Interim Financial Statements for the fourth quarter ended 31st March 2025

‌PEGASUS HOTELS

OF CEYLON PLC

A Carson Cumberbatch Company

‌Pegasus Hotels of Ceylon PLC

Statement of Profit or Loss and Other Comprehensive Income - Group

(All figures are in Sri Lankan Rupees Thousands)

Three months ended

31st March

2025

2024

Change %

Year ended

31st March

2025

2024

Change %

Revenue

307,685

275,683

12

1,138,311

927,369

23

Direct costs

(190,027)

(182,314)

4

(778,012)

(703,314)

11

Gross profit

117,658

93,369

26

360,299

224,055

61

Other income

2,587

2,002

29

7,843

7,086

11

Selling and promotional expenses

(22,207)

(14,449)

54

(82,810)

(46,551)

78

Administrative expenses

(100,768)

(72,874)

38

(319,909)

(258,981)

24

Profit/ (loss) from operations

(2,730)

8,048

(134)

(34,577)

(74,391)

(54)

Gain on disposal of subsidiary (Note 2)

6,644

-

100 6,644 - 100

Finance income

2,866

739

288

10,235

10,157

1

Finance costs

(3,088)

(13,259)

(77)

(23,717)

(47,454)

(50)

Net finance income/ (cost)

(222)

(12,520)

(98)

(13,482)

(37,297)

(64)

Profit/ (loss) before taxation

3,692

(4,472)

(183) (41,415) (111,688) (63)

Income tax expenses

-

-

- - - -

Deferred taxation

(13,130)

(22,273)

(41) (4,891) 12,168 (140)

Profit/ (loss) for the period/ year

(9,438)

(26,745)

(65) (46,306) (99,520) (53)

Other comprehensive income

Items that will not be reclassified to profit or loss

Gain/ (loss) from actuarial valuation of

employee benefits

(4,432)

(9,890)

(55) (4,432) (9,890) (55)

Revaluation of property, plant and equipment

-

461,074

(100) - 461,074 (100)

Related tax

1,330

(135,356)

(101) 1,330 (135,355) (101)

Other comprehensive income/ (expense) for

the period/ year

(3,102)

315,828

(101) (3,102) 315,829 (101)

Total comprehensive income/ (expense) for the period/ year

(12,540)

289,083

(104) (49,408) 216,309 (123)

Earnings / (loss) per share (Rs.)

(0.22)

(0.63)

(1.10)

(2.58)

Dividend per share (Rs.)

-

-

-

-

Change % represents the percentage change in the current period's results compared to the corresponding period of the previous year.

Figures in brackets indicate deductions.

Pegasus Hotels of Ceylon PLC

Statement of Profit or Loss and Other Comprehensive Income - Company

(All figures are in Sri Lankan Rupees Thousands)

Three months ended

31st March

2025

2024

Change %

Year ended

31st March

2025

2024

Change %

Revenue

261,755

231,623

13

968,685

774,918

25

Direct costs

(157,739)

(150,706)

5

(649,371)

(579,267)

12

Gross profit

104,016

80,917

29

319,314

195,651

63

Other income

1,707

1,342

27

4,939

4,446

11

Selling and promotional expenses

(18,010)

(11,074)

63

(69,983)

(38,366)

82

Administrative expenses

(84,610)

(59,135)

43

(265,856)

(210,081)

27

Profit/ (loss) from operations

3,103

12,050

(74)

(11,586)

(48,350)

(76)

Loss from disposal of subsidiary (Note 2)

(21,834)

-

100 (21,834) - 100

Finance income

2,764

676

309

9,997

9,702

3

Finance costs

(2,214)

(12,010)

(82)

(19,880)

(31,500)

(37)

Net finance income/ (cost)

550

(11,334)

(105)

(9,883)

(21,798)

(55)

Profit/ (loss) before taxation

(18,181)

716

(2,639) (43,303) (70,148) (38)

Income tax expenses

-

-

- - - -

Deferred taxation

(10,360)

