Aitken Spence PLC released its first quarter financial results to the Colombo Stock Exchange today, reporting Rs 488mn as pre-tax profit, a decline of 19.4% while revenue fell by 20% to Rs 5.06 bn over the previous year.

The diversified conglomerate attributed the decline as mainly due to drop in earnings from its Maldivian resorts and the plantations sector, which resulted in profits-after-tax being reduced by 22.3% and profit attributable to shareholders amounting to Rs 293.8.

With a chain of seven resorts Aitken Spence is the largest international resort operator in the Maldives. The islands attract high-end tourists mainly from Western Europe.

"A sharp drop in tourist arrivals to the Maldives due to the global recession had a negative effect on the tourism sector earnings in the first quarter. With aggressive promotions in alternative markets, especially in East Asia, we hope to further diversify our markets in the future", said J M S Brito, Deputy Chairman and Managing Director of Aitken Spence PLC.

During the quarter under review Aitken Spence Hotels announced that its first property, Neptune Hotel will be transformed into a 60 room wellness resort under its Heritance brand umbrella.

"We are vigorously looking at opportunities in all sectors to partner in the development of the North and East provinces. Concerted destination marketing and infrastructure development in targeted tourism hotspots would give reasons for the industry to be bullish about Sri Lanka’s tourism prospects, in spite the recession curbing global travel", added Mr Brito.

The company’s cargo logistics sector which includes maritime services, cargo, integrated logistics and courier services displayed improved performance from the previous year.

The Group managed to sustain robust earnings from the port management & container services operations in South Africa. Furthermore, a strong performance by the courier division during the first three months and improved efficiencies across the sector has resulted in an improved performance in cargo logistics.

During the period under review, Aitken Spence responded to a call of the Board of Investment of Sri Lanka for assistance providing relief aid, by donating a consignment of goods for the internally displaced persons in the north of the island.

Aitken Spence is among Sri Lanka’s leading and most respected corporate entities with interests in Hotels, Services, Logistic Solutions and Strategic Investments in South Asia, the Middle East and Africa.