Haji Mohammad Ismail Mills Narrows Annual Loss in FY2026

Haji Mohammad Ismail Mills Limited has reported a noticeable improvement in its financial performance for the year ended June 30, 2026, although the company remained in a loss-making position. The latest financial statements show that the company reduced its after-tax loss significantly compared with the previous year, while its overall financial position continued to reflect pressure on accumulated reserves and cash flows. 284268

According to the statement of profit or loss on page 2, the company recorded an after-tax loss of Rs 3.04 million during FY2026, compared with a loss of Rs 6.69 million in FY2025. This represents a substantial reduction in the annual loss. Administrative expenses also declined sharply, falling to Rs 3.08 million from Rs 6.74 million a year earlier. Other income stood at Rs 41,823 during the year. 284268

The improvement in expenses helped bring the company’s loss before taxation down to Rs 3.04 million, compared with Rs 6.69 million in the preceding year. The basic and diluted loss per share also improved, moving from Rs 0.56 per share to Rs 0.25 per share.

Investment Gains Provide Additional Support

The statement of comprehensive income on page 3 highlights a positive development beyond the reduction in operating losses. Haji Mohammad Ismail Mills recorded a gain of Rs 805,175 on re-measurement of investments available for sale at fair value, net of tax, compared with Rs 10,850 in the previous year.

The company also reported a Rs 377,896 gain on re-measurement of staff retirement benefits, reversing the Rs 302,592 loss recorded in FY2025. As a result, the total comprehensive loss for FY2026 was reduced to Rs 1.85 million, compared with approximately Rs 6.98 million in FY2025. 284268

Assets and Cash Position Remain Under Pressure

The balance sheet shows total assets of approximately Rs 3.70 million at June 30, 2026, down from Rs 5.74 million a year earlier. Current assets included investments available for sale of Rs 1.14 million, tax refunds due from the government of Rs 963,073, other receivables of Rs 1.06 million and cash and bank balances of Rs 490,870. 284268

The company’s cash position declined considerably during the year. Cash and cash equivalents stood at Rs 490,870 at June 30, 2026, compared with Rs 3.54 million at the end of FY2025.

The cash flow statement on page 5 shows that the company used approximately Rs 3.05 million in operating activities during FY2026, compared with Rs 4.34 million in the previous year. While this represents an improvement, the continued negative operating cash flow remains an important financial consideration. 284268

Equity Position Remains Challenging

The statement of changes in equity shows that accumulated losses increased from approximately Rs 128.97 million to Rs 132.00 million during FY2026. Total equity consequently stood at a negative Rs 4.32 million at June 30, 2026, compared with negative Rs 2.47 million at the end of FY2025. 284268

The company’s issued, subscribed and paid-up share capital remained unchanged at Rs 119.75 million, while its capital reserve increased to approximately Rs 7.93 million.

A Step Toward Reducing Losses

Overall, Haji Mohammad Ismail Mills’ FY2026 results present a mixed picture. The company made meaningful progress in reducing its annual loss and administrative expenses, while gains on investments and employee benefit re-measurements further improved comprehensive results.

However, declining total assets, lower cash balances, negative equity and continued cash consumption from operations indicate that the company still faces significant financial challenges. The reduction in losses is encouraging, but restoring a sustainable financial position will likely depend on stronger operating performance and improved cash generation in future periods.

In summary, FY2026 marks an improvement in Haji Mohammad Ismail Mills’ annual losses, but the company’s balance sheet and cash-flow position remain areas requiring close attention.