(637)

1,526 (7,987) 22,385 (136)

Profit/ (loss) for the period/ year

(28,541)

79

(36,228) (51,290) (47,763) 7

Other comprehensive income

Items that will not be reclassified to profit or loss

Gain/ (loss) from actuarial valuation of

employee benefits

(6,568)

(7,813)

(16) (6,568) (7,813) (16)

Revaluation of property, plant and equipment

-

425,642

(100) - 425,642 (100)

Related tax

1,971

(125,349)

(102) 1,971 (125,349) (102)

Other comprehensive income/ (expense) for

the period/ year

(4,597)

292,480

(102) (4,597) 292,480 (102)

Total comprehensive income/ (expense) for

the period/ year

(33,138)

292,559

(111) (55,887) 244,717 (123)

Earnings / (loss) per share (Rs.)

(0.68)

-

(1.22)

(1.24)

Dividend per share (Rs.)

-

-

-

-

Pegasus Hotels of Ceylon PLC

Statement of Financial Position

(All figures are in Sri Lankan Rupees Thousands)

As at

31.03.2025

31.03.2024

(Audited)

31.03.2024

(Audited)

ASSETS

Non-current assets

Property, plant and equipment

2,636,579

2,673,699

3,017,378

Right-of-use assets

-

-

6,640

Intangible assets

-

-

336

Investment in a subsidiary

-

256,842

-

Compensation receivable

24,759

24,759

24,759

Total non-current assets

2,661,338

2,955,300

3,049,113

Current assets

Inventories

38,386

31,363

38,866

Investment in fixed deposits

125,033

88,550

88,550

Trade and other receivables

125,850

99,934

115,774

Tax receivable

1,787

1,624

2,187

Cash and cash equivalents

248,955

59,404

63,164

Total current assets

540,011

280,875

308,541

Total assets

3,201,349

3,236,175

3,357,654

EQUITY AND LIABILITIES

Equity

Stated capital

751,549

751,549

751,549

Capital reserves

1,598,932

1,598,932

1,783,202

Revenue reserves

(177,667)

(121,896)

(312,640)

Total equity

2,172,814

2,228,585

2,222,111

Non-current liabilities

Deferred tax liability

616,430

610,414

648,819

Employee benefits

27,982

16,476

22,366

Loans and borrowings

68,948

87,198

114,521

Lease liability

-

-

11,163

Total non-current liabilities

713,360

714,088

796,869

Current liabilities

Trade and other payables

202,925

148,795

176,648

Amounts due to related companies

-

37,437

52,855

Loans and borrowings

112,250

107,270

108,607

Lease liability

-

-

564

Total current liabilities

315,175

293,502

338,674

Total liabilities

1,028,535

1,007,590

1,135,543

Total equity and liabilities

3,201,349

3,236,175

3,357,654

Net assets per share (Rs.)

51.48

52.80

52.64

The Statement of Financial Position

as at 31st March 2025 and the related Statements

of Profit or Loss

and Other

(Sgd).

(Sgd).

(Sgd).

V.R. Wijesinghe

M. Dayananda

K. Selvanathan

Director

Carsons Management Services (Private) Limited

Chairman

Director

28th May 2025

Colombo

Pegasus Hotels of Ceylon PLC

Statement of Changes in Equity

(All figures are in Sri Lankan Rupees Thousands)

COMPANY

Stated

capital

Capital

reserves

Revenue

reserves

Total

equity

Balance as at 01st April 2024

751,549

1,598,932

(121,896)

2,228,585

Loss for the year

-

-

(51,290)

(51,290)

Other comprehensive income / (expense) for the year

-

-

(4,597)

(4,597)

Total comprehensive income / (expense) for the year

-

-

(55,887)

(55,887)

Forfeiture of unclaimed dividends

116

116

Balance as at 31st March 2025

751,549

1,598,932

(177,667)

2,172,814

Balance as at 01st April 2023

591,149

1,300,983

(66,660)

