Ciel Textile has posted Rs 300 million net profits for 2004, reversing last year's loss of Rs 200 million.

The company's turnaround is the result of restructuring at both the management and operations levels, as well as the sale of its Harris Wilson shops for Rs 50 million.

The group's Tropic Knits T-shirt producer has returned to profit after two years of losses, and its Aquarelle shirt unit also posted a strong performance.

Ciel's main problem has been Floréal Knitwear, which in August said it was cutting 900 jobs and closing seven production sites in preparation for quota removal in 2005.

Times are still tough but the group's chief operating officer, Harold Mayer, remains confident.

According to Mauritian newspaper L'Express, he strongly believes that both Floréal and Ferney Spinning Mills should become cost-effective again from next year.