Designer Textiles profit jump puts spring into shares

Shares in fabric manufacturer and marketer Designer Textiles reached a five-year high yesterday as the company reported a profit of $3.26 million for the year to June 30.

That was up from an $11.6 million loss in the previous year.

Revenue rose from $57.99 million to $63.08 million.

Designer Textiles shares rose 9.6 per cent to close at 80c. They have risen 95 per cent this year.

During the year, the company reduced net borrowings from $11.941 million to $6.023 million.

"The reduction in net borrowings directly reflects a characteristic of this company and that is the positive operating cash flows, which were $6,132,000 for the year," said the company. "This compares with $3,565,000 last year."

Chief executive Philip Moller said the company had benefited from restructuring.

"The business plans implemented in all three business units are delivering the improvements targeted."

Sales growth was achieved in domestic and international markets. The increase in sales came from existing products and extended offerings, which had met with an enthusiastic response from customers.

"The strategies in place provide a sound basis from which further growth will be targeted," Moller said.

"The company is on a solid platform for future growth and by embarking on the strategies in place, these will result in increased net surpluses for shareholders in the future."