Second quarter financial results of Aitken Spence PLC released to the Colombo Stock Exchange yesterday, revealed Rs 1.24b as profit-before-tax for the six months ended 30th September 2008. The diversified conglomerate disclosed Rs 792.4 m as profit attributable to the shareholders, a growth of 4.6 per cent, compared to the same period last year.

Group Turnover has increased by 18.6 per cent to Rs 14.8 b, up from Rs 12.5 for the corresponding period last year. Earnings per Share increased 4.6 per cent from Rs 27.98 to Rs 29.28.

Deputy Chairman & Managing Director J M S Brito said, “The contribution from the Maldivian sector has reduced in the second quarter due to refurbishments taking place in the Adaaran Resorts chain. The impending global recession and high energy costs has adversely affected the leisure sector further” .

Aitken Spence Hotels and Resorts announced the addition of Hotel Atithi in Puducherry to its portfolio of hotels in India. Aitken Spence presently manages four other resorts in India and 4 resorts in Oman. It is envisaged that the company will have around ten hotels under its portfolio in South India alone within the next year.

During the period under review, as further testament to the company’s green credentials, Heritance Ahungalla and Heritance Kandalama bagged the top two awards under the Services category at the National Cleaner Production Awards 2008, organised by the National Cleaner Production Centre (NCPC). Heritance Ahungalla was also awarded for Excellence in Water Efficiency and Excellence in Energy Efficiency. Heritance Kandalama and Ramada Resort, Kalutara also managed by Aitken Spence Hotels received Certificates of Merit for Energy Efficiency.

Brito commenting on the recognition said: “Regardless of industry downturns or upturns, we commit ourselves to continuously raise our standards in all aspects of our operations. It remains true to our best practices in environmental and social governance as well. We will continue to share our experience and expertise to local and international fora.”

Aitken Spence secured agency for Kingfisher Airlines, one of India’s fastest growing private airlines. Commencement of flight operations is expected during the third quarter.

South African port operations have expanded its activities by entering into a contract with the National Ports Authority of South Africa (NPASA) to introduce global best practices in marine operations. Aitken Spence has also commenced a project on business process re-engineering with a view to increase capacity within NPASA.

Freight rates to and from Colombo to global destinations have contracted by about 40% which significantly affects the company’s revenue streams. “Therefore, we would welcome a further depreciation of the rupee to enable shipping agents to generate an income which is marginally above cost,” the Company said.

The integrated logistics sector has sustained growth into the first half of this year, with significant contributions coming from depot related activities and transportation. The sector is embarking on a plan to modernise the container depot and expand the transportation activity. The garment manufacturing sector suffered a loss of Rs 17m for the first six months in an extremely competitive global environment.