Nuwara Eliya Hotels Company PlcCSELK: NEH.N0000

Interim Financial Statements as at 30 06 2024

Aug 16, 2024 at 3:24 AM UTC · Issued by Nuwara Eliya Hotels Company Plc

THE NUWARA ELIYA HOTELS COMPANY PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
		Company			Group
			Audited			Audited
As At 30th June 2024	30.06.2024	30.06.2023	31.03.2024	30.06.2024	30.06.2023	31.03.2024
	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000
ASSETS
Non Current Assets
Property, Plant and Equipment	3,243,337	3,218,580	3,220,309	3,910,604	3,895,945	3,890,812
Right-of-use assets	-	-	-	5,200	84	5,200
Intangible Assets	19,859	9,792	20,834	20,073	10,175	21,090
Biological Assets	4,465	2,879	4,660	4,465	2,879	4,660
Investment in Subsidiary	444,996	444,996	444,996	-	-	-
Non-Current Financial Assets	355,772	256,418	335,888	355,772	256,418	335,888
	4,068,429	3,932,665	4,026,687	4,296,114	4,165,501	4,257,650
Current Assets
Inventories	56,368	57,154	60,353	62,700	63,467	66,410
WHT Receivable	21,199	9,941	18,031	23,859	9,941	20,245
Trade and Other Receivables	53,502	39,876	132,825	55,968	41,644	133,842
Prepayments	47,440	16,220	44,892	53,148	18,648	47,157
Tax Receivable	-	449	-	-	-	-
Other Current Financial Assets	45,531	33,811	41,908	45,531	33,811	41,908
Short-Term Investments - Fixed Deposits	2,139,577	1,443,600	2,059,529	2,352,216	1,629,965	2,266,688
Cash and Cash Equivalents	71,246	66,125	56,138	93,040	77,215	79,366
	2,434,863	1,667,176	2,413,676	2,686,462	1,874,691	2,655,616
Total Assets	6,503,292	5,599,841	6,440,363	6,982,576	6,040,192	6,913,266
EQUITY AND LIABILITIES
Equity
Stated Capital	335,210	335,210	335,210	335,210	335,210	335,210
Revaluation Reserve	1,730,428	1,761,603	1,730,428	1,858,197	1,889,357	1,858,197
Fair value reserve of financial assets at FVOCI	85,407	(13,947)	65,523	85,407	(13,947)	65,523
Retained Earnings	3,022,043	2,454,683	2,908,361	3,026,624	2,438,564	2,908,652
Non Controlling Interest	-	-	-	200,787	193,571	199,292
	5,173,088	4,537,549	5,039,522	5,506,225	4,842,755	5,366,874
Non Current Liabilities
Deferred Taxation	854,845	862,447	860,287	973,291	966,034	977,292
Retirement Benefit Obligations	44,394	28,417	43,773	48,211	31,071	47,380
Interest Bearing Loans & Borrowing	-	-	-	-	-	-
	899,239	890,864	904,060	1,021,502	997,105	1,024,672
Current Liabilities
Interest Bearing Loans & Borrowings	-	11,996	-	-	21,594	-
Bank Overdraft	27,399	22,097	24,560	27,399	22,112	24,560
Trade and Other Payables	145,944	119,717	242,105	167,275	136,581	262,362
Contract Liability	16,080	17,618	40,732	16,781	19,635	41,236
Tax Liability	241,542	-	189,384	243,394	410	193,562
	430,965	171,428	496,781	454,849	200,332	521,720
Total Equity and Liabilities	6,503,292	5,599,841	6,440,363	6,982,576	6,040,192	6,913,266
Net Asset per Share (Rs.)	2,366	2,076	2,305	2,427	2,127	2,364
The above figures are provisional and subject to audit.
The Notes 1 to 8 form an integral part of these Financial Statements.

