29th Jun 2016 16:17
LONDON (Alliance News) - GTS Chemical Holdings PLC late Wednesday said it delivered an impressive financial performance in 2015 but the company did not propose a dividend as it is hoping to delist from AIM.
The speciality chemicals and lubricating oil producer, and China's largest producer of ammonium sulfite, reported a rise in pretax profit to CNY137.6 million in 2015 from the CNY102.4 million profit reported in 2014, as revenue increased to CNY929.9 million from CNY704.6 million.
Gross profit was up to CNY196.2 million from CNY148.7 million, with the margin flat at 21.1%, and although administrative and selling costs increased, as expected, operating profit was up to CNY147.2 million from CNY109.0 million.
The rise in revenue has come from increased production capacity across certain areas of the business, including a new lubricant oil production plant which more than doubled capacity.
GTS Chemicals is aiming to delist from AIM, and therefore has not proposed a dividend for the year.
"The primary purpose of the company's Admission was the opportunity it provided to raise capital in support of the company's growth prospects," said GTS.
"Given current market conditions, and in particular the lack of investors for businesses operating in the People's Republic of China, the directors are of the opinion that it is difficult for the company to attract any or meaningful equity investment through its listing on AIM and accordingly the directors will be assessing potential alternatives to raise growth capital," said the business.
GTS shares were untraded on Wednesday, last traded at 48.0 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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