Lippoland reports 45% profit increase
Lippoland reports 45% profit increase
JAKARTA (JP): PT Lippoland Development reported yesterday a 45 percent increase in its net profit to Rp 31.2 billion (US$13.5 million) in the 1994/1995 fiscal year which ended in June, from Rp 21.5 billion in the previous year.
Lippoland's president, Roy Edu Tirtadji, told journalists after the company's annual shareholders meeting that the profit increase was supported by the sharp growth of the company's revenues to Rp 217.4 billion from Rp 44.2 billion.
The company's earning per share also increased to Rp 126 in 1994/1995 from Rp 86 in 1993/1994.
Roy said Lippoland was able to maintain its sustainable growth because 80 percent of its operation is focused on urban development, including the construction of integrated residential and industrial estates.
He said that because almost all of the company's major projects are now at the finishing stage of development, next year's revenues could be much higher than the current level.
Lippoland now controls two large urban development areas in Bekasi and Tangerang, both in West Java.
Roy said that after raising Rp 348.4 billion from a rights issue in October 1994 on the Jakarta Stock Exchange, Lippoland increased its stake in the Lippo Cikarang industrial estate in Bekasi from 44 percent to 60 percent and bought controlling interest of 51 percent in the Lippo Karawaci housing complex in Tangerang.
The equity acquisition enabled an increase in the company's total assets from Rp 304.3 billion as of 1994 to Rp 2.28 trillion as of June, he said
Yesterday's meeting also approved the distribution of a Rp 30 cash dividend per share and accepted the resignation of Markus Permadi from the board of commissioners, as well as Stanly Setiady and Bertha Setiady Unggul from the board of directors.
They are respectively replaced by Agus Ismail Ning, Erry Firmasyah and Yusuf Valen. The company also appointed Edi Sindoro as a director.
Ray said that Markus resigned because of his tight schedule as president of Bank Lippo. The reasons for the resignations of Stanly and Bertha were not made clear.
In an extraordinary session following yesterday's annual meeting, the shareholders of the company also endorsed the management's proposal to buy 11,340 hectares of land located at Lippo Karawaci, which is owned by Lippoland's subsidiary, PT Lippo Village.
The transaction will be executed by Lippo Group's affiliated company, PT Lippo Hyundai Development, in which Lippo Group holds a 50 percent stake, at a cost of $7.93 million. (08)