Access Engineering PLC, the country’s leading civil engineering enterprise recently released its interim financial statements for the six months ended September 30, 2021. Accordingly the company has recorded an after-tax profit of Rs. 628 Mn for the quarter, a YoY rise of 23.6%. Group after tax profits for the quarter stood at Rs. 654 Mn, against a corresponding after tax profit of Rs. 534 Mn in 2020/21.
Key revenue components of the group included construction (51%), construction related materials (35%), followed by automobile (12%) and property (2%). Revenue improvement in all key sectors resulted in a steady margin improvement during the quarter, with the exception of the automobile sector, which was hampered by the government-imposed vehicle import restrictions. Core construction activities recorded a 55.6% YoY increase in revenue during the first half amounting to Rs. 8.2 Bn. With a topline of Rs. 5.65 Bn, the construction material segment performed impressively during the six months period owing to the sale of asphalt and ready-mix concrete. The rural road network expansion project, as well as ADB and World Bank-funded road development programs, are driving up demand for construction materials. Expansion of the expressway network, including Central and Ruwanpura expressway developments and the elevated road network is expected to create more demand for construction material in future. Today Access Engineering is one of Sri Lanka’s largest asphalt and concrete producers in the country serving a significant market share. The company also recently built more capacity in asphalt production with the commissioning of new plants in Ganewalpola & Mathugama.
Main construction projects that contributed to the company revenue during the period included the i – Roads project, Nittambuwa Pasyala Road Project, Elliot Place Housing Project, Stadiumgama Housing Project, Bloemendhal Housing Project, Piling and earth works for the New Terminal Building and Viaduct at Bandaranaike International Airport, Anuradhapura Water Supply Project while other significant projects such as Orugodawatta Housing project and the multi-storied public car park development at Union Place are some of the major ongoing projects that would continue to improve the topline of the company in future. The company recently commenced work on its flyover trio, Gatambe, Kohuwela and Slave Island flyovers which would reduce the traffic congestion by catering to the insufficient road capacity in the respective areas. The Company is also engaged in the construction of a T – Mall flyover and several foot bridges in Kenya as a part of its overseas work.
Import restrictions, which have been in place since the previous financial year, have stalled the performance of the automobile industry in general. This had a considerable influence on the selling of new vehicles, which is the main operation of Sathosa Motors PLC. Nevertheless the new ISUZU Marine sector, workshop operations, and spare parts sales all showed a marked improvement. As a result the sector was able to return back to profitability with a marginal profit of Rs. 10 Mn against a loss of Rs. 31 Mn in the corresponding year.
During the period, the company’s two ongoing real estate projects fared well, with above industry average sales. Capital Heights Rajagiriya is expected to be handed over to the owners by the end of the 2021/22 financial year, while Marina Square having completed up to podium level in all the buildings, is in superstructure construction. Access Towers I and II, which lease office and commercial space, have maintained high occupancy rates throughout the year to date. The property sector recorded a segment profit of Rs. 267 Mn during the first half which was a 25% growth over the corresponding period of the previous year.
Gross profit for the quarter was recorded at Rs. 1,338 Mn & Rs. 979 Mn at Group & Company level respectively with corresponding margins of 14.7% & 12.7%. As at 30th September 2021, the total asset base of the company amounted to Rs 64.03 Bn and Rs 48.44 Bn at Group and Company level respectively. The equity attributed to the owners of the company was recorded at Rs 24.26 Bn at the Group level while it was Rs 22.82 Bn at Company level. Net asset per share of the Group and Company as at 30th September 2021 stood at Rs. 24.26 and Rs. 22.82 respectively. The company declared its first interim dividend for 2021/22 financial year amounting to Rs. 0.25 per share paid in September 2021. This is in addition to paying Rs. 500 Mn as dividends in June 2021.
Being at the forefront of introducing innovative construction methodologies to the market, the company recently joined hands with the University of Moratuwa, supported by the Cambridge Centre for Smart Infrastructure and Construction (CSIC) of the University of Cambridge, and the University of Oxford to collaborate in the research project “Introduction of Fibre Optic Monitoring Technology to Sri Lanka”.
The Board of Directors of Access Engineering PLC comprises of Sumal Perera (Chairman), Christopher Joshua (Executive Vice Chairman), Rohana Fernando (Managing Director), Shevantha Mendis, Dharshana Munasinghe, Dilhan Perera, Shamal Perera, Ranjan Gomez, Professor Malik Ranasinghe, Niroshan Gunaratne and Dinesh Weerakkody.