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Trading Update and Change of Broker

30 Apr 2014 07:00

RNS Number : 8033F
Sorbic International PLC
30 April 2014
 



 

Press Release

30 April 2014

 

Sorbic International Plc

 

("Sorbic" or the "Company")

 

Trading Update

and Change of Broker

 

Sorbic International plc (AIM:SORB), a leading high quality sorbates producer in China, today gives the following update on trading, and also announces the appointment of Hybridan as sole broker.

 

The Board is pleased to report that trading for the six months to 31 March 2014 has been strong. As indicated at the Company's Annual General Meeting in February 2014, revenue for the three months to 31 December 2013 showed an increase of 5% over the same period in 2012, and the Board is pleased to report that revenues have continued to increase and are expected to show a 7% uplift for the six months to 31 March 2014. Trading has gone well to February 2014, and as anticipated this weakened over the Chinese New Year period, although trading for this period was an improvement over last year. Overall gross margin improved significantly when compared to the first half of 2013.

 

Whilst the business continues to perform well, the Company remains reliant on transferring funds out of China, or raising additional capital, to meet the ongoing costs of Sorbic International plc. As at 31 March 2014, the Company had in excess of £6 million in its bank in China.

 

In respect of Sorbic's negotiations in Inner Mongolia, the Company is now engaged in detailed discussions within an agreed framework and will provide a further update as these negotiations develop.

 

Sorbic also announces today that it has appointed Hybridan LLP as sole broker with immediate effect.

 

John Mclean, Non-Executive Chairman of the Company, said: "The Company has performed well for the six month period to 31 March 2014. The Board is pleased to report further improvements in revenue and gross margins since December and we look forward to providing a fuller update at the Company's interim results in June."

 

- Ends-

 

 

For further information:

Sorbic International plc

Tel: +44 (0) 7768 031 454

John McLean, Chairman

www.sorbicinternational.com

finnCap, Nomad

Geoff Nash / Ben Thompson

Tel: +44 (0) 20 7600 1658

Hybridan, Broker

Claire Louise Noyce

Tel: +44 (0) 20 7947 4350

 

Media enquiries:

Abchurch Communications

Joanne Shears / Canace Wong

Tel: +44 (0) 20 7398 7714

canace.wong@abchurch-group.com

www.abchurch-group.com

 

Notes to Editors: www.sorbicinternational.com

 

About Sorbic International plc

Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China, of which more than half is sold outside of China.

 

Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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