ENL Limited (Mauritius)Turnover decreased by 20% resulting in a significant drop in operating profits from Rs 742m last year

By Published On: April 28th, 2021Categories: Corporate announcement, Dividends, Earnings

The results for the six months were affected by COVID-19. Turnover decreased by 20% resulting in a significant drop in operating profits from Rs 742m last year, when the COVID was yet to impact the country, to Rs 27m for the six months ended 31 December 2020. The results of the Group’s associated companies and jointly controlled entities were seriously affected by the situation prevailing in the hospitality sector. The Group incurred a loss after tax of Rs 810m compared with a profit of Rs 364m last year.

The various operating segments, save hospitality, have shown resilience since the first lock down was lifted. Various measures, including significant cost reductions, were implemented to see through the crisis and most segments posted commendable results for the first semester. However, the continued closure of our borders and restrictions on international travel have severely affected the hospitality sector; this segment incurred losses after tax of Rs 1,109m (profits of Rs 318m last year) and was the main cause for the losses incurred by the Group for the period.

The country has entered into a second confinement since 10 March 2021 following a resurgence of cases of COVID-19. This has amplified the already dire situation of the hospitality sector which is still suffering from the continued closure of our borders. The vaccination campaign presently being deployed both locally and internationally should enable the reopening of borders, thus enabling the hospitality industry to gradually resume normal operations.

The experience of last year’s lock down has left the country better prepared to deal with the second lock-down presently being experienced and its impact on the economy, although important,is expected to be better contained. We expect our businesses to continue to show resilience except for Hospitality which will suffer heavy losses, resulting in the Group posting substantial losses for the full year.

Irrespective of the two lock downs, the development of the Group has continued in line with CAP 23 and significant investments have been made, particularly in the real estate segment which remains a strong pillar for the Group and continues to generate important cash flows.

By order of the Board

ENL Secretarial Services Limited
Company Secretary                                                                                                                                                             

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