THE LIGHTHOUSE HOTEL PLC Company Registration Number - PQ 73
INTERIM REPORT Second Quarter
SIX MONTHS ENDED 30TH SEPTEMBER 2020 THE LIGHTHOUSE HOTEL PLC
CORPORATE INFORMATION
NAME OF COMPANY The Lighthouse Hotel PLC Company Number PQ 73
LEGAL FORM A Quoted Public Company with Limited Liability incorporated in Sri Lanka in 1994
BOARD OF DIRECTORS N.J.H.M.Cooray - Chairman R.A.E.Samarasinghe - Managing Director N.T.M.S.Cooray (Ms) N.Wadugodapitiya C.S.R.S.Anthony Ranil de Silva E.P.A.Cooray A.M.Ondaatjie (Ms) C.Pathiraja (Dr) T.Nadesan A.T.P.Edirisinghe
SECRETARIES Corporate Services (Pvt) Ltd 216, De Saram Place Colombo 10. Phone : 4718200
AUDITORS Messrs Ernst & Young Chartered Accountants 201, De Saram Place Colombo 10.
HOTEL OPERATION & MARKETING Jetwing Hotels Ltd "Jetwing House" 46/26, Nawam Mawatha Colombo 2. Phone : 4709400 E-mail : [email protected] Web : www.jetwinghotels.com
REGISTERED OFFICE "Jetwing House" 46/26, Nawam Mawatha Colombo 2.
Page 1 of 12 THE LIGHTHOUSE HOTEL PLC INVESTOR INFORMATION Market Value of Shares 30.09.2020 30.09.2019 (Rs.) (Rs.) Last traded price 28.90 33.90 Highest price recorded for the six months ending 34.00 36.00 Lowest price recorded for the six months ending 18.00 20.40 Highest price recorded for the three months ending 34.00 36.00 Lowest price recorded for the three months ending 25.70 25.00 Market Capitalisation (Rs.Mn.) 1,329 1,559
Ratios
Net assets per share 67.35 62.09 (Rs 69.40 as at 31.03.2020)
Share trading for the six months ended
Number of transactions 246 168 Number of shares traded 737,758 59,002 Value of shares traded (Rs.) 19,197,080 1,655,078
Twenty Largest Shareholders as at 30th September, 2020 Name of Shareholder No of Shares as at % 30.09.2020 01. JETWING HOTELS MANAGEMENT SERVICES (PVT) LTD 18,970,440 41.24 02. MERCANTILE INVESTMENTS AND FINANCE PLC 7,736,677 16.82 03. EMPLOYEES PROVIDENT FUND 5,084,800 11.05 04. BANK OF CEYLON- A/C NO - 2 4,474,620 9.73 05. MISS N.T.M.S.COORAY 1,395,695 3.03 06. MR. N.J.H.M.COORAY 1,354,695 2.94 07. NATIONAL SAVINGS BANK 1,175,667 2.56 08. JETWING TRAVELS (PRIVATE) LIMITED 840,200 1.83 09. Mr D.P. PIERIS 634,018 1.38 10. JETWING ECO HOLIDAYS (PVT) LTD 595,984 1.30 11. THE NUWARA ELIYA HOTELS COMPANY PLC 520,123 1.13 12. MR. D.J. DE SILVA WIJEYERATNE 347,200 0.75 14. FERN HOLDINGS (PRIVATE) LIMITED 280,068 0.61 13. CONFIFI MANAGEMENT SERVICES (PRIVATE) LTD 275,900 0.60 15. CONFIFI INVESTMENTS (PVT) LTD 250,000 0.54 16. MISS. A.M. WIKRAMANAYAKE 105,754 0.23 17. MR. S. MENDIS 100,000 0.22 17. MRS. C.A.D.S. WOODWARD 100,000 0.22 17. MR. I A R PERERA 100,000 0.22 20. SAMPATH BANK PLC/MR. ABISHEK SITHAMPALAM 97,700 0.21 TOTAL 44,439,541 96.61 There were no non voting shares as at 30th September, 2020 31.45% of the issued capital of the Company was held by the public, comprising of 1,187 shareholders and a float adjusted market capitalisation of LKR 418,096,300/- as at 30th September, 2020. In terms of Rule 7.13.1.(b) of the Listing Rules of the Colombo Stock Exchange, the Company qualifies under option 2 of the minimum public holding requirement.
