Hayleys Fabric records remarkable turnaround

Hayleys Fabric PLC, a subsidiary of Hayleys, has recorded a profit after tax of Rs. 261 million ($ 1.84 million) for the financial year ending 31 March, delivering a profit growth of 190%. FY 2014/15 marked the first year of recovery of the company recording a surplus after consecutive losses during the recent past. 

The ROE improved, from 4% in the last FY to 11% in the year under review as well as a significant EPS growth of 168%. The top line had a negative growth of 8% due to rationalisation of the product portfolio.

The changes made to the structure of the company including the top management, continued to show results through improved performance on quality and on-time delivery which in turn attracted new business. The company’s own brand, ‘Inno’ made a positive impact with customers being drawn to the novelty that was created by the fabric that was developed according to brand specific requirements. Cost reduction measures, productivity improvements, system and process improvements were some of the main contributory factors for the better performance. 

During the year, the company also made significant investments to up-grade production technology with the introduction of new machinery for the knitting, dyeing and finishing areas, upgrading of printing technology and further enhancing the effluent treatment facility.

The company has planned further investments in all areas of manufacturing during the ensuing year with a significant focus on lean management, and is looking forward to increasing the stakeholder value.

The Board of Directors of Hayleys Fabric PLC comprises Messrs A.M. Pandithage (Chairman), E. Rohan P. Goonetilleke (Managing Director/CEO), K.D.D. Perera, S.C. Ganegoda, H. Somashantha, R.N. Somaratne, Dr. N.S.J. Nawaratne and A.S. Jayatilleka.