Warranted Profits

Aug 13, 2010 (LBO) – Sri Lanka’s Environmental Resources Investments (ERI) made a profit of 44 million rupees in the June quarter from higher sales from Ceylon Leather Products Limited (CLPL) and a brokering firm acquisition, its interim results showed. The move followed unusual price swings and heavy trading in certain stocks including ERI warrants.

ERI was a standalone company in 2009, but later turned into a group after acquiring Ceylon Leather Products, a struggling shoe manufacturer, and a stock brokering firm.

During the same period last year ERI group made a loss of 2.7 million rupees.

In the June 2010 quarter the group had sales of 272 million rupees and a sales cost of 140 million rupees, which was not there in the same period last year.

The group made gross profit of 132 million rupees, its interim results showed.

In the June quarter ERI’s administration costs rose to 53 million rupees. During the same period last year it was 3.8 million rupees as the group at that time had not acquired CLPL and the brokering unit.

The group’s gross assets rose 1,911 percent to 7.68 billion rupees, mainly from cash generated from a rights issue with warrants attached.

On August 03, ERI group securities were subjecte