SUNBIZ

VB Holdings Marks Best Year In 67 Years History

Whilst VB Holdings Limited, a South Pacific Stock Exchange listed firm, has been on a growth trajectory for the best part of 15 years since listing, 2015 marked the best
02 May 2016 12:00
VB Holdings Marks Best Year In 67 Years History
VB Holdings chief executive, Bob Niranjan (left) with former South Pacific Stock Exchange chief executive, Jinita Prasad

Whilst VB Holdings Limited, a South Pacific Stock Exchange listed firm, has been on a growth trajectory for the best part of 15 years since listing, 2015 marked the best year in its 67 years history.

This has been highlighted in the property and fleet management company’s annual report released by the SPSE.

The company recorded an increase in profit before tax of 2.94% which was $1.58 million for the year ended December 31, 2015 compared to $1.53 million in 2014.

With recent developments taking place in Fiji, the market expanded causing an increase in revenue by 34.82 per cent from $5.35 million in 2014 to $7.21 million in 2015.

Fleet management has become an essential segment of the business generating 87.24 per cent of total revenue in 2015, almost the same percentage as in 2014.

The total revenue for the fleet division for the year 2015 was $6.29 million compared to $4.07 million in 2014 recording a 54.55 per cent growth.

This was due to economic improvement in the country through government development initiatives.

The company expects to grow this year due to positive developments in roads and construction.

At the same time, expenditure also increased from $3.81 million to $5.63 million because of the heavy depreciation on the leased vehicles.

The Property Management division has been seen as a pillar for the company for over 50 years.

And in 2015, it recorded a growth of 11.78 per cent.

However, in recent years, this division has become a small part of the total revenue.

Property Management is expected to grow in 2016 with increased tenancy and asset value contributing to growth.

Nonetheless, the company said income continues to grow at new levels due to a higher tenancy occupation rate and increase in asset valuations.

 

Year and looking ahead

VB Holdings managing director, Bob Niranjan, said 2015 was a very challenging year for business.

This, he said was as the market and trading environment became increasingly competitive and legislatively challenging.

“Despite this, through hard work and determination, the management of VB Holdings Limited has been able to achieve another progressive year with positive financial results by continuing to seek out viable opportunities,” he said.

“This has also been possible through the efforts of the managements to achieve cost efficiency, the benefits of which are being passed on to our customers and yourselves as our valued shareholders.

“Another year of positive GDP growth in the economy due to infrastructure developments and tourism has provided your company with opportunities for growth.”

Mr Niranjan said they also look forward to 2016 based on the projected GDP growth for the year.

Feedback: rachnal@fijisun.com.fj

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