Positive turnaround at Hayleys MGT Knitting Mills

After several years of losses, Hayleys MGT Knitting Mills PLC has recorded a Profit After Tax (PAT) of $ 164,225 in Q2 2013/14 compared to a loss of $ 414,324 (after IFRS adjustment) in the same period last year.

 

“This is a significant improvement in performance, enabling a positive Earnings Per Share (EPS) in the quarter ended 30 September 2013,” Hayleys MGT Knitting Mills said in a statement.

 

The company was able to generate a cash profit of $ 803,124 for the 2nd quarter whilst the cumulative cash profit, year to date, stands at $ 797,044.

 

Changes in the top management, clear direction and focus on key results through restructuring, process changes, improvement in quality levels, cost reduction initiatives and productivity improvements were some of the key initiatives supporting the turnaround.

 

These changes also contributed towards the build-up of customer confidence during the first quarter of the year, which translated into attracting new business during the 2nd quarter. This trend is expected to continue through the rest of the financial year, leading to positive results. The increase in business volumes coupled with the changes mentioned in the preceding paragraph helped to mitigate adverse variances in cost increase of electricity, raw materials and wages during the period. The company was able to maintain its sales to cost of sales ratio almost in line with the corresponding period last year. Hayleys MGT Knitting Mills, located on a 33-acre site at Narthupana Estate in Horana is one of the most diversified fabric mills with a capacity of 1000 tons/month to knit, dye and finish all types of knitted fabrics such as cottons, cotton blends, polyester, polyester blends, viscose and micro modals. It also has the capability of in-house printing with 16-colour printing machines, fabric brushing machines and sueding machines.

 

The Board of Directors of Hayleys MGT Knitting Mills PLC comprises of A.M. Pandithage (Chairman), E.R.P. Goonetilleke (Managing Director), R. Seevaratnam, K.D.D. Perera, S.C. Ganegoda, H. Somashantha, R.N. Somaratne, R.P. Pathirana and J.A.S. Piyawardena.