With a land area of 10,236 square feet, the location currently houses one of the company&rsquo s tyre retail outlets

 

[SINGAPORE] Tyre and wheel distributor Stamford Tyres (Stamford) has put its commercial property at 455 MacPherson Road up for sale.

 

According to a listing on CommercialGuru, the property is being marketed at a starting price of S$12.5 million.

 

In response to queries from The Business Times, a Stamford spokesperson said: &ldquo (Our) senior management assesses it is best to unlock value from the MacPherson site and use the sales proceeds to re-invest in our core distribution businesses and to consider new projects.&rdquo

 

Stamford has faced recent difficulties as costs have expanded, despite revenue increasing slightly.

 

On Aug 29, it reported a sharp drop in profit of 84.7 per cent or S$5.1 million to S$921,000 for the financial year ended April 2025, although revenue was up 1.5 per cent or S$2.9 million to S$193.2 million. 

 

&ldquo We are not downsizing. In recent years, Stamford Tyres has opened three new retail outlets &ndash Serangoon Gardens, Dunearn and Sin Ming &ndash as part of our ongoing strategy to upgrade and refresh our retail services network, in order to stay competitive,&rdquo said the spokesperson.

 

&ldquo Multi-storey&rdquo redevelopment possible

Sited at the T-junction of MacPherson Road and Kampong Ampat, the property being put up for sale currently houses one of the company&rsquo s tyre retail centres, which is still in operation.

 

The Stamford representative said that the outlet could possibly continue operations by leasing the premises from the new owners, and that the company was open to exploring options.

 

It is zoned under B1 light industrial use with a gross plot ratio of 2.5, with a land area of 10,236 square feet (sq ft). The site includes a two-storey building with a gross floor area of 7,382 sq ft. Stamford noted that the site can be redeveloped into a &ldquo multi-storey building&rdquo . 

 

The site has a 99-year lease tenure from JTC, which began on Apr 1, 1965, with a balance of 39 years. Stamford added that it was unable to comment on any possible extension of the lease, as that would be subject to approval by authorities. The site is on a list of major properties in Stamford Tyres&rsquo 2025 annual report, which indicates it has been held by the company since 2001.

 

Stamford Tyres owns 14 retail outlets, including two service outlets situated within Caltex service stations. Its operations in the Republic contribute the largest proportion of its revenue, or 42 per cent. It also has operations in Malaysia, Indonesia, Vietnam, Thailand and South Africa, and a factory in Thailand.

 

For its financial year ended April 2025, costs rose 4.9 per cent or S$8.9 million to S$192.2 million from S$183.3 million, mostly due to an increase in cost of goods sold and other operating expenses.

 

The group attributed the increased operating costs to higher freight charges, more stringent import quotas, and anti-dumping duties.

 

Operating expenses increased by 3.9 per cent, rising to S$51 million from S$49.1 million in the previous year. This rise was primarily attributed to higher operating costs, increased depreciation and greater lease expenses, that were partially mitigated by lower outlays on staff, marketing, utilities and repairs.

 

In late 2024, Stamford&rsquo s founder Wee Kok Wah passed away.

 

His father, Wee Boon Kwee, started the business as a petrol station and tyre shop on Stamford Road in the 1930s. The younger Wee renamed the business as Stamford Tyres and brought the company public in 1991

Revenue falls 1.2% to S$94.5 million but other expenses shoot up 89.6% to S$2.9 million 

 

TYRE and wheel distributor Stamford Tyres : S29 0%reported a 75.1 per cent decrease in net profit for the half-year ended Oct 31 to S$401,000 from S$1.6 million in the previous corresponding period.

 

This was attributed to a decrease in revenue and increases in various expenses, said the company in a bourse filing on Friday (Dec 13) evening.

 

Revenue decreased 1.2 per cent to S$94.5 million primarily due to lower sales in the South-east Asia market, which is the company&rsquo s largest geographical segment.

 

Gross profit margin remained relatively stable at 25.3 per cent, compared to 25.6 per cent in the previous corresponding period.

 

Stamford Tyres attributed this to the lower write-back of provision for inventory obsolescence from the sale of slow-moving stocks previously provided for. This cost was S$1.6 million in this half, compared to S$200,000 in the previous corresponding period.