1,825,472

Loss for the year

-

-

(47,763)

(47,763)

Other comprehensive income / (expense) for the year

-

297,949

(5,469)

292,480

Total comprehensive income / (expense) for the year

-

297,949

(53,232)

244,717

Rights issue of shares (Note 3)

160,400

-

-

160,400

Expenses on rights issue of shares

-

-

(2,121)

(2,121)

Forfeiture of unclaimed dividends

-

-

117

117

Balance as at 31st March 2024

751,549

1,598,932

(121,896)

2,228,585

Stated

capital

Capital

reserves

Revenue

reserves

Total

equity

Balance as at 01st April 2023

591,149

1,460,450

(203,689)

1,847,910

Loss for the year

-

-

(99,520)

(99,520)

Other comprehensive income / (expense) for the year

-

322,752

(6,923)

315,829

Total comprehensive income / (expense) for the year

-

322,752

(106,443)

216,309

Rights issue of shares (Note 3)

160,400

-

-

160,400

Expenses on rights issue of shares

-

-

(2,625)

(2,625)

Forfeiture of unclaimed dividends

-

-

117

117

Balance as at 31st March 2024

751,549

1,783,202

(312,640)

2,222,111

Pegasus Hotels of Ceylon PLC

Statement of Cash Flows

(All figures are in Sri Lankan Rupees Thousands)

Company Group

For the year ended 31st March 2025 2024 2024

Profit/ (loss) before taxation (43,303)

(70,148) (111,688)

Interest income

(9,175)

(9,702)

(10,157)

Unrealised foreign exchange loss

1,081

6,176

6,271

Loss from disposal of subsidiary

21,834

-

-

Interest expenses on loans and borrowings

18,799

25,324

40,019

Interest expenses on lease liability

-

-

1,164

Amortization of right of use assets

-

-

258

Amortization of intangible assets

-

-

336

Depreciation on property, plant and equipment

62,738

64,362

79,761

Property, plant and equipment written off

1,312

-

-

(Profit) / loss on disposal of property, plant and equipment

-

1

1

Provision made / (reversal of provision) for impairment of trade receivables, net

(501)

(321)

(321)

Provision for employee benefits

4,419

2,885

3,745

Operating profit / (loss) before working capital changes

57,204

18,577

9,389

(Increase) / decrease in inventories

(7,023)

5,029

3,121

(Increase) / decrease in trade and other receivables

(24,382)

(63,225)

(70,541)

Increase / (decrease) in trade and other payables

56,279

25,186

34,463

Increase / (decrease) in amounts due to related companies

(37,437)

27,447

20,365

Cash generated from / (used in) operations

44,641

13,014

(3,203)

Employee benefits paid

(514)

(3,851)

(4,462)

Net cash generated from / (used in) operating activities

44,127

9,163

(7,665)

Cash flows from investing activities

Investment in subsidiary

-

(120,406)

-

Proceeds from disposal of subsidiary, net of transaction cost (Note 2)

235,008

-

-

Purchase of property, plant and equipment

(28,554)

(16,701)

(17,533)

Proceeds from disposal of property, plant and equipment

77

-

-

Investment in fixed deposits

(57,500)

(115,640)

(115,640)

Withdrawal of fixed deposits

20,968

63,663

63,663

Interest received

9,061

9,634

10,060

Net cash generated from / (used in) investing activities

179,060

(179,450)

(59,450)

Cash flows from financing activities

Proceeds from rights issue of shares

-

160,400

160,400

Expenses on rights issue of shares

-

(2,121)

(2,625)

Dividend paid

-

(2)

(2)

Lease rentals paid

-

-

(1,304)

Loans and borrowings obtained during the year

233,000

94,000

94,000

Loans and borrowings repaid during the year

(246,270)

(31,204)

(118,759)

Interest paid on loans and borrowings

(19,285)

(25,178)

(39,873)

Net cash generated from / (used in) financing activities

(32,555)

