SINGAPORE (June 28): Stamford Tyres today announced that FY17 earnings trebled to $8.1 million compared to $2.6 million in FY16.
The group reported a gross profit margin of 26.2% in FY17, an increase from 24.7% in FY16. This was mainly due to value-added activities at its Stamford Tyres Mart retail chain and truck tyre centres.
However, group revenue decreased 1.7% to $235.8 million as compared to $239.9 million in FY16.
As the group exercised lower costs in finance, marketing and distribution, as well as foreign exchange, its total operating expenses for FY17 decreased 3.2% to $56.4 million compared to $58.2 million in FY16. This was also offset by higher allowance for inventory obsolescence.
At April 20, 2017, the group reported cash and cash equivalents of $21.7 million, an increase from the same time last year at $17.4 million.
On a diluted basis, Stamford Tyres’ earnings per share also increased to 3.44 cents for FY17 from 1.10 cents the year before.
The group’s net asset value per ordinary share as at April 30 stood at 52.59 cents, an increase from 49.88 cents in April 30, 2016.
Wee Kok Wah, President of Stamford Tyres Corporation, says: “The global economic outlook remains challenging. We continue to focus on growing our sales of car tyres and SSW wheels, as well as truck tyres and mining tyres. We are also focusing on improving our sales productivity and value-added segments such as Stamford Tyres Mart retail chain and truck centres”.
Shares in Stamford Tyres closed at 32 cents on Wednesday.
