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| Sunday, 20 June 2004 |
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| News Business Features Editorial
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Hayleys versatility pays off Hayleys Ltd, the blue chip company, diversified and dynamic, for the year ended April 2004, recorded a turnover of Rs 15,503 million, from Rs 12,510 million for 2002/03. Significant improvements in the rubber, plantations, inland marketing, knitted fabric and tourism sectors overcame the setbacks in the environment and coir sectors. Thus, Hayleys annual report pictures the group's versatility and benefits of diversification. TURNOVER Increased turnovers were reflected in all sectors, with the improvement in the rubber sector being the highest - 47 percent. The consolidation of ICO Guanti SpA's full year's performance for the first time since its acquisition in the previous year helped this performance. The environment sector's turnover was boosted similarly by its acquisition of Haymark last year. Turnover, including that of its associates, increased 32 percent during the year. The group's exports from Sri Lanka, on FOB basis increased to Rs 11.4 billion from Rs 8.3 billion in the previous year, which accounts for 2.3 percent of the nation's total export earnings. The group's exports are mainly value added products, using indigenous raw materials. Inland marketing accounted for 28 percent of the group's consolidated turnover. Other major contributors were Rubber - 22 percent, coir 15 percent environment 15 percent plantations 9 percent and transport 7 percent. Group earnings before interest, tax, depreciation and amortisation for the year ended March were Rs 2 billion - an increase of 3 percent from the previous year. A marginal reduction of Rs 9 million from the previous year, in the profits operating reflects the extent to which the environment sector's performance has affected the group's operating profits. The gains made by rubber (26) percent plantations (56) percent, inland marketing (16) percent and transportation (12) percent have been negated by the decline in the performance of the environment sector (- 62 percent). The group benefited substantially from its investments in associates as their contribution to group profits increased from Rs 123 million in the previous year to Rs 258 million in the year under review. The knitted fabric sector's share of this contribution was 38 percent while tourism, inland marketing and plantations sectors contributed 21, 17 and 15 percent, respectively. The group continued to invest in its core business and a total of Rs 1,795 million invested further in the year, being a substantial increase over the Rs 829 million invested in the previous year. DIVIDEND During the year 35 percent dividends was paid to shareholders amounting to Rs 175 million. Hayley's 53rd AGM will be held on June 25. Chairman Sunil Mendis, who retires from office after 42 years with the firm and ten years as chairman, has declined a farewell reception. |
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| Editorial | Security Produced by Lake House |
