RICH.N0000 (Richard Pieris and Company PLC)

Exodus continues as Richard Pieris’ longstanding Director Paul Ratnayeke quits


Richard Pieris and Company Plc’s longstanding Director and senior corporate lawyer Paul Ratnayeke resigned last week completing what corporate analysts described as a “mass exodus” of directors from the Board since July last year.

Previously longstanding Independent Non-Executive Director Prof. Lakshman R. Watawala, Independent Non-Executive Directors Prof. Kapila Goonasekera and Dr. Anura Ekanayake resigned.

Dr. Ekanayake, Prof. Watawala and Prof. Goonasekera served in the Related Party Transactions Review Committee as well as the Audit Committee. The trio served in the Nominations Committee and Dr. Ekanayake and Prof. Watawala served in the Remuneration Committee.

In FY 2015/16, corporate analysts were surprised by RPC subsidiary Kegalle Plantations declaring an unusually high Rs. 45 per share dividend amounting to Rs. 1.125 billion despite a dip in profits.





Following the exits, the remaining Directors on the RPC Board are Dr. Sena Yaddehige (Chairman), his son Shaminda Yaddehige (Executive Director and Chief Operating Officer), Sunil Liyanage and V. Perera while H.J. De Costa is the only remaining Independent Non-Executive Director with Prasanna Fernando and J.C. Korale being Independent Directors.

For the nine months ended 31 December 2016, RPC Group turnover grew by 13% to Rs. 36.3 billion and operating profit by 22% to Rs. 3.8 billion. Post-tax profit was up 34% to Rs. 2.5 billion and net profit attributable to equity holders of the parent rose by 27% to Rs. 2.28 billion.

Last week Fitch Ratings affirmed Richard Pieris & Company Plc’s (RICH) National Long-Term rating at ‘A(lka)’ with a Stable Outlook. Fitch has also affirmed the national ratings on RICH’s outstanding senior unsecured debentures at ‘A(lka)’. RICH’s rating reflects the group’s strong diversification and market leadership in most end-markets and its established operations, Fitch added.

Thanks Backs.  
Rats jumping off ship is considered a bad sign.
Recently RICH gave out a reasonably good dividend.
Is it a case of that we do not see something yet, where insiders have access and should we be alarmed ?

Don't know the inside story, but Yaddehige apears to be a bit cowboyish.

SEC had also called him for an investigation into a share transaction, last known he asked to be excused on health issues from abroad.

කව්බෝයි යක්කුන්ට ඉතින් දෙහි කැපුවත් වැඩක් වෙන්නේ නැහැ නේ !

Deviating from topic, but I couldn't resist it.

Sri Lanka short of cowboys
Feb 26, 2017

ECONOMYNEXT - Sri Lanka's state-run National Livestock Development Board (NLDB), is facing a severe shortage of farmworkers, Chairman H W Cyril said amid broader labour shortfalls in other sectors of the economy.

"We have 500 vacancies for farm workers in our farms," Cyril told a forum in Colombo, organized by Fonterra, a New Zealand based dairy firm.

"It is very difficult to find a person to work in farms. One thing is the salary is low."

Sri Lanka has followed a policy of depreciating the currency after printing money to push up inflation which has destroyed real salaries of people, making people poor despite having a job.

As a result even people with jobs try to go to the Middle East to earn a living wage, critics say.

Unlike in countries like Vietnam which also had a central bank similar of worse than Sri Lanka until recently, there is no widespread practice of denominating salaries in US dollars to escape currency depreciation.

Currency depreciation also destroys real capital, making it difficult to find funds to make investments that boost labour productivity, making it possible to pay higher real wages.

In addition to cattle, NLDB also farms chicken, goats and pigs.

Perceptions and social status is a key factor in the lack of farmworkers, which analysts say could be compounded by the low real wages.

"They do not want to get their hands dirty with cow dung or mud - especially young people," Cyril said.

"In Sri Lanka you have a low social status if you say you look after cattle. But in the West, cowboys have a high social status, but a cowherd here has no such label."

Mechanizing farms has helped.

