Waskaduwa Beach Resort : Interim Financial Statements for the Quarter Ended 30.09.2022

Waskaduwa Beach Resort PLC

Interim Financial Statements

For the Quarter ended 30th September 2022

WASKADUWA BEACH RESORT PLC

CEO Message

Dear Shareholders,

It is with great pleasure that I share with you the interim financial statements of Waskaduwa Beach Resort PLC for the quarter ending 30th September 2022.

The hotel had its normal operations during the quarter under review whilst previous year's operation as an Intermediary Care Centre with Kings Hospital Colombo which concluded on the 30th of September 2022. Overall, the Company recorded a Revenue of Rs. 134 Mn (YoY 82%) for the quarter ending 30th September 2022 while maintaining GP ratio at 54% against previous year's recorded 72%. The Company incurred operating loss amounting to Rs. 97 Mn and Net Loss amounting to Rs. 204 Mn during the quarter under review.

For the Six month ending 30th September 2022, the Company posted Rs. 267Mn (YoY 83%) revenue and 58% GP margin against previous year's recorded 73%. Also Admin and operational expenses increased by 62% and finance cost by 163% compared to previous year same period. Hence Company's profitability decreased significantly and recorded Rs. 150 Mn operating loss and Rs. 340 Mn net loss for the same period.

With the crisis situation in the country, most of the expenses and cost have increased sharply compared to previous year and almost all food and beverage items, other expenses and services have increased over 300%. In addition to this, the sudden introduction of 15% Value added Tax and 2.5% Social Security Contribution Levy have further deteriorated our margins. With the continuous power cuts and shortage of fuel and also the increase in fuel prices, the hotel had to incur significant cost increase as generators had to be used on a daily basis for times ranging from 3 to 10 hours. Also due to the lack of foreigners, the hotel was not able to get the benefit of a higher exchange rate as well. In addition to above, increase in interest rates over 300% have eroded the profitability of the Company.

Future Outlook

It is evident that Russian market will continue to generate marginal numbers during the Winter period but European market are yet to open up as uncertainties in and increases in fares of Air travel has discouraged many European holiday makers to look at long haul travel to the Asian region. The Industry is expecting political stability in the country to ensure shortages of essential commodities do not occur in the immediate future.

Thank You

Chandana Talwatte

Group CEO

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WASKADUWA BEACH RESORT PLC

STATEMENT OF COMPREHENSIVE INCOME

	Quarter Ended 30th September	Six Month Ended 30th September 2022	Year Ended
	2022	2021	Increase /	2022	2021	Increase /	31st March 2022
	Unaudited	Unaudited	(Decrease)	Unaudited	Unaudited	(Decrease)	Audited
	Rs.	Rs.	%	Rs.	Rs.	%	Rs.
Revenue from contract with customers	134,296,608	73,707,349	82%	266,686,055	145,547,898	83%	350,847,137
Cost of sales	(61,233,784)	(20,802,929)	194%	(111,152,837)	(39,363,862)	182%	(111,063,242)
	73,062,824	52,904,419	38%	155,533,218	106,184,035	46%	239,783,895
Gross profit
Other income and gains	395,553	4,022,244	-90%	869,497	8,301,739	-90%	9,883,725
Administrative expenses	(80,772,373)	(57,628,482)	40%	(149,431,754)	(115,539,866)	29%	(243,689,454)
Operating expenses	(85,685,167)	(35,607,894)	141%	(149,871,159)	(69,524,838)	116%	(182,496,818)
Selling and marketing expenses	(4,068,528)	(955,700)	326%	(7,361,978)	(1,676,086)	339%	(6,434,909)
	(97,067,691)	(37,265,413)	160%	(150,262,176)	(72,255,016)	108%	(182,953,561)
Operating loss
Finance income	809,252	703,192	15%	1,155,015	1,472,721	-22%	2,003,489
Finance expenses	(107,712,073)	(36,625,514)	194%	(190,744,059)	(72,657,019)	163%	(159,009,019)
	(203,970,512)	(73,187,734)	179%	(339,851,220)	(143,439,313)	137%	(339,959,091)
Loss before tax
Income tax expenses	(194,221)	(168,767)	15%	(277,204)	(354,477)	-22%	(572,997)
	(204,164,733)	(73,356,501)	178%	(340,128,424)	(143,793,790)	137%	(340,532,088)
Net loss for the period / year
Other comprehensive income/ (loss)
Other comprehensive income (loss) not to be reclassified
to profit or loss in subsequent periods:
Revaluation gain on land & building	-	-		-	-		888,289,601
Deferred tax effect on revaluation of land and building	-	-		-	-		(124,360,544)
Actuarial loss on defined benefit plan	-	-		-	-		(1,114,341)
Income tax effect on actuarial loss	-	-		-	-		156,008
Other comprehensive income for the period / year, net of
tax	-	-		-	-		762,970,723
Total comprehensive loss for the period / year, net of tax	(204,164,733)	(73,356,501)		(340,128,424)	(143,793,790)		422,438,636
Basic/diluted loss per share	(0.36)	(0.13)		(0.61)	(0.26)		(0.61)

