TFI records manufacturing revenues of HK$1.3 bn in FY2010
Top Form International Limited, a leading brassiere manufacturing Group, announced its annual results for the year ended June 30, 2010.
• Manufacturing Revenues amounted to HK$1.3 billion in FY2010.
• Full year net profit before tax reached HK$88 million, compared to a profit of HK$14 million last year.
• Net profit after tax reached HK$54 million, compared to a loss of HK$14 million last year.
• Earnings per share was HK4.4 cents, compared with a loss per share of HK1.2 cents last fiscal year.
• The Board of Directors declared a final dividend of HK$0.025
TFI recorded manufacturing revenues of HK$1.3 billion in fiscal year 2010, similar to the previous year. Sales in the second half of the year accounted for 53% of revenues. Net profit after taxation was HK$54 million, compared with a loss of HK$14 million in FY2009. The increase in revenues in the second half of FY2010 was primarily due to the recovery in market confidence in the second quarter of FY2010.
The Group's strategic decision to exit from its brand business during the previous fiscal year, together with the termination of a Share Acquisition Agreement, enabled the Group to focus fully on the development of its core OEM business. Earnings per share for FY2010 was HK4.4 cents
compared to a loss per share of HK1.2 cents in the previous fiscal year.
In view of the current business climate, as well as the Group's cash position and reinvestment needs, the Board of Directors decided to propose a final dividend of HK$0.025 per share, which when taken together with an interim dividend of HK$0.015, represents an aggregate distribution of HK$0.04 per share for the fiscal year.
TFI achieved global sales of 42.9 million units of brassieres during the year compared to 45.8 million units in the previous year. The first half of the fiscal year accounted for 20.2 million units compared to 24.4 million units in FY2009, while the second half accounted for 22.7 million units compared to 21.4 million units in FY2009. Gross margin improved to 22% compared to 20% last year.
The financial position of the Group remains healthy, with shareholders' funds at HK$550.7 million, as at June 30, 2010, compared with HK$545.8 million at the end of the previous year. The Group's bank balances and cash amounted to HK$220.6 million as at 30 June 2010. Credit facilities available to the Group amounted to HK$150 million while gearing remains at an insignificant level.
Mr. Willie Fung, Chairman of TFI, commented, “The manufacturing industry is facing a variety of challenges, including increasing wages, a dwindling labour supply and RMB appreciation. However, we are very pleased that we are able to deliver improved financial results to our shareholders. To ensure the growth and sustainability of our core business, we will continue to control costs rigorously, expand our capacities in appropriate locations, and also look for joint venture and M&A opportunities. We are confident about the prospects of our business and we will continue to strive to deliver quality products to our customers and better returns to our shareholders.”
Top Form International Limited is a leading brassiere manufacturing Group. Its principal subsidiaries are engaged in the design, manufacture and distribution of ladies' intimate apparel, principally brassieres. Its customers are located in the United States, Europe and Asia. The Group's manufacturing facilities are located in Thailand, the Philippines and Mainland China.
Top Form International Limited