12th December 2009, www.fclgroup.com
High-yielding bond portfolio generates strong capital gains for financial services Group Significant capital gains through judicious investments in government securities have generated exponential profit growth in the first six months of 2009-10 for First Capital Holdings PLC.Interim financial statements filed with the Colombo Stock Exchange this week report that profits a
fter tax grew eight-fold in the six months ending 30th September 2009 to Rs.352.6 million and profit attributable to equity holders of the parent company was up 848 per cent to Rs 296.7 million.
A company representative stated that the growth was the result of the exceptional performance of the company’s Primary Dealer arm, First Capital Treasuries Limited, headed by Mr. Mahinda Godakandaarachchi. He further stated, “The near perfect timing of First Capital’s investments in high-yielding government securities resulted in significant capital gains as the government pursued its goal of easing monetary policy.”
The cost of the company’s short term investments as at 30th September 2009 was Rs 8,753 million, compared to a market value of Rs 9,172 million, reflecting further unrealized gains of Rs 419 million.
Earnings per Share increased from 93 cents for the first half of 2008-09 to Rs 8.79 for the review period, while Group Net Assets per Share stood at Rs 21.22 as at 30th September 2009, up from Rs 10.45 a year earlier.
First Capital’s share price has appreciated almost five-fold from Rs.4.50 on 19th December 2008 to the current price of Rs.22.00.
Looking ahead, the spokesman stated, “First Capital is optimistic about the prospects for the Group’s businesses, as it expects further growth from post-war macroeconomic expansion and through opportunities arising from deregulation and market development measures currently on the cards.”
The First Capital Group boasts of a rich pedigree and a 27 year history in the Sri Lankan financial services arena. Having obtained its Primary Dealership license in 1992, the company has steadily grown to become a strong and resilient front runner with a loyal and ever widening customer base.
Of the Group’s three subsidiaries, First Capital Treasuries, which is regulated by the Central Bank of Sri Lanka and is one of only 4 non-bank Primary Dealers in the country, has built its reputation on providing personalised service, investment flexibility and competitive returns. First Capital’s investors enjoy the flexibility of investing in securities outright or on “Repo” basis for periods ranging from three months to ten years, taking loans against their investments at highly competitive rates and benefiting from an experienced financial advisory team for expert investment advice.
The other companies under the First Capital Group are First Capital Asset Management and First Capital Markets, both of which are regulated by the Securities & Exchange Commission of Sri Lanka.
First Capital Asset Management manages a substantial quantum of funds on both discretionary and non-discretionary mandates, offering instruments which span the spectrums of term and risk, including Gilt Edged paper (government securities), Commercial paper, promissory notes, corporate debentures and securitised paper.
First Capital Markets is a specialist in structuring, underwriting and placing both short term and long term corporate debt. It also offers margin facilities to clients who engage in trading of listed equity.
First Capital’s Board of Directors comprises Manjula Mathews, Dinesh Schaffter, Nihara Rodrigo and Jude Fernando.
ield moving up 05 basis points to 7.17 percent, the government's debt office said. There were no sales of 3-month bills.
