Delta, British Columbia--(Newsfile Corp. - October 25, 2024) - Fab-Form Industries Ltd. (TSXV: FBF) ("Fab-Form®" or "Company") releases results for the year ended 30 June 2024. The Company experienced a decline in revenue both annually of 18% and quarterly of 27%, attributable to a significant reduction in housing starts. The Company controlled selling and marketing expenses in line with the drop in starts, however, general and administration expenses increased due to increased IT, research and development, and professional fees. Overall annual earnings before taxation decreased by 29% with tax expenses declining proportionally. Despite the fall in revenue, the Company showed a strong return on shareholders' equity of 16.8%.
Bracing, a significant revenue contributor, showed an annual decline of 14.4%, quarterly of 23.41%, reflecting the drop in housing starts in Canada and the USA. Fastfoot® showed more modest declines. Fast-Tube® showed exceptional growth, resulting from the improved fabric, a renewed marketing campaign including a dedicated Fast-Tube® website and online store. Nudura ICF form, the Company's largest revenue source, also suffered with a 40.0% drop in the last quarter.
Selling expenses for Fastfoot decreased more than sales, showing an improved marketing efficiency. Selling and marketing expenses for Zont bracing decreased in line with sales.
The year's cash flow from operations was $1,371,410. Cash and cash equivalents were $1,547,112 at year end. Short-term investments of $2,557,517 achieved excellent returns and remained accessible for operational needs. During the year, exposure to the US Dollar was reduced by conversion to Canadian dollars at peak rates.
Total number of fully and diluted shares as of the 25 October 2024 was 9,174,507 (30 June 2024: 9,174,507)
For comprehensive information on the financial statements, visit the company's website at https://www.fab-form.com/investor/financials.php, or Sedarplus at www.sedarplus.ca.
Update on new products
Both Level-R® and Monopour HD® prototypes have been finalized and commercial production began in October 2024. These will be showcased at the World of Concrete, booth N568 in Las Vegas, Nevada, in January 2025. Long run annual demand for Level-R® is estimated at 60,000 pairs.
Fab-Form is designing and manufacturing production machinery to enable full automation, with double turret unwinding, triple tension zones, and automated rewind. The reduction of production costs is essential to compete in world markets.
On the 11th July 2024, the company applied for a US patent for a column stirrup product, trademarked as SPACE-R®. The company is developing manufacturing machinery to show prototypes at the World of Concrete.
For comprehensive information on the product update, visit the company's website at https://www.fab-form.com/investor/financials.php, or Sedarplus at www.sedarplus.ca.
About Fab-Form
Fab-Form Industries Ltd., located in Vancouver, BC, Canada, is recognized as a prominent manufacturer of concrete forming products. The company was founded in 1986 and has been dedicated to creating and commercializing sustainable and efficient foundation products for the building industry. Fab-Form has been listed on the TSX Venture Exchange (TSXV) under the symbol FBF since 1999.
Forward-Looking Statements
Some statements contained in this news release constitute "forward-looking statements" as is defined in applicable securities laws. These statements include, without limitation, the success of developing, manufacturing, and distributing new products and other similar statements concerning anticipated future events, conditions, or results that are not historical in nature, and reflect management's current estimates, beliefs, intentions, and expectations. These statements do not guarantee future performance. The Company cautions that all forward-looking information is inherently uncertain, and that actual performance may be affected by several material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to product development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in product performance; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; the uncertainty of capturing market share and other risks and uncertainties. Accordingly, actual future events, conditions, and results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in the forward-looking information. These statements are made as of the Report Date and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For additional information please visit: www.fab-form.com
SEDAR: www.sedar.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227940
