Pegasus Hotels Of Ceylon PlcCSELK: PEG.N0000

Quarterly Financial Report as of 31 03 2024

· Issued by Pegasus Hotels of Ceylon PLC

PEGASUS HOTELS OF CEYLON PLC

A Carson Cumberbatch Company

Condensed Interim Financial Statements For the year ended 31st March 2024

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

Year ended

31st March

31st March

2024

2023

Change %

2024

2023

Change %

Revenue

275,683

159,545

73

927,369

719,766

29

Direct costs

(182,314)

(149,968)

22

(703,314)

(613,290)

15

Gross profit

93,369

9,577

875

224,055

106,476

110

Other income

2,002

639

213

7,086

6,532

8

Selling and promotional expenses

(14,449)

(8,523)

70

(46,551)

(19,427)

140

Administrative expenses

(72,874)

(66,219)

10

(258,981)

(232,138)

12

Profit / (loss) from operations

8,048

(64,526)

(112)

(74,391)

(138,557)

(46)

Finance income

739

77

860

10,157

17,318

(41)

Finance costs

(13,259)

(14,305)

(7)

(47,454)

(42,677)

11

Net finance income / (cost)

(12,520)

(14,228)

(12)

(37,297)

(25,359)

47

Profit/ (loss) before taxation

(4,472)

(78,754)

(94)

(111,688)

(163,916)

(32)

Income tax expenses

-

-

-

-

-

-

Deferred taxation

(22,273)

21,396

(204)

12,169

72,764

(83)

Profit / (loss) for the period / year

(26,745)

(57,358)

(53)

(99,519)

(91,152)

9

Other comprehensive income

Items that will not be reclassified to profit or loss

Actuarial gain / (loss) from valuation of

employee benefits

(9,890)

2,651

(473)

(9,890)

2,651

(473)

Revaluation of property, plant and

equipment

461,074

-

100

461,074

-

100

Related tax

(135,356)

(795)

16,926

(135,356)

(331,150)

(59)

Other comprehensive income / (expense)

for the period / year

315,828

1,856

16,917

315,828

(328,499)

(196)

Total comprehensive income / (expense)

for the period / year

289,083

(55,502)

(621)

216,309

(419,651)

(152)

Earnings / (loss) per share (Rs.)

(0.63)

(1.70)

(2.58)

(2.82)

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.

Page 1

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

Year ended

31st March

31st March

2024

2023

Change %

2024

2023

Change %

Revenue

231,623

134,135

73

774,918

632,753

22

Direct costs

(150,706)

(125,289)

20

(579,264)

(527,112)

10

Gross profit

80,917

8,846

815

195,654

105,641

85

Other income

1,342

(21)

6,490

4,446

3,760

18

Selling and promotional expenses

(11,074)

(6,774)

63

(38,366)

(15,802)

143

Administrative expenses

(59,135)

(54,380)

9

(210,081)

(195,734)

7

Profit / (loss) from operations

12,050

(52,329)

(123)

(48,347)

(102,135)

(53)

Finance income

676

(465)

245

9,702

14,845

(35)

Finance costs

(12,010)

(7,490)

60

(31,500)

(19,514)

61

Net finance income / (cost)

(11,334)

(7,955)

42

(21,798)

(4,669)

367

Profit/ (loss) before taxation

716

(60,284)

(101)

(70,145)

(106,804)

(34)

Income tax expenses

-

-

-

-

-

-

Deferred taxation

(637)

16,713

(104)

22,385

38,178

(41)

Profit / (loss) for the period / year

79

(43,571)

(100)

(47,760)

(68,626)

(30)

Other comprehensive income

Items that will not be reclassified to profit or loss

Actuarial gain / (loss) from valuation of

employee benefits

(7,813)

1,871

(518)

(7,813)

1,871

(518)

Revaluation of property, plant and

equipment

425,642

-

100

425,642

-

100

Related tax

(125,349)

(561)

22,244

(125,349)

(294,467)

(57)

Other comprehensive income / (expense)

for the period / year

292,480

1,310

22,227

292,480

(292,596)

(200)

Total comprehensive income / (expense)

for the period / year

292,559

(42,261)

(792)

244,720

(361,222)

(168)

Earnings / (loss) per share (Rs.)

