We have extracted the financial summary from the full year abridged report of Harel Mallac and Co. Limited listed on the Stock Exchange of Mauritius under the share code HML.mu. Harel Mallac is a involved in the manufacturing,trading and asset management businesses.

The following is an excerpt from the Abridged Report:

PERFORMANCE
The Group achieved a consolidated revenue from continuing operations of Rs 4.3 billion, representing an increase of 7% over 2017, driven by both the Manufacturing & Trading and Business Services clusters.

This increase in revenue resulted in a marginal improvement in the profitability, as the Group posted a Profit before Finance Costs of Rs 51 million in 2018, compared to Rs 46 million in 2017.

The profitability of the Manufacturing & Trading cluster is lower than 2017. The Equipment & Systems division recorded a significant improvement in 2018, driven by increased sales of consumer electronics, and the acquisition of Corexsolar International (a company operating in the photovoltaic energy sector) during the year. However, the overall profitability of the cluster was impacted by the ongoing difficulties faced by the sugarcane and textile industries and subsequent restructuring costs incurred in its Chemicals division.

The core activity of the Business Services cluster lies within its Technology division. Whilst the latter recorded an improvement in its revenue during 2018, the lower margins and higher provisions related to the implementation of IFRS 9, resulted in losses in 2018. Regarding the Asset Management cluster, the share of results from our associates and joint ventures is lower than 2017, even though their performance were better than prior year as the cluster benefited from a non-recurring gain of Rs 17 million.

Overall, the Group posted a Profit after Tax of Rs 67 million in 2018, compared to Rs 115 million last year.

OUTLOOK
As previously announced, Harel Mallac is actively re-engineering its traditional trading activities by mainstreaming technology and environment-linked opportunities, while seeking organic growth on the international market. The key priorities for 2019 remain the reorganisation of our businesses around modern and to the point offerings to our customers, and improve our operational results.