AKO22 Sep 2008 11:48
Arko release interim results. See below :
22-SEP-2008 09:12
LONDON (Thomson Financial) - Arko Holdings Plc. said it sees a stronger second half for the current year as throughput and turnover in the shipping business have increased but pressure on gross margins is likely to remain in the short term should fuel prices remain at current levels.
The AIM-listed company said it is cautious on operating profit margins for the business as a whole on account of a new labour law in China, its area of operation, and 'inflationary pressure' but if trading continues at existing levels, Arko expects to deliver 'a satisfactory outcome' for the current year.
In the six months to June Arko's profit after tax amounted to $592,000 against $466,000 a year earlier on sales of $6.33 million in the first half of 2008 against $6.08 million a year earlier.
The company also said it sees a delay in delivery of the new 45-tonne quayside container cranes because of delays in agreeing to terms for the lease finance.
The company said it is negotiating with the supplier to find payment alternatives in the event that lease finance cannot be found in time. 'We expect the first crane, costing $2.1 million, will be funded by internally generated cash and it will be delivered by end of the year 2008,' the company said.
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