-

(1.29)

(1.24)

(2.13)

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.

Page 2

Pegasus Hotels of Ceylon PLC

Statement of Financial Position

(All figures are in Sri Lankan Rupees Thousands)

Group

Company

31.03.2023

31.03.2023

As at

31.03.2024

(Audited)

31.03.2024

(Audited)

ASSETS

Non-current assets

Property, plant and equipment

3,017,378

2,619,599

2,673,699

2,296,785

Right-of-use assets

6,640

6,898

-

-

Intangible assets

336

672

-

-

Investment in subsidiary

-

-

256,842

136,436

Compensation receivable

24,759

24,759

24,759

24,759

Total non-current assets

3,049,113

2,651,928

2,955,300

2,457,980

Current assets

Inventories

38,867

41,987

31,365

36,392

Investment in fixed deposits

88,550

36,876

88,550

36,876

Trade and other receivables

115,774

44,912

99,934

36,388

Tax receivable

2,187

1,787

1,624

1,253

Cash and cash equivalents

63,164

44,713

59,404

39,972

Total current assets

308,542

170,275

280,877

150,881

Total assets

3,357,655

2,822,203

3,236,177

2,608,861

EQUITY AND LIABILITIES

Equity

Stated capital

751,549

591,149

751,549

591,149

Capital reserves

1,783,202

1,460,450

1,598,932

1,300,983

Revenue reserves

(312,640)

(203,689)

(121,893)

(66,660)

Total equity

2,222,111

1,847,910

2,228,588

1,825,472

Non-current liabilities

Deferred tax liability

648,819

525,632

610,414

507,450

Employee benefits

22,366

13,193

16,475

9,629

Loans and borrowings

114,521

203,926

87,198

100,469

Lease liability

11,163

10,966

-

-

Total non-current liabilities

796,869

753,717

714,087

617,548

Current liabilities

Trade and other payables

176,649

143,224

148,795

124,648

Amounts due to related parties

52,855

32,490

37,437

9,990

Loans and borrowings

108,607

43,961

107,270

31,203

Lease liability

564

901

-

-

Total current liabilities

338,675

220,576

293,502

165,841

Total liabilities

1,135,544

974,293

1,007,589

783,389

Total equity and liabilities

3,357,655

2,822,203

3,236,177

2,608,861

Net assets per share (Rs.)

52.64

54.72

52.80

54.06

The Statement of Financial Position as at 31st March 2024 and the related Statements of Profit or Loss and Other Comprehensive Income, Changes in Equity and Cash Flows for the year then ended as disclosed in pages 1 to 5 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).

P.C. Pahalagamage

Group Financial Controller

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

M. Dayananda

K. Selvanathan

Director

Chairman

Director

Carsons Management Services (Private) Limited

29th May 2024

Colombo

Page 3

Pegasus Hotels of Ceylon PLC

Statement of Changes in Equity

(All figures are in Sri Lankan Rupees Thousands)

GROUP

Stated

Capital

Revenue

capital

reserves

reserves

Total equity

Balance as at 1st April 2023

591,149

1,460,450

(203,689)

1,847,910

Loss for the year

-

-

(99,519)

(99,519)

Other comprehensive income / (expense) for the year

-

322,752

(6,924)

315,828

Total comprehensive income / (expense) for the year

-

322,752

(106,443)

216,309

Rights issue of shares

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

Balance as at 1st April 2022

515,170

1,790,805

(109,854)

2,196,121

Surcharge tax for the year of assessment 2020/21

-

-

(2,717)

(2,717)

Balance as at 1st April 2022 (Adjusted)

515,170

1,790,805

(112,571)

2,193,404

Loss for the year

-

-

(91,152)

(91,152)

Other comprehensive income / (expense) for the year

-

(330,355)

1,856

(328,499)

Total comprehensive income / (expense) for the year

-

(330,355)

(89,296)

(419,651)

Rights issue of shares

75,979

-

-

75,979

Expenses on rights issue of shares

-

-

(1,921)

(1,921)

