• CIEL Limited reports financial results for the first quarter ended 30 September 2017

    15 Nov 2017

    At MUR 5.47bn, year‐on‐year Group revenue growth was 12%, while Earnings Before Interest, Tax, Depreciation and Amortisation (‘EBITDA’) stood at MUR 402M, down 17% compared to prior year.

    The Net Asset Value (‘NAV’) per share of the Company was MUR 8.91 as at 30 September 2017, a slight decrease of 5% over 30 June 2017 explained by the reduction in the NAV per share of Sun Limited (‘SUN’) and the fall in the share price of Alteo Limited.

    During the period under review, the Group recorded an after‐tax loss of MUR 25M (2016: Profit after Tax of MUR 102M) owing to the following challenges faced by CIEL’s five clusters:

    • The Textile cluster’s profitability has been reduced this quarter compared to prior year mainly due to competitive pressure and difficult retail markets which have affected sales margins. The Woven segment has also been partially impacted by negative foreign exchange rate movements while the Knits and Knitwear segments’ results are in line with prior year. CIEL Textile (‘CTL’) continues to anticipate market changes and is committed to maintaining its competitive edge.
    • In the Hotels & Resorts cluster, SUN is encouraged by the growth in revenue driven by an improved rate positioning this quarter despite the shoulder season. The adverse effects of the late re‐opening of Kanuhura Resort and Spa, Maldives and the two‐month closure of La Pirogue have however impacted this quarter. With positive guest feedback for La Pirogue and Kanuhura and good forward‐bookings overall, SUN expects the coming months to show improved results though the progress of Kanuhura will take longer than anticipated to materialise.
    • The Finance cluster’s banking activities maintained good results this quarter though lower than the corresponding period last year. The fiduciary operations of the cluster ‐ MITCO Group – have also recorded a lower performance this quarter.
    • The Agro & Property cluster’s results have been reduced primarily owing to lower sugar cane availability in Kenya and a delayed harvest at the Mauritian operations of Alteo Limited coupled with low sucrose and price levels. This fall was alleviated by a positive contribution from TPC Limited, Tanzania and a favourable gain on sale of land at Ferney Limited during the quarter.
    • The Healthcare cluster includes the results of Wellkin Hospital (‘Wellkin’) within the Medical and Surgical Centre Limited Group which have weighed on the cluster’s performance as anticipated. The Ugandan operations (International Medical Group ‘IMG’) have also been impacted by the lower performance of its insurance business arm due to higher claims.

    Group loss attributable to ordinary shareholders was MUR 12M (2016: Profit attributable to ordinary shareholders of MUR 11M) for the quarter under review – a limited fall owing to CIEL’s higher stake of 88.48% in CTL.
    The results of the first quarter of the financial year, though cyclically subdued by the low seasonality of the hotel sector, have also been negatively impacted by the lower profitability of CTL and Wellkin Hospital’s operational losses.

    CIEL is nonetheless expected to post an improved financial performance over the coming quarters.