Directors' shareholding. Directors Directors' Direct Share holding as at 30th September, 2020
Ms. N.T.M.S. Cooray 1,395,695 Mr. N.J.H.M. Cooray 1,354,695 Mr. R.A.E.Samarasinghe 50,000 Mr. R.de Silva 10,000 Mr. C.S.R.S.Anthony 1,000
There has been no change in the Directors' direct Shareholding during the 06 months ended 30th September, 2020.
Page 2 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF FINANCIAL POSITION
Group Company Unaudited Audited Unaudited Audited As at 30.09.2020 31.03.2020 30.09.2020 31.03.2020 Rs.'000 Rs.'000 Rs.'000 Rs.'000 ASSETS Non - Current Assets Property, Plant and Equipment 3,564,092 3,616,327 3,293,652 3,340,803 Right of use Assets 2,227 2,242 2,227 2,242 Intangible Assets 494 672 121 151 Investment in Subsidiary - - 225,000 225,000 Other Non-Current Financial Assets 81,559 81,559 81,559 81,559 3,648,372 3,700,800 3,602,559 3,649,755
Current Assets Inventories 24,126 26,279 23,384 25,414 Trade and Other Receivables 47,101 88,385 54,643 90,247 Cash at Bank and in Hand 14,066 21,137 13,944 21,061 85,293 135,801 91,971 136,722 Total Assets 3,733,665 3,836,601 3,694,530 3,786,477
EQUITY AND LIABILITIES Equity Attributable to equity holders of the Parent Stated Capital 460,001 460,001 460,001 460,001 Reserves 2,400,294 2,400,294 2,382,978 2,382,978 Retained Earnings 237,871 332,106 326,006 410,465 3,098,166 3,192,401 3,168,985 3,253,444 Non Controlling Interest - - - - Total Equity 3,098,166 3,192,401 3,168,985 3,253,444
Non-Current Liabilities Post-Employment Benefit Liability 42,045 41,616 41,645 41,324 Interest Bearing Loans & Borrowings 243,000 222,485 161,323 148,948 Deferred Tax Liabilities 176,292 176,292 174,097 174,097 461,337 440,393 377,065 364,369
Current Liabilities Trade and Other Payables 79,197 93,366 71,197 83,927 Current portion of Interest-bearing Loans & Borrowings 94,337 108,726 76,655 83,022 Income Tax Payable 628 1,715 628 1,715 174,162 203,807 148,480 168,664 Total Liabilities 635,499 644,200 525,545 533,033 Total Equity and Liabilities 3,733,665 3,836,601 3,694,530 3,786,477
The Statement of Financial Position as at 30th September 2020, the Statement of Profit or Loss, Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement for the six months then ended as well as the Statement of Profit or Loss and the Statement of Comprehensive Income for the three months are drawn up from the unaudited financial statements of the Group/Company and they provide the information required by the Colombo Stock Exchange.
It is certified that the financial statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007.
C.S.R.S. Anthony Director
The Board of Directors is responsible for these financial statements. Signed for and on behalf of the Board by.
N.J.H.M. Cooray R.A.E. Samarasinghe Chairman Managing Director
27th October 2020 Colombo
Page 3 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF PROFIT OR LOSS - GROUP
Audited Unaudited Variance Unaudited Variance Year 6 months Favourable 3 months Favourable ended ended 30th September (Unfavourable) ended 30th September (Unfavourable) 31.03.2020 2020 2019 2020 2019 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
509,568 Revenue 84,791 184,923 -54% 70,613 104,336 -32%
(103,203) Cost of Sales (27,525) (44,821) 39% (23,022) (26,631) 14% 406,365 Gross Profit 57,266 140,102 -59% 47,591 77,705 -39%
1,999 Other Income & Gains 1,027 1,022 0% 239 307 -22%
(19,780) Marketing & Promotional Expenses (1,559) (6,722) 77% (405) (2,862) 86%
(453,990) Administrative Expenses (145,664) (226,561) 36% (80,971) (117,200) 31%
(18,704) Finance Cost (5,466) (8,424) 35% (2,834) (5,011) 43%
1,394 Finance Income 193 320 -40% 86 117 -26%
(6,777) Exchange Gain/(Loss) from Conversion 1,523 (3,539) 143% 513 (3,293) 116% of Foreign Currency Loan
(89,493) Profit/(Loss) Before Tax (92,680) (103,802) 11% (35,781) (50,237) 29%
(6,818) Income Tax Expenses (1,555) (3,391) 54% (1,317) (1,922) 31%
(96,311) Net Profit/(Loss) for the Period (94,235) (107,193) 12% (37,098) (52,159) 29%
Attributable to: (96,311) Equity holders of the Parent Company (94,235) (107,193) (37,098) (52,159) - Non-controlling Interest - - - - (96,311) (94,235) (107,193) (37,098) (52,159)
(2.09) Earnings/(Loss) per share for the (2.05) (2.33) (0.81) (1.13) period (Basic)-Rs.
