GMG profit rise 262% to EPS 2.13 cent

Dividend per share = 0.5 cent. (First time pay dividend )

Profit rise mainly due to higher rubber price and higher production volume.

Strong cash flow of $44 million.

Gearing = 0.18 x, expect net cash in 2007 if no major investment.

Director comment ?

 ?Behind our sterling results is a more revealing story of a global supply demand imbalance and the market readjustment of a fairer and rational price level for producers. Lower rubber prices and other factors during the late 1990s have led to a lack of aggressive new rubber plantings and more plantations being converted to oil palm. Rubber trees generally take seven years to mature, so new plantings that are currently underway can only be tapped in 2015. Coupled with growing demand from the emerging economies of China and India, we are likely to see strong rubber prices over the next 7- 10 years driven by strong fundamentals. Data from the International Rubber Study Group in 2006 showed that natural rubber is expected to face acute shortage towards 2010, as more supplies are only expected after 2015. These trends bode well for GMG and with our proven plantation management expertise, manufacturing capability and international experiences, we will seek to capture the right growth opportunities and expand our agro presence  ?