Internal Capital Formation
The value created by Hayleys for itself through
its resources, activities and relationships leads to
the formation of capital internal to Hayleys.
While financial capital is the most visible and
quantifiable form of internal capital, this also
includes several intangibles that constitute what
we call our institutional capital.
In this section we will discuss value creation
and internal capital formation in the context of
its two components, financial capital and
institutional capital.
Financial Capital
Investment Strategy
Our investments are long term, guided by three criteria - risk, return and growth. Investing is a trade-off between risk and expected return. While we seek industry attractiveness and in particular growth potential when investing, we are also mindful of a fundamental concept coming from modern portfolio theory, which asserts that assets in an investment portfolio should not be selected individually, each on its own merits, but also by considering how each investment category moves relative to others to achieve the benefits of a diversification strategy.In this context, it is noteworthy that Hayleys is a well-diversified enterprise with business across all key economic sectors, operating from local and overseas locations, and serving global markets for its revenue stream.
Our Portfolio of Businesses
Revenue | EBIT | PAT | Assets | Capital Employed | ROCE | Employees | |
Sector | Rs. mn | Rs. mn | Rs. mn | Rs. mn | Rs. mn | % | No. |
Manufacturing | |||||||
Fibre | 3,759 | 29 | (144) | 5,766 | 3,637 | 0.8 | 1,297 |
Hand protection | 13,377 | 906 | 665 | 9,703 | 5,894 | 15.4 | 1,809 |
Purification | 10,348 | 1,299 | 892 | 8,857 | 7,262 | 17.9 | 1,382 |
Textiles | 7,995 | 4 | (181) | 3,481 | 3,571 | 0.1 | 1,253 |
Construction materials | 2,804 | 474 | 379 | 1,753 | 1,499 | 31.6 | 481 |
Total | 38,283 | 2,712 | 1,611 | 29,560 | 21,863 | 12.4 | 6,222 |
Agriculture and Plantations | |||||||
Agriculture | 7,395 | 943 | 474 | 7,220 | 4,350 | 21.7 | 1,510 |
Plantations | 9,597 | 826 | 583 | 9,822 | 5,481 | 15.1 | 23,427 |
Total | 16,992 | 1,769 | 1,057 | 17,042 | 9,831 | 18.0 | 24,937 |
Services | |||||||
Transportation & logistics | 11,936 | 1,137 | 823 | 6,595 | 4,595 | 24.8 | 2,697 |
Consumer products | 5,252 | 235 | 60 | 2,457 | 1,760 | 13.3 | 294 |
Leisure & aviation | 4,308 | 817 | 472 | 7,949 | 7,475 | 10.9 | 1,610 |
Power & energy | 3,002 | 898 | 681 | 4,176 | 3,695 | 24.3 | 228 |
Investments & services | 781 | 1,078 | 500 | 17,484 | 16,774 | 6.4 | 236 |
Total | 25,279 | 4,165 | 2,536 | 38,661 | 34,299 | 12.1 | 5,065 |
The key performance indicators of each sector over the past three years are given below.
