4 October 2021 08:26 am Views - 277
The revival and revitalisation of People Merchant Finance PLC (PMF), which began in May 2019, has shown remarkable results to date.
To further their success story and remain vigilant of meeting and when possible exceeding regulatory compliances, the company is declaring its second rights issue within a span of less than a year. Operating in a highly regulated industry, PMF’s main focus is to meet the core capital requirements of Rs.2.5 billion due in December 2021, as stipulated by the Monetary Board of the Central Bank of Sri Lanka (CBSL) under the Finance Business Act Direction No. 02 of 2017 issued on February 23, 2017.
To meet this requirement, PMF is embarking on another rights issue worth Rs.509,895,750, from the issue of 78,445,500 shares, at Rs.6.50 per share, open to all ordinary shareholders. The rights issue has been approved by the regulatory authority and is currently awaiting approval from the Colombo Stock Exchange (CSE).
Funds from this rights issue will be utilised to mobilise and execute its five-year transformational strategic plan. Specifically, funds will be diverted towards technological advancements, strengthening the product portfolio, expanding geographical presence, further strengthening its core management team and enhancing overall customer experience.
The success seen in a short span of time remains the underlying motivator for the company to remain true to its transformational journey.
“Success has been achieved with the courage our convictions,” said PMF Chairman Chandula Abeywickrema.
He strongly believes that the commitment of the shareholders, the board of directors and the newly-strengthened corporate management team and all PMF employees will ensure the company’s future growth and success.
“PMF is positioning itself to make the most of operating in this pandemic-inundated market but we are also slowly and steadily repositing ourselves to capitalise on emerging opportunities, especially those which will arise in the post pandemic era,” he stated.
“We [PMF] have reaped the initial rewards already. There is no doubt that if we continue to deliver as promised, the company will achieve its full potential and continue to appropriately reward all stakeholders in a sustainable way in the future,” Abeywickrema concluded.
The underlying reasons for PMF’s transformational journey was to bring to the forefront the true potential of the company and become a strong market contender in Sri Lanka’s financial industry.
Accordingly, the company sought changes to internal processes and operations, enhanced its market presence by enriching customer services and offering customers’ financial products to meet their requirements when they need it and focused on meeting regulatory compliances. PMF also actively pursued measures to control costs to maximise value to customers, while monitoring external market development to perceptively adapt to new trends and counteract economic changes.
These efforts resulted in the company earning a profit before income tax and tax on financial services of Rs.100 million for the financial year ended 2020/21, after a span of eight years. The successful conclusion of PMF’s right issue in March 2021 proved this fact and is also credited to the realisation of the company’s turnaround journey.