Harel Mallac group revenue up 5.7% to hit Rs 3.8 million; losses narrow
The Mauritian conglomerate incurred a loss after tax from continuing operations of Rs 25.89 million in 2013 against Rs 34.39 million in 2012. (Image: Company)
Mauritian conglomerate Harel Mallac saw a 5.7% rise in group revenues to hit Rs 3.8 million for the year ended 31 December 2013 over the corresponding period in 2012.
However, the persisting difficult economic environment created further challenging trading conditions for the group during the year, leading to a loss after tax from continuing operations of Rs 25.89 million in 2013 against Rs 34.39 million in 2012.
The group realized an exceptional gain of Rs 43.9 million as a result of the reclassification of fair value gain under the item “available for sale financial assets”, following increased investment in Maritim hotel which is now an associate company.
Also, the share of profit of associates increased by 18% to Rs22.9 million compared to 2012 when it stood at Rs 19.44 million.
Despite the challenging environment, most of Harel Mallac’s businesses, locally and internationally, showed growth in traditional markets to such an extent that profit before finance costs increased by 35% to reach Rs 50.8 million compared to the 2012 level of Rs 37.6 million.
However, expenses showed an upward trend with finance costs having increased to Rs 81 million in 2013 against Rs 45 million in 2012.
Overall, loss for the year from both continuing and discontinued operations amounted to Rs 42.7 million in 2013 compared to Rs 96.3 million in 2012.
The group’s performance was further impacted negatively by exceptional losses during the year which consist of impairment of goodwill of Rs12.4 million, receivables of Rs 27.7 million and assets of Rs10.9 million.
However, management noted that ‘prospects for the year 2014 are encouraging, for both local and regional activities.’
The Board of Directors has reviewed the structure of the group and identified areas requiring focus with the assistance of an overseas consulting firm.
Furthermore, following receipt of the final report in February 2014, the Board has started the implementation of those recommendations which were adopted by it, including merging certain activities, restructuring others, focusing on operational efficiency and further investigating opportunities in Africa.
In its financial statement, the group stated its firm intent to seize investment opportunities present in the market and that it would continue to invest in new projects.
The Harel Mallac Group, with origins dating back to 1830, was incorporated in 1956 and listed on the Stock Exchange of Mauritius in 1991. It is today a diversified Mauritian conglomerate involved in chemicals, agribusiness, ICT, engineering, printing, travel and leisure as well as retail, among others.
Besides Mauritius, the group is present in Madagascar, Zambia, Tanzania, Burundi and Rwanda.
Counted among the leading companies in Mauritius, it employs 1435 employees in nearly thirty companies positioned in five strategic divisions: Chemical Arm, Engineering Arm, Property Arm, Services Arm and Technology Arm.
Source: Company Website