Aitken Spence has once again lived up to its reputation of being a steady performer, despite the natural disaster during the financial year 2004/05. Surpassing LKR 10 billion in revenues, a 10% growth over the previous year, the premier blue chip conglomerate stands resilient amidst hindrances.

The diversified Aitken Spence generated a net profit attributable to share holders of LKR 1.1 billion after taking a beating from the waves of destruction, a 12% drop over last year, but still managed to record a PBT of LKR 1.73 billion, a year on year dip of only 8%. However the Group continues to create a positive value addition. The Group generated an EVA of LKR 951.4 million while recording an EPS of Rs.41.32 with a PER of 9.22 compared to the diversified sector PER of 17.7 as well as a 60% dividend payment during the year under review. The company remains one of the highest generators of shareholder value with a total shareholder return of 46.5% for 2004/05.

The period under review proved to be an excellent one for the Group''s Cargo Logistics sector, which recorded a 17% increase in revenue and a 15% increase in profits from operations. The Group''s Integrated Logistics division and Freight Forwarding division recorded 20% and 15% increases in profits from operations respectively. The former has forged forth to place itself in the enviable position of becoming the owner of the largest fleet of fuel transportation bowsers in Sri Lanka. During the year Spence sailed into new with its investment in 3 cargo vessels through a consortium, which included Ceyline Group. It is noteworthy that one of these vessels is the largest ship owned by a Sri Lankan Company, and the company has invested in 2 more vessels this year.

The performance of the Tourism Sector declined with the devastating effects of the tsunami. Sri Lanka recorded 434,250 tourist arrivals for the nine months ended December 2004. This was a 14% increase over the same period last year. However, the Group once again outperformed the industry by recording a 26% year on year increase in tourist arrivals for the first nine months of 2004/05, but witnessed a 70% decline in arrivals during the last quarter as a result of the tsunami. The revenue of the tourism sector declined 7% over last year and the profits from operations declined 49% mainly due to the dismal performance during the post tsunami period. Despite this, the tourism sector recorded a 21% contribution towards the Group''s overall profitability. The tsunami impact on the Maldives was relatively less than in Sri Lanka, with the Maldivian sector contributing 83% of the sectors profit from operations. Triton Hotel, which is Sri Lanka''s first five star beach resort immediately advanced its refurbishment, while Neptune Hotel resumed operations shortly after the tsunami. The Hotels in the Maldives however, did not experience any severe damages apart from the drop in arrivals, which was a common feature in the Tourism Industry at large.

A 25% stake of the Group''s destination management arm was acquired by TUI AG of Germany, one of the largest tour operators in the world, bringing in a wealth of global knowledge and synergies to the Group. The capital gain from the sale of shares was accrued to the Group in the 2nd quarter.

The strategic investments sector profits from operations grew by 32% during the year, with all divisions in the sector recording good performances. The Power Generations arm of the Group continued its winning streak of earning healthy profits during the year. Their newest power plant in Embilipitiya, which is a