Fibre
Indicator | Measure | Unit | Financial Year | ||
2013/14 | 2012/13 | 2011/12 | |||
Growth | Turnover | Rs. Mn | 3,759 | 4,419 | 4,028 |
Earnings before interest and tax | Rs. Mn | 29 | 175 | 151 | |
Profit After tax | Rs. Mn | (144) | (36) | (38) | |
Assets | Rs. Mn | 5,766 | 6,445 | 6,018 | |
Capital employed | Rs. Mn | 3.637 | 3,845 | 4,383 | |
Profitability | Return On capital employed | % | 0.8 | 4.6 | 3.4 |
Liquidity | Current ratio | Times | 1.32 | 1.37 | 1.03 |
Stability | Gearing | % | 30 | 28 | 34 |
Assets Utilisation | Assets turnover ratio | Times | 0.7 | 0.7 | 0.8 |
Productivity | EBIT per employee | Rs. Mn | 0.02 | 0.13 | 0.09 |
Hand Protection
Indicator | Measure | Unit | FYE 31 March | ||
2014 | 2013 | 2012* | |||
Growth | Turnover | Rs mn | 13,377 | 14,675 | 13,499 |
Earnings before interest and tax | Rs mn | 906 | 1,386 | 1,997 | |
Profit after tax | Rs mn | 665 | 1,081 | 1,694 | |
Assets | Rs mn | 9,703 | 9,635 | 9,580 | |
Capital employed | Rs mn | 5,894 | 6,261 | 6,263 | |
Profitability | Return on average capital employed | % | 15.4 | 22.1 | 32 |
Liquidity | Current ratio | Times | 1.58 | 1.55 | 1.39 |
Stability | Gearing | % | 27 | 41 | 51 |
Asset utilisation | Asset turnover ratio | Times | 1.40 | 1.5 | 1.4 |
Productivity | EBIT per average no. of employees | Rs mn | 0.50 | 1.02 | 1.38 |
Purification
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 10,348 | 9,867 | 8,509 |
Earnings before interest and tax | Rs. Mn | 1,299 | 1,316 | 890 | |
Profit after tax | Rs. Mn | 892 | 997 | 523 | |
Assets (Avg) | Rs. Mn | 8,857 | 7,624 | 5,518 | |
Capital employed | Rs. Mn | 7,262 | 6,154 | 4,465 | |
Profitability | Return on average capital employed | % | 17.9 | 21.4 | 20 |
Liquidity | Current ratio | Times | 1.6 | 1.6 | 1.8 |
Stability | Gearing | % | 24 | 25 | 31 |
Asset utilisation | Asset turnover ratio | Times | 1.2 | 1.3 | 1.5 |
Productivity | EBIT per employee | Rs. Mn | 0.94 | 1.38 | 1.02 |
Textiles
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 7,995 | 5,738 | 5,253 |
Earnings before interest and tax | Rs. Mn | 4 | (280) | (742) | |
Profit after tax | Rs. Mn | (181) | (474) | (867) | |
Assets (Avg) | Rs. Mn | 3,481 | 3,214 | 4,455 | |
Capital employed | Rs. Mn | 3,571 | 3,199 | 3,722 | |
Profitability | Return on average capital employed | % | 0.1 | -8.8 | -19.9 |
Liquidity | Current ratio | Times | 0.7 | 0.6 | 0.7 |
Stability | Gearing | % | 60 | 51 | 70 |
Asset utilisation | Asset turnover ratio | Times | 2.3 | 1.8 | 1.2 |
Productivity | EBIT per employee | Rs. Mn | 0.003 | -0.33 | -0.0811 |
Construction Materials
Indicator | Measure | Unit | FYE 31 March | ||
2014 | 2013 | 2012 | |||
Growth | Turnover | Rs mn | 2,804 | 2,473 | 2,254 |
Earnings before interest and tax | Rs mn | 474 | 415 | 182 | |
Profit after tax | Rs mn | 379 | 307 | 113 | |
Assets | Rs mn | 1,752 | 1,719 | 1,577 | |
Capital employed | Rs mn | 1,499 | 1,087 | 873 | |
Profitability | Return on average capital employed* | % | 31.63 | 38.18 | 22 |
Liquidity | Current ratio | Times | 2.1 | 1.4 | 1.1 |
Stability | Gearing | % | 3.5 | 9.4 | 19.0 |
Asset utilisation | Asset turnover ratio | Times | 1.6 | 1.4 | 1.41 |
Productivity | EBIT per average no. of employees | Rs mn | 0.99 | 1.10 | 0.45 |
Agriculture
Indicator | Measure | Unit | FYE 31 March | ||
2014 | 2013 | 2012 | |||
Growth | Turnover | Rs mn | 7,395 | 7,346 | 7,406 |
Earnings before interest and tax | Rs mn | 943 | 784 | 721 | |
