A credit of Rs.448.4 million on account of "negative goodwill on acquisition of subsidiaries" has boosted the group profit of Renuka Holdings PLC for the year ended March 31, 2009 to Rs.472.9 million, up from Rs.11.5 million a year earlier according to the company’s just released annual report.
At company level, the profit after-tax for the year was flat at Rs.11.3 million, the same as a year earlier.
Renuka which has a controlling interest of Coco Lanka PLC, also a listed company, is into coconut products including coconut milk powder, ethnic foods, organic food and beverages and tea among other businesses.
The company also announced in its report that it intends utilizing an investment property held in Colombo valued at Rs.307 million to construct and operate a healthcare related facility.
Originally, the property in Central Colombo was intended for building a commercial and residential complex but these plans were postponed due to the downturn in the real estate market. Following feasibility studies on how to best utilize this asset, the company has opted for healthcare.
"The project is in its preliminary stage although the concept has been finalized. We expect this to become a key business in the future," Renuka said.
The company’s Chairperson, Mrs. I.R. Rajiyah, said the annual report reflected the growth and diversity of the group. They had continued investing in listed shares taking advantage of subdued market conditions due to low investor confidence that had created opportunities in both fundamentally long-term investments and trading opportunities.
The company’s quoted share portfolio costing Rs.54.7 million as at March 31, 2009 had a market value of Rs.65.3 million as at that date. Rs.5.1 million dividends had been received together with Rs.27.7 million sales proceeds of shares sold during the year.
Mrs. Rajiyah said that the year under review had seen the group continuing investing in property, plant, equipment and development projects reflecting their confidence in the strength of their businesses.
"Today, at the dawn of the long awaited peace, enterprises must start up and communities must aspire to a sustainable prosperity. Thus the group will continue to explore opportunities, expansion and growth while being watchful of local and global market conditions," she said.
Ceylon Forestry (Pvt) Limited, a group subsidiary established in 2008 has a nursery of 60,000 teak, broad leaf mahogany and khaya planted in their own nursery in Matale while another subsidiary, Renuka Resorts Limited, owns prime coastal land in the Eastern Province. With peace dawning, the company said that it would look utilizing its landholdings.
The directors have proposed a first and final dividend of Rs.2 per share payable for 2008/09.
The company has a stated capital of Rs.75 million.
The Renuka group with 90.71% is the predominant shareholder of the company followed by Dr. S.R. and Mrs. I.R. Rajiyah with 2.66%.
The directors of the company are: Mrs. I.R. Rajiyah (Chairperson), Dr. S. R. Rajiyah (Group MD), Messrs. C.J. de S. Amaratunge, P.C.K. Abeykoon, S.V. Rajiyah, L.M. Abeywickrama and M.S. Dominic.