“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 .
Date:4/12/2011
Source:AL Ahram Online