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Fijian Holdings Group Announces Record Profits
RELEASE TO THE SOUTH PACIFIC - STOCK EXCHANGE
FIJIAN HOLDINGS GROUP ANNOUNCES RECORD PROFITS Fijian Holdings Group recorded its best operating result ever for the year ended June 30 2005. FHL Group’s consolidated profit before tax increased by 86% during the year to $16.0 million and net profit after tax expanded by 71% to $12.4 million. The Holdings Company recorded a net profit after tax of $4.8 million in 2005 compared to $4.2 million in 2004. Announcing the result, FHL Group Chairman Mr Lyle Cupit said that the Group’s record performance was driven by the growth in revenue, which increased by 20% in 2005 with significant contribution from Fiji Industries Limited and Basic Industries Limited, reflecting the buoyant construction sector. “Merchant Finance & Investment Limited continued its record-breaking performance for the fourth successive year, exceeding most finance-industry benchmarks, and Blue Lagoon Cruises Limited also captured the growth in the tourism sector, with improvements in both revenue and net earnings,” he said. Mr Cupit added that the record financial result achieved for the year was fitting for FHL, which celebrated its 20-year anniversary in November 2004. According to Mr Cupit, the strategy for Group Convergence, which included the inauguration of the Group CEO Committee in January 2005 to set the Group budget and to conduct regular business reviews, has made a positive impact. “The implementation of an effective succession program, which also forms part of the Group Convergence strategy, epitomizes the clear direction taken by the Board to actively influence the FHL Group performance. Another important component of this Group strategy was the launching of our new Financial Management Information System on July 1st 2005 to allow the Board to track the Group consolidated results on a monthly basis,” he said. FHL Managing Director, Mr Sitiveni Weleilakeba listed the operating highlights for the year as: highest dividend ever received by the holding company; the commissioning of clinker grinding plant for Fiji Industries Limited; the profit result for Communications Pacific Limited (Compac); another record result posted by Merchant Finance & Investment Company Limited; the launching of Blue Lagoon’s new ship; and the appointment of the first local Chief Executive Officer for Basic Industries Limited. According to Mr Weleilakeba, the focus during the last two years had been creating value internally through a combination of the Group Convergence strategy and structural improvements to our key subsidiaries to enhance their longevity. “The outcome of these strategies is bearing the desired organic growth and has put the Group in a stronger platform to pursue a robust acquisition strategy in future, he explained. Looking ahead, Mr Weleilakeba said that FHL’s future lies in protecting its current performance against an outlook of intricate operating environment. According to Mr Weleilakeba, the forecast softening of the economy in the next three years is a challenge. “From an economic growth of around 4.1% in 2004, the economy is expected to slow down to 1.4% in 2005, deteriorating further to 0.8% in 2006 and 0.3% in 2007. Our portfolio is very sensitive to economic changes and we will rely on our diversity to maintain our performance under this difficult operating scenario,” he said. According to Mr Weleilakeba, the General Election in 2006 is also likely to dampen the current momentum if it disrupts business focus and if most businesses adopt a wait and see approach as a hedge to an uncertain political environment. [End] Sitiveni Weleilakeba Managing Director FIJIAN HOLDINGS LIMITED SUMMARISED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2005
The above figures are provisional and subject to audit Name…………………… Director Name…………………… Secretary FIJIAN HOLDINGS LIMITED SUMMARISED BALANCE SHEET AS AT 30 JUNE 2005
The above figures are provisional and subject to audit: Name…………………… Director Name…………………… Secretary FIJIAN HOLDINGS GROUP SUMMARISED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2005
The above figures are provisional and subject to audit Name…………………… Director Name…………………… Secretary FIJIAN HOLDINGS GROUP SUMMARISED BALANCE SHEET AS AT 30 JUNE 2005
The above figures are provisional and subject to audit Name…………………… Director Name…………………… Secretary FIJIAN HOLDINGS GROUP SUMMARISED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2005
The above figures are provisional and subject to audit Name…………………… Director Name…………………… Secretary |
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