On’ally Holdings PLC, owners of Unity Plaza, a commercial building on a prime Galle Road, Bambalapitiya location, had seen a sharp downturn in profit after-tax down to Rs.36.9 million in the year ended March 31, 2009, from Rs.176.3 million the previous year on an increased turnover of Rs.71.5 million, up from Rs.61.9 million the previous year.

The company’s Chairman, Dr. Prathap Ramanujam, explained that a Rs.145 million gain on revaluation of investment properties the previous year had boosted the bottom line in that year. Excluding this figure the previous year’s profit was Rs.47.6 million.

Unity Plaza continues to be the focus of the thriving information technology industry in Colombo with the majority of its occupants being computer related companies. Government departments occupied over two floors of the building during the year under review.

Ramanujam has told shareholders in the recently released annual report of the company that both turnover and operating profits (excluding the revaluation gain) had grown during the year. He attributed this to upwardly revised rental charges and higher occupancy of the building.

Average occupancy as at March 31, 2009, was nearly 98% of floor area against 97% the previous year.

Ramanujam said that the directors have approved a final dividend of Rs.1.35 per share, up from Rs.1.15 per share the previous year on top of an interim dividend of 90 cents per share that had been paid last December. The total dividend for the year would thus be Rs.2.25 per share against the previous year’s Rs.2.05 - the highest dividend paid since the inception of the company.

Although they have not made any appropriation to the repairs and maintenance reserve during the year, Unity Plaza has been regularly refurbished and Rs.0.8 million spent during the year for upkeep and renewals. These costs have been charged to revenue.

"Despite the challenges posed by the current economic climate we look forward, with caution, to continued profitability and thus enabling an attractive return to our shareholders," Ramanujam said.

On’ally has a stated capital of Rs.140 million, a revaluation reserve of Rs.18.9 million and a repairs and maintenance reserve of Rs.20.3 million. Retained earnings as at March 31, 2009 ran at Rs.778 million.

The Urban Development Authority with 47.6% of the company is its major shareholder followed by Ceylon & Foreign Trades PLC (24.3%) and Mr. Onally Gulamhusein (12.2%).

Net assets per share were up to Rs.68.36 during the year from Rs.67.78 the previous while the company’s share traded at a high of Rs.36.75 and a low of Rs.22.50 against a trading range of Rs.40.75 to Rs.30 the previous year.

The directors of the company are: Dr. Prathap Ramanujam (Chairman), Mr. Onally Gulamhuseim (MD), Mrs. Yvonne Gulamhusein, Mr. H.P. Silva, Dr. S.A. Gulamhusein, Mr. W.N.G. Silva, Mr. R.M. Ariyadasa, Ms. W.J.K. Geeganage, Mrs. T. .Sarveshwaran (Deputy MD) and Mr. B.V. Selvanayagam.