Hayleys MGT post-tax profit up 19% to $ 2.6 m in six months

Continued strong operational and sales performances in the second quarter of 2006-07 have enabled Hayleys MGT Knitting Mills, Sri Lanka's largest polyester and polar fleece fabric manufacturer, to post solid top and bottom line results for the first half of the year.

The Hayleys PLC associate has reported profit after tax and Economic Service Charge (ESC) of US $ 2.6 million for the six months ending September 30, a growth of 19 percent over the corresponding period of last year. Post tax profit for the second quarter, at US$ 1.7 million was nearly double the first quarter figure of US$ 872,000.

Turnover grew 13 percent to US$ 28.5 million in the period under review, and profit before tax was up 18 percent to US$ 2.7 million, according to the company's income statement released to the Colombo Stock Exchange this week.

Hayleys MGT's Earnings per Share stood at Rs. 5.76 (US$ .05) as at September 30, 25 percent higher than a year previously, and more than 200 percent higher than the Rs. 1.91 (US$ .02) reported at the end of the first quarter of the current year.

The figures for the period reviewed were based on the amalgamated results achieved by Hayleys MGT Knitting Mills and its former subsidiary Hayleys ADC Textiles Ltd. Commenting on these results, Hayleys MGT Knitting Mills' Joint Managing Director Bandula Weerasinghe said: "Our financial performance in the current year reflects the anticipated impacts of quality and capacity enhancements at our plant and is also an indicator of the strong growth potential in the business. We are quite pleased with these results."

A major supplier to top international brands such as Marks & Spencer, Nike, Reebok, Decathlon and Adidas, Hayleys MGT achieved the significant milestone of becoming the first fabric manufacturer in Sri Lanka to be certified as compliant with the world's most stringent Social Accountability Standard, SA8000 in the period under review.

Earlier this week, the company received the National Productivity Award in the Large Scale Manufacturing category for its achievements in improving labour and capital productivity.

Hayleys MGT has increased its capacity to produce Lycra-based value-added fabric by 200 percent over the previous year to meet higher demand from clients such as Marks & Spencer.

The production and export of wool fabric commenced in the first quarter of the current year and Hayleys MGT has also increased capacity for Polyester and Viscose fabrics as well as Polar/Microfleece to supply sportswear retailers Nike, Reebok and Decathlon.

Hayleys MGT has a production capacity of four million metres of fabric per month at its state-of-the art plant at Narthupana Estate in the Kalutara District.

The company is a key supplier of high quality knitted fabric to the Sri Lankan apparel industry and to direct export markets. An ISO 9001 and ISO 14001 certified company, Hayleys MGT has received accreditations from world renowned retailers such as Marks & Spencer, Next, Tesco, British Home Stores (BHS), Mothercare, Sainsbury, Woolworth and Adams.

The company has won numerous awards and commendations for its commitment to Total Quality, such as the Sri Lankan National Quality Award 2003, the National Industrial Safety Award 2004 in the large Manufacturing Industry category and the Asia Pacific Quality award 2005.