It is certified that the Financial Statements have been prepared in compliance with the requirement of the Companies Act No.7 of 2007

J P K Karunarathna

Financial Controller

Gerard G. Ondaatjie	T.J. Ondaatjie
Deputy Chairman	Director
August 15, 2024

THE NUWARA ELIYA HOTELS COMPANY PLC (Company)

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Revenue

Cost of Sales

Gross Profit

Other Income

Administrative Expenses

Selling and Distribution Expenses

Other Operating Expenses

Profit /(Loss) from Operations

Depreciaton & Amortization

Finance Income

Finance Cost

Profit /(Loss) Before Tax

Income Tax Reversal/(Expenses)

Profit/(Loss) for the Period

Profit /(Loss) Attributable to :

Owners of the Company

Non Controlling Interest

Profit/ (Loss) For the Period

Other Comprehensive Income /(Loss)

Gain (Loss) on Equity Instruments Designated at FVTOCI Actuarial Gain/(Loss) on Retirement Benefit Obligation Income Tax Effect on Actuarial Gain (Loss)

Income Tax Rate Effect on Actuarial Gain (Loss) Income Tax Effect on Revaluation of Land and Buildings

Other Comprehensive Income/ (Loss) for the Period Total Comprehensive Income /(Loss)

Total Comprehensive Income/(Loss) Attributable to :

Owners of the Company

Non Controlling Interest

Total Comprehensive Income /(Loss) for the Period

Basic Earnings per Share

Dividend per Share

The above figures are provisional and subject to audit. Figures in brackets indicate deductions.

The Notes 1 to 8 form an integral part of these Financial Statements.

Company

	FOR THE THREE MONTHS ENDED			Audited
30.06.2024			30.06.2023			Variance		31.03.2024
	Rs.'000		Rs.'000			Rs.'000			Rs.'000
		444,510		354,963		89,547		1,965,776
		(100,242)		(98,032)	(2,210)		(458,301)
		344,268		256,931		87,337		1,507,475
		5,022		5,294		(272)		21,899
		(99,226)		(88,309)	(10,917)		(365,538)
		(45,085)		(32,564)	(12,521)		(171,390)
		(70,767)		(79,927)	9,160		(328,174)

		134,212		61,425		72,787		664,272
		(31,176)		(28,164)	(3,012)		(117,130)
		59,539		71,581		(12,042)		280,795
		(165)		(1,925)	1,760		(967)

		162,410		102,917		59,493		826,970
		(48,730)		(30,322)	(18,408)		(246,005)

		113,680		72,595		41,085		580,965

		113,680		72,595		41,085		580,965
		-			-		-			-
		113,680		72,595		41,085		580,965
		19,885		1,236		18,649		80,706
		-			-		-			(8,379)
		-			-		-			2,514
		-			-		-			-
		-			-		-			-
		19,885		1,236		18,649		74,841
		133,565		73,831		59,734		655,806
		133,565		73,831		59,734		655,806
		-			-		-			-
		133,565		73,831		59,734		655,806
		52.00		33.21							265.76
		-			-							-

				Revenue & Profit (Company) for the Three Months
										Ended 30th June 2024
	500
															445
	400												355
	300
					165
	200
	.Mn		81											73		114
	in
	100
	Rs
	0
						(4)
	-100		(25)

	21/22	22/23		23/24		24/25

									Revenue			Net Profit

THE NUWARA ELIYA HOTELS COMPANY PLC (GROUP)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
											Group
	FOR THE THREE MONTHS ENDED				Audited
	30.06.2024		30.06.2023			Variance		31.03.2024
	Rs.'000			Rs.'000			Rs.'000					Rs.'000
Revenue		483,809		389,374		94,435			2,132,294
Cost of Sales	(105,854)		(105,386)		(468)		(484,837)
Gross Profit		377,955		283,988		93,967			1,647,457
Other Income		5,552		5,311		241			21,948
																	-
Administrative Expenses	(110,317)		(99,027)		(11,290)		(407,841)
Selling and Distribution Expenses		(52,447)		(37,178)		(15,269)		(192,007)
Other Operating Expenses		(81,539)		(91,684)		10,145			(374,771)

