Investing in quality and capacity enhancements:

Hayleys MGT Knitting Mills reports strong 1Q profits

MGT Knitting Mills, the Hayleys Group’s world class associate specialising in knitted fabrics, has posted strong profit after tax growth in the first quarter of 2007-08, in a noteworthy performance driven by substantial capacity enhancements and new product development.

A major supplier to top international brands such as Marks & Spencer, Nike, Reebok, Decathlon and Adidas, Hayleys MGT’s profit before tax topped Rs. 100 million in the three months ending June 30, 2007, growing 66 per cent over the first quarter of last year.

Profit after tax and Economic Service Charge grew 70 per cent to Rs. 97 million in the period under review, on a turnover of Rs. 1,462.5 million, up 36 per cent.

The company’s Earnings per Share stood at Rs. 1.91 as at June 30, 2007, 66 per cent higher than a year previously.

Hayleys PLC Chairman N.G. Wickremeratne said: “The progress made by Hayleys MGT Knitting Mills in improving bottom-line performance while continuously investing in quality and capacity enhancements is most encouraging to the Group.

The company’s first quarter performance is particularly noteworthy in the context of the tough conditions affecting some sectors of the parent company,” he said.