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Singer Finance (Lanka) PLC, the first registered finance company to list on the main board of the Colombo Stock Exchange following Central Bank requirements, has returned a stellar performance in its first year as a quoted company doubling its profit after tax to Rs. 112 million in the year ended March 31, 2011, from Rs. 54.1 million the previous year, on the back of income growth of 37.9% to Rs. 970.6 million.

"This was the first time the company’s after-tax profit had exceeded Rs. 100 million and this performance now places us among the big players in the financial services industry where competition is intense,’’ Mr. S. Wijeweera, Singer Finance Director CEO said in the annual report.

The company’s IPO early this year was heavily over-subscribed on the opening day and the shares have been trading on the CSE since January. At the close of the financial year they were trading at 2.4 times the IPO price.

"An era of transparency has dawned upon the Finance Company Sector with the mandatory requirement of publicly listing shares in the CSE and we were among the first companies to comply with this directive,’’ noted Singer Finance Chairman Hemaka Amarasuriya in the company’s first annual review since the listing.

"This is a landmark decision by the Central Bank to stabilize the once beleaguered Finance Company Sector and will lead to greater protection and security for all stakeholders.’’

The advantages Amarasuriya saw from compulsory listing was that a substantial infusion of public funds meaningfully raising market capitalization of finance company sector and the listing rules compelling officials to act with an enhanced sense of responsibility to ensure the safety of public funds.

He noted that Singer Finance had an outstanding debt collection record with non-performing loans among the best in the industry and running below the industry average as a result of the stringent credit policy and multiplicity of collecting points. They were also able to move speedily into areas at risk.

The year under review was first year after the war ended and the economy had rallied in most parts of the country. Despite floods, agriculture had revived in what Amarasuriya called ``hitherto dormant terrain’’ adding meaningfully to national income. Factory capacities too had expanded to meet rising demand.

The company had grown customer deposits 19.6% to over Rs. 1.8 billion in the year under review and its hire purchase, leases, loans and advance portfolio was up 34.1% to nearly Rs. 4 billion.

Singer’s Group CEO Asoka Pieris said that they will add three more branches in Ampara, Embilipitiya and Jaffna this year as well as service windows in several other locations. They planned to enter the margin trading business and insurance broking and further cooperate with their parent in financing consumer durables in addition to expanding the traditional leasing and hire purchase of vehicles. The company anticipates the motor vehicle business to expand given lower market prices.

Singer Finance has a stated capital of Rs. 800 million, capital reserves of Rs. 16.4 million, an investment fund of Rs.4.6 million and retained earnings of Rs. 110.7 million in its books. Total assets were running at Rs. 4.41 billion and total liabilities at Rs. 3.48 billion.

Singer Sri Lanka with 75% of Singer Finance equity is the dominant shareholder with no other individual shareholders owning over 1%.

The directors have recommended a first and final dividend of Rs.0.40 per share for the year under review, up from Rs. 0.25 the previous year.

The directors of the company are Messrs. H.D.S. Amarasuriya, Dr. G.C.B. Wijyesinghe, H.A. Pieris, M.P.A. Salgado, G.J. Walker, Dr. S. Kelegama, S. Ramanathan, R.S. Wijeweera and J. Hyun.

Source :  www.island.lk