Profit / (Loss) from Operations		139,204		61,410		77,794			694,786
Depreciaton & Amortization		(34,848)		(31,836)		(3,012)		(129,623)
Finance Income		65,467		81,392		(15,925)		313,732
Finance Cost		(183)		(2,072)		1,889			(1,358)

Profit /(Loss) Before Tax		169,640		108,895		60,745			877,538

Income Tax Reversal/(Expenses)		(50,171)		(58,349)		8,178			(296,232)
Profit/(Loss) for the Period
	119,469		50,546		68,923			581,306
Profit /(Loss) Attributable to :

Owners of the Company		117,974		56,242		61,732			581,217
Non Controlling Interest		1,495		(5,696)		7,191			88
Profit/ (Loss) For the Period		119,469		50,546		68,923			581,306
Other Comprehensive Income /(Loss)
Gain (Loss) on Equity Instruments Designated at FVTOCI		19,885		1,236		18,649			80,706
Actuarial Gain/(Loss) on Retirement Benefit Obligation		-		-			-			(8,709)
Income Tax Effect on Actuarial Gain (Loss)		-		-			-			2,580
Income Tax Rate Effect on Actuarial Gain (Loss)		-		-			-			-
Income Tax Effect on Revaluation of Land and Buildings		-		(21,397)		21,397			(21,378)
Other Comprehensive Income/ (Loss) for the Period		19,885		(20,161)		40,046			53,199
Total Comprehensive Income /(Loss)		139,354		30,385		108,969			634,505
Total Comprehensive Income/(Loss) Attributable to :
Owners of the Company		137,859		35,888		101,971			640,007
Non Controlling Interest		1,495		(5,502)		6,997			(5,502)
Total Comprehensive Income /(Loss) for the Period		139,354		30,385		108,969			634,505
Basic Earnings per Share		53.97		25.73								265.88
Dividend per Share		-		-									-
The above figures are provisional and subject to audit.
				Revenue & Profit (Group) for the Three Months
Figures in brackets indicate deductions.
									Ended 30th June 2024
The Notes 1 to 8 form an integral part of these Financial Statements.	600
	500															484
	400													389

	Mn300

	in						189
	200
	Rs.			90														119
	100
															51

	-
							(3)

	(100)				(31)

		21/22	22/23		23/24		24/25

Revenue Net Profit

THE NUWARA ELIYA HOTELS CO. PLC STATEMENT OF CHANGES IN EQUITY For the period ended 30th June 2024

COMPANY

Balance as at 1st April 2023

Profit/(Loss) for the Period

Other Comprehensive Income

Gain (Loss) on Equity Instruments Designated at FVTOCI

Total Comprehensive Income /(Loss)

Transactions with Owners of the Company, Recognized Directly in Equity

Transferred to Retained Earnings

Total Transactions with Owners of the Company

Balance as at 30th June 2023

Balance as at 1st April 2024

Profit/(Loss) for the Period

Other Comprehensive Income

Gain (Loss) on Equity Instruments Designated at FVTOCI

Total Comprehensive Income /(Loss)

Transactions with Owners of the Company, Recognized Directly in Equity

Transferred to Retained Earnings

Total Transactions with Owners of the Company

Balance as at 30th June 2024

GROUP

Balance as at 1st April 2023

Profit/(Loss) for the Period

Other Comprehensive Income

Gain (Loss) on Equity Instruments Designated at FVTOCI

Total Comprehensive Income /(Loss)

Transactions with Owners of the Company, Recognized Directly in Equity

Transferred to Retained Earnings

Total Transactions with Owners of the Company

Balance as at 30th June 2023

Balance as at 1st April 2024

Profit/(Loss) for the Period

Other Comprehensive Income

Gain (Loss) on Equity Instruments Designated at FVTOCI

Total Comprehensive Income /(Loss)