Forfeiture of unclaimed dividends

-

-

99

99

Balance as at 31st March 2023

591,149

1,460,450

(203,689)

1,847,910

COMPANY

Stated

Capital

Revenue

capital

reserves

reserves

Total equity

Balance as at 1st April 2023

591,149

1,300,983

(66,660)

1,825,472

Loss for the year

-

-

(47,760)

(47,760)

Other comprehensive income / (expense) for the year

-

297,949

(5,469)

292,480

Total comprehensive income / (expense) for the year

-

297,949

(53,229)

244,720

Rights issue of shares

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

(121,893)

2,228,588

Balance as at 1st April 2022

515,170

1,594,889

4,725

2,114,784

Surcharge tax for the year of assessment 2020/21

-

-

(2,717)

(2,717)

Balance as at 1st April 2022 (Adjusted)

515,170

1,594,889

2,008

2,112,067

Loss for the year

-

-

(68,626)

(68,626)

Other comprehensive income / (expense) for the year

-

(293,906)

1,310

(292,596)

Total comprehensive income / (expense) for the year

-

(293,906)

(67,316)

(361,222)

Rights issue of shares

75,979

-

-

75,979

Expenses on rights issue of shares

-

-

(1,451)

(1,451)

Forfeiture of unclaimed dividends

-

-

99

99

Balance as at 31st March 2023

591,149

1,300,983

(66,660)

1,825,472

Figures in brackets indicate deductions.

Page 4

Pegasus Hotels of Ceylon PLC

Statement of Cash Flows

(All figures are in Sri Lankan Rupees Thousands)

Group

Company

For the year ended 31st March

2024

2023

2024

2023

Cash flows from operating activities

Profit/ (loss) before taxation

(111,688)

(163,916)

(70,145)

(106,804)

Adjustments for:

(10,157)

(16,062)

(9,702)

(13,855)

Interest income on placements with banking and financial institutions

Unrealised foreign exchange loss/ (gain)

6,271

1,373

6,176

1,365

Net change in FVTPL financial assets - unit trust investments

-

(1,256)

-

(990)

Interest expenses on loans and borrowings

40,019

40,244

25,324

18,149

Interest expenses on lease liability

1,164

1,060

-

-

Amortization of right of use assets

258

217

-

-

Amortization of intangible assets

336

336

-

-

Depreciation on property, plant and equipment

79,761

87,302

64,362

71,716

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

1

(86)

1

4

Write off of irrecoverable Economic Service Charges (ESC) paid

-

1,879

-

1,423

Property, plant and equipment written of

-

505

-

505

Provision made/ (reversal of provision) for impairment of trade

(320)

(326)

(320)

(326)

receivables, net

Provision for employee benefits

3,745

3,782

2,884

3,002

Operating profit / (loss) before working capital changes

9,390

(44,948)

18,580

(25,811)

(Increase) / decrease in inventories

3,120

(19,209)

5,027

(18,031)

(Increase) / decrease in trade and other receivables

(70,542)

10,916

(63,226)

9,147

Increase / (decrease) in trade and other payables

34,464

23,033

25,186

24,090

Increase / (decrease) in amounts due to related parties

20,365

5,847

27,447

5,301

Cash generated from / (used in) operations

(3,203)

(24,361)

13,014

(5,304)

Employee benefits paid

(4,462)

(3,667)

(3,851)

(3,667)

Surcharge tax paid

-

(2,717)

-

(2,717)

Net cash generated from / (used in) operating activities

(7,665)

(30,745)

9,163

(11,688)

Cash flows from investing activities

-

Investment in subsidiary

-

(120,406)

(75,985)

Purchase of property, plant and equipment

(17,533)

(8,375)

(16,701)

(6,654)

Proceeds from disposal of property, plant and equipment

-

938

-

795

Net withdrawal of / (investment in) fixed deposits

(51,977)

(981)

(51,977)

(981)

Net disposal of / (investment in) FVTPL financial assets

-

14,254

-

13,949

Interest received

10,060

16,443

9,634

14,236

Net cash generated from / (used in) investing activities

(59,450)

22,279

(179,450)

(54,640)

