Textile company Perla is to use most of its profit for last year to pay off losses from previous years.

The company, which reduced its workforce last year by 20 per cent, is setting aside more than Kc11 million from 2000's net profit of Kc11.6 million to cover losses from previous years. The remaining five per cent will go to the reserve fund, shareholders in the company have ruled.

Exports accounted for 70 per cent of sales but remained flat. The company exports to Germany, Italy, Austria, Poland and Scandinavian countries.

The improvement in the company's fortunes is attributed to the reduction in its workforce along with the concentration of production and the sale of some assets.