195,895

91,837

Net increase / (decrease) in cash and cash equivalents

190,632

25,608

24,722

Effect of exchange rate changes on cash and cash equivalents

(1,081)

(6,176)

(6,271)

Cash and cash equivalents at the beginning of the year

59,404

39,972

44,713

Cash and cash equivalents at the end of the year

248,955

59,404

63,164

Statement of cash and cash equivalents

Placements with banking and financial institutions

14,368

23,945

23,945

Cash at bank and in hand

234,587

35,459

39,219

Cash and cash equivalents for the purpose of statement of cash flows

248,955

59,404

63,164

Figures in brackets indicate deductions.

Pegasus Hotels of Ceylon PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands unless otherwise stated)

1.

BASIS OF PREPARATION OF INTERIM FINANCIAL STATEMENTS

The Interim Financial Statements of Pegasus Hotels of Ceylon PLC (the "Company") and its Subsidiary (together referred to as the "Group") 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.

2.

DISPOSAL OF SUBSIDIARY

On 28th March 2025, the Company disposed its entire shareholding of 2,173,341 ordinary shares, representing 99.99% stake, of Equity Hotels Limited to Lavendish Leisure Hotels and Resorts (Private) Limited ('the Buyer') at a consideration of Rs.243,464,041/-. The Buyer is a non-related party to the Company, as well as to the Carson

Cumberbatch PLC Group/ Bukit Darah PLC.

Group

Effect of disposal on the financial position of the Group

Property, plant and equipment 335,797

Right-of-use assets 6,382

Inventories 8,005

Trade and other receivables 20,389

Tax receivable 292

Cash and cash equivalents 3,856

Deferred tax liability (35,949)

Employee benefits (3,341)

Lease liability (12,008)

Trade and other payables (95,059)

Net assets disposed 228,364

Consideration received, net of transaction cost 235,008

Net assets disposed (228,364)

Gain on disposal of subsidiary 6,644

Company

Consideration received, net of transaction cost 235,008

Carrying value of subsidiary 256,842

Loss from disposal of subsidiary (21,834)

Pegasus Hotels of Ceylon PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands unless otherwise stated)

3.

RIGHTS ISSUE OF SHARES

The Company issued 8,442,094 ordinary shares through a rights issue to a ratio of one (01) new share for every four

(04) shares held at Rs.19/- per share and raised Rs. 160,399,786/-. These shares were listed on the Colombo Stock Exchange on 08th September 2023.

Rights issue proceeds utilization as at 31st March 2025:

Clarification if

Amount

not fully

Proposed

allocated

utilized

Amount

date of

upon the

Amount

% utilized

including

Objective as

allocated as

utilization

receipt of

utilized in the

against

where the

per the

per Circular

as per

proceeds in

As a % of total

objective Rs.

allocation

funds are

Circular

in Rs.

Circular

Rs. [A]

proceeds

[B]

[B/A]

invested

1

Subscribe to the rights issue of the subsidiary, Equity Hotels

Limited (EHL)

120,399,786

Before 31st October 2023

120,399,786

75.06%

120,399,786

100.00%

N/A

2

Finance the capital expenditure of the Company (PRH)

40,000,000

Before 31st December 2024

40,000,000

24.94%

26,123,735

65.31%

Note *

* As outlined in the Rights Issue circular, the Company has fully completed the subscription to the rights issue of EHL. EHL fully utilized the funds allocated to partially settle and service its bank borrowings and related party borrowings. However, as of 31st March 2025, only 65.31% of the allocated proceeds for capital expenditure of PRH have been utilized, resulting in a total rights issue proceeds utilization of 91.35%. The unutilized amount of Rs.13.9 Mn as of 31st March 2025 pertained to the refurbishment of restaurant and beach improvement projects, which are currently progressing whilst ensuring minimum disruptions to hotel operations. As of the date of approving these financial statements (28th May 2025), total rights issue proceeds utilization was 96.86% and the unutilized amount was only Rs. 5.0 Mn. The remaining rights issue proceeds are expected to be fully utilized by 30th June 2025. During the interim period, the unutilized funds have been invested in fixed

deposits to ensure optimal returns.

