The Height of Living

126 Pages·2017·1.74 MB·English

Te Height of Living
Millennium Housing Developers PLC
No. 28, Sir Lester James Peiris Mawatha, Colombo 05
Phone: [phone] Fax: [phone]
e-mail:
The Height of Living
A fundamental goal of the Company is to provide optimal
housing solutions for all. The “height of living” ...the epitome
of living, is an experience we provide from housing scheme
to luxury villas and apartments to condo penthouse. Abodes
that allow life to be lived to the fullest are what every
customer seeks. We’ve always listened to our customers,
who are integral stakeholders with us in shaping modern
and vibrant living spaces in the country.
CONTENTS
03 About this Report
04 About us
06 Highlights
08 Key Milestones
10 Chairman’s Letter
13 Deputy Chairman’s Review
Management Discussion and Analysis
18 Millennium Housing Developers PLC
20 Group Structure
21 Strategic Direction
22 Operating Environment
26 Stakeholders
27 Financial Capital
29 Investor Capital
31 Customer Capital
35 Employee Capital
37 Business Partner Capital
39 Environmental Capital
Stewardship
44 Board of Directors
47 Senior Management
48 Corporate Governance
62 Annual Report of the Board of Directors
on the Affairs of the Company
65 Statement on Internal Control
66 Statement on Directors’ Responsibility
67 Audit Committee Report
68 Nomination and Remuneration Committee Report
69 Related Party Transactions Review Committee Report
70 Risk Management
73 Deputy Chairman’s and Deputy Financial Controller’s
Statement of Responsibility
Financial Reports
75 Financial Calendar
76 Independent Auditor’s Report
78 Statement of Profit or Loss and Other Comprehensive Income
79 Statement of Financial Position
80 Statement of Changes of Equity
81 Statement of Cash Flows
82 Notes to the Financial Statements
Annexes
118 Ten Year Summary
120 Notice of Meeting
Enclosed Form of Proxy
Inner Cover Corporate Information
3 Millennium Housing Developers PLC Annual Report 2017/18
ABOUT THIS REPORT
Report structure Report boundary
This Annual Report attempts to capture the comprehensive The Report objectively covers the principal company
activity of the Organisation over the year 2017/18 and Millennium Housing Developers PLC and its fully-owned
presents in a cogent yet descriptive manner on what has been subsidiaries, Millennium Housing Limited (MHL), Millennium
accomplished and what progress is envisaged in the future. Villa Housing Development Limited (MVHDL), Millennium
The value generation process of the Company through careful Housing Construction Limited (MHCL), MC Urban Developers
orchestration of its strategic intent is presented to underline Limited (MCUDL), and MC Universal Limited (MCUL). In this
its financial performance in the context of an industry Report all companies are referred to as the Millennium Group.
experiencing rapid growth. The report in particular addresses All financial as well as non-financial information is presented
critical information about the expansion of the sectors the and discussed in the context of the Company and the Group,
Company is engaged in and the sound business direction that broadly covering all the activities that stems from the parent
it has chosen to further its potential. company and is executed via its subsidiaries.
The conceptual framework inherent in the following guidelines Compliance
has been relied upon where applicable in this Report:
The activities and operations of the Millennium Group
z Global Reporting Initiative (GRI) Sustainability Reporting inclusive of its subsidiaries are compiled for the period
Guidelines G4 (2013) [www.globalreporting.org] 1 April 2017 to 31 March 2018 in this Report. The Report
maintains the customary annual cycle for all financial
z The International Integrated Reporting Framework (2013)
information whilst the sustainability aspects are reported
[www.theiirc.org]
in consonance with the GRI G4 guidelines. The Group also
consistently abides by all applicable laws, rules, regulations,
directions and standards and pays particular attention to the
guidelines for voluntary disclosures.
Queries
We welcome your comments or inquiries on this Annual
Report 2017/18 which could be addressed to the Finance
Manager, Millennium Housing Developers PLC, No. 28,
Dickman’s Road, Colombo 05.
4 Millennium Housing Developers PLC Annual Report 2017/18
ABOUT US
Millennium Housing Developers PLC (MHDPLC) has taken urban and township
development to unprecedented heights. Since 1999, the Company has been revolutionising
mega township projects by identifying and catering to the progressive lifestyles of
prospective clients around the island. The tenacity of the Company has been rightly
acknowledged as it is one of the private property developing companies that is listed in the
Colombo Stock Exchange.
The Company has a diverse portfolio which includes homes, apartments, and villas in diverse
settings. Heartland, Olympus, Paradis, Orchid, and Tulip are a few of the branded housing
schemes that are secure, eco-friendly and modern. They are strategically positioned and
intelligently planned to cater to target markets. The latest addition to the portfolio is the
Heights Apartments in Nawala (The Heights – Colombo 05) and Rajagiriya (The Green
Heights – Rajagiriya). Among other forthcoming projects are the apartment complexes
which are to be located in Battaramulla and Koswatta.
