The Hayleys group’s knitted fabric maker, Hayleys MGT Knitting Mills PLC, reported a net profit of Rs.90 million for FY15, ending a spell of consecutive losses during the past few years.

The earnings per share in FY15 was 47 cents against a loss per share of Rs.1.08 in FY14.

MGT has been reporting losses since the company reported a fraud relating to stocks in 2011.

“The positive results shown from the first quarter of 2014 gave confidence to institutional investors to make significant investments, shareholders to oversubscribe a rights issue and the banking sector to enhance credit facilities, which helped the company to significantly improve its cash flow position as well as restructure loans,” a statement by the company said.

For the final quarter of the year (4Q15) the company reported a net profit of Rs.36.4 million, against a net loss of Rs.88.6 million. The revenue for the three months fell 3 percent YoY but cost of sales fell double the rate to Rs.1.83 billion.

The company has also been able to contain distribution expenses and net finance costs considerably during the final three months of the year.
“The changes made in the top management continued to show results by attracting business to fill capacity and though improved performance on quality and on-time delivery.

Cost reduction measures, productivity improvements, system and process improvements were some of the main contributory factors for the better performance,” the statement said.

During the year, MGT has also made significant investments to upgrade production technology, information systems, enhanced effluent treatment facility and training and development of the staff.

“One of the key differentiations made during the year was to set up an innovation centre to develop new fabric which became a tremendous success to attract new business. These fabrics are now sold under a special brand named ‘Inno’.”

“The company has planned further investments during the ensuing year,” the statement noted.