4.

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.

5.

COMMITMENTS AND CONTINGENCIES

5.1

Capital commitments

The Company does not have material capital commitments as at the reporting date (31st March 2024: Rs. 8,891,170/-).

5.2

Financial commitments

The Company does not have material financial commitments as of the reporting date.

5.3

Contingent liabilities

The Company does not have material contingent liabilities as at the reporting date other than disclosed below.

(a) An individual has appealed to the Supreme Court after having lost a case in which he is claiming declaratory title as co-owner to 127.5 Perches of land that belonged to the Company. The next date of the case is 28th August 2025. The claimed land extent falls within the 1,251 perches of land acquired by the Government for the fisheries harbour project. Since the crystallization of the contingent liability is subject to this appeal and the subsequent value determination of the claim by the Government valuer, said contingent liability cannot be quantified.

(b) Letter of guarantee obtained from bank for utilities amounting to Rs.330,000/- (2024: Rs.330,000/-).

Pegasus Hotels of Ceylon PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands unless otherwise stated)

6.

LIABILITIES FOR EXPENDITURE

Management fees and other significant expenses for the year have been fully accounted for in the interim financial statements.

7.

COMPARATIVE FIGURES

Previous period's figures and phrases have been re-arranged where necessary to conform to the current period's presentation.

8.

GOING CONCERN

Based on currently available information, the directors are satisfied that the Company will continue its operations in

the foreseeable future.

9.

STATED CAPITAL

The stated capital of the Company as at the reporting date was Rs. 751,548,321/50 consists of 42,210,470 fully paid

Ordinary Shares.

10.

RELATED PARTY TRANSACTIONS

10.1

Transactions with related companies

Group Company

For the year ended 31st March

2025

2024

2025

2024

Parent Company- Carson Cumberbatch PLC

Proceeds from rights issue of shares

-

-

-

144,334

Short term advances obtained/ (settled), net

(8,500)

(14,000)

-

-

Subsidiary- Equity Hotels Limited

Subscription of rights issue

-

-

-

120,406

Fellow subsidiary- Carsons Management Services (Private) Limited

Receiving of services

10,299

10,326

9,039

8,660

Fellow subsidiary- Lion Brewery (Ceylon) PLC

Providing hotel services

9,760

8,554

9,760

8,554

Beer purchases

8,782

5,935

6,785

4,741

Fellow subsidiary- Luxury Brands (Private) Limited

Spirits purchases

4,798

6,203

3,369

4,868

10.2

Amounts due to a related company

Pegasus Hotels of Ceylon PLC

Notes to the Interim Financial Statements

(All figures are in Sri Lankan Rupees Thousands unless otherwise stated)

11.

TWENTY MAJOR SHAREHOLDERS AS AT 31ST MARCH 2025

Number of

Shares

Name of Shareholder

%

1

Carson Cumberbatch PLC A/C No.2

37,982,617

89.98

2

Mr. C. Sathkumara

415,482

0.98

Merchant Bank of Sri Lanka Ltd/ C. Sathkumara

304,142

0.72

3

Estate of Late Mr. K.C. Vignarajah

262,055

0.62

4

Mrs. V.R. Jayasinghe

172,329

0.41

5

Mrs. B. A. Devika Kumari

88,131

0.21

6

Mr. A.R.H. Sarathchandra

75,411

0.18

7

Mr. K.C. Jayawardene

70,000

0.17

8

Mr. M.F.J. Macan Marker

70,000

0.17

9

Mr. A.M. Weerasinghe

63,888

0.15

10

Mrs. I. Gwyn

55,000

0.13

11

Mr. N. W. N. Jayasiri

53,800

0.13

12

Miss. L.A. Jayasinghe

50,000

0.12

13

Mrs. D. R. Sudarshani

50,000

0.12

14

Mr. K. M. V. J. Senarathne

49,997

0.12

15

Mr. K.K.D. Senanayake

43,750

0.10

16

Mr. H.A.S Madanayake

40,000

0.09

17

Peoples Leasing and Finance PLC/ U. P. W. Premawardhana

39,700

0.09

18

Mr. A. Sithampalam

30,000

0.07

19

Mr. A. M Zainulabdeen

28,102

0.07

20

Mr. M. M. R. Dissanayake

28,000

0.07

12.