The Company which is a member of the prestigious Nawaloka Holdings meets impeccable
standards in the use of raw material, construction and execution. Also, by maintaining
relationships with its clients long after the completion of a project, the Company continues
to transform lifestyles and cityscapes around Sri Lanka.
VISION
“To create a landmark in the industry by crafting innovative, unique, eco-friendly and
residential neighbourhood solutions in vertical and horizontal living”
MISSION
“To provide housing solutions to middle, upper middle and elite class customer segments
while preserving individuality and presenting a wider choice of standard housing to
luxury apartments together with all facilities in fexible terms by the leader in mega
township developments”
CORPORATE GOALS
Provide quality houses to our customers
Maximise customer satisfaction
Enhance shareholder value
Maintain dynamic satisfed, and motivated staff, who are directed towards our mission
Satisfy our obligation towards society at large
Contribute to the development of the country
About us 5 Millennium Housing Developers PLC Annual Report 2017/18
THE HEIGHTS, THE SECOND
APARTMENT PROJECT BY MHDPLC
STANDS TALL IN COLOMBO 5
6 Millennium Housing Developers PLC Annual Report 2017/18
HIGHLIGHTS
Financial Highlights 2017/18 2016/17 Change
%
Earning highlights and ratios
Revenue (Rs. ’000) 1,708,888 1,305,738 30.87
Gross profit (Rs. ’000) 517,105 405,122 27.64
Results from operating activities (Rs. ’000) 246,387 197,766 24.59
Profit before tax (Rs. ’000) 232,680 198,606 17.16
Profit after tax (Rs. ’000) 185,520 148,368 25.04
Dividends (Rs. ’000) 47,138 37,037 27.27
Gross profit margin (%) 30.26 31.03 (2.48)
Operating profit margin (%) 14.42 15.15 (4.82)
Net profit margin (%) 10.86 11.36 (4.4)
Earnings per share (Rs.) 1.38 1.10 25.45
Interest cover (number of times) 11.92 42.89 (72.21)
Financial position highlights and ratios
Equity attributable to owners (Rs. ’000) 1,041,766 904,921 15.12
Total assets (Rs. ’000) 3,023,772 2,628,445 15.04
Total borrowings (Rs. ’000) 1,001,177 809,176 23.72
Debt to equity (%) 96.00 89.42 7.35
Gearing (%) 48.42 47.21 2.56
Current asset ratio (number of times) 1.57 1.84 (14.67)
Quick asset ratio (number of times) 0.60 0.61 (1.64)
Net asset per share (Rs.) 7.74 6.72 15.18
Share in issue (Mn.) 134.68 134.68 –
Market/shareholders information
Market value per share as at 31 March (Rs.) 10.50 7.40 41.89
Market capitalisation as at 31 March (Rs. ’000) 1,414,154 996,642 41.89
Price earnings ratio (number of times) 7.61 6.72 13.24
Dividend per share (Rs.) 0.35 0.275 27.27
Dividend yield ratio (%) 3.33 3.72 (10.30)
Dividend paid out (%) 25.4 24.96 1.76
Dividend cover (number of times) 3.94 4.01 (1.74)
Earnings per share (Rs.) Net assets per share (Rs.) Shareholders’ funds (Rs. Mn.) Proft after tax (Rs. Mn.)
1.38 185
1,042
1.06
0.85 1.10 5.18 5.47 5.85 6.72 7.74
624 736 787 905 127 114 148
0.66 88
13/14 14/15 15/16 16/17 17/18 13/14 14/15 15/16 16/17 17/18 13/14 14/15 15/16 16/17 17/18 13/14 14/15 15/16 16/17 17/18
25.45% 15.18% 15.02% 25.04%
2017/18 – Rs. 1.38 2017/18 – Rs. 7.74 2017/18 – Rs. 1,041 Mn. 2017/18 – Rs. 185 Mn.
2016/17 – Rs. 1.10 2016/17 – Rs. 6.72 2016/17 – Rs. 905 Mn. 2016/17 – Rs. 148 Mn.
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Highlights 7 Millennium Housing Developers PLC Annual Report 2017/18
THE EPITOME OF CLASS,
THE MORAGAHAHENA HORAGALA
ESTATE HOUSING PROJECT
8 Millennium Housing Developers PLC Annual Report 2017/18
KEY MILESTONES
2008
Exposure to Ceylinco Group crisis.
2003 MHDL’s margins were affected
Incorporated three subsidiaries
- Millennium Housing Ltd. (418 Units)
2010
- Ceylinco Housing Corporation Ltd. Change in parent’s ownership
- Ceylinco Construction Company Ltd. (Nation Lanka Finance PLC)
1998 2004 2011
Incorporated as Ceylinco Incorporation of Millennium Villa Turnaround of MHDL with new
Developers Ltd. Housing Development Ltd. (MVHDL) Directorship, followed by the
restructuring
Launched Millennium Villa Housing
range (192 Units)
1999 2012
Launched Island’s frst Mega Entry into urban and semi-urban
Township Project – Athurugiriya development projects
(1,600 Units)
Commenced second phase
of Athurugiriya project
(270 more Units)