Press Review
| June 08, 2005 | |
| IBL Group registers Rs 525 million profit before tax | |
| For the year ended 31 December 2004, IBL Group’s profit before tax stood at Rs 525 million compared to Rs 290 million in 2003. This includes the profit on disposal for their shareholding in Iframac (Rs 164 million) and the withdrawal from Société du Port (Rs 89 million). In the Group’s Annual Report 2004, we note that profits attributable to shareholders grew from Rs 225 million to Rs 460 million for the year under review and the earnings per share increased from Rs 3.15 to Rs 6.45. M. Thierry Lagesse, the Chairman of the Group, says that during the year 2004, significant events have occurred which had and will have a profound bearing on the Group’s profile.
In November 2004, IBL withdrew from its 32% stake in Société du Port (which consisted of Associated Container Services Ltd, Container Enterprises Ltd and Freeport Operations (Mauritius) Ltd) in return for 31% stake in Froid des Mascareignes Ltd (FDM) and the rights to the leases together with buildings belonging to Associated Container Services Ltd at Marine Road, Port-Louis. The Company has since acquired further shares in FDM such that their shareholding is now around 70%. A third pillar of future developments for the Group is the Food & Distribution Business Unit through the Winner’s supermarkets. Two openings are planned yearly to reach a total of twenty by the year 2008. Overall, it was a very positive year with a growth in turnover of nearly 12% on 2003, mainly due to the Food & Distribution Business Unit (Winner’s). Most business units showed improved contributions for 2004. The turnover of the agriculture & construction unit shows a growth of 19.2% in 2004 compared to 2003, in respect of continuing operations, and an improved gross profit which reflects the Group’s expertise of specialised services and the recognition by their clients of their value added.
Contracting unit realises a contribution over Rs 27 millionThe contribution for the contracting unit was just over Rs 27 million. This result was achieved mainly because of the involvement in two of the three hotels that were under construction in the year 2004 in Bel Ombre. Some other noteworthy contracts involved are Le Telfair Hotel, Le Pariaka Hotel, St Martin Sewage Treatment Plant, Reethi Rah Resort (Maldives), Banque des Mascareignes, Bulk Sugar Terminal and La Marie Water Treatment Plant.Domestic appliances: turnover of Rs 413 millionA major renovation of the main showroom at La Chaussée Building took place in 2003. The Rose-Hill showroom was completely demolished and rebuilt. This change, coupled with a new marketing strategy, brought an important boost to the turnover of the domestic appliances unit, resulting in an increase in sales from Rs 378 million to Rs 413 million, that is 9.0% over 2003. IBL has also invested in a brand new digital photo laboratory in Port-Louis which performed exceptionally well despite the steep reduction of sales in films experienced internationally, which has also hit the local market. Sales to corporate and traditional dealers decreased substantially in 2004. The trend, which started a few years back, is accelerating and reached only 53% of the turnover made to that sector in 2004 as compared to 71% in 2003.Other business units of the Group have performed equally well, with total turnovers for financial services, earthmoving equipment & power systems unit, food & distribution unit, and pharmaceuticals amounting to more than Rs 3 billion. Contribution to the Group’s profit has also been significant from these business units, as is the case with the food & distribution segment, which recorded a figure of Rs 53.5 million.
Source: Business 8 June 2005 |
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