The Board of Directors of Nishat Mills Limited (NML), the flagship company of Nishat Group, has given its nod to establish a private limited company in the United Kingdom (UK).

The listed company informed stakeholders of the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“The Board of Directors of Nishat Mills Limited has accorded its approval to the incorporation of a private limited company in the United Kingdom through the company’s wholly-owned subsidiary, Nishat International FZE, United Arab Emirates (UAE),” read the notice.

The company’s incorporation is subject to the grant of all applicable regulatory approvals and in compliance with all applicable laws.

Nishat Mills’ profit falls 30% in 1HFY24 as rising costs bite

Established in 1951, Nishat Mills Limited is one of the largest vertically integrated companies in Pakistan and is engaged in spinning, weaving, printing, dyeing, bleaching, and stitching and apparel business. NML deals in yarn, linen, and other products made from raw cotton and synthetic fiber.

The company is also in the business of generating and supplying electricity.

As per NML’s latest financial results, the company’s profit after tax declined by 51.98% to Rs5.35 billion during the 9MFY24, primarily due to a significant increase in finance cost and the imposition of a higher super tax rate during the current period compared to the corresponding period of the previous year.

The company back then stated that the global economic slowdown subdued demand for textile products in the international market.

Domestically, high energy cost, costly financing, and the imposition of unprecedented government taxation have escalated the cost of doing business, it added, affecting the textile industry’s current performance and future prospects.