Cash flows from financing activities

Proceeds from rights issue of shares

160,400

75,979

160,400

75,979

Expenses on rights issue of shares

(2,625)

(1,921)

(2,121)

(1,451)

Dividend paid

(2)

-

(2)

-

Lease rental paid

(1,304)

(762)

-

-

Loans and borrowings obtained during the year

94,000

-

94,000

-

Loans and borrowings repaid during the year

(118,759)

(62,800)

(31,204)

(27,625)

Interest paid on loans and borrowings

(39,873)

(35,864)

(25,178)

(17,153)

Net cash generated from / (used in) financing activities

91,837

(25,368)

195,895

29,750

Net increase / (decrease) in cash and cash equivalents

24,722

(33,834)

25,608

(36,578)

Effect of exchange rate changes on cash and cash equivalents

(6,271)

(1,373)

(6,176)

(1,365)

Cash and cash equivalents at the beginning of the year

44,713

79,920

39,972

77,915

Cash and cash equivalents at the end of the year

63,164

44,713

59,404

39,972

Statement of cash and cash equivalents

Placements with banking and financial institutions

23,945

23,422

23,945

23,422

Cash at bank and in hand

39,219

21,291

35,459

16,550

Cash and cash equivalents at the end of the year

63,164

44,713

59,404

39,972

Page 5

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 the Company and the Group have been prepared using the same accounting policies and methods as the audited financial statements for the year ended 31st March 2023, 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. RIGHTS ISSUE OF SHARES
    Pegasus Hotels of Ceylon PLC ('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.19/00 per share and raised Rs. 160,399,786/00. These shares were listed on the Colombo Stock Exchange on 08th September 2023.

Rights issue proceeds utilization as at 31st March 2024:

Clarification if

not fully

Amount

Proposed

Amount

% of

utilized

Allocated as

Date of

Allocated

Amounts

Utilisation

including

Objective as

per the

Utilisation

from

Utilised in the

against

where the

per the

Circular in

as per the

Proceeds in

% of Total

Objective Rs.

allocation

funds are

Circular

Rs.

Circular

Rs. [A]

Proceeds

[B]

[B/A]

invested.

1

Subscribe to

120,399,786

Before 31st

120,399,786

75.06%

120,399,786

100.00% N/A

the rights issue

October

of the

2023

subsidiary,

Equity Hotels

Limited

2

Finance the

40,000,000

Before 31st

40,000,000

24.94%

8,808,341

22.02% To be utilized

capital

December

before 31st

expenditure of

2024

December

the Company

2024 as

disclosed in

the Rights Issue Circular. Unutilized funds are invested in a fixed deposit.

  1. 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.
  2. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
    There were no material contingent liabilities or significant financial commitments for the Company and the Group as at the reporting date other than disclosed below.
    An individual after having lost the cases he filed in the District Court and Civil Appellate Courts of Negombo, claiming declaratory title from court stating that he is the co-owner of 127.5 perches of land that belonged to the Company, has appealed to the Supreme Court and the case is listed to be heard on 12th June 2024 to decide on leave to proceed. 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.

Page 6

Pegasus Hotels of Ceylon PLC

Notes to the Interim Financial Statements

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

  1. LIABILITIES FOR EXPENDITURE
    Management fees and other similar expenses for the period/ year have been accounted for in full in the interim financial statements.
  2. COMPARATIVE FIGURES
    Previous period's figures and phrases have been re-arranged where necessary to conform to the current period's presentation.
  3. GOING CONCERN
    Based on currently available information, the directors are satisfied that the Company and the Group will continue its operations in the foreseeable future.
  4. STATED CAPITAL
    The stated capital of the Company as at 31st March 2024 was Rs. 751,548,321/50 consists of 42,210,470 fully paid Ordinary Shares.

2024

2023

Issued and fully paid

Nos shares

Amount

Nos shares

Amount

As at the beginning of the year

33,768,376

591,149

30,391,538

515,170

Rights issue of shares

8,442,094

160,400

3,376,838

75,979

As at the end of the year

42,210,470

751,549

33,768,376

591,149

9.

