4th August 2011, the Hotel Services (Ceylon) PLC published their Interim Financial statement of second quarter of 2011.
Even a Company has indicated a positive gross profit of Rs.73.217 Billion; due to the high operating expenses the company was unable to indicate a positive operating profit for second Quarter of 2011.
The Administrative and Marketing expense has increase by the 60% and 71% from the 2010 second Quarter. These Marketing and Administrative expenses may create the positive indication in futures.
Due to the Net Loss of Rs. 2.318 Billion the Basic EPS is negatively indicate as Rs. 0.01 share.
The Hotel Services (Ceylon) PLC is where invested Rs.90.704 as an capital working progress and the cash outflow (Rs. 54.854 Million) of the capital working progress may indicate the company is investing future developments. And the Cash Management of the Hotel Services (Ceylon) PLC was fair but the revaluation reserves is creates doubt about the revaluation technique.
The Future of Hotel Services (Ceylon) PLC
The Hotel Services (Ceylon) PLC faces the short term business down terms, and it’s have a good future if the Administrative and Marketing expenses are reach to the target audience.
Interim Financial statement: http://www.cse.lk/cmt/upload_report_file/543_1312455048.pdf