EQUITY TWO PLC
A Carson Cumberbatch Company
Condensed Interim Financial Statements
For the three months ended 30th June 2024
Equity Two PLC
Statement of Profit or Loss and Other Comprehensive Income
(All figures are in Sri Lankan Rupees Thousands)
Three months ended 30th June | 2024 | 2023 | Change % |
Revenue | 48,660 | 41,540 | 17 |
Direct costs | (16,732) | (13,876) | 21 |
31,928 | 27,664 | 15 | |
Other income | 291 | 225 | 29 |
Administrative and other operating expenses | (4,294) | (3,968) | 8 |
Operating profit | 27,925 | 23,921 | 17 |
Finance income | 14,464 | 13,508 | 7 |
Finance costs | (1,553) | (1,698) | (9) |
Net finance income | 12,911 | 11,810 | 9 |
Profit before taxation | 40,836 | 35,731 | 14 |
Income tax expense | (11,503) | (11,936) | (4) |
Deferred taxation | (168) | (216) | (22) |
Profit for the period | 29,165 | 23,579 | 24 |
Other comprehensive income | |||
Items that will not be reclassified to profit or loss | |||
Gain / (loss) from actuarial valuation of employee benefits | - | - | - |
Related tax | - | - | - |
Total other comprehensive income for the period | - | - | - |
Total comprehensive income for the period | 29,165 | 23,579 | 24 |
Earnings per share (Rs.) | 0.94 | 0.76 | |
Dividend per share (Rs.)* | - | - |
Change % represents the percentage change in the current period's results compared to the corresponding period of the previous year.
* Dividend per share is based on the proposed/ interim dividends.
Figures in brackets indicate deductions.
Page 1
Equity Two PLC
Statement of Financial Position
(All figures are in Sri Lankan Rupees Thousands)
31.03.2024 | ||
As at | 30.06.2024 | (Audited) |
ASSETS | ||
Non-current assets | ||
Investment properties | 1,915,692 | 1,915,692 |
Investment in fixed deposits | 226,904 | 217,164 |
Total non-current assets | 2,142,596 | 2,132,856 |
Current assets | ||
Trade and other receivables | 30,771 | 31,585 |
Investment in fixed deposits | 59,419 | 78,380 |
Fair value through profit or loss financial assets | 36,082 | 38,180 |
Current tax receivables | 10,499 | - |
Cash and cash equivalents | 158,599 | 8,205 |
Total current assets | 295,370 | 156,350 |
Total assets | 2,437,966 | 2,289,206 |
EQUITY AND LIABILITIES | ||
Equity | ||
Stated capital | 444,092 | 444,092 |
Capital reserves | 750 | 750 |
Revenue reserves | 1,301,954 | 1,288,289 |
Total equity | 1,746,796 | 1,733,131 |
Non-current liabilities | ||
Refundable rental deposits | 41,679 | 40,126 |
Deferred tax liability | 471,643 | 471,475 |
Employee benefits | 2,645 | 2,571 |
Total non-current liabilities | 515,967 | 514,172 |
Current liabilities | ||
Trade and other payables | 153,543 | 9,906 |
Deferred revenue | 21,660 | 23,531 |
Current tax liabilities | - | 8,466 |
Total current liabilities | 175,203 | 41,903 |
Total liabilities | 691,170 | 556,075 |
Total equity and liabilities | 2,437,966 | 2,289,206 |
Net assets per share (Rs.) | 56.35 | 55.91 |
The Statement of Financial Position as at 30th June 2024 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the period then ended as disclosed in pages 1 to 4 have been drawn up from unaudited financial statements.
I certify that these financial statements are in compliance with the requirements of Companies Act, No. 7 of 2007.
(Sgd).
L.C.D. Prasanga
Senior Vice President- Finance
Carsons Management Services (Private) Limited
The Board of Directors is responsible for the preparation and presentation of these financial statements.
Approved and signed on behalf of the managers, | Approved and signed on behalf of the board, | |
(Sgd). | (Sgd). | (Sgd). |
V.R. Wijesinghe | A.P. Weeratunge | K.C.N. Fernando |
Director | Director | Director |
Carsons Management Services (Private) Limited |
Colombo
12th August 2024
Page 2
Equity Two PLC
Statement of Changes in Equity
(All figures are in Sri Lankan Rupees Thousands)
Stated | Capital | Revenue | Total | |
capital | reserves | reserves | equity | |
Balance as at 01st April 2024 | 444,092 | 750 | 1,288,289 | 1,733,131 |
Profit for the period | - | - | 29,165 | 29,165 |
Other comprehensive income for the period | - | - | - | - |
Total comprehensive income for the period | - | - | 29,165 | 29,165 |
Second interim dividend 2023/24 | - | - | (15,500) | (15,500) |
Balance as at 30th June 2024 | 444,092 | 750 | 1,301,954 | 1,746,796 |
Balance as at 01st April 2023 | 444,092 | 750 | 1,066,576 | 1,511,418 |
Profit for the period | - | - | 23,579 | 23,579 |
Other comprehensive income for the period | - | - | - | - |
Total comprehensive income for the period | - | - | 23,579 | 23,579 |
Balance as at 30th June 2023 | 444,092 | 750 | 1,090,155 | 1,534,997 |
Figures in brackets indicate deductions.
