LB Finance Annual Report 2023/24
Welcome to our annual report, where innovation meets insight. Dive into a dynamic digital journey through our achievements and milestones. Explore interactive data visualizations and engaging narratives that highlight our year's story in stunning HTML elegance. Discover how we've transformed vision into reality, and get inspired for the future ahead!
Supplementary Information
KEY INVESTOR INDICATORS
Dear Investor,
At LB Finance PLC, we understand that our investors are the lifeblood of our business, and we are unwaveringly committed to maximise your wealth through effective risk management and business strategies crafted in your best interests.
By actively engaging with our investors, we gain a deep understanding of your expectations and goals, resulting in better outcomes with a lasting and trusting relationship. Through this process of engagement, we are able to make strategic decisions that not only benefit our shareholders but also ensure the long term success and sustainability of our Company.
We are proud to have a loyal group of investors who share our vision and we are committed to provide timely and comprehensive information which empowers our investors to make wise decisions. Despite challenging macroeconomic conditions, we have consistently met the expectations of our valued investors by providing a steady return on your investment and remain committed to fulfill our obligations in the future. Our Integrated Financial Reporting serves as a valuable resource, offering insights into our strengths and capabilities, credibility and reliability and encouraging loyalty among our investor community.
QUARTERLY FINANCIAL STATEMENTS
We publish financial information to our investors on the CSE and the Company website on a quarterly basis. In order to serve our investors' best interests, we deliver an analysis of interim financial statements in our annual reports.
Refer page 418
FINANCIAL STATEMENTS IN USD
Financial statements have been presented in USD for the convenience of our investors in order to facilitate comparisons of LBF's financial information.
Refer page 420
INSIGHTS FROM SHAREHOLDERS TO LB
LBF values shareholder engagement and engages in various methods to ensure effective communication. We hold an annual general meeting (AGM) where shareholders can interact with the Board and ask questions. Our annual and quarterly financial reports provide consistent, high-quality information in accordance with market best practices. We utilise press conferences, media releases, and evaluations to keep shareholders informed and seek their valuable feedback. Despite challenging circumstances, our active engagement with shareholders has made our shares an attractive investment especially reflected by the last quarter of LBF market turnover. We comply with regulatory requirements by regularly publishing disclosures on the CSE and Company websites. LBF recognizes the importance of shareholders in achieving our vision and strives to establish a strong connection through meaningful engagement.
DIVIDENDS
The dividend policy of LBF is crucial for maintaining a balance between the expectations of shareholders and the business needs of the Company. LB has been one of the best-performing companies in the industry, as it is emphasised that the optimum utilisation of capital is essential for creating value over time, pursuing sustainability and providing healthy returns to investors. It is Company's policy to pay 1/3 of its earnings as dividends with the best interest of shareholders. LBF has continuously maintained dividend payouts. The Board of Directors of LBF has given due consideration to the requirements stipulated by CBSL and declared an interim dividend of Rs. 2.25 per ordinary share of LBF for the financial year 2023/24. Further, the proposed final dividend of Rs. 3.50 per share for the financial year 2023/24 will be submitted for the approval of shareholders at the upcoming AGM to be held on 28 June 2024 to ensure a sustainable return to the shareholders of the Company. LBF remains committed to providing sustainable and healthy financial returns to its shareholders over the years.
COLOMBO STOCK EXCHANGE (CSE)
The Colombo Stock Exchange (CSE) experienced a mixed performance during the financial year 2023/24. All Share Price Index (ASPI) demonstrated a positive trajectory, climbing from 9,301.09 points on 31 March 2023 to 11,444.38 points on 31 March 2024, reflecting a notable 23.04% increase. Additionally, the market capitalisation of the CSE grew from Rs. 3,903.54 billion to Rs. 4,534.65 billion, signifying a 16.17% rise. However, contrasting this upward trend, the S&P SL 20 index, which monitors the performance of prominent blue-chip companies, faced a decline, decreasing from 2,682.83 points on 31 March 2023, to 3,317.62 points on 31 March 2024, resulting in a substantial 23.66% up. Moreover, the number of listed companies experienced a setback, diminishing from 289 at the end of 2022/23 to 284 by the end of 2023/24. The reduction in the number of listed companies can be attributed to multiple factors, including the adverse macroeconomic conditions, political instability and the shortage of foreign exchange throughout the financial year. Nevertheless, the upward movement of the ASPI index suggest an encouraging trajectory for the economy and demonstrates businesses’ optimism regarding the future.
PERFORMANCE OF DIVERSIFIED FINANCIAL SECTOR AND LBF
Along with ASPI and S&P SL 20 indices, LBF market turnover also followed the same trend during the first three quarters of the financial year. Moreover, in the last quarter, LBF market turnover was more aligned with the improvement reflected in ASPI and S&P SL 20 indices reflecting the growth of the business
FLOAT ADJUSTED MARKET CAPITALISATION
The Float adjusted market capitalisation as at 31 March 2024 – Rs. 7,432,197,418.80
The Float adjusted market capitalisation of the Company falls under Option 3 of Rule 7.14.1 (i) (a) of the Listing Rules of the Colombo Stock Exchange and the Company has complied with the minimum public holding requirement applicable under the said option.
CREDIT RATINGS
The Company has been assigned BBB+(lka) Stable by Fitch Ratings Lanka Limited.