FURNITURE

East Coast Furnitech (ECF) plans a listing on the Market for Alternative Investment (MAI) by March, with an aim to be the first furniture company to list in decades.

The company seeks to increase sales by 20% this year to 1.1 billion baht.

Managing director Arak Suksawad said ECF will raise its capital to 130 million baht from 100 million by issuing 120 million new shares with a par value of 25 satang each.

Asset Pro Management is the financial adviser.

Of ECF's output, 70% is exported to Japan, the US, Britain and Asean.

Sales usually grow by 5-10% annually, but this year's growth is projected at 20%, with demand from Japan and other foreign markets set to rise.

Due to fluctuating currencies, ECF plans to balance exports and domestic sales equally by next year.

Under the plan, the company will expand its domestic sales upcountry.

ECF products are now sold through retailers in in and around Bangkok such as HomePro, Index Living Mall and Tesco Lotus.

The firm has currency hedging in place, so the impact will be minimal if the baht rises to no more than 28 baht to the US dollar.

The company also plans to invest in new machinery to the tune of 300 million baht, hoping to boost output and cut labour costs.

Mr Arak said listing the firm will help cut financial costs and increase creditability and work efficiency.

ECF achieved revenue of 824 million baht in 2009, 962 million in 2010 and 998 million in 2011 for net profits of 25 million, 320,000 and 26.1 million, respectively.

Revenue and net profit for the first nine months of last year stood at 768 million and 29 million baht.