MTD Walkers, a company dealing in diverse entities, announced financial results for the fourth quarter. The Groups’ turnover increased from Rs. 1.9 billion to Rs. 2.8 billion whilst the Group recorded a loss primarily due to the consolidation of some of the Group’s subsidiaries.
“Although fiscal year 2011 was a difficult year for MTD Walkers, it is behind us and we look forward to a profitable fiscal year 2012. Our revenue losses were incurred due to the infrastructural cash flow commitments we faced.
The remaining losses were primarily related to cost overruns on certain projects and the cost of the strategic alternatives effort as has been reported throughout the year. Meanwhile, the Group maintains a healthy balance sheet with an approximate net asset value of Rs. 3.6 billion as of 30th June 2011. Due to the relative strength of our balance sheet, the company expects to be able to finance our growth internally and meet our short term liquidity needs,” said a spokesperson for MTD Walkers Group.
During the past year, CML –MTD, the Group’s largest subsidiary, was engaged in expanding and re-fleeting to meet the new market opportunities and is estimated to have spent over Rs. 1 billion on new machinery. Walker Piling, another 100 percent owned Group subsidiary and the largest piling contractor in Sri Lanka, too added new equipment to their machinery fleet with a view of undertaking larger projects. “This, naturally, resulted in higher finance costs, well over margins,” averred the spokesperson.
During the financial year 2011, the Group acquired Colombo Engineering Enterprise, renaming it the Colombo Engineering Services (Pvt.) Ltd. This acquisition will leverage on the existing Walkers’ fully equipped workshop to expand the current services offered by the company. He added that the Group’s workshop facility at Sapugaskanda has been revamped and an expansion process has begun in order to be able to meet the orders.
Ranked as one of Sri Lanka’s Top 3 engineering and manufacturing companies, MTD Walkers PLC has undertaken many road construction projects across the nation. As the government makes strides into road development across the nation, MTD Walkers PLC plays a major role in this industry with contracts for the Southern Highway and the A32 road in the North. Having won other construction tenders across the island, the company envisages to actively participate in public private partnership projects to further increase profitability in the near future.