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STRONG growth in its overseas interior fitting-out projects jacked up Design Studio Furniture Manufacturer's first-quarter earnings to a record $4.3 million - more than two times the year-ago period's $1.69 million.
The premier furniture and interior fitting-out specialist's turnover for the January-March quarter rose 69 per cent to $22.67 million, from $13.41 million a year earlier.
Boosting the bottomline was a 55 per cent drop in general and administrative expenses, which helped lift profit from operations by 154 per cent to $5.0 million.
Bernard Lim, executive chairman and CEO, said the company had adopted strict control measures over the past year, while taking a cautious approach in seeking viable projects and marketing directives, and developing and creating value-added products & services with efficient pricing structure.
'The improvement in our sales and net profit for 1Q2009 validates the group's prudent approach,' he said.
In term of business segments, the first-quarter sales was largely centred on the interior fitting-out projects which surged ahead almost seven-fold to $14.8 million, thanks mainly to overseas hotel projects. Design Studio is confident that its residential property projects, though lower during the period, will improve when the projects in the group's order book roll out in the coming quarters.
The company recorded net cashflow of some $3.3 million from operating activities, and had a cash balance of $33.0 million which translated to a cash per share of $0.13. The company had an order book of $313 million.
Mr Lim added: 'We do not foresee the current global downturn to pose immediate impact on the group's performance in FY2009, and we are cautiously optimistic that the group will remain profitable for FY2009 barring any unforeseen circumstances.'
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