Pakistan Services Ltd (PSL) is a pioneer in the deluxe hotel industry in Pakistan. It is operating Pearl Continental Hotels at Karachi, Lahore, Rawalpindi, Peshawar and Bhurban.
Recognising the future potential the company is continually expanding its business portfolio by identifying new avenues for development of its properties, determined on the basis of economic, demographic and supply/demand dynamics that are favourable to the hotel industry.
Realising in good time the extreme shortage of first class accommodation for business activity centred city of Lahore, and after following the due diligence process PSL is planning to add deluxe Executive Tower in Lahore to accommodate the business executives with all facilities.
The overall performance of the company during the period under review ie 9 months of the FY 2003-04 has substantially improved. It has net profit (after tax) of Rs 122.99 million as compared to only Rs 12.49 million posted during the same period last year (SPLY) registering impressive rise of 885%.
The improved business results and potential, along with rising stock market index fuelled marked increase in the market, value of PSL share. During the last one year the price of the share sharply appreciated from Rs 82.20 to Rs 139.75 per share of Rs 10.The closing price of the share on 16-7-2004, was quoted at Rs 134 per share which is more than 13 times of the par value.
The 9M 2003-04 total revenue improved by Rs 474.9 million ie 33.3% over SPLY. It is a handsome growth in total revenue.
Improved sales mix contributed gross margin of 34.62% of sales relative to the previous figure of 27.99% for SPLY.
The room occupancy surged to 76% as compared to 56% during the corresponding period last year.
The additional bonus was the higher average room rate. Thus, the room revenue increased to Rs 886 million as compared to Rs 407 million during SPLY.
The food and beverage sales registered increase of Rs 180 million. Despite the issue of bonus shares @10%. Earning per share further improved from Rs 0.42 to Rs 3.78 during the period compared to SPLY.
The directors of PSL earnestly expect further revenue growth, on the basis of current indicators and barring any unforeseen circumstances.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
March 31 June 30
2004 2003
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Liabilities
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Share Capital-Paid-up: 325.24 295.68
Share Premium: 269.42 298.99
General Reserves: 100.00 100.00
Unappropriated Profit: 228.27 105.28
Shareholders Equity: 922.93 799.95
Surplus on Revaluation
Of Fixed Assets: 3,066.89 3,066.89
L.T Debts: 1,040.06 637.14
Deferred Liabilities &
L.T Deposits: 304.72 265.68
Current Liabilities: 912.59 831.62
Tangible Fixed Assets: 4,810.71 4,840.77
L.T. Investments-at-cost: 15.00 15.00
L.T. Deposits: 14.86 19.60
Current Assets: 1,406.62 725.91
Total Assets: 6,247.19 5,601.28
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Profit & Loss A/c For the Nine
Months Ended March 31 2004 2003
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Sales & Services: 1,900.34 1,425.44
Gross Profit: 657.94 398.98
Operating Profit: 319.19 109.96
Financial (Charges): (156.14) 100.35
Other Income: 41.02 10.06
Profit Before Taxation: 204.07 19.67
Profit After Taxation: 122.99 12.49
Earnings Per Share (Rs): 3.78 0.42
Share Price (Rs)
on 16-7-2004: 134.00 -
Price/Earning Ratio: 35.45 -
Book Value of Share (Rs): 28.38 27.05
Debt/Equity Ratio: 21:79 14:86
Current Ratio: 1.54 0.87
Gross Profit Margin (%): 34.62 27.99
Net Profit Margin (%): 6.47 0.88
R.O.A.: 1.97 0.22
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