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Gasan Finance Company plc published its preliminary profit statement for the year ending 2005, yesterday with a thorough revaluation of the Group’s property contributing to the profit before tax of around Lm1.7 million.
Income generated in 2005 topped Lm804,000 which is Lm20,000 more than 2004. These earnings came mainly from bills of exchange, interest earned from use of funds by the Gasan Group and rental income. The interest payable decreased also by Lm20,000 to read Lm546,000. Both these positive values lifted the gross profit to read Lm257,000. Administrative expenses increased by Lm16,000.
A major transaction this financial year was the result of a valuation of investment property. This revaluation, carried out by independent qualified professionals and approved by the board of directors resulted in an increase in the fair value of investment property by Lm1.5 million.
This is a requirement under the International Financial Reporting Standards. This transaction contributed to the profit before tax of around Lm1.7 million against the Lm170,000 registered in 2004. After deducting tax due, the profit after tax stood at Lm880,000 against the Lm148,000 for the previous year. This brought up the earnings per share to read 62c8 against the 10c 6 registered in 2004.
The revaluation of the investment property, which is a non-cash transaction, strengthened the balance sheet.
The Board is not recommending any dividend payments for this year. This public liability company has a bond which trades on the Malta Stock Exchange that may be repaid between 2006 and 2009.
This company was set up to raise funds from capital markets to finance the operations and capital projects of the company itself as well as for the companies forming part of the Gasan Group. This finance company is also used to acquire bills of exchange.
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