 

The other significant change in costs were marketing and distribution expenses, which dropped 10.4 per cent or S$364,000.

 

On a per share basis, earnings fell to 0.17 Singapore cent from 0.68 cent.

 

No interim dividend for the half-year was recommended.

 

For the next 12 months, the group noted that the tyres business remains &ldquo challenging as a result of intense competition and major geopolitical and macroeconomic events globally&rdquo .

 

It will continue to improve its product mix, manage operating costs and build on its core markets in South-east Asia to mitigate this.

Wife of founder becomes executive chairman, ex-SPH veteran Christopher Tan joins board 

 

SAM Chong Keen, chairman of the board of Stamford Tyres : S29 0%has stepped down, with two individuals appointed to new positions on the company&rsquo s board of directors.

 

The mainboard-listed tyre and wheel distributor announced the changes on Nov 1.

 

Sam will continue as non-executive, non-independent director of the company and member of the audit and remuneration committees. He was appointed as independent director of the company in 1994 and non-executive chairman in 2012.

 

The company did not elaborate on the reasons for the change.

Dawn Wee has been appointed as executive chairman. She was previously executive director and is the wife of Stamford Tyres founder Wee Kok Wah, who died in October.

 

The company said that the board has taken into account her experience and capabilities, familiarity and involvement in all aspects of the business, and extensive knowledge of and longstanding relationships with stakeholders in the tyre industry.

 

The company has also appointed a new, non-executive independent director, Christopher Tan.

 

Tan was a veteran SPH journalist, last serving as senior correspondent covering transport at The Straits Times until his retirement in July 2024. He joined SPH in 1983. He holds a Master&rsquo s Degree of Science in Urban Transport Management from the Singapore University of Social Sciences, and is also an associate lecturer at the university.

 

The company said that Tan will &ldquo contribute to the core competencies of the board, as well as provide a different perspective on board discussions&rdquo , and that his appointment will also enhance the independent element of the board.

 

Sam and Wee&rsquo s appointments came into effect on Nov 1, while Tan&rsquo s appointment begins from Dec 1, 2024.

 

Wee Kok Wah, the founder and senior advisor of Stamford Tyres S29 , has died on Oct 21. 

 

Wee has been at the helm of the group since he took over from his father as its managing director and president in the 1970s. 

 

Since the group&rsquo s public listing in 1991, Wee &ldquo steadily expanded its business into a global international player in the distribution and retailing of tyres and wheels, and the manufacturing of wheels&rdquo , says Stamford Tyres in its announcement. 

 

Despite stepping down from the board of Stamford Tyres on Nov 1, 2021, Wee stayed on as the group&rsquo s founder and senior and provided guidance and course to the board. 

 

Stamford Tyres adds: &ldquo Highly-regarded in the tyre industry and the business world, his passion for and in-depth knowledge of the tyre business gained him international recognition.&rdquo  

 

In its announcement, the board of Stamford Tyres expresses its gratitude for Wee&rsquo s contributions, service and commitment, which has &ldquo made a significant difference to the Group on the charting of its strategic directions and business&rdquo . 

 

STAMFORD Tyres posted a 24.5 per cent drop in net profit to S$1.6 million for its first half ended Oct 31, 2023, from S$2.1 million in the previous corresponding period.

 

This was mainly due to lower sales and gross profit margin, which was chipped away by the higher tyres and wheel production costs, said the tyre and wheel distributor in a bourse filing on Thursday (Dec 14) evening.

 

Earnings per share stood at 0.68 Singapore cent for the first half, down from 0.90 Singapore cent the previous year.

 

Revenue for H1 fell 1.4 per cent to S$95.6 million, from S$97 million a year earlier. This was primarily due to lower sales in the South-east Asia and export markets, said the company.

 

No dividend was declared for the half year, unchanged from the year before. Instead, the declaration of dividends will be determined at the end of the financial year.

 

&ldquo The global economic outlook remains challenging,&rdquo said Stamford Tyres executive director Wee Li Ann. To address this, the group has &ldquo deployed resources and implemented strategies to diversify its product offerings to adapt to the ongoing market changes&rdquo .

The group will also focus on improving its sales productivity and upgrading &ldquo value-added segments&rdquo such as the Stamford Tyres Mall retail chain and truck centres.

