4th Feb 2015 08:22
LONDON (Alliance News) - Camkids Group PLC on Wednesday said it expects its results for the year to miss market expectations after a number of orders were cancelled in December, exacerbating existing problems the company was facing from the weaker economic environment in China.
The China-based children's clothing company warned in November that its distributors were adopting a cautious approach on 2015 owing to the macroeconomic backdrop in China and the fall in consumer spending in the country.
Following that warning, certain distributors for Camkids requested the postponement or cancellation of some orders totalling CNY79 million.
As a result of the order cancellations, the company expects its net profit after tax for the year to December 31 will be around 12.5% below market forecasts.
Due to the problems, the company is keeping a tight grip on its costs for 2015. This will mean that construction on a new facility in China, which had been due to start in early 2015, will be delayed while the company evaluates cheaper alternatives.
The company also noted the recent fall in its share price and claims it is currently undervalued. Shares in the company are down 33% in the year to date and have fallen 82% in the past 52 weeks. It was untraded on Wednesday morning, having last traded at 15.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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