Notes 1. Operating profit/(loss) is after Charging following 106,259 Depreciation 54,935 49,901 2. Stated Capital Issued and fully paid 460,001 46,000,000 Ordinary Shares 460,001 460,001 3. Figures in brackets indicate deductions
Page 4 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF PROFIT OR LOSS - COMPANY
Audited Unaudited Variance Unaudited Variance year 6 months Favourable 3 months Favourable ended ended 30th September (Unfavourable) ended 30th September (Unfavourable) 31.03.2020 2020 2019 2020 2019 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
471,091 Revenue 77,753 172,218 -55% 65,858 97,662 -33%
(97,739) Cost of Sales (25,540) (42,621) 40% (21,738) (25,452) 15% 373,352 Gross Profit 52,213 129,597 -60% 44,120 72,210 -39%
1,995 Other Income & Gains 1,027 1,019 1% 239 304 -21%
(17,377) Marketing & Promotional Expenses (1,404) (5,942) 76% (286) (2,476) 88%
(414,485) Administrative Expenses (131,761) (208,269) 37% (73,439) (107,692) 32%
(7,976) Finance Cost (3,596) (3,013) -19% (2,021) (2,478) 18%
2,152 Finance Income 617 305 102% 282 106 166%
(62,339) Profit/(Loss) Before Tax (82,904) (86,303) 4% (31,105) (40,026) 22%
(9,170) Income Tax Expenses (1,555) (3,391) 54% (1,317) (1,922) 31%
(71,509) Net Profit/(Loss) for the Period (84,459) (89,694) 6% (32,422) (41,948) 23%
(1.55) Earnings/(Loss) per share for the (1.84) (1.95) (0.70) (0.91) period (Basic)-Rs.
Notes 1. Operating profit/(loss) is after Charging following 92,826 Depreciation 49,647 44,040 2. Stated Capital Issued and fully paid 460,001 46,000,000 Ordinary Shares 460,001 460,001 3. Figures in brackets indicate deductions
Page 5 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF COMPREHENSIVE INCOME - GROUP
Audited Unaudited Unaudited Year 6 months 3 months ended ended 30th September ended 30th September 31.03.2020 2020 2019 2020 2019 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
(96,311) Net Profit/(Loss) for the period (94,235) (107,193) (37,098) (52,159)
Other Comprehensive Income Other Comprehensive Income to be reclassified to Statement of Profit or Loss in subsequent periods :
- Loss on Available for Sale-Financial Instruments - - - -
Other Comprehensive Income not to be reclassified to Statement of Profit or Loss in subsequent periods :
(5,154) Loss on Fair Value Through Other Comprehensive Income - (1,189) - (641) Financial Instruments
(15) Actuarial Gain/(Loss) on Post-Employment Benefit Liabilities - - - -
2 Deferred Tax attributable to Post Employment Benefit Liability - - - -
383,210 Revaluation Surplus of Freehold Land - - - -
(53,649) Deferred Tax attributable to Revaluation Surplus - - - -
324,394 Other Comprehensive Loss for the Period - (1,189) - (641)
228,083 Total Comprehensive Income/(Loss) for the Period (94,235) (108,382) (37,098) (52,800)
Attributable to: 228,083 Equity holders of the Parent Company (94,235) (108,382) (37,098) (52,800) - Non-controlling Interest - - - - 228,083 (94,235) (108,382) (37,098) (52,800)
STATEMENT OF COMPREHENSIVE INCOME - COMPANY
Audited Unaudited Unaudited Year 6 months 3 months ended ended 30th September ended 30th September 31.03.2020 2020 2019 2020 2019 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
(71,509) Net Profit/(Loss) for the period (84,459) (89,694) (32,422) (41,948) Other Comprehensive Income Other Comprehensive Income to be reclassified to Statement of Profit or Loss in subsequent periods : - Loss on Available for Sale-Financial Instruments - - - -
Other Comprehensive Income not to be reclassified to Statement of Profit or Loss in subsequent periods :
(5,154) Loss on Fair Value Through Other Comprehensive Income - (1,189) - (641) Financial Instruments
5 Actuarial Gain/(Loss) on Post-Employment Benefit Liabilities - - - -
(1) Deferred Tax attributable to Post Employment Benefit Liability - - - -
374,360 Revaluation Surplus of Freehold Land - - - -
(52,410) Deferred Tax attributable to Revaluation Surplus - - - -
316,800 Other Comprehensive Loss for the Period - (1,189) - (641)
