Achieving a significant decline in net losses, the Holding Company for Cotton, Spinning and Weaving and Garments held a general assembly meeting to announce its yearly financials.
The company, which owns 32 subsidiaries, managed to minimise its net losses to LE0.54 billion in the fiscal year that ended on 30 June 2010, down from LE2.3bn the previous year.
This decline is mainly attributed to settlement of debts amounting LE4.5bn, shrinking its debt repayment to LE0.37m in 2009-2010, according to a press release from the Ministry of Investment.
Aided by an ambitious restructuring program, the company’s subsidiaries achieved a 21 per cent growth in operating income to reach LE2.9bn. Spinning & weaving subsidiaries also managed to increase exports by 66 per cent to reach L.E0.46bn.
Boasting a headcount of 65,000 employees and an annual payroll of LE1.25m, the Holding Company for Cotton, Spinning and Weaving and Garments is one of the biggest institutions in the public enterprise sector, employing 20 per cent of the sector’s human capital.
Mr. Mohamed Adel El-Mozy, commissioned to take charge of public enterprise for the Minister of Investment, stated that the government’s support served as a catalyst in the recent improvement in the company’s performance.
Governmental support to the company is clearly shown in the resumption of capital injections which were previously halted for a 10 year period up between 1994 and 2004.
The ministry of investment put forth numerous efforts to settle the company’s subsidiaries’ debt to public banks leading to a gross settlement of L.E. 12bn which had a soothing impact on the company’s interest burden.