20000203

FFLM earns

Rs 25.25m

net profit

ISLAMABAD: The First Fidelity Leasing Modaraba (FFLM) has proved to be a roaring success and is doing commendably well in the current fiscal year, an announcement by the Fidelity Investment Bank Limited said here on Wednesday.

FFLM chairman Javaid B Sheikh said that the Modaraba distributed a cash dividend of 11.5 percent in 1998 and declared a cash dividend of 10 percent for the last fiscal year ended June 30, 1999. He said that dividend warrants would be dispatched shortly to the FFLM certificate holders.

He also assured its stakeholders of consistency in policies to increase profitability of Modaraba in future. During the year ending June 30, 1999, the FFLM earned after tax profit of Rs 25.25m as compared to Rs 15m earned last year. The increase in earnings was a healthy 68 percent over the year. The leased assets increased from Rs 105.23m to Rs 133.5m registering a growth of 27 percent over the last year.

The major financial indicators showed prominent improvement over the last one year. The liquidity portion remained stable and strong with Rs 94m in working capital and the current ratio at 4.2

The financial expenses were only seven percent of revenue as against 38 percent in 1998. The net profit margins and financial leverage were maintained at 47 percent and 1.2 percent respectively, while the return on equity improved from 6.5 percent to 10.8 percent.ÑInternews