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Sunday, February 25, 2024

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Construction: Gamma Group Records A Profit Of Rs 136.1 Million

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The Gamma Group has recorded a profit of Rs 136.1 million compared to losses of Rs 51.7 million for the corresponding period in 2020. Thus, despite the Covid-19 pandemic affecting our country, the construction sector in Mauritius is doing well. Its turnover is increasing from Rs 1.5 billion to Rs 2.4 billion for the first half of 2021, which represents an increase of 51.1%. As a result, a final dividend of Rs 1.31 per share (June 2020: Re 1.50 per share) was declared on March 30, 2021, and paid on or before June 30, 2021, in respect of the year ended December 31, 2020.

On June 18, Gamma issued Rs 1 billion of secured bonds at a fixed and floating rate through a private placement under a Multi-Currency Note Programme. Despite the current difficult economic climate, the company has received an AA-stable rating from the rating agency CARE Ratings (Africa). The Rs 1 billion bond issue will be used to finance certain existing debt, working capital and future initiatives of the group.

Management explains:  “Globally, the Covid-19 pandemic continues to pose a threat in Mauritius and to business. Globally, new variants are being identified, resulting in ongoing health and safety threats and negative economic impact. The Board of Directors and management continue to take all necessary measures to mitigate the risks caused and to monitor the evolution of the uncertain market conditions. The vaccination campaign as well as the gradual opening of our borders brings a sense of optimism for Mauritius”.

Employee safety

Gamma explains that operational resilience remains its priority to ensure business continuity, while ensuring that all measures are in place for the safety of employees, customers and its partners. A segmental analysis of the group’s financial statements shows that although the building materials division performed better than the previous year, it continues to be threatened by the impact of the global pandemic, which has resulted in significant increases in raw material costs due to increased freight and the depreciation of the Mauritian currency. This effect will continue in the coming months.

At the lottery level, the increase in revenues and operating profit is mainly attributable to a five-week period of downtime, compared to 11 weeks of downtime in 2020. “The result was 10 Lotto draws cancelled in 2021 as compared to 23 Lotto draws in 2020,” Gamma points out.

However, it should be noted that Gamma’s associated companies, particularly Morning Light Co Ltd (which operates the Hilton Mauritius Resort), continue to be impacted by the pandemic.

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