London (Thomson Financial) – FoaMasters International Ltd. reported a higher full-year pre-tax profit, despite some challenging operating conditions in the second half and said it remains confident of further growth in 2008. The China-based foam products maker said for the full year to the end of December its pretax profit increased to 8.9million pounds from pro-forma 6.65 million a year ago and revenues rose 42 percent to 102.6 million pounds. It said although it has plans to grow organically, it will consider acquisition and investment opportunities.

Foamaster International    
Year Ended : 31 December    
Fig in $,000 and cent (c), unless otherwise state 2007 2008
Turnover 102,620 72,165
Operating Profit 9,118 6,455
Pretax Profit 8,887 6,445
EPS Basic & Dilluted $0.10 $0.07
Dividend nil n/a

Financial Highlights:

  • Strong year on year growth in revenue and profits.
  • Revenue up 42% to $102.6million (2006: $72.2million)
  • Gross profit up 43% to $16.7 million (2006: $11.7million)
  • Profit after tax up 44% to $7.9 million (2006: $5.5 million)

Operational Highlights:

  • Successful penetration of North-Eastern Chinese markets through the commissioning of its ninth factory in Zhejiang province.
  • Secured a ten years exclusive technology license for its environmentally friendly recycled flexible polyurethane foam powder.
  • Commissioned its first recycled foam powder production facility in Heshan, China and successfully launched a range of environmentally friendly foam products.
  • Production output up 38% to c. 36,000 metric tonnes (2006: c. 26,000 metric tonnes)
  • First polyurethane foam factory in the world to be accredited by SATRA for its laboratory testing facilities.
  • Secured loan/trade re-financing circa US$31 million
  • Awarded ISO 14001 for its Environment Management Standard
  • Completion of a successful IPO on AIM in December 2007

London (Dow Jones) FoaMasters International Monday reported a pretax profit of $8.9million for the year ended Dec, 31, 2007, compared to a profit of $6.7 million in 2006.

The company said whole 2007 was a great year for many businesses in Asia, the mortgage and credit crunch crises unravelling in the second half of 2007 have brought about a degree of uncertainty in some of its market, particularly in the West.

However, the Board remains confident that 2008 will be a period of further growth for the Group. Added Teh Kim Seng, Chairman.

(Source: Dow Jones, 7th April, 2008)