Li & Fung Limited reported revenues for the year ended December 31 was HK$110.7 million ($14.2 million), a 20% increase from last years numbers.
The company said the strong growth in revenues reflects its organic growth and the flow of outsourcing deals and acquisitions. The companys operating profit fell 3% to HK$3.1 million ($395,378), while profit attributable to investors fell to HK$2.4 million ($310,508), a 21% decline from the year-ago period. Earnings per share were HK 69 cents (90 cents), a decrease of 23% compared to HK 90 cents, (12 cents) in the year-ago period.
Management noted that bottom line figures were affected by one time events, including restructuring costs largely related to the U.S. onshore business, start up costs incurred for the European onshore business, certain provisions made due to a small number of customer bankruptcies in 2008, and a one-time gain from disposal of property holding subsidiaries in 2007 which was absent from the 2008 accounts.
According to management, the company has been successful in further diversifying its business geographically with turnover from Europe growing to 29% in 2008 from 26% in 2007. Management also remained optimistic about its European onshore business, which the company began to develop in 2008.
The board of directors has proposed a final dividend of HK 33 cents (9 cents) per share, as compared to HK 50 cents (14 cents) last year. The total dividend per share for 2008 was 57 cents (16 cents) per share.
Management said consumer sentiment has been very weak, but the company has gained market share through an accelerated flow of outsourcing deals, which includes Timberlands apparel business.
