Stamford Tyres achieves higher profits despite slump in turnover

Singapore’s Stamford Tyres Corporation Ltd has reported a 32 per cent year-on-year increase in profit before tax for the third quarter of its 2016 financial year. The company’s profits in the three-month period ending 31 January 2016 amounted to S$1.6 million (£814,000), up from $1.2 million a year earlier. This rise in profit was achieved despite a 20 per cent drop in total group revenue to $60.3 million (£30.7 million). The quarter gross profit margin increased from 21.8 per cent to 25.2 per cent; Stamford Tyres largely attributes this margin growth to the lower cost associated with product sales and the contribution made by value-added activities at the company’s Stamford Tyres Mart retail chain and truck tyre centres.

Commenting on the group’s third quarter results, Wee Kok Wah, president of Stamford Tyres, said: “Despite the challenging global economic environment, the group managed to remain profitable through a series of value-added activities. We will focus on diversifying our product mix in the sales of car tyres and SSW wheels as well as truck tyres and mining tyres. We are also focusing on value-adding segments such as Stamford Tyres Mart retail chain and truck centres.”

Stamford Tyres’ earnings per ordinary share for the quarter increased by $0.02 year-on-year to $0.38. As at 31 January 2016, Stamford Tyres’ net asset value per ordinary share was at 50.17 cents, compared to 51.38 cents as at 30 April 2015. All of the above are based on the issued share capital of 235,586,244 ordinary shares.