245,291 Total Comprehensive Income/(Loss) for the Period (84,459) (90,883) (32,422) (42,589)
Page 6 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF CHANGES IN EQUITY
GROUP ..…...…….…………..Attributable to Equity Holders of parent……………………… Stated Revaluation Fairvalue Special Retained Total Non Total Capital Reserve Reserve of Reserve Earnings Controlling Equity Financials Interest Assets at FVOCI Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Balance as at 1st April 2019 460,001 750,766 (550) 1,325,671 428,430 2,964,318 - 2,964,318
Profit/(Loss) for the Period - - - (107,193) (107,193) - (107,193)
Other Comprehensive Income - - (1,189) - - (1,189) - (1,189)
Total Comprehensive Income/(Loss) - - (1,189) - (107,193) (108,382) - (108,382)
Balance as at 30th September 2019 460,001 750,766 (1,739) 1,325,671 321,237 2,855,936 - 2,855,936
Balance as at 01st April 2020 460,001 1,080,327 (5,704) 1,325,671 332,106 3,192,401 - 3,192,401
Profit/(Loss) for the Period - - - - (94,235) (94,235) - (94,235)
Other Comprehensive Income/(Loss) ------
Total Comprehensive Income/(Loss) - - - - (94,235) (94,235) - (94,235)
Balance as at 30th September, 2020 460,001 1,080,327 (5,704) 1,325,671 237,871 3,098,166 - 3,098,166
Page 7 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF CHANGES IN EQUITY
COMPANY Stated Revaluation Fairvalue Special Retained Total Capital Reserve Reserve of Reserve Earnings Financials Assets at FVOCI Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Balance as at 1st April 2019 460,001 741,062 (550) 1,325,671 481,970 3,008,154
Profit/(Loss) for the Period - - - - (89,694) (89,694)
Other Comprehensive Income - - (1,189) - - (1,189)
Total Comprehensive Income/(Loss) - - (1,189) - (89,694) (90,883)
Balance as at 30th September 2019 460,001 741,062 (1,739) 1,325,671 392,276 2,917,271
Balance as at 01st April 2020 460,001 1,063,011 (5,704) 1,325,671 410,465 3,253,444
Profit/(Loss) for the Period - - - - (84,459) (84,459)
Other Comprehensive Income/(Loss) ------
Total Comprehensive Income/(Loss) - - - - (84,459) (84,459)
Balance as at 30th September, 2020 460,001 1,063,011 (5,704) 1,325,671 326,006 3,168,985
0
Page 8 of 12 THE LIGHTHOUSE HOTEL PLC
STATEMENT OF CASH FLOWS
GROUP COMPANY Unaudited Unaudited 6 months 6 months ended 30th September ended 30th September 2020 2019 2020 2019 Rs.'000 Rs.'000 Rs.'000 Rs.'000
Cash Flows from Operating Activities
Profit/(Loss) before Tax (92,680) (103,802) (82,904) (86,303)
Adjustments for Depreciation 54,935 49,901 49,647 44,040 Amortization of Right of Use Assets/ Prepaid Lease Rental 15 15 15 15 (Income) from Investments-Interest Income (193) (320) (617) (305) (Profit)/Loss on Disposal of Property Plant & Equipment (89) 10,147 (89) 10,147 Finance Costs 5,466 8,424 3,596 3,013 Provision for Defined Benefit Plans 3,066 2,501 2,958 2,343 Amortization of Intangible Assets 177 210 29 62 Exchange (Gain)/Loss from conversion of foreign currency loans (1,523) 3,539 - - Operating Profit before Working Capital Changes (30,826) (29,385) (27,365) (26,988)
(Increase)/Decrease in Inventories 2,153 (695) 2,030 (761) (Increase)/Decrease in Trade and Other Receivables 41,284 56,528 35,604 55,251 Increase/(Decrease) in Trade and Other Payables (14,169) (15,278) (12,730) (11,337) Cash Generated from Operations (1,558) 11,170 (2,461) 16,165
Income Tax Paid (2,642) (6,633) (2,642) (6,633) Finance Cost Paid (3,914) (5,289) (3,596) (3,013) Defined Benefit Plan Costs Paid net of transfers (2,637) (354) (2,637) (284) Net Cashflows from Operating Activities (10,751) (1,106) (11,336) 6,235
Cash Flows from/(Used in) Investing Activities Acquisition of Property, Plant & Equipment (2,699) (218,641) (2,495) (218,609) Proceeds from Sale of Property, Plant & Equipment 89 326 89 326 Interest Income 193 320 617 305 Net Cash Flows from/(Used in) Investing Activities (2,417) (217,995) (1,789) (217,978)
Cash Flows from/(Used in) Financing Activities Proceeds from Interest Bearing Loans & Borrowings 19,570 - 17,608 - Repayment of Interest Bearing Loans & Borrowings (970) (831) (831) (831) Net Cash Flows Used in Financing Activities 18,600 (831) 16,777 (831)