Profit after tax | Rs mn | 474 | 536 | 622 | |
Assets | Rs mn | 7,220 | 6,810 | 4,292 | |
Capital employed | Rs mn | 4350 | 3716 | 3689 | |
Profitability | Return on average capital employed* | % | 21.6 | 21.1 | 33 |
Liquidity | Current ratio | Times | 1.3 | 1.2 | 1.1 |
Stability | Gearing | % | 46 | 49 | 59 |
Asset utilisation | Asset turnover ratio | Times | 1.0 | 1.1 | 1.1 |
Productivity | EBIT per average no. of employees | Rs mn | 0.62 | 0.88 | 1.33 |
Plantations
Indicator | Measure | Unit | FYE 31 March | ||
2014 | 2013 | 2012 | |||
Growth | Turnover | Rs mn | 9,597 | 8,952 | 7,916 |
Earnings before interest and tax | Rs mn | 825 | 1132 | 628 | |
Profit after tax | Rs mn | 583 | 805 | 429 | |
Assets | Rs mn | 9,821 | 9,344 | 9,228 | |
Capital employed | Rs mn | 5,481 | 5,154 | 5,493 | |
Profitability | Return on average capital employed* | % | 15.06 | 21.96 | 11.4 |
Liquidity | Current ratio | Times | 1.57 | 1.60 | 1.35 |
Stability | Gearing | % | 24 | 32 | 38 |
Asset utilisation | Asset turnover ratio | Times | 0.98 | 0.96 | 0.85 |
Productivity | EBIT per average no. of employees | Rs mn | 0.04 | 0.05 | 0.03 |
Transportation & Logistics
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 11,936 | 11,343 | 8,621 |
Earnings before interest and tax | Rs. Mn | 1,137 | 1,010 | 596 | |
Profit after tax | Rs. Mn | 823 | 802 | 492 | |
Assets (Avg) | Rs. Mn | 6,596 | 5,708 | 4,308 | |
Capital employed | Rs. Mn | 4,595 | 3,522 | 2,682 | |
Profitability | Return on average capital employed | % | 25 | 29 | 22 |
Liquidity | Current ratio | Times | 0.8 | 0.7 | 1.6 |
Stability | Gearing | % | 44 | 20 | 17 |
Asset utilisation | Asset turnover ratio | Times | 1.8 | 1.9 | 2.0 |
Productivity | EBIT per employee | Rs. Mn | 0.42 | 1.03 | 0.66 |
Consumer Products
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 5,252 | 4,509 | 4,285 |
Earnings before interest and tax | Rs. Mn | 235 | 264 | 269 | |
Profit after tax | Rs. Mn | 60 | 114 | 145 | |
Assets (Avg) | Rs. Mn | 2,457 | 2,104 | 1,383 | |
Capital employed | Rs. Mn | 1,760 | 1,134 | 747 | |
Profitability | Return on average capital employed | % | 13.3 | 23.3 | 28 |
Liquidity | Current ratio | Times | 1.19 | 1.25 | 1.28 |
Stability | Gearing | % | 75 | 69 | 61 |
Asset utilisation | Asset turnover ratio | Times | 2.1 | 2.1 | 3.1 |
Productivity | EBIT per employee | Rs. Mn | 0.80 | 1.12 | 1.41 |
Leisure & Aviation
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 4,308 | 2,062 | 1,955 |
Earnings before interest and tax | Rs. Mn | 817 | 62 | 162 | |
Profit after tax | Rs. Mn | 472 | (6) | 158 | |
Assets (Avg) | Rs. Mn | 7,949 | 6,945 | 5,475 | |
Capital employed | Rs. Mn | 7,475 | 6,796 | 4,701 | |
Profitability | Return on average capital employed | % | 10.9 | 0.9 | 3.4 |
Liquidity | Current ratio | Times | 1.1 | 0.4 | 1.2 |
Stability | Gearing | % | 0.4 | 0.4 | 0.1 |
Asset utilisation | Asset turnover ratio | Times | 0.5 | 0.3 | 0.4 |
Productivity | EBIT per employee | Rs. '000 | 0.51 | 0.03 | 0.15 |
Power and Energy
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 3,002 | 2,488 | 1,577 |
Earnings before interest and tax | Rs. Mn | 898 | 687 | 215 | |
Profit after tax | Rs. Mn | 682 | 441 | 124 | |
Assets (Avg.) | Rs. Mn | 4,575 | 4,364 | 4,639 | |
Capital employed(Avg) | Rs. Mn | 3,695 | 3,807 | 3,979 | |
Profitability | Return on average capital employed | % | 24 | 18 | 7 |
Liquidity | Current ratio | Times | 1.4 | 1.2 | 1.2 |
