PCH closes FY 2010/2011 on an impressive note

Pre-tax profit up 53% to Rs. 301.5 m; turnover up 25% to Rs. 3.8 b

Declares final dividend 25 cents per share in 7 months

 

PC House, Sri Lanka’s leading provider of ICT solutions, has ended the current financial year with a final dividend of 25 cents per share for 2010/2011 with a total dividend of Rs. 57,233,334 being paid within 7 months after the IPO. These significant results are indicative of the company’s strategic plans with its new vision headed by a forward thinking Chairman and his capable management team.

Mr. S.H.M. Rishan, Chairman of PCH said, “Q4 marked a terrific end to a successful year. Our strong performance has been driven by a rapidly growing technological economy, continuous product innovation that benefits both consumers and corporates and by the extraordinary momentum of our newer businesses, such as BPO and ICT solutions. These results give us the optimism and confidence to invest heavily in future growth -- investments that will benefit our consumers.”

The Group’s Pre-tax profit recorded a 53% increase to Rs. 301.5 million over the previous year with a turnover of Rs. 3.8 billion, which was up 25%. The Group’s Profit after tax grew by 44% to Rs 178.9 million in a year after the successful IPO which was followed by several internal initiatives and strategic corporate re-branding. The basic earnings per share of the group for the 12 months grew by 19% to cents 86 from cents 72 for the previous year. Net assets per share improved by 85% to Rs. 6.65 at company level and by 81% to Rs. Rs. 6.78 at Group level.

PCH commenced operations in 1997 as a seller of hardware, mainly in sales of assembled computers and, today, occupies a unique position in Sri Lanka’s IT industry as the only organization in the country to be present in all of its segments, namely, hardware, software and IT services.

As the leading IT company, PCH commands a lion’s share of the local IT market and is the precursor of global IT trends in Sri Lanka and has voluntarily taken on the mantle of growing the industry through knowledge sharing, updating the local IT industry and other stakeholders of developments in the fast-changing world of IT.

PCH has adapted with great agility to the fast-evolving world of technology by concentrating on building partnerships with international and world-renowned brands and employing the best in industry expertise in the form of qualified professionals identifying and serving market demands.

With the astounding success of the recent IPO, PCH has kept its promise by spreading its wings across the country by opening six new strategically placed branches – Nelliady, Mannar, Killinochchi, Mulaitivu, Hambantota, and Galle – bringing the total number of branches to 34 in their retail and regional branch network map. These branches take PCH’s promise of quality products and services closer to customers, providing them with the latest technology to improve their way of life.

Revolutionizing the IT experience and taking the retail sector by storm, the new PCH ‘9 to 9’ showroom, which is open 365 days of the year, hails a new era in IT trade. The PCH ‘9 to 9’ is the first supermarket-styled IT store in Sri Lanka with a showroom displaying a vast array of products under a multiple range of brands where customers have access to information, advice and service under one roof.

Meanwhile, Greenwich, a fully owned subsidiary of PCH, is one of the leading ICT solutions providers in the country. The company specializes in designing, developing and implementing enterprise systems for medium to enterprise level companies by providing the latest technology in support of global business strategies. With an extensive range of IT solutions, Greenwich provides maximum Return on Investment (ROI) with dedication, commitment, flexibility and by delivering within the minimum response time.

PCH’s other subsidiary Procifinity operates in the BPO/KPO industry and is a BOI-approved organization. The company offers Financial and Accounting, Scanning, Indexing and Digitizing, Software Development and Data Entry Services.

Foreseeing a profitable future, PCH plans to further expand its branch network in the financial year 2011/12.  The Company is taking steps to maintain its current gross profit margin in spite of a fiercely competitive marketplace whilst further steps are being taken to drive greater efficiency derived from state-of-the-art technology delivered by top quality motivated professional staff to ensure that the Company’s cost to income ratio is also brought down. Meanwhile, efforts are been taken to invest in Greenwich which is expected to deliver good results, with the solutions business revenue expected to more than double in 2011/12.

Lastly, the BPO business, Procifinity, is expected to grow significantly over the next few months. The Company is optimistic that it will shortly be able to make some exciting announcements about impending developments at Procifinity in relation to the BPO industry.

PCH is the new corporate brand identity for PC House PLC which was recently listed on the Colombo Stock Exchange. The new brand identity reflects the change from a family owned business to a public company with a vision to be the benchmark for ICT in Sri Lanka.

Photo caption: S.H.M. Rishan Chairman of PCH