Investment/Investment Company: ESCORTS INVESTMENT BANK LIMITED - Year Ended 30-06-2005
The performance statistics about the company appended with this write up displays exceptionally good operating and financial results of the company. Profit before tax increased by 75.3% to Rs 134.07 million as compared to Rs 76.46 million posted in the preceding year.
Profit after tax has also recorded impressive growth as it shot up by 75.7% to Rs 129.40 million from Rs 73.62 million in the preceding year. The company maintains very attractive profit distribution profile as it has never skipped dividend during the last three years and dividend payouts during these years ranged between 15% to 20%, the highest rate of dividend @20% was announced for the year under review. The Escort Investment Bank shares, are trading at Rs 13 per share carrying 30% premium. The financial position of the company is strong as the credit rating agency has upgraded its rating to single 'A'.
Escorts Investment Bank Limited is a public limited company incorporated in Pakistan. The company is listed on the Karachi and Lahore stock exchanges. The company was incorporated in Pakistan on May 15, 1955 and started its commercial operation on October 16, 1996.
Escort Investment Bank is licensed to carry out all investment finance services as a Non-Banking Finance Company. The registered office of the company is situated at Escort House, 26 Davis Road Lahore. The company is also a member of Karachi Stock Exchange and Lahore Stock Exchange. In the context of the company holding corporate brokerage house, it may be mentioned that it has cards and rooms booked as 44.1 million. Accordingly, the company has Investment Services (Brokerage) Centres (ISC) at Karachi, Lahore and Islamabad while another ISC has become operative at Faisalabad. This will be followed by opening of ISC at Sialkot and Peshawar. It may be mentioned here that the company's corporate strategy is "taking capital markets to the people". Ultimately it will enrich the investors and generate more yield to the shareholders.
In the pattern of shareholding dated 30-06-2005 three directors of the company held 24.6% of the company's stock. The associated company Essem Power (Pvt) Ltd held 39.0% of its total 30 million paid up shares. The 270 individual investors held 25.03% of the company's stock.
The company has good track record of profit distribution. For the period under review the company announced dividend at 20% (including 5% bonus stock). During the last two years in 2002 and 2003 the payout rate was @15% per year.
During the year under review, the company's gross revenue increased to Rs 488.66 million making quantum jump of 104% over the preceding year's 239.43 million. The gross revenue of the company comprised various profit earnings such as profit on financing, return on placements and financial institutions, return on investments, fees and commission and other income.
The company's income on investment at Rs 332.03 million was by far the largest component of gross income as it comprised 67.9% of gross income and this component also registered impressive growth of 110.4% over the preceding year's.
If one goes into details of the investment portfolio it can be noticed at a glance that most of its income from the portfolio came from fixed income government securities which have no risk of going sour. The investment portfolio at Rs 1514 million (both short and long term investments) was 36% of total assets.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-paid-up: 300.00 300.00
Reserves: 240.01 114.82
Shareholders Equity: 540.01 414.82
(Deficit)/Surplus on
Revaluation of Investments: (23.34) 3.46
Term Finance Certificates: 274.84 -
L.T. Certificates of Deposit: 305.46 146.33
Deferred Tax Liability: - 4.98
Current Liabilities: 3,080.72 2,172.53
Fixed Asset Capital Expenditure: 123.90 23.22
Cards & Rooms: 44.10 42.42
L.T. Investments: 596.55 -
L.T. Finances: 119.50 96.36
L.T. Loans, Deposits & Prepayments: 7.47 8.30
Deferred Tax Assets: 5.05 -
Current Assets: 3,281.12 2,571.82
Total Assets: 4,177.69 2,742.12
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Revenue, Profit & Pay Out
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Profit on Financing: 47.78 43.42
Return on Placements with
Financial Institutions: 27.91 18.94
Return on Investments: 332.03 157.83
Fees & Commission: 75.37 17.04
Other Income: 5.57 2.20
Gross Income: 488.66 239.43
Total (Expenses): (308.24) 156.81
(Provisions & Impairment Loss): (46.35) (6.16)
Profit Before Taxation: 134.07 76.46
Profit After Taxation: 129.40 73.62
Dividends (%): 20.00 15.00
Earning Per Share (Rs): 4.31 3.05
Share Price (Rs) on 15/11/05: 13 -
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Financial Ratios
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Price/Earning Ratio: 3.02 -
Book Value Per Share: 18.00 13.83
Price/Book Value Ratio: 0.72 -
Current Ratio: 1.06 1.18
Net Profit Margin (%): 26.48 30.75
R.O.A (%): 3.10 2.68
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COMPANY INFORMATION: Chairman: Bashir Ahmed; President & CEO: Rashid Mansur; Director: Shazia Bashir; Company Secretary: Farooq Hameed Khawaja; Registered Office & Head Office & Lahore Branch: Escorts House, 26 Davis Road Lahore; Web Address: www.escortsbank.net; Branch Offices: Karachi, Islamabad; Investment Service Centers (Brokerage): Lahore, State Life Building Lahore Stock Exchange Building, Karachi Stock Exchange Building Karachi Office, Islamabad Office, Faisalabad Office, Sialkot Office.
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