Tyre and wheel distributor Stamford Tyres Corporation reported a 833.2% rise in profit attributable to shareholders for the 12 months ended 30 April 2010 (FY2010) to $9.4 million from $1 million in FY2009.

Revenue increased 4.5% to $310.2 million on the back of increasing tyre sales for the group’s major and proprietary brands.

Gross profit remained flat at $66.5 million. Consequently, gross margin declined from 22.7% in FY2009 to 21.4% in FY2010. The slight decline was mainly due to the higher tyre purchase prices worldwide and lower sales from the group’s wheel plant in Thailand.

Despite the rising sales, the group says it kept a tight rein on cost and forex exposure. Operating expenditure decreased 16.3% y-o-y to $54 million, despite a higher provision for variable component of salaries and increase in manpower for its South Africa operations.

The group also enjoyed a $1.7 million forex gain versus a $5.8 million loss in FY2009, mainly due to the Indonesian Rupiah and South African Rand strengthening against the US dollar over the past 12 months.

“Looking ahead, market conditions remain challenging as tyre manufacturers continue to increase prices due to high costs of raw materials. Nevertheless, we will continue to optimise our product mix, manage our costs and increase productivity wherever possible,” says Wee Kok Wah, President & CEO of Stamford Tyres.

The board has recommended a final dividend of 1 cent.