Modernform Group foresees growth of 15-20 per cent in its annual sales revenue thanks to an improvement in the economy and consumer spending.
The company has set its sales-revenue target at Bt2.8 billion for this year, Bt3.22 billion for 2011 and Bt3.55 billion for 2012, chief executive Thaksa Busayapoka said. Modernform has already recorded sales revenues of Bt1.24 billion in the first half of this year.
He said the demand for furniture was expected to increase in line with economic recovery in the next three years. Modernform is aiming for its net profit this year to grow to Bt407 million from Bt299 million last year and will start looking for new clients in the second half of this year.
It will still aim for new residential developers, he said, adding that Modernform had already secured a contract from AP to supply furniture to its Life condominium projects.
Condominium projects, which include residential and office developments, account for 80 per cent of the contracts this year compared with last year's 75 per cent. The rest of the revenue comes from retail sales.
Modernform's contracts in hand are worth Bt1 billion and it should start realising revenue from them from the third quarter of this year to 2013. Half of the contracts come from residential projects, while the rest cover office interiors, as well as bath, kitchen and home decoration.
The domestic market represents 95 per cent of Modernform's portfolio, with 37 per cent of the revenue coming from offices, another 37 from the residential sector and 21 per cent from home decoration.
Thaksa said the company was considering further expansion once it sells its stake in Interface Modernform to Interface Overseas Holding. Modernform will also set up a large warehouse near its manufacturing facility to serve the rising demand.