Textile company Fountain Set has reported a drop in profits to HK$186.8m (US$24m), a 14.4 per cent drop for its year end profits.

The company have blamed a rise in operating costs, including a rise in the price of oil, for the downward trend.

The rise in operating costs also included demands from retailers for shorter ordering times, cutting down on the number of inventories being held.

Turnover at the company has increased by 9.6 per cent at HK$4.1bn.

Fountain Set is planning to invest HK$250m over the next two years in equipment to build steam and electricity generation facilities in its manufacturing plants.