SINGAPORE (June 27): Stamford Tyres posted a 51.9% surge in earnings to $2.6 million for FY2016.

For the full year to April, revenue fell by 17.5% to $242.2 million, on the back of lower sales in some markets.

However, gross profit margins rose by 2.6 percentage points to 24.7% from the value added activities at its Stamford Tyres Mart retail chain and truck tyre centres, as well as lower cost of sales.

Operating expenses fell 6.1% to $58.2 million, on lower marketing and distribution costs, salaries and foreign exchange costs.

Furthermore, the group also recognised a higher share of profits of joint ventures of $1.8million, compared with the share of profits of $0.1 million in FY2015.

Stamford Tyres says its operating environment is expected to be challenging given the uncertain global economic outlook, and will continue to optimize its product mix, manage operating costs and build on its core markets in South East Asia.

The group has also declared a final dividend of 1 cent for the full year.

Stamford Tyres’ shares closed lower at 26.5 cents on Monday.