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| Sunday, 15 May 2005 |
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| News Business Features Editorial
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Singer revenue up 5.5% to Rs 711m despite restructuring The year 2004 saw the completion of the restructuring process undertaken by Singer Industries (Ceylon) Ltd. The TV assembly department which operationally lost one million rupees per mensem was finally closed in August 2004, yet another victim of the globalisation policy, said Chairman, Singer Hemaka Amarasuriya. The relevant tariffs were increased in the last budget but were implemented too late to save the last of the TV assembly plants in business. Sixty-four employees accepted a generous voluntary retirement package while some others opted to stay with the company accepting transfers to other departments. Settlement was reached amicably and we wish to place on record our sincere appreciation to the Ceylon Mercantile Union and our employees for the sensible approach to a problem beyond management control, he said. Land was revalued after several years and a revaluation (book) surplus of Rs. 132 million strengthened the balance sheet. To better utilise the remaining space approximately 50.42 perches of land was leased to an Associate Company to set up a furniture showroom. The company office has been now shifted to the space left vacant by the closure of the TV department. Despite the impact of the restructuring process revenue increased by 5.5 per cent to Rs 711 million.The TV department assembled at a loss for eight months of the year producing a net turnover of Rs. 152 million resulting in an operating loss of Rs. 12 million. This was due to the outstanding performance from the remaining activities-manufacturing of sewing machines and antennaes and trading of security systems not threatened yet by imports. The company has 220 employees on the payroll as against 284 at the start of the year. Though the voluntary retirement scheme cost the company Rs. 55.4 million the company has returned to making operational profits since the closure of the TV assembly unit. Finance costs decreased further to Rs. 3.3 million as inventory carrying cost reduced and the management was able to negotiate more favourable rates of interest from lending institutions. The company has strengthened internal controls and has increased factory discipline after restructuring and the company is confident of returning to profitability in 2005, Amarasuriya said . S.G. |
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