Cyril said there was no problem with finding workers to operate tractors, combined harvesters or milking machines.

Sri Lanka's unemployment has fallen during the last decade partly due to stronger domestic activity especially in services generating shortages in low paid jobs across sector.

Low wage export manufacturing firms are also facing labour shortages as are rice farms in the East of the country and the construction sector.

Foreign guest workers including from India and Nepal are coming to fill the void, officially and unofficially. (Colombo/Feb25/2017)

Like your language twisting with two above posts..

SL lacks both cow boys and Independent Directors who knows what is expected from them... or cow boys don't like the job and do the directors...


I often understand like above..

When religion says earth is flat and when science says earth is round I find the paradox...

But I understand how the religious scientist think.. " Some parts of the earth is flat and some parts are round "

Anyone here got the RICH (VPEL as well) dividend cheque already ?

Today I got my VPEL cheque

කිත්සිරි ද සිල්වා wrote:Anyone here got the RICH (VPEL as well) dividend cheque already ?

rcvd letter dated 02/03/2017 for vpel dividend but still(06/03/17) it has not gone to the bank.not rcvd RICH yet.

Librarians reminder...

Can we confine Rich to Rich only.... ( No VPEL please... for that we have another thread )

( I too received the notices of both and yet to get SMS from my Current Account )

Thanks guys !
(Now most of us are RICH thanks to RICH).

I disposed RICH long ago, hence missed the fat dividend. Thanks guys for interesting comments.?Can an expert comment on the current saga.

Am no expert but despite the reported mass exodus, some people are still keen holding RICH (show a bit of appreciation right now).

Ethical Trader wrote:Can an expert comment on the current saga.

Rana wrote:Today I got my  VPEL cheque  

කිත්සිරි ද සිල්වා wrote:Anyone here got the RICH (VPEL as well) dividend cheque already ?

I got both (RICH and VPEL)couple of days ago.

or  else  we can use below  link to ask  about  dividend  cheques and etc(just a suggestion)
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yellow knife wrote:Librarians reminder...

Can we confine Rich to Rich only.... ( No VPEL please... for that we have another thread )

( I too received the notices of both and yet to get SMS from my Current Account )

good point

Yes Kith. There appears to be improvements but what is behind this sudden exodus?

As per 2015/16 accounts-
EPS Rs: 1.05
NAV Rs: 5.34
2016/17 accounts will be out after the current quarter ending 31st March

As per 31/12/16 interim report-
9 months EPS 1.12
3 months EPS 0.41

Current market price around Rs: 8.00

Interim dividend declared 0.60 (7.2% yield @ current prices!)

Their cash flow may easily allow such dividend payment easily.

Differences of opinions among directors may have prompted the exodus but what is it?

කිත්සිරි ද සිල්වා wrote:Am no expert but despite the rep
orted mass exodus, some people are still keen holding RICH (show a bit of appreciation right now).

Ethical Trader wrote:Can an expert comment on the current saga.

There is a mention above of the large Kgll dividend. All leaving seem to have been on audit committee and professionals with reputations to protect.

Yes, it looks serious when watchdogs leave.

Backstage wrote:There is a mention above of the large Kgll dividend. All leaving seem to have been on audit committee and professionals with reputations to protect.

More of an ethical issue and I believe government watchdogs have more teeth to deal with any suspicious issues.

Ethical Trader wrote:Yes, it looks serious when watchdogs leave.

Backstage wrote:There is a mention above of the large Kgll dividend. All leaving seem to have been on audit committee and professionals with reputations to protect.

As Back says fat Kgl dividend may be one reason.

කිත්සිරි ද සිල්වා wrote:More of an ethical issue and I believe government watchdogs have more teeth to deal with any suspicious issues.

Ethical Trader wrote:Yes, it looks serious when watchdogs leave.

Backstage wrote:There is a mention above of the large Kgll dividend. All leaving seem to have been on audit committee and professionals with reputations to protect.

"Rats jumping ship" is a good omen, it seems now.

Rich often become Filthy Rich...

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Apart from the going ons at the top, the companies all appear to be well run and profitable, right ?