Transactions with Owners of the Company, Recognized Directly in Equity

Transferred to Retained Earnings

Balance as at 30th June 2024

Stated	Revaluation	Fair value reserve	Retained	Total
of Financial Assets
Capital	Reserve	at FVOCI	Earnings	Equity
Rs '000	Rs '000	Rs '000	Rs '000	Rs '000
335,210	1,775,423	(15,183)	2,368,269	4,463,719
-	-	-	72,595	72,595
-	-	1,236	-	1,236
-	-	1,236	72,595	73,831
	(13,820)		13,820	-
-	(13,820)	-	13,820	-

335,210	1,761,603	(13,947)	2,454,684	4,537,550

335,209	1,730,427	65,523	2,908,361	5,039,520
-	-	-	113,682	113,682
-	-	19,885	-	19,885
-	-	19,885	113,682	133,567
-	-	-	-	-
-	-	-	-	-
335,209	1,730,427	85,408	3,022,043	5,173,087


	Attributable to the Equity Holders of the Parent Company

		Fair value reserve
Stated	Revaluation	of Financial Assets	Retained	Total	Non Controlling	Total
Capital	Reserve	at FVOCI	Earnings		Interest	Equity
Rs '000	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000	Rs '000
335,210	1,919,046	(15,183)	2,368,564	4,607,637	204,733	4,812,370
-	-	-	56,242	56,242	(5,696)	50,546
						-
	(15,869)			(15,869)	(5,528)	(21,397)
-	-	1,236	-	1,236	-	1,236
-	(15,869)	1,236	56,242	41,609	(11,224)	30,385
-	(13,820)	-	13,820	-	-	-
-	(13,820)	-	13,820	-	-	-
335,210	1,889,357	(13,947)	2,438,626	4,649,246	193,509	4,842,755

335,210	1,858,196	65,522	2,908,652	5,167,580	199,293	5,366,873
-	-	-	117,974	119,468	1,494	120,962
-	-	19,885	-	19,885	-	-
-	-	19,885	117,974	123,498	1,494	105,107
-	-	-	-	-	-	-
-	-	-	-	-	-	-
335,210	1,858,196	85,407	3,026,626	5,291,078	200,787	5,506,226

The Notes 1 to 8 form an integral part of these Financial Statements.

(0)

