Stamford Tyres posts 52% rise in profit to S$2.6 million for FY2016

MAINBOARD-LISTED Stamford Tyres Corporation Limited on Monday posted a 52 per cent rise in full-year net profit to S$2.6 million for FY2016.

Gross profit margin rose from 22.1 per cent in FY2015 to 24.7 per cent in FY2016, mainly attributable to lower cost of sales and contribution from value-added activities at its Stamford Tyres Mart retail chain and truck tyre centres.

The group recorded revenue of S$239.9 million, down 18 per cent.

Total operating expenses fell by 6.1 per cent to S$58.2 million, due to lower marketing and distribution costs, salaries and foreign exchange costs.

The cash and cash equivalents of the group stood at S$17.4 million as at April 30, 2016 compared with S$15.9 million last year.

Earnings per share grew from 0.72 Singapore cent for FY2015 to 1.10 cents for FY2016.

The directors have recommended a first and final dividend of one cent per share.

Wee Kok Wah, president of the group, said: "Despite the challenging global economic environment, the group managed to remain profitable through a series of value-added activities. Going forward, we will continue to focus on improving our sales productivity as well as value-added segments such as Stamford Tyres Mart retail chain and truck centres."