David Whitehead geared to improve fabric exports

Staff Writer

DAVID Whitehead Textiles Ltd says it is in the process of embarking on a capital expenditure budget which when implemented will improve the production of export grade fabric stimulating direct e

xports.


Announcing its year-end results the company said the significant increase in exports was attributed to management’s strategy to increase the value-added export sales.


The company said the procurement of an additional printing machine had helped the company boost its production.


Turnover for the year jumped 298% to $16,3 billion driven largely by the performance of local sales.


Of the total turnover, local sales weighed in with $14,9 billion with direct exports accounting for the remainder.


Profit before tax grew by 466% to $826 billion while basic earnings per share firmed to 148 cents from 27,2 cents.


The company said it was devising ways of raising working capital required to increase the lint stock holding as a way of hedging against the ever-increasing local price of lint.


“The general lint supply from local ginners has been assured, through government’s timeous introduction of export licences for cotton lint,” it said.

“The directors are currently looking into ways of ensuring that the company is not affected by any possible lint shortages.”


Production levels at its three plants, spinning, fabric and hosiery saw an improvement during the second half of the year.


The company attributed the improvement to improved lint inflows and reduction of production stoppages.


David Whitehead, however, said it had secured sufficient levels of stock to ensure the least possible disruptions in the face of coal supply shortages.

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