THE NUWARA ELIYA HOTELS CO. PLC
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30th June 2024		Company				Group
			Audited				Audited
	30.06.2024	30.06.2023	31.03.2024		30.06.2024	30.06.2023	31.03.2024
	Rs.'000	Rs.'000	Rs. '000		Rs.'000	Rs.'000	Rs. '000
Cash Flows from Operating Activities
Profit/(Loss) Before Tax	162,412	102,917	826,970		169,639	108,895	877,538
Adjustments for:
Depreciation of Property, Plant and Equipment	30,201	27,747	115,545		33,831	31,378	127,868
Amortization of Intangible Assets	975	623	2,412		1,317	665	2,582
Expected Credit Losses on Trade Debtors & Fixed Deposit (Net)	769	44	(391)		696	44	(391)
Depreciation of Right-of-Use Assets	-	-	-		-	251	1,135
Write Back of Unclaimed Dividends	-	-	(559)		-	-	(559)
Provision for Retirement Benefit Obligation Bonus	10,110	1,050	9,850		10,320	1,230	11,099
'Provision for impairment	-	-	-		-		-
Interest Expenses	-	146	371		-	146	648
Interest Income	(55,916)	(71,581)	(274,195)		(61,843)	(81,392)	(307,132)
Dividend Income	(1,451)	(1,451)	(2,759)		(1,451)	(1,451)	(2,759)
Fair Value Gain on Biological Assets	(741)	(378)	9,061		(741)	(378)	9,061
(Gain)/ Loss on Equity Investments FVTPL	19,884	1,496	(4,827)		19,884	1,496	(4,827)
(Gain Loss from disposal of Property ,Plant and Eqiipments			(6,600)				(6,600)
(Profit)/ Loss from Disposal of Property, Plant and Equipment	-	-	(2,221)		-	-	(2,221)
Operating Profit Before Working Capital Changes	166,243	60,613	672,657		171,652	60,884	705,442
Decrease/( Increase) in Inventories	3,985	2,171	(1,029)		3,710	2,179	(764)
Decrease/( Increase) in Trade and Other Receivable	76,785	(6,940)	(137,220)		71,774	(7,984)	(139,563)
Increase/( Decrease) in Contract Liabilities	(24,652)	(2,812)	20,301		(31,304)	(2,456)	19,145
Increase/( Decrease) in Trade and Other Payables	(96,161)	8,437	119,700		(93,556)	7,466	122,118
Cash Generated From Operations	126,200	61,469	674,410		122,276	60,089	706,378
Income Tax Paid	(2,328)	(6,034)	(31,103)		(4,654)	(6,033)	(36,480)
Interest Paid	(165)	(146)	(371)		(165)	(146)	(647)
Retirement Benefit Obligation Paid	(489)	(972)	(2,796)		(489)	(1,946)	(4,215)
Net Cash from Operating Activities	123,218	54,317	640,140		116,968	51,964	665,036
Cash Flows from / (Used in ) Investing Activities
Purchase of Property, Plant & Equipment	(26,426)	(37,230)	(126,756)		(27,121)	(37,509)	(128,926)
Proceeds from Disposal of Property, Plant & Equipment	-	-	2,221		-	-	2,281
Dividend Received	1,451	1,451	2,759		1,451	1,451	2,759
Acquisition of Intangible Assets			(12,821)				(12,831)
Acquisition of Right use Assets							(6,000)
Interest Received	-	200,151	363,627		5,927	222,559	406,951
Purchase of Biological Assets	-	-	-		-	-	-
Sale of Biological Assets	196	464	3,131		196	464	3,131
Investment in Fixed Deposits	(86,169)	(187,037)	(794,201)		(86,584)	(208,860)	(834,608)
Upliftment of Fixed Deposits	-	20,000	41,890		-	20,000	41,890
Net Cash Flows Used in Investing Activities	(110,948)	(2,201)	(520,150)		(106,131)	(1,895)	(525,353)
Cash Flows from / (Used in ) Financing Activities
Dividend paid			(68,317)				(68,317)
Repayment of Bank Loan	-	(4,002)	(15,998)		-	(7,203)	(28,797)
Net Cash from /(Used) in Financing Activities	-	(4,002)	(84,315)		-	(7,203)	(97,114)
Net (Decrease) / Increase in Cash & Cash Equivalents
12,270	48,114	35,664		10,837	42,865	42,568
Net Cash & Cash Equivalents at the Beginning of the Year	31,577	(4,086)	(4,086)		54,804	12,238	12,238
Net Cash & Cash Equivalents at the End of the Period
43,847	44,028	31,578		65,641	55,103	54,806
NET CASH AND CASH EQUIVALENTS
Components of Cash and Cash Equivalents
Cash and Cash Equivalents	71,246	66,125	56,138		94,667	77,215	79,366
Bank Overdraft	(27,399)	(22,097)	(24,560)		(29,026)	(22,112)	(24,560)
Net Cash & Cash Equivalents at the End of the Period	43,847	44,028	31,578		65,641	55,103	54,806

The Notes 1 to 8 form an integral part of these Financial Statements.

THE NUWARA ELIYA HOTELS CO. PLC

NOTES TO THE FINANCIAL STATEMENTS

1. Corporate Information

The Nuwara Eliya Hotels Co. PLC is a public limited liability company incorporated and domiciled in Sri Lanka listed on the Colombo Stock Exchange. The Interim Financial Statements of the Company and the Group for the Three months ended 30th June 2024 were authorised for issuing by the Board of Directors on 15th August 2024.

2. Basis of Preparation

The Interim Financial Statements of the Company and the Group have been prepared on the basis of the same accounting policies and methods of computation applied for the year ended 31st March 2024 are in compliance with the Sri Lanka Accounting Standard 34 - Interim Financial Reporting.

3. Basis of Consolidation

The Group accounts comprise the consolidation of accounts of the Nuwara Eliya Hotels Co. PLC the company and the subsidiary, Fair View (Pvt) Ltd. The Financial Statements of the Subsidiary is included in the Consolidated Financial Statements from the date that control effectively commenced. Inter company balances, transactions and any unrealized gains, arising from inter company transactions are eliminated in preparing the Consolidated Financial Statements.

