Miscellaneous: PAKISTAN SERVICES LIMITED - Half Year Ended December 31, 2003

Pakistan Services Ltd (PSL) was incorporated in 1958 in Karachi under the Companies Act, 1913 (now Companies Ordinance, 1984) as a public limited company and is quoted on Karachi Stock Exchange.
The company is principally engaged in hotel business and owns and operates the chain of Pearl Continental Hotels in Pakistan.
The financial performance of PSL during the half year ended December 31, 2003, (HY 2003-04) witnessed a marked improvement as evident from the fact that it earned net profit after taxation at Rs 69.31 million compared to 7.44 million posted in the six months of last year.
Total revenue for the first half of 2003-04 amounted to Rs 1,210.81 million which is 32.8% higher than the revenue that was generated in the corresponding period last year.
Better sales mix contributed towards the improved gross margin of 34.62% as compared to 27.73% in the same period last year.
The directors are optimistic about further growth in the last quarter of the financial year 2003-04. In order to restructure the Balance Sheet of the company be re-profiling its existing debt and finance the company's permanent working capital requirement the company launched the instrument of redeemable capital in the form of secured, rated and listed "Term Finance Certificates".
The issue of Rs 700 million comprised Pre-IPO of Rs 500 million and the IPO of Rs 200 million. The issue has been heavily over subscribed by about seven times. The company has emerged with stronger Balance Sheet at December 31, 2003.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                              December 31      June 30

                                     2003         2003

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Share Capital-Paid-up:             295.67       295.67

Reserves & Profit:                 573.59       504.27

Shareholders Equity:               869.26       799.95

Surplus on Revaluation

 of Fixed Assets:                3,066.89     3,066.89

L.T Debts:                       1,040.91       637.14

Deferred Liabilities

 & L.T Deposits:                   301.12       265.68

Current Liabilities:               932.48       831.63

Fixed Assets-Tangible:           4,814.59     4,840.77

L.T Investments:                    15.00        15.00

L.T Deposits:                       14.91        19.60

Current Assets:                  1,366.16       725.91

Total Assets:                    6,210.66     5,601.28

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Profit & Loss A/c For the

Half Year Ended         December 31, 2003         2002

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Sales & Services:                1,210.81       911.51

Gross Profit:                      419.12       252.80

Other Income:                       36.47         7.01

Financial (Charges):              (119.73)     (65.69)

Profit Before Taxation:            106.63        12.03

Profit After Taxation:              69.31         7.44

Earnings Per Share (Rs):             2.34         0.25

Share Price (Rs) on 24.05.2004:    124.15            -

Price/Earning Ratio:                53.00            -

Book Value Per Share (Rs):          29.40        27.05

Debt/Equity Ratio:                  21:79        14:86

Current Ratio:                       1.46         0.87

Gross Profit Margin (%):            34.62        27.73

Net Profit Margin (%):               5.72         0.82

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