Aitken Spence PLC (SPEN) : Company Profile and SWOT Analysis by WMIntelligence

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									Aitken Spence & Co. Ltd.

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Aitken Spence & Co. Ltd.                                                          Financial Snapshot

                                                                                  Operating Performance
Fast Facts
                                      No. 305, Vauxhall Street, Colombo 2, ,Sri   The company reported revenue of US$218.28 million
Headquarters Address
                                      Lanka                                       during the fiscal year 2011 (2011). The company's
                                                                                  revenue grew at a CAGR of 5.44% during 2007–
Telephone                             N/A
                                                                                  2011, with an annual growth of 3.92% over 2010. In
                                                                                  2011, the company recorded an operating margin of
Fax                                   N/A                                         16.00%, as against 16.94% in 2010.

Website                               N/A
                                                                                  Revenue and Margins
                                      SPEN, Colombo (Sri Lanka) Stock
Ticker Symbol, Stock Exchange
                                      Exchange

Number of Employees                   5,328

Fiscal Year End                       March

Revenue (in US$ million)              218.28

Revenue (in LKR million)              24,728.99




SWOT Analysis                                                                     Return on Equity

Strengths                             Weaknesses                                  The company recorded a return on equity (ROE) of
                                                                                  11.79% for 2011, as compared to its peers, Asian
Strong liquidity position             Overdependence on select region             Hotels & Properties PLC (Ticker: AHPL), Nuwara
                                                                                  Eliya Hotels Co., PLC (Ticker: NEH) and Ceylon
                                                                                  Hotels Corporation (Ticker: CHOT), which recorded
Strong market position                                                            ROEs of 12.93%, 7.60% and 0.69% respectively. The
                                                                                  company reported an operating margin of 16.00% in
Strong operating performance                                                      2011.


Opportunities                         Threats                                     Return on Equity

Positive tourism industry outlook     Foreign currency fluctuation

Strategic growth initiatives          Funding constraints

Strong Srilankan economic situation




                                                                                  Liquidity Position

                                                                                  The company reported a current ratio of 1.45 in 2011,
                                                                                  as compared to its peers, Asian Hotels & Properties
                                                                                  PLC, Nuwara Eliya Hotels Co., PLC and Ceylon
                                                                                  Hotels Corporation, which recorded current ratios of
                                                                                  2.22, 2.28 and 0.33 respectively. As of March 2011,
                                                                                  the company recorded cash and short-term
                                                                                  investments of worth US$53.36 million, against
                                                                                  US$15.17 million current debt. The company reported
                                                                                  a debt to equity ratio of 0.41 in 2011 as compared to
                                                                                  its peers, Asian Hotels & Properties PLC, Nuwara
                                                                                  Eliya Hotels Co., PLC and Ceylon Hotels Corporation,
                                                                                  which recorded debt to equity ratios of 0.01, 0.05 and
                                                                                  0.11 respectively.




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Aitken Spence & Co. Ltd. - SWOT Profile                                                                                   Page 1
Aitken Spence & Co. Ltd.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure ..........................................................................................................................................19
      2.3.4       Valuation ..........................................................................................................................................................20
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................21
      2.3.6       Liquidity ............................................................................................................................................................22
3     Recent Developments ........................................................................................................................... 23
4     SWOT Analysis ...................................................................................................................................... 24
    4.1       SWOT Analysis - Overview ..................................................................................................................................24
    4.2       Strengths ..............................................................................................................................................................24
    4.3       Weaknesses .........................................................................................................................................................24
    4.4       Opportunities ........................................................................................................................................................25
    4.5       Threats .................................................................................................................................................................25
5     Aitken Spence & Co. Ltd. - Company Statement ................................................................................. 26
6     History .................................................................................................................................................... 28
7     Aitken Spence & Co. Ltd. - Key Employees ......................................................................................... 29
8     Key Employee Biographies................................................................................................................... 30
9     Appendix ................................................................................................................................................ 31
    9.1       Methodology .........................................................................
								
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