from Rs.13 million a year earlier while the tax charge had grown to Rs.2.4 million from Rs.1.1 million.

Earnings per share during the period under review were Rs.8.48, up from Rs.1.17 during the comparative period the previous year.

During the year ended March 31, 2008 Cargo Boat posted an operating income of Rs.32.2 million and non-operating income of Rs.24 million. The company posted an after-tax profit of Rs.38.4 million translating to an earning of Rs.3.76 per share for the year.

Cargo Boat has a stated capital of Rs.119 million, general reserves of Rs.219 million and retained earnings of Rs.102.5 million in its books. It has no long-term borrowings.

The company said in the provisional statement that all floors of its Renuka building located in the high security zone in Colombo, Fort are now tenanted.