Page 3
Equity Two PLC
Statement of Cash Flows
(All figures are in Sri Lankan Rupees Thousands)
Three months ended 30th June | 2024 | 2023 |
Cash flows from operating activities | 40,836 | |
Profit before taxation | 35,731 | |
Adjustments for: | 1,553 | |
Finance costs | 1,698 | |
Finance income | (13,387) | (13,508) |
Net change in fair value through profit or loss financial assets | (1,077) | - |
Provision for employee benefits | 74 | 29 |
Amortization of deferred revenue | (1,871) | (1,466) |
Operating profit before working capital changes | 26,128 | 22,484 |
(Increase) / decrease in trade and other receivables | 814 | 3,019 |
Increase / (decrease) in trade and other payables | 122,782 | (8,763) |
Operating profit after working capital changes | 149,724 | 16,740 |
Income tax paid | (9,715) | (5,000) |
Net cash generated from / (used in) operating activities | 140,009 | 11,740 |
Cash flows from investing activities | (20,000) | |
Investment in fair value through profit or loss financial assets | - | |
Redemption of fair value through profit or loss financial assets | 23,175 | - |
Investment in fixed deposits | (15,493) | - |
Withdrawal of fixed deposits | 32,000 | - |
Interest received | 6,101 | 184 |
Net cash generated from / (used in) investing activities | 25,783 | 184 |
Cash flows from financing activities | (15,398) | |
Dividend paid | (58) | |
Loans obtained | - | 50,000 |
Net cash generated from / (used in) financing activities | (15,398) | 49,942 |
Net increase / (decrease) in cash and cash equivalents | 150,394 | 61,866 |
Cash and cash equivalents at the beginning of the period | 8,205 | 12,180 |
Cash and cash equivalents at the end of the period | 158,599 | 74,046 |
Statement of cash and cash equivalents | ||
Cash at bank and in hand | 6,614 | 74,046 |
Placements with banking and financial institutions | 151,985 | - |
Cash and cash equivalents for the cash flow statement | 158,599 | 74,046 |
Figures in brackets indicate deductions.
Page 4
Equity Two PLC
Notes to the Interim Financial Statements
(All figures are in Sri Lankan Rupees Thousands)
-
BASIS OF PREPARATION OF INTERIM FINANCIAL STATEMENTS
The Interim Financial Statements of the Company have been prepared using the same accounting policies and methods as the audited financial statements for the year ended 31st March 2024, and are in compliance with Sri Lanka Accounting Standard LKAS 34 - "Interim Financial Reporting". The provisions of the Companies Act, No. 7 of 2007 have been considered in preparing these Interim Financial Statements. - EVENTS AFTER THE REPORTING PERIOD
Subsequent to the reporting period, no circumstances have arisen which would require adjustments to or disclosure in the financial statements. - CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
There were no material contingent liabilities and capital commitments. - LIABILITIES FOR EXPENDITURE
Management fees and other similar expenses for the period have been accounted for in full in the interim financial statements. - COMPARATIVE FIGURES
Previous period's figures and phrases have been re-arranged wherever necessary to conform to the current period's presentation. - STATED CAPITAL
The Stated Capital of the Company as at 30th June 2024 was Rs. 444,092,098/35 consists of 31,000,000 fully paid Ordinary Shares. - GOING CONCERN
Based on currently available information, the directors are satisfied that the Company will continue its operations in the foreseeable future. - RELATED PARTY TRANSACTIONS
Three months ended 30th June | 2024 | 2023 |
Transactions with the parent company | ||
Dividends paid, net of WHT | 11,709 | - |
Transactions with affiliate companies | ||
Management and support services fees paid | 1,896 | 1,896 |
Rent and parking fees received | 8,939 | 8,939 |
Page 5
Equity Two PLC
Notes to the Interim Financial Statements
