29th Apr 2015 11:00
LONDON (Alliance News) - Aquatic Foods Group PLC Wednesday said that trading in the first quarter of 2015 has started well and significantly above 2014, as it posted a rise in pretax profit for 2014, its first results since listing on AIM in February.
The company posted a pretax profit of CNY181.9 million, up from CNY153.6 million in 2013, as a rise in revenue to CNY856.1 million from CNY667.3 million offset costs of CNY7.8 million related to its listing on AIM.
Revenue from fish products were up 29% compared to the previous year and revenue from cephalopods rose 48%, as the company increased management focus following "disappointing" sales in the previous year. Revenue from sea cucumbers rose 9.5%, although this was held back by the Chinese government's anti-corruption policy putting pressure on the giving of high-value gifts such as sea cucumbers.
Other revenue was up 52% on the back of strong sales of gift boxes, Aquatic Foods said.
Revenue in its first quarter to end-March is up 25% compared to the previous year, Aquatic Foods said, with growth achieved in all of its product categories.
The company expects its current production facilities to reach full capacity by the end of the year, and whilst it could outsource elements of its product, it is continuing to look at ways to expand its capacity including expanding to an additional site or acquiring an existing factory from a third party.
It said with its current cash resources, the funds it raised at its initial public offering, and positive trading cash flow, it is sufficiently funded to continue its expansion.
"Aquatic Foods' successful listing on AIM has enhanced our corporate profile, which provides confidence to both suppliers and end customers within the Chinese market, particularly as these customers are becoming increasingly concerned about food hygiene, safety and quality. This further strengthens our ability to capitalise on the increasing demand for high quality marine foods and seafood products in the People's Republic of China," said Chief Executive Li Xianzhi in a statement.
Shares in Aquatic Foods Group are trading up 18% at 52.88 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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