Net Increase/(Decrease) in Cash & Cash Equivalents 5,432 (219,932) 3,652 (212,574)
Cash and Cash Equivalents at the beginning of the period 503 5,629 2,161 40,124
Cash and Cash Equivalents at the end of the period 5,935 (214,303) 5,813 (172,450)
Cash and Bank Balance 14,066 8,479 13,944 7,703 Bank Overdraft (8,131) (222,782) (8,131) (180,153) 5,935 (214,303) 5,813 (172,450)
Page 9 of 12 THE LIGHTHOUSE HOTEL PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
1. Principal Activities and Nature of Operations
The Company owns and operates Jetwing Lighthouse Hotel, which is targeted at the up market leisure travelers.
The Fully owned subsidiary of the Company, Unawatuna Properties (Private) Limited which operates Hotel J Unawatuna commenced commercial operation during the month of December 2017.
2. Basis of Preparation
The interim financial statements have been prepared in accordance with the Sri Lanka Accounting Standard (LKAS) 34- Interim financial reporting.
3. Changes in Accounting Policies
These interim financial statements have been prepared in accordance with the accounting policies set out in the Annual Report for the year ended 31.03.2020.
4. Fair value measurement and related fair value disclosures The fair values of all the financial assets and financial liabilities recognised during the period were not materially different from the transaction prices at the date of initial recognition. There were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy, during the period. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income and there were no purchases and/or disposals during the period. Fair valuation was done as of 30TH September 2020 for unquoted equity shares classified as Level 3 within the fair value hierarchy according to fair valuation methodology.
Valuation techniques, key assumptions and the sensitivity of the significant inputs to the fair value of the investment are as follows.
Valuation Technique Significant Sensitivity of the input to fair value Unobservable Inputs
Discounted cash flow Long term growth rate 1% increase /(decrease) in the growth (DCF) method rate would result in increase/(decrease) in fair value by LKR 6.9 Mn and (LKR 5.8 Mn) respectively. Weighted average cost 1% increase /(decrease) in the WACC of capital (WACC) would result in (decrease)/ increase in fair value by (LKR 10.4 Mn) and LKR 7.8 Mn respectively.
Page 10 of 12 THE LIGHTHOUSE HOTEL PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
5. Information published for the six months to 30TH September 2019 has been reclassified to conform with the current presentation where applicable.
6. There are no distinguishable components to be identified as segments for the Company.
7. No circumstances have arisen since the reporting date, which would require adjustments to or disclosure in the Financial Statements.
8. There are no significant contingencies as at the reporting date that require adjustments or disclosure in the Financials Statements other than followings.
– A local authority has claimed a fee amounting to 1% of turnover for the issuance of trade license for the year 2018 from the Company in March 2018. The Company does not agree with such claim as it has paid only 0.5% of turnover for the issuance of trade license for the year 2017. The estimated contingent liability as at 30 September 2020 is LKR 11.4 Mn.
– Contingencies of the Company as at the reporting date on account of guarantees issued on behalf of fully owned subsidiary of the company, Unawatuna Properties (Pvt) Ltd amounted to USD 600,000/- and LKR 190 Mn.
9. No tourist arrivals have been recorded for the six months period ended 30th September 2020 due to the termination of all passenger flights & ships arrivals into Sri Lanka from 19th March 2020.
10. Related party transactions
Page 11 of 12 THE LIGHTHOUSE HOTEL PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020
Page 12 of 12