HIGHER sales across South-east Asia helped mainboard-listed Stamford Tyres more than double its net profit to S$2.1 million for H1 ended October, from the S$696,000 profit in the year-ago period.

 

The tyre and wheel distributor&rsquo s H1 revenue was 10.2 per cent higher at S$97 million with the higher sales. However, this was partly offset by a 3.6 per cent rise in total operating expenses to S$26.1 million, as a result of higher costs for staff, marketing and distribution, finance expenses and foreign exchange.

 

Gross profit margin came in lower at 26.3 per cent for H1, compared to 27.6 per cent in the year-ago period. This was mainly due to the higher cost of producing tyres and wheels.

 

Founded in the 1930s, the company has distribution centres in Singapore, Malaysia, Thailand, Indonesia, Hong Kong, India, Australia, South Africa and Vietnam. Its core business is in distributing the tyres of brands including Falken and Dunlop. It also has its own proprietary brands Sumo Firenza, Sumo Tire and SSW Wheels.

 

Executive director Wee Li Ann noted that the global economic outlook remains challenging. To adapt, Stamford Tyres has implemented strategies to diversify its product offerings.

 

&ldquo We will continue to focus on growing our sales of car tyres and SSW Wheels, as well as truck tyres and mining tyres. We are also focusing on improving our sales productivity and upgrading value-added segments such as Stamford Tyres Mart retail chain and truck centres,&rdquo she said.

MAINBOARD-listed Stamford Tyres on Monday posted a net loss of S$4 million for FY20, reversing from a humble profit of S$474,000 a year ago.

 

This was due to a one-time expense relating to the closure of a loss-making operation in Australia in Q2 FY20, as well as higher allowance for doubtful receivables as a result of delayed and non-payment of trade receivables due from customers because of Covid-19 (among other reasons) the various government-imposed lockdowns in its key markets such as Malaysia and Thailand were also a factor.

 

A decline in revenue was also partly to blame. For its full year ended April 30, the tyre and wheel distributor' s revenue also fell 14.7 per cent to S$199.9 million, mainly due to lower sales in South-east Asia and the rationalisation of non-profitable operations in China and in Queensland, Australia. 

 

The group&rsquo s earnings per share decreased from 0.2 cents for FY19 to a loss of 1.7 cents for FY20.

 

Wee Kok Wah, president of Stamford Tyres, said: &ldquo To address the challenges arising from the global oversupply of tyres, intense market competition and uncertainties arising from the Covid-19 pandemic, the group has deployed resources and implemented strategies to diversify its product offerings to adapt to the ongoing market changes. We have also taken more steps to right-size our operations and this is reflected in the lowering of operating costs during the year.

 

" We will continue to focus on growing our sales of car tyres and SSW wheels, as well as truck tyres and mining tyres. We are also focusing on improving our sales productivity and upgrading value-added segments such as Stamford Tyres Mart retail chain and truck centres."

 

The directors have recommended a first and final dividend of 0.5 cent per share, halved from a year ago.

 

MAINBOARD-listed Stamford Tyres said in a regulatory update on Thursday evening that it is expecting to book a net loss for FY2020 ended April following a preliminary review of its draft unaudited financial results. 

 

The losses were primarily attributable to lower revenue arising from increased competition and oversupply in the tyre market, as well as a one-off expense relating to the closure of a loss-making operation in Australia in the second quarter. 

 

The company is also expecting higher allowance for doubtful receivables as a result of either delayed and unpaid trade receivables from its customers due to the various government-imposed lockdowns in key markets such as Malaysia and Thailand on the back of the ongoing Covid-19 pandemic. 

 

It said it is still finalising its financial results for FY2020, and added that further details of its financial performance will be disclosed upon announcement of its results on or before July 29. 

 

Last December, the company had sounded similar warnings about booking a net loss for both Q2 and H1 ended Oct 31, 2019.  

 

For FY2019, Stamford Tyres reported a 90.9 per cent plunge in earnings to S$474,000. This was due mainly to a 5.4 per cent decline in revenue to S$229.4 million on the back of lower sales in the company&rsquo s South-east Asia and North Asia markets. 

 

This had also resulted in the company&rsquo s earnings per share for the year falling to 0.2 Singapore cents from 2.2 Singapore cents in FY2018.