RELATED PARTY TRANSACTIONS

9.1

Transactions with related companies

Group

Company

For the year ended 31st March

2024

2023

2024

2023

Parent Company- Carson Cumberbatch PLC

Proceeds from rights issue of shares

-

-

144,334

68,369

Short term advances obtained/ (settled), net

(14,000)

546

-

-

Subsidiary- Equity Hotels Limited

Subscription of rights issue

-

-

120,406

75,984

Fellow subsidiary- Carsons Management Services (Private) Limited

Receiving of services

10,326

7,082

8,660

6,431

Fellow subsidiary- Lion Brewery (Ceylon) PLC

Providing of hotel services

8,554

-

8,554

-

9.2

Amounts due to related companies

Group

Company

31.03.2023

31.03.2023

As at

31.03.2024

(Audited)

31.03.2024

(Audited)

Carson Cumberbatch PLC

8,500

22,500

-

-

Carsons Management Services (Private) Limited

44,355

9,990

37,437

9,990

52,855

32,490

37,437

9,990

Page 7

Pegasus Hotels of Ceylon PLC

Notes to the Interim Financial Statements

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

10.

TWENTY MAJOR SHAREHOLDERS AS AT 31ST MARCH 2024

Number of

Name of Shareholder

Shares

%

1

Carson Cumberbatch PLC A/C No.2

37,982,617

89.98

2

Mr. M.C.C.K. Rodrigo

345,535

0.82

3

Mr. C. Sathkumara

269,753

0.64

Merchant Bank Of Sri Lanka Ltd/C. Sathkumara

111,609

0.26

4

Mr. K.C. Vignarajah

262,055

0.62

5

Mr. R.C.J. Goonewardene

180,989

0.43

6

Mrs. V.R. Jayasinghe

145,729

0.35

7

Mr. S.R.S. De Saram

100,000

0.24

8

Amina Investments Limited

95,514

0.23

9

Mr. K.C. Jayawardene

94,058

0.22

10

Mr. N.W.N. Jayasiri

80,000

0.19

11

J.B. Cocoshell (Pvt) Ltd

74,276

0.18

12

Mr. A.M. Weerasinghe

63,888

0.15

13

Mr. D.P.A.D. Galhena

62,915

0.15

14

Hatton National Bank PLC /Mushtaq Mohamed Fuad

61,328

0.15

15

Mrs. I. Gwyn

55,000

0.13

16

Mr. W.D.D. Samantha

52,526

0.12

17

Mr. M.F.J. Macan Markar

47,000

0.10

18

Mr. P. Somadasa

46,083

0.11

19

Mr. K.K.D. Senanayake

43,750

0.10

20

Mr. H.A.S. Madanayake

40,000

0.09

11. 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 2024

Float Adjusted Market Capitalization

Rs. 97.28 Million

Number of Public Shareholders

3,018

Percentage of ordinary shares held by the public

10.02%

12. DIRECTORS SHAREHOLDING AS AT 31ST MARCH 2024

No. of Shares

Mr. M. Dayananda (Appointed as Chairman w.e.f. 01.01.2024)

-

Mr. K. Selvanathan

-

Mr. S. R. Mather

-

Mr. M. T. L. Elias

-

Mr. V. R. Wijesinghe

-

INVESTOR INFORMATION

13. SHARE VALUATION

As at/ for the three months ended 31st March 2024

Last traded price (Rs.)

23.00

Highest price per share for the period (Rs.)

27.00

Lowest price per share for the period (Rs.)

21.00

Market capitalisation

Rs. 970.84 Million

Page 8

Corporate Information

NAME OF THE COMPANY

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

Carson Cumberbatch PLC is the Parent Company of Pegasus Hotels of

PARTY

Ceylon PLC and Bukit Darah PLC is the Ultimate Parent and Controlling

Entity of Pegasus Hotels of Ceylon PLC.

DIRECTORS

Mr. M. Dayananda (Appointed as Chairman w.e.f. 01.01.2024)

Mr. K. Selvanathan

Mr. S. R. Mather

Mr. M. T. L. Elias

Mr. V. R. Wijesinghe

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

www.pegasusreefhotel.com

CORPORATE WEBSITE

www.carsoncumberbatch.com

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