Kailis back in black

13/11/2007 - 22:00


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FAMILY-OWNED business, MG Kailis Holdings Pty Ltd, has returned to the black with a net profit after tax of $4.8 million in the year to June 2007, following an extensive restructuring during the previous two years. It was a big turnaround from the 2006 result, when the group suffered a $16.7 million pre-tax loss and a $2.9 million after-tax loss, according to accounts lodged with the Australian Securities and Investments Commission. The 45-year-old Fremantle-based group sold its tuna and lobster farming operations in 2005 and its Australian South Sea Pearls Pty Ltd subsidiary in 2006, at a loss of $7.7 million. The asset sales enabled Kailis to repay all of its bank loans, leaving the group with no debt and cash of $4.5 million. Its continuing operations in prawn farming, seafood trading, pearl farming and jewellery wholesaling and retailing generated sales revenue of $115 million in 2007, down slightly from the previous year. “The board and management are of the view that enhanced performance can be achieved by continuing to progress improvement initiatives across the businesses, and selectively investing in growth opportunities,” the directors’ report said. The company, which is chaired by former Western Power managing director Tony Iannello, benefited from a big reduction in administration and marketing expenses. Mark Beyer


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