CAMK.L Regulatory News (CAMK)

Camkids Group plc

("Camkids" or the "Group")

Trading Update

Camkids Group plc (AIM: CAMK), a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, footwear and equipment for children and teenagers, is pleased to give the following positive trading update for the year ended 31 December 2013.

The Board expects the Group to report results in line with market expectations for the financial year ended 31 December 2013. As such, revenues and post-tax profits for 2013 are anticipated to show growth of more than 14% over the prior period. The Group remains highly cash generative with a cash position at the year end of RMB313.4 million(2012: RMB130.8 million). Additionally, the Board is encouraged to report on its strong forward order book, supported by a successful Spring / Summer seasonal sales fair held in Q4 2013. As at 31 December 2013, the H1 2014 order book was more than 7.0 per cent. ahead of the H1 2013 order book.

The Board is pleased to report on the Group's successful initial expansion into certain fast growing tier three and tier four cities in China. The number of Camkids branded stores has increased to 1,285 and, as previously announced, this expansion will be supported by the Group's two additional distribution partners in Shanghai and Anhui. Furthermore, in December 2013, the Group's strong brand position as a leading outdoor sportswear and footwear provider to the Chinese children and teenage market was reaffirmed when the Group's Chairman, Zhang Congming, received one of Brand China's 'People of the Year' Awards. In January 2014, the Group was also recognised by Asia Brand Association as the Top Brand in China for 2013.

Camkids held its Autumn / Winter 2014 sales fair between 20 and 24 February 2014. This is the first time the fair was held in Beijing, as it had previously been held at the Group's manufacturing facility in Fujian province. The Board is pleased to report that the sales fair was extremely well attended and initial feedback on the product range has been encouraging. The fair in Beijing was held at a time to coincide with an important industry trade show, the ISPO Beijing 2014 China Kids Outdoor Development Forum. At the trade show, Camkids' Sales and Marketing Director, Mr Hong Qinming, presented on the topic of how a local children's brand positions itself in the Chinese market.

The Group has worked to progress its e-commerce business during the period, and has formed strategic partnerships with platforms including Taobao and JD.com. Whilst still in its initial stages, the Board is pleased with the progress being made on these platforms.

Zhang Congming, Chairman and Chief Executive Officer of Camkids Group plc, commented: "The Board is pleased to be able to report that our 2013 results are in line with market expectations, which themselves are significantly ahead of the Group's performance in 2012. We took a prudent approach in updating the market when we issued our interims in September 2013 and it is particularly pleasing that our order book has continued to grow robustly despite the challenging conditions experienced by some of our competitors.

"Last September we declared a maiden interim dividend of 2.3 pence per share reflecting the Board's confidence in Camkids. Our intention is to maintain a progressive dividend policy and we anticipate announcing a final dividend at the time of the announcement of our Preliminary Results.

"The Group's strategy to focus on growth areas is progressing well, as indicated by the positive headway currently being experienced as Camkids begins to expand into a number of China's tier three and tier four cities. The Board views the current financial year with confidence and optimism and looks forward to further updating the market when the Group reports its Preliminary Results."

Camkids will be announcing its Preliminary Results for the year ended 31 December 2013 in mid April 2014. Further details of the exact date of the release of the Group's results and the arrangements for the analyst briefing will be announced at the appropriate time.

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Notes to Editors

Camkids is a leading Chinese designer, manufacturer and distributor of branded outdoor clothing, footwear and equipment for children and teenagers.

Based in Fujian province in China, the Group focuses on teenage sportswear for outdoor activities, combining functionality and innovation. The products are mid-range price based, targeting mid and high range markets within China.

The three main product areas are:

· Camkids outdoor clothing - all weather jackets, waterproof trousers, shirts, tops and T-shirts, woollen sweaters, jeans, trousers shorts and skirts;

· Camkids footwear - hiking boots, outdoor leisure footwear, flip-flops, sandals and boots

· Camkids equipment and accessories - telescopes, backpacks, technical packs, tents, sleeping bags, headgear, caps, kettles, headlights and torches.

The Group designs its entire product range and manufactures the majority of its footwear. Outdoor apparel and accessories are currently manufactured by third party OEMs.

Camkids' primary route to market for the sale of its products is through its network of distributors. The Group has established an extensive distribution network across 29 provinces, 4 municipalities and 5 autonomous regions within the PRC and is successfully expanding its presence in tier 3 and tier 4 cities. The Group has 17 authorised distributors operating over 1,285 franchised retail outlets, and is in the early stages of developing an online e-commerce platform to target online retail.

Camkids has received a number of prestigious awards. In January 2014, the Group was recognised by Asia Brand Association as the Top Brand in China for 2013 and one of the top ten Industry Customer Satisfaction Brand's. The Group's Chairman also received one of Brand China's 'People of the Year' awards.

For more information please visit www.camkids-ir.com.