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WASKADUWA BEACH RESORT PLC

STATEMENT OF FINANCIAL POSITION

As at	30.09.2022	31.03.2022
			Unaudited	Audited
ASSETS	Rs.	Rs.
Non current assets
Property, plant and equipment	4,949,917,579	5,024,014,256
Intangible assets	131,649	312,641
			4,950,049,228	5,024,326,897
Current assets
Inventories			36,513,788	19,618,132
Trade and other receivables	25,336,001	33,054,559
Advance and prepayments	7,792,377	18,488,035
Tax receivables	496,539	752,996
Cash and cash equivalents	30,806,031	26,581,767
			100,944,736	98,495,489
Total assets			5,050,993,964	5,122,822,386
EQUITY AND LIABILITIES
Capital and reserves
Stated capital	2,901,702,750	2,901,702,750
Revaluation reserve	1,832,460,988	1,832,460,988
Accumulated losses	(2,528,454,124)	(2,188,325,700)
Total equity			2,205,709,614	2,545,838,038
Non-current liabilities
Interest bearing loans and borrowings	1,625,009,621	1,808,998,458
Other Payable - Related Parties	57,121,034	28,561,494
Deferred tax liability	297,290,724	297,290,724
Retirement benefit obligation	11,328,649	11,099,399
			1,990,750,029	2,145,950,075
Current liabilities
Trade and other payables	352,714,635	244,565,565
Interest bearing loans and borrowings	458,790,978	173,692,807
Contract liability	43,028,708	12,775,902
			854,534,321	431,034,273
Total equity and liabilities			5,050,993,964	5,122,822,386

These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

………..…………………

D. C. A. Sanadanayake Group Finance Manager

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board by,

………..…………………	………..…………………
E.P.A.Cooray	S. A. Ameresekere
Director	Director
15th November 2022
Colombo

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WASKADUWA BEACH RESORT PLC

STATEMENT OF CHANGES IN EQUITY

Stated Capital	Revaluation	Retained	Total
	Reserve	Earnings
Rs.	Rs.	Rs.	Rs.

Balance as at 01	April 2021	2,901,702,750	1,068,531,931	(1,846,835,279)	2,123,399,402
Loss for the period	-	-	(143,793,790)	(143,793,790)
Balance as at 30	September 2021	2,901,702,750	1,068,531,931	(1,990,629,069)	1,979,605,612

Balance as at 01	April 2022	2,901,702,750	1,832,460,988	(2,188,325,700)	2,545,838,038
Loss for the period	-	-	(340,128,424)	(340,128,424)
Balance as at 30	September 2022	2,901,702,750	1,832,460,988	(2,528,454,124)	2,205,709,614
Note

The above figures are not audited

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