Farsons announces improved turnover and profits

The Farsons Group said today that its turnover increased by 5% to exceed €70 million last year  while, profit before tax exceeded €5 million compared to €4 million in the previous financial year, an increase of 25%. Norman Aquilina, CEO, said that despite the increased competitive pressures, the group managed to increase its turnover by over €3 million, partially as a result of an increase in exports’ turnover.  Nonetheless, increased competition and the rising costs of raw materials eroded margins.  The selling, distribution and administrative cost ratio to turnover narowwed marginally, resulting in a stable operating profit compared to the 2010. The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the financial year under review exceeded €11 million while the shareholders’ funds, at €88 million finance 59.6% of the group’s total assets.  The gearing ratio, that is, the ratio of debt on the total debt and equity at year end remains strong at 27.22%. With regard to the current financial year, the group highlighted the dependence of the its business on local consumer confidence and the state of the tourism industry. "Inflationary pressures on...