Seardel posts headline loss
Clothing and textile manufacturer Seardel Investment Corporation (SRN) has announced a diluted headline loss of 3.4 cents per share for the year ending on 31 March 2011, compared with last year's loss of 21.2 cents per share.
Revenue rose 12% to R2,4 billion, compared with R2,1 billion last year, but gross margins dropped 23.4% to take a huge chunk off turnover, leaving the profit from operations at R96 million compared with R43 million last year. The directors have resolved not to declare a dividend for the year.
The group says margins were affected by dramatic price increases in cotton, which it expects to continue into the new financial year.
"The group is obviously heavily exposed to the cotton price and on the whole has done well to manage its exposure to these dramatic swings," the group said.