(All figures are in Sri Lankan Rupees Thousands)
9. | TWENTY MAJOR SHAREHOLDERS AS AT 30TH JUNE 2024 | ||
Number of | |||
Name of Shareholders | Shares | % | |
1 | Equity One Limited A/C No.1 | 27,549,456 | 88.87 |
2 | Bank of Ceylon A/C Ceybank Unit Trust | 2,198,192 | 7.09 |
3 | Mr. K.C. Vignarajah | 108,301 | 0.35 |
4 | Tranz Dominion, L.L.C. | 55,480 | 0.18 |
5 | Mrs. C.A.D.S. Woodward | 52,073 | 0.17 |
6 | Miss. V.K. Ramanayake | 50,000 | 0.16 |
7 | Mrs. C.L. Ramanayake | 50,000 | 0.16 |
8 | Mr. L.L. Hettiarachchi | 29,600 | 0.10 |
9 | Mr. P. Somadasa | 28,679 | 0.09 |
10 | Amana Bank PLC/ Hi-Line Trading (Pvt) Ltd | 25,337 | 0.08 |
11 | Miss. C.M. Wickramasekera | 25,300 | 0.08 |
12 | Union Investments Private Ltd | 25,200 | 0.08 |
13 | Mr. A.A. Noordeen | 23,496 | 0.08 |
14 | People's Leasing & Finance PLC/ Dr. H.S.D. Soysa & Mrs. G. Soysa | 19,000 | 0.06 |
15 | Mrs. S. Vignarajah | 18,309 | 0.06 |
16 | Mr. S.N.C.W.M.B.C. Kandegedara | 16,200 | 0.05 |
17 | Mr. J.B. Hirdaramani | 16,000 | 0.05 |
18 | Mrs. J. Aloysius | 15,900 | 0.05 |
19 | Dialog Finance PLC/ A.S.M. Shiyam | 14,781 | 0.05 |
20 | Mr. H.P. Bonifass | 14,000 | 0.05 |
10. PUBLIC HOLDING
The Company is in compliance with the Minimum Public Holding requirements for Companies listed on the Diri Savi Board as per Rule 7.13.1 (i) (b) of the Listing Rules of the Colombo Stock Exchange, under Option 2, i.e. Float- Adjusted Market Capitalization of less than Rs.1 Billion with 200 Public Shareholders and a Public Holding
percentage of 10%. | ||
The Company's Public Holding as at 30th June 2024 | ||
Float Adjusted Market Capitalization | Rs.135.13 Million | |
Number of Public Shareholders | 2,031 | |
Percentage of ordinary shares held by the public | 11.12% | |
11. DIRECTORS SHAREHOLDING AS AT 30TH JUNE 2024 | ||
No. of Shares | ||
Mr. E. H. Wijenaike (Chairman) | - | |
Mr. K.C.N. Fernando | 3,600 | |
Mr. A.P. Weeratunge | - | |
Mr. P.D.D. Fernando | - | |
Mr. S. Marimuthu | 550 | |
INVESTOR INFORMATION |
12. SHARE VALUATION
As at/ for the three months ended 30th June 2024
Last traded price per share (Rs.) | 39.20 |
Highest price per share for the period (Rs.) | 45.10 |
Lowest price per share for the period (Rs.) | 37.30 |
Market capitalisation | Rs.1,215.20 Million |
Page 6
Corporate Information
NAME OF THE COMPANY | Equity Two PLC |
(A Carson Cumberbatch Company) | |
COMPANY REGISTRATION NO. | PQ 34 |
LEGAL FORM | A Public Quoted Company with Limited Liability incorporated in Sri Lanka in 1990. |
Official listing of the Colombo Stock Exchange was obtained in November 1994. | |
PARENT AND ULTIMATE | Equity One Limited is the immediate Parent Company of Equity Two PLC. Carson |
CONTROLLING ENTITY | Cumberbatch PLC is the Parent Company of Equity One Limited and Bukit Darah |
PLC is the Ultimate Parent and Controlling Entity of Equity One Limited. | |
DIRECTORS | Mr. E. H. Wijenaike (Chairman) |
Mr. K.C.N. Fernando | |
Mr. A. P. Weeratunge | |
Mr. P. D. D. Fernando | |
Mr. S. Marimuthu | |
PLACE OF BUSINESS | No. 61, Janadhipathi Mawatha, |
Colombo 01, Sri Lanka. | |
Tel : +94 11 2039 200 | |
Fax: +94 11 2039 300 | |
BANKERS | Standard Chartered Bank |
Commercial Bank of Ceylon PLC | |
Hatton National Bank PLC | |
Nations Trust Bank PLC | |
DFCC Bank PLC | |
National Development Bank PLC | |
Sampath Bank PLC | |
SBI Sri Lanka | |
AUDITORS | Messrs. KPMG |
Chartered Accountants | |
No.32A, Sir Mohamed Macan Marker Mawatha, | |
Colombo 03, Sri Lanka. | |
Tel: +94 11 5426 426 | |
Fax:+94 11 2445 872 | |
MANAGERS & SECRETARIES | Carsons Management Services (Private) Limited |
No. 61, Janadhipathi Mawatha, | |
Colombo 01, Sri Lanka. | |
Tel : +94 11 2039 200 | |
Fax: +94 11 2039 300 | |
REGISTERED OFFICE | No. 61, Janadhipathi Mawatha, |
Colombo 01, Sri Lanka. | |
Tel : +94 11 2039 200 | |
Fax: +94 11 2039 300 | |
CORPORATE WEBSITE | www.carsoncumberbatch.com |