F J Benjamin, the purveyor of designer fashion labels and luxury watches, says it posted a net profit after tax of $8.3 million for its financial year ended 30 June 2010 (FY10), reversing a $2.7 million loss a year.

The turnaround was helped by the economic recovery in the second half which fuelled consumer spending and boosted sales across the group’s regional markets, says F J Benjamin.

The increase was also partly due to a favourable foreign exchange gain of $4.4 million compared to a loss of $3.7 million a year ago. Excluding the foreign translation difference, operating profit stood at $5.0 million as compared to $5.3 million in FY09.

Group turnover declined 4% to $289.4 million in FY10 from $299.9 million last year, weighed down by weaker consumer sentiment in the first half ended 31 December 2009. Group turnover in the first half fell 13% before rebounding in the second half by 9%, in line with improved sentiment.

The group’s fashion business for the year under review declined by 3% to $197.0 million in FY10 while sales for timepieces eased 3% to $91.5 million.

Gross profit margins increased to 41% from 40% a year ago.

The directors have recommended a first and final dividend payout of two cents per share (tax-exempt one-tier) for FY10 which will total $11.4 million.