Stability | Gearing | % | 30 | 31 | 39 |
Asset utilisation | Asset turnover ratio | Times | 0.7 | 0.6 | 0.3 |
Productivity | EBIT per employee | Rs. Mn | 3.94 | 3.32 | 1.2 |
Investments & Services
Indicator | Measure | Unit | FYE 31st March | ||
2014 | 2013 | 2012 | |||
Growth | Revenue | Rs. Mn | 781 | 819 | 1,069 |
Earnings before interest and tax | Rs. Mn | 1078 | 907 | 1,477 | |
Profit after tax | Rs. Mn | 500 | 355 | 1,973 | |
Assets (Avg.) | Rs. Mn | 17,484 | 15,612 | 15,638 | |
Capital employed(Avg) | Rs. Mn | 16,774 | 16,210 | 14,149 | |
Profitability | Return on average capital employed | % | 24 | 18 | 7 |
Liquidity | Current ratio | Times | 0.5 | 0.4 | 0.3 |
Stability | Gearing | % | 0.4 | 0.4 | 0.3 |
Asset utilisation | Asset turnover ratio | Times | 0.04 | 0.05 | 0.07 |
Productivity | EBIT per employee | Rs. Mn | 4.57 | 3.96 | 7.35 |
Portfolio Movement and Resource Allocation
2013/14 | 2012/13 | 2011/12 | ||
Rs. mn | Rs. mn | Rs. mn | ||
Capital Employed | ||||
Manufacturing | 21,863 | 20,545 | 19,034 | |
Agriculture and plantations | 9,831 | 8,870 | 7,579 | |
Services | 34,299 | 31,469 | 21,512 | |
EBIT | ||||
Manufacturing | 2,712 | 3,013 | 511 | |
Agriculture and plantations | 1,769 | 1,916 | 1,469 | |
Services | 4,165 | 2,929 | 2,713 | |
ROCE (%) | ||||
Manufacturing (%) | 12.40 | 14.66 | 2.68 | |
Agriculture and plantations (%) | 17.99 | 21.60 | 19.38 | |
Services (%) | 12.14 | 9.31 | 12.61 |
Financial Review
The financial year 2013/14 was one of the most challenging periods for the Hayleys Group. Despite these odds the Group recorded its highest ever revenue of Rs. 80.6 bn, with profit before tax surpassing the Rs. 5 bn milestone and profit after tax reaching an all time high of Rs. 3.7 bn.The discussion that follows complements the disclosures given elsewhere (including Financial Highlights), Notes to The Financial Statements (commencing on page 121) and Ten-year Summary (page 196) on the achievement of Group Goals.
Convergence to IFRS
As indicated in Note 2 on page 121 the Group’s Financial Statements for FY 2013/14 have been prepared in accordance with the Sri Lanka Accounting Standards (SLFRS/LKAS) for the second consecutive year, with some figures for FY 2012/13 being restated.Portfolio Performance
The portfolio of businesses given in the table above is a financial snapshot of the World of Hayleys. Manufacturing leads with 48% share of revenue, services tops with a 48% share of EBIT and agriculture and plantations account for 69% of employment creation.Exports and indirect exports comprised 57% of Group revenue during the year, with Europe and USA accounting for 24% of the total. The Group’s revenue, analysed by global markets and industry sectors, is given in Global Market section.
EBIT during the year increased by 10.0% compared to a revenue growth of 8.4%, indicating efficiencies achieved despite a difficult year.
The Group posted its highest ever profit before tax (PBT) of Rs. 5.07 bn, yielding a profit margin of 6.3%, a slight reduction from the previous year’s 6.6%. The Transportation & Logistics and Purification sectors posted Rs. 1.1 bn and Rs. 1.0 bn in PBT, while Fibre and Textiles were the only loss making sectors.
Group profit after tax grew by 5.8%, from Rs. 3.5 bn to Rs. 3.7 bn, with the Purification and Transportation & Logistics sectors leading the field with contributions of Rs. 892 mn and Rs. 823 mn respectively.
