Hayleys Fibre to make substantial gains with sale of Ekala property

The Hayleys group’s premier manufacturer and exporter of coconut fibre-related products, Hayleys Fibre PLC, is said to make substantial gains from the disposal of its freehold property in Ekala, Ja-Ela to a group subsidiary. 

The June quarter (1Q17) interim financial statements filed to the Colombo Stock Exchange stated that with the disposal of the said property, the resulting gain for Hayleys Fibre would amount to Rs.215 million.

According to the statement, the company is in the process of disposing the Ekala property to Alumex PLC, a subsidiary of Hayleys PLC, engaged in aluminium profile manufacturing. 

The property will be disposed at a consideration of Rs.420 million, which exceeds one third of the total assets according to the latest audited accounts as at March 31, 2016 of Hayleys Fibre.

The move to dispose the property comes after the proposal was approved by the shareholders at an Extraordinary General Meeting (EGM) held on July 27, 2016.

Hayleys Fibre for 1Q17 recorded a profit of Rs.14.5 million, whilst in the corresponding period of the previous year it posted a loss of Rs.6.1 million.

The earnings per share improved from 76 cents in 1Q16 to Rs.1.81 in 1Q17.