Lanka Walltile Plc (LWL) this week announced that it would discontinue operations of its Balangoda factory.
The move is following all of the 462 employees of the factory accepting an estimated Rs. 200 million Voluntary Retirement Scheme (VRS).
LWL said it would take necessary steps to sell property, plant and machinery as the case may be in due course.
In notes accompanying first quarter accounts, LWL said the VRS offered to a total of 467 employees was accepted by 392 employees. The total amount paid as compensation is Rs. 192 million.
The factory was discontinued due to heavy losses over the years. On the back of this one-off payment LWL recorded a Rs. 130.6 million loss (attributable to equity holders) in first quarter of 2010/11 financial year as against a profit of Rs. 30.5 million a year earlier.
However, LWL's top line during the quarter grew 44%YoY to Rs. 1.96 billion, while the Gross Profit Margin was 22%.
Dailymirror
many garment factories have also closed down from last year
loss of EU GSP+ will have a serious negative impact on the appeal industry & other export industries
The move is following all of the 462 employees of the factory accepting an estimated Rs. 200 million Voluntary Retirement Scheme (VRS).
LWL said it would take necessary steps to sell property, plant and machinery as the case may be in due course.
In notes accompanying first quarter accounts, LWL said the VRS offered to a total of 467 employees was accepted by 392 employees. The total amount paid as compensation is Rs. 192 million.
The factory was discontinued due to heavy losses over the years. On the back of this one-off payment LWL recorded a Rs. 130.6 million loss (attributable to equity holders) in first quarter of 2010/11 financial year as against a profit of Rs. 30.5 million a year earlier.
However, LWL's top line during the quarter grew 44%YoY to Rs. 1.96 billion, while the Gross Profit Margin was 22%.
Dailymirror
many garment factories have also closed down from last year
loss of EU GSP+ will have a serious negative impact on the appeal industry & other export industries
