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)