AV Concept 2010 profit up 58.3% to HK$121.9mn

The company strives for upstream development and investment in consumer electronics products and LED businesses.

Leading electronic components distributor AV Concept Holdings Limited (“AV Concept”) on Monday announced its annual results for the year ended 31 March 2011.

During the year under review, the Group recorded a 18.3% increase in turnover to HK$2,909.1 million (2010: HK$2,457.7 million). The Group also achieved net profit of HK$121.9 million (2010: HK$77.0 million), representing a year-on-year increase of 58.3%, boosting by the overall improvement in operations and increase in fair value on equity investments. The Group’s

EBITDA (i.e. earnings before interest, tax, depreciation, amortisation and non-cash items) surged by 121.9% to HK$141.4 million as compared to HK$63.7 million last year. The increase, was attributed to improvement in sales from the semiconductor distribution and consumer electronics businesses.

The Board of Directors recommended payment of a final dividend of HK 4 cents (2010: HK 4 cents) per share. Together with the interim dividend of HK 3 cents (2010: HK 3 cents), the total dividend for the year amounts to HK 7 cents (2009: HK 7 cents) per share, according to an AV Concept report.

Mr. So Chi On, Chief Executive Officer of AV Concept, concluded, “AV Concept turned a new page in 2010 with a clarified development direction and strategy. With stable and sustainable organic growth from the solid foundation of the semiconductor distribution business, the Group will also strategically strive for upstream development and investment in consumer electronics products and LED businesses, which offer a promising growth potential and ability to enhance the profitability of the Group. The management’s vision of delivering high quality products and creating a more advantageous position for its businesses remains unchanged, and will be the basis for enhancing shareholder value in coming years.”