Taxation
There were no changes in the local income tax rates for the Group, and tax expense decreased slightly by 3.4% to Rs. 1.37 bn, while the Group’s effective tax rate decreased to 26.9% from the previous year’s 28.7%. Although Sri Lankan corporate taxes are relatively low, the Group’s foreign manufacturing and marketing ventures are taxed at higher slabs, which influences the relatively high effective tax rates.Finance Cost and Finance Income
Group finance costs reduced by 5.4% from Rs. 3.1 bn to Rs. 2.9 bn, while the gross interest cover improved from 2.2 times to 2.4 times during the year under review. In tandem finance income almost halved from Rs. 1.4 bn to Rs. 0.8 bn, the overall result being a 31% increase in net finance costs from Rs. 1.6 bn to Rs. 2.1 bn. In addition to the Parent Company, the Agriculture, Leisure & Aviation and Purification sectors accounted for the bulk of the finance costs.Cash Flow, Liquidity and Investments
Net cash inflow from operations declined from Rs. 7.3 bn in FY 2012/13 to Rs. 5.6 bn during the year, mainly due to a Rs. 1.9 bn increase in inventory levels.Net cash flows before financing was a positive Rs. 1.9 bn for the year, compared to Rs. 2.6 bn in the previous year. New debt amounting to Rs. 6.8 bn was raised, with capital and interest payments amounting to Rs. 2.3 bn and Rs. 2.4 bn respectively. The overall net increase in cash and cash equivalents was Rs. 3.3 bn during the year.
Investments in property, plant & equipment during the year amounted to Rs. 3.4 bn, the primary recipients being the Leisure & Aviation and Purification sectors.
Borrowings
The Group took advantage of Government’s capital market incentives to strengthen the Group’s capital structure by tapping the local debenture market, and also by accessing offshore funding lines following the liberalisation of exchange controls. Hayleys PLC raised Rs. 2 bn from the issuance of unsecured, redeemable 3-year debentures in addition to a US$ 10 mn loan facility direct from Standard Chartered Bank, UK. The Kingsbury, the Group’s five star city hotel that underwent a major refurbishment, obtained a US$ 10 mn loan from DEG, the German Development Bank.Capital Structure
Gearing levels were maintained at around 41% during the last two years, despite the steep increase in long-term borrowings from Rs. 5.6 bn to Rs. 9.2 bn discussed above. The ratio of short-term to long-term loan borrowings remained at a healthy balance of 65:35 (FYE 2012/13 : 76:24).Group Value Addition and Distribution
2013/14 | 2012/13 | ||||||
Rs. mn | Rs. mn | % | Rs. mn | Rs. mn | % | ||
Value Added |
|||||||
Revenue | 80,554 | 74,302 | |||||
Cost of materials and Services bought in | (59,448) | (55,184) | |||||
21,066 | 19,118 | ||||||
Value Distributed |
|||||||
To employees as remuneration | 11,298 | 54 | 9,579 | 50 | |||
To government revenue | 1,615 | 7 | 1,584 | 8 | |||
Sri Lanka | 1,305 | 1,311 | |||||
Overseas | 310 | 273 | |||||
To shareholders as dividend | 375 | 2 | 338 | 2 | |||
To lenders of capital | 4,289 | 20 | 4,423 | 23 | |||
Interest on borrowings | 2,389 | 2,679 | |||||
Minority interest | 1,900 | 1,743 | |||||
17,577 | 83 | 15,923 | 83 | ||||
Value retained for expansion and growth | 3,489 | 17 | 3,195 | 17 | |||
Depreciation | 2,057 | 1,772 | |||||
Profit retained | 1,432 | 1,423 | |||||
21,066 | 100 | 19,118 | 100 |
Institutional Capital
Bringing Them Together
To manage our operations across manufacturing,
agriculture and services that are further divided into
the 12 sectors discussed previously, we adopt a
decentralised approach where the Managing Director
(MD) of each business sector is responsible for its
day-to-day operations and profitability.
However, reporting is centralised through the Hayleys
Group Management Committee (HGMC) which functions
as a conduit for knowledge sharing between the sectors.
Members of the HGMC consist of sector MDs and
heads of centralised operations such as Group Human
Resources, Group IT and Group Chief Financial Officer
(CFO). HGMC meetings are held monthly.