4. Equity Instruments Designated at Fair Value Through OCI

Equity Instrument Designated at Fair Value Through OCI, reflected under Non-Current Financial Assets is stated at market price as at 30th June 2024.

5. Share Information

The Public Share Holders as at 30th June 2024 was 632 holding 10.76% - (30th June 2023 - 10.76%).The Company is compliant with the minimum public holding requirement under option 2 of 7.14.1(b)
Float Adjusted Market Capitalisation as at 30th June 2024 was Rs.510,070,024/-
Directors' Shareholding

As at	30.06.2024
Ordinary Shares	No. of Shares held	%
Mr. J H P Ratnayeke	327	0.01%
Mr. Gerard G Ondaatje	238,088	10.89%
Ms. A M Ondaatje	219,737	10.05%
Mr. T J Ondaatje	219,737	10.05%
Mr. L N D S Wijeyeratne	-	0.00%
Mr. M.K.K.K.B Galagoda	-	0.00%
Mr. S.K. Abeysundara	-	0.00%
Mr. G.H.R. Fernando	-	0.00%

THE NUWARA ELIYA HOTELS CO. PLC

NOTES TO THE FINANCIAL STATEMENTS (Cont.)

5.4 Twenty Largest Shareholders

As at	30.06.2024
	No. of Shares held	%
Mercantile Investments and Finance PLC	571,068	26.12%
Nilaveli Beach Hotels (Pvt) Ltd	443,390	20.28%
G G Ondaatjie	238,088	10.89%
A M Ondaatjie	219,737	10.05%
T J Ondaatjie	219,737	10.05%
Tangerine Tours (Pvt) Ltd	150,230	6.87%
Security Ceylon (Pvt) Ltd	66,372	3.04%
Mercantile Fortunes (Pvt) Ltd	40,816	1.87%
The Ceylon Investors (Pvt) Ltd	28,500	1.30%
D Grimshaw	27,797	1.27%
C G Senanayake	24,789	1.13%
S R S de Saram	23,668	1.08%
J A de Silva & Co. Ltd	17,178	0.79%
G A G Punchihewa	12,860	0.59%
D P Navaratnam	8,144	0.37%
A D Dadabhoy	5,646	0.26%
M P D Cooray	5,558	0.25%
S Abishek	4,254	0.19%
D P Marasiangha	3,518	0.16%
V B Navatarne	2,947	0.13%

5.5 Stated Capital

Stated Capital is represented by shares in issue as given below.

	30.06.2024		30.06.2023
	Number	Rs.		Number	Rs.
Ordinary Shares	2,186,040	335,151,740	2,186,040	335,151,740
7% Cumulative Participating Preference Shares	5,800	58,000	5,800	58,000
	2,191,840	335,209,740	2,191,840	335,209,740

The holders of Preference shares are entitled to a fixed dividend of 7% per annum.

Net Assets per Share
Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30th June 2024.
Earning per Share
Earnings per share has been calculated by dividing profit attributable to ordinary equity holders by the weighted number of ordinary shares outstanding during the year.
Market Price of The Nuwara Eliya Hotels Co. PLC for the Three Months Ended

		30.06.2024		30.06.2023
Highest Market Value per Share	Rs.	2,300.25	Rs.	1,599.50
Lowest Market Value per Share	Rs.	1,650.00	Rs.	1,300.00
Closing Market Value per Share	Rs.	2,168.50	Rs.	1,490.00
Last Traded Market Price per Share	Rs.	1,951.00	Rs.	1,490.00

Seasonality of Operation
There was no seasonality/cyclicality impact on the operations of the company which need to be disclosed.
Contingent Liabilities
There were no contingent liabilities as at the reporting date.
Events Occurring After the Reporting Date
Subsequent to the date of financial position, no circumstances have arisen which would require adjustment to or disclosure in the Financial Statements.