Security Leasing Corporation Limited reported a challenging financial year ended June 30, 2026, with the company’s annual loss widening compared with the previous year.
According to the company’s financial statements, revenue from contracts with customers declined to Rs14.67 million in FY2026 from Rs16.09 million a year earlier. The revenue mainly came from operating leases, which contributed Rs14.63 million, while recoveries and settlement gains against finance leases amounted to Rs40,490.
Losses Increase During FY2026
The decline in revenue came alongside higher administrative and selling expenses. These expenses increased to Rs20.99 million, compared with Rs19.75 million in FY2025. As a result, the company recorded an operating loss of Rs6.32 million, compared with an operating loss of Rs3.66 million in the previous year.
Security Leasing Corporation also reported Rs729,375 in other operating income, while finance costs stood at Rs141,649. The company’s loss before income tax increased to Rs5.73 million, compared with Rs3.12 million in FY2025.
A current tax expense of Rs3.39 million further increased the overall impact on the bottom line. The company ultimately reported a net loss of Rs9.12 million, compared with a loss of Rs3.12 million in FY2025. Loss per share consequently rose to Rs0.25 from Rs0.09.
Asset Base Remains Substantial
Despite the annual loss, Security Leasing Corporation maintained total assets of approximately Rs524.56 million as of June 30, 2026, down from Rs537.06 million a year earlier.
The company’s non-current assets stood at Rs380.56 million, including investment property of around Rs334.32 million and property and equipment of approximately Rs45.92 million. Current assets amounted to nearly Rs143.99 million.
The balance sheet also showed cash and bank balances of Rs161,739, alongside short-term investments of Rs50 million and a short-term loan of Rs500,000.
Liabilities and Equity
Total liabilities stood at Rs490.91 million at the end of FY2026, compared with Rs494.29 million in FY2025. Current liabilities accounted for the entire reported liabilities, with accrued and other liabilities amounting to Rs37.84 million and current maturity of non-current liabilities at approximately Rs452.43 million.
The company’s net assets declined to Rs33.65 million from Rs42.77 million. Shareholders’ equity comprised paid-up share capital of Rs438.03 million, reserves of negative Rs425.38 million and a revaluation surplus of approximately Rs21 million.
Cash Flow Remains Under Pressure
The cash-flow statement shows that Security Leasing Corporation generated Rs1.67 million in cash from operations after working-capital changes. However, after financial charges and taxes, net cash used in operating activities amounted to Rs134,007 during FY2026.
The company ended the financial year with cash and cash equivalents of only Rs161,739, compared with Rs295,746 at the end of FY2025.
A Difficult Financial Year
Overall, Security Leasing Corporation’s FY2026 results reflect pressure from lower operating revenue and increased administrative and selling expenses. The widening annual loss also reduced shareholders’ net assets during the year.
The financial statements indicate that the company will need to manage its cost structure and operating performance carefully as it moves into the new financial year, while its substantial investment-property and other non-current asset base remains an important component of its financial position.
