Leasing Companies: SECURITY LEASING CORPORATION LIMITED - Half Year ended December 31, 2006
This Leasing Company is operating from its head office and registered office situated at Lakson Square No 3, Sarwar Shaheed Road, Karachi-74200 which is in Saddar Karachi and very close to the Karachi Press Club.
The area, very frequently faces political rallies and hunger strikes which are inconvenient to both clients and office people. The company has a branch office situated at City Towers in main Gulberg Road, Lahore for having its presence in the northern region's market. Security Leasing Corporation Ltd was incorporated on December 6, 1993 and commenced its operations on May 21, 1995. It is a Non-Banking Finance Company (NBFC) having leasing and housing finance licenses, however, leasing operation is its core business. The company has also substantial assets in long term and short term investment portfolios.
The company's net investment in leases on December 31, 2006, (at the end of half year of financial year July 2006 to June 2007 ie HYD 06-07) amounted to Rs 3.77 billion reflecting 11.7% increase over Rs 3.37 billion on June 30, 2006 (the previous financial year 2005-06 balance sheet date).
According to the Chairman and Chief Executive of the company, M. R. Khan, the lease portfolio of the company remained well diversified with investment in different sectors of the economy with exposures not exceeding 20% in any one sector. As a result the lease rental recovery remained high during the period under review (HYD 06-07) even though some borrowers experienced cash flow problems. He is a famous ex-banker and lease finance professional having effective access to other bankers and financial bureaucrats.
He emphasized that the company has been successful in arranging financing facilities on short and long term basis with accent on quality leases, timely recovery of lease rentals, cost control measures and measured expansion of its other business activities.
It has been able to utilise Rs 445 million from the new long-term lines arranged during the quarter ended September 1, 30, 2006.
As regards provision for potential lease losses the company booked Rs 49.5 million on December 31, 2006, which is same as on June 30, 2006.
During the period under review (HYD-06-07), the company marginally enhanced total revenue to Rs 269.84 million from same period last year (HYD 05-06) total revenue of Rs 264.06 million. But due to substantial escalation in total expenses in HYD 06-07 amounting to Rs 262.05 million from HYD 05-06 amount of Rs 187.67 million, the company faced great fall in pretax profit to Rs 7.79 million in HYD 06-07 from Rs 76.39 million in HYD 05-06.
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Performance Statistics (Mln Rs)
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Balance Sheet ----As At---
December 31 June 30 2006 2006
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Un-audited Audited
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Share Capital-Paid-up: 392.00 392.00
Reserves: 67.57 87.44
Shareholders Equity: 459.57 479.44
Unrealised (Loss on Investment): (126.35) (88.90)
Surplus on Revaluation
of Fixed Assets: 14.80 15.20
L.T. Debts: 1,362.49 1,402.47
L.T. Deposits: 839.47 706.14
Current Liabilities: 2,522.19 2,256.20
Operating Assets: 219.62 221.79
Net Investment in Leases: 2,088.60 1,923.04
Deferred Costs: 2.32 3.06
L.T. Deposits: 0.42 0.42
L.T. Finances: 43.22 57.48
L.T. Investments-Held
to maturity: 284.48 286.47
Current Assets: 2,433.51 2,278.29
Total Assets: 5,072.17 4,770.55
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Profit & Loss A/c for Half Year ended:
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December 31, 2006 2005
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Revenue
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Income from Leasing Operations: 212.79 133.53
Other Income: 57.05 130.53
Total Income: 269.84 264.06
Admin & operating (Expenses): (37.90) (31.07)
Financial (Charges): (202.01) (135.82)
Direct Cost Operating Lease: (21.83) (20.47)
Amortization of Deferred Costs: (0.31) (0.31)
Total Expenses: (262.05) (187.67)
Profit Before Taxation: 7.79 76.39
Profit After Taxation: 3.93 71.90
Earnings Per Share (Rs): 0.16 2.69
Share Price (Rs) on 25/05/2007: 10.50 -
Price/Earning Ratio: 65.63 -
Debt/Equity Ratio: 80:20 78:22
Current Ratio: 0.96 1.01
Lease/Total Income Ratio (%): 78.86 50.57
Net Profit/Total Income Ratio (%): 1.46 27.22
R.O.A. (%): 0.08 1.51
R.O.E. (%): 0.85 15.00
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COMPANY INFORMATION: Chairman & Chief Executive: M.R. Khan; Vice Chairman & Deputy Chief Executive: S.M. Nadim Shafiqullah; Managing Director: Mohammad Khalid Ali; Company Secretary: Salman Hameed: Registered Office: B-901/902 Lakson Square No 3 Sarwar Shaheed Road Karachi 74200; Head Office: Block-B, 5th Floor, Lakson Square No 3 Sarwar Shaheed Road Karachi-74200; Website URL: www.seclease.com; Branch: Lahore Northern Region 8th Floor City Towers Main Gulberg Road Lahore.
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