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 31st March 2025

Float adjusted Market Capitalization (Rs.)

145,917,373.74

Number of Public Shareholders

2,987

Percentage of ordinary shares held by the public

10.02%

13.

DIRECTORS SHAREHOLDING AS AT 31ST MARCH 2025 No. of Shares

Mr. M. Dayananda (Chairman) -

Mr. K. Selvanathan -

Mr. M. T. L. Elias -

Mr. V. R. Wijesinghe -

Mr. S. Marimuthu 400

Mr. D.R.P. Goonetilleke -

Mr. A.S. Amaratunga -

14.

MARKET PERFORMANCE- ORDINARY SHARES

As at/ for the three months ended 31st March 2025

Last traded price per share (Rs.) 34.50

Highest price per share (Rs.) 39.80

Lowest price per share (Rs.) 32.80

Market capitalisation (Rs.) 1,456,261,215.00

Pegasus Hotels of Ceylon PLC

(A Carson Cumberbatch Company)

COMPANY REGISTRATION NUMBER

PQ 40

LEGAL FORM

A Public Quoted Company with limited liability incorporated in Sri Lanka in 1966.

PARENT AND ULTIMATE CONTROLLING PARTY

Carson Cumberbatch PLC is the Parent Company of Pegasus Hotels of Ceylon PLC and Bukit Darah PLC is the Ultimate Parent and Controlling Entity of Pegasus Hotels of Ceylon PLC.

DIRECTORS

Mr. M. Dayananda (Chairman)

Mr. K. Selvanathan

Mr. M. T. L. Elias

Mr. V. R. Wijesinghe

Mr. S. Marimuthu

Mr. D.R.P. Goonetilleke

Mr. A.S. Amaratunga

AUDIT COMMITTEE

Mr. A. S. Amaratunga (Chairman) - Non-Executive/ Independent

Mr. S. Marimuthu - Non-Executive/ Independent

Mr. D. R. P. Goonetilleke - Non-Executive

REMUNERATION COMMITTEE

Mr. M. T. L. Elias (Chairman) - Non-Executive/ Independent

Mr. S. Marimuthu - Non-Executive/ Independent

Mr. D. R. P. Goonetilleke - Non-Executive

NOMINATIONS AND GOVERNANCE COMMITTEE

Mr. S. Marimuthu (Chairman) - Non-Executive/ Independent

Mr. M.T.L. Elias - Non-Executive/ Independent

Mr. M. Dayananda - Non-Executive

RELATED PARTY TRANSACTIONS REVIEW COMMITTEE

Mr. A. S. Amaratunga (Chairman) - Non-Executive/ Independent

Mr. S. Marimuthu - Non-Executive/ Independent

Mr. D. R. P. Goonetilleke - Non-Executive

BANKERS

Commercial Bank of Ceylon PLC

Standard Chartered Bank

Sampath Bank PLC

Hatton National Bank PLC

People's Bank

DFCC Bank PLC

National Development Bank PLC

SBI Sri Lanka

AUDITORS

Messrs. KPMG

Chartered Accountants

No. 32A, Sir Mohamed Macan Marker Mawatha,

Colombo 03,

Sri Lanka.

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

PLACE OF BUSINESS

Santha Maria Mawatha,

Wattala,

Sri Lanka.

Tel : +94 11 2049 600

HOTEL WEBSITE

https://www.pegasusreefhotel.com

CORPORATE WEBSITE

https://www.carsoncumberbatch.com