Furthermore, the centralisation of the key functions such
as IT, HR, finance and accounting, treasury, legal, internal audit and secretarial services ensures consistency in performance, and also promotes synergies through collective approaches across diverse sectors.
Hayleys PLC oversees subsidiaries through the receipt
of regular reports, while investments above a defined
threshold need the approval of the Hayleys Board of
Directors, thus ensuring alignment with Group goals
and strategies.
The Material Aspects
Corporate Philosophy and CultureThere is challenge, opportunity and synergy at Hayleys. Although our businesses are diverse, they ‘walk to the same beat’ holding fast to the core values of Hayleys, whilst retaining their own character and individuality.
Hayleys focuses on creating a culture and a business environment based upon inclusion, mutual respect, accountability and understanding - its 36,000 employees come from all walks of life and present an incredibly rich mix of experience, expertise and ideas. We provide an environment where employees are valued, and where exceptional performance is recognised. Such an environment also provides greater job satisfaction, increased staff motivation, creativity and productivity, and improves attraction and retention rates. Appropriate reward and recognition processes support the development and sustainability of high level skills, behaviours and capabilities that are central to building on a culture of strong continuous improvement and organisational success. They also support and reinforce Hayleys goals, values and vision through a process that is applied fairly and equitably, transparently and consistently across the Group.
The Chairman’s Award, launched in 2013, seeks to achieve these objectives by recognising exceptional teams and/or individuals that have supported the Hayleys Group’s vision and goals.
Business Ethics and Integrity
Business ethics and integrity are core values that have been firmly entrenched for generations within the Hayleys Group. As discussed in our reports on Corporate Governance and Risk Management several frameworks, codes and control mechanisms are in place to ensure compliance, and they are regularly reviewed and updated as necessary. For example, the ‘Hayleys Way’ provides a uniform code of business conduct for all Hayleys employees and companies across all the countries we operate in.
Hayleys Brand and Image
The ‘Hayleys’ brand is a household name in Sri Lanka and renowned globally. It has won acclaim as a Superbrand and as the Best Corporate Citizen of Sri Lanka on multiple occasions. Awards and accolades won regularly bear testimony to our positive image as a responsible company, including being recognised as one of the top three ‘most respected business entities in Sri Lanka’ and being ranked first for the ‘Most Nation Minded’ in Sri Lanka by the LMD magazine.
The 12 business sectors within the Group operate under individual brands within the guidelines set by Hayleys. Despite their diversity, they echo the spirit of being part of the ‘World of Hayleys’ and operate cohesively as a Group. Details of individual sectors are discussed under ‘customer and business partner capital’.
Innovation and Intellectual Property
The spirit of enterprise is visible across the success stories that characterise many of our businesses. The will to win despite the odds is what drives us to grow businesses from ground up, develop solutions from first principles and design plant and equipment from scratch. Our pioneering work in activated carbon and rubber gloves that have grown to global businesses are good examples. Our Fibre sector has earned over 400 patents over the past five years, thus reinforcing a Hayleys legacy of transforming abstract ideas into successful business propositions. Innovations in our Agriculture sector include the production and export of first-generation hybrid flower seeds, a first of its kind for Sri Lanka. The list goes on.
IT Capabilities and Developments
Hayleys is currently implementing an information technology strategy built on four pillars. Centered on consolidation, the strategy will centralise all IT activities under two divisions, namely Centralised Services (for common IT services to all sectors and corporate departments of Hayleys), and Sector Specific Services.
Pillar One deals with the consolidation of common infrastructure-related services provided through the Centralised Services Division. This will standardise services across the Group and lead to savings by reducing the duplication of infrastructure. This activity is almost complete and will be completed in 2014/15.
The Pillar Two consolidation of business systems was planned through the SAP transformation programme to roll out a common Enterprise Resource Planning (ERP) system across all sectors of the Group. The transformation programme has already been implemented across the Textiles, Purification, Leisure & Aviation sectors, with completion targeted for end of FY 2015-16.
The Pillar Three consolidation of front line support services and introduction of a common Help Desk Services will be outsourced, and work is in progress.
The Pillar Four consolidation of IT personnel will allow Hayleys to better utilise skills and build the appropriate teams to support Hayleys IT strategy for the future. Building the foundation framework to enable this transition has commenced.