23rd Jul 2015 07:40
LONDON (Alliance News) - GTS Chemical Holdings PLC Thursday said revenue increased by more than a third in the first half of the year as both its main divisions experienced substantial growth as the company continues its expansion plans.
The Chinese chemical, oil and recarburizer business said revenue for the first half of 2015 will come in at around CNY415.4 million, a substantial rise from the CNY309.0 million generated a year earlier.
Its speciality chemicals business, which sells liquid ammonium sulphite and ammonium sulphite to the pulp and paper industry, among others, reported a 31% rise in revenue in the first half to CNY280.1 million from CNY214.2 million whilst its lubricant oils business saw revenue rise 61% to CNY101.0 million from CNY62.8 million.
The balance of revenue came from its smaller, non-core recarburizer business which experienced a 7.5% lift in revenue to CNY34.3 million from CNY32.0 million.
The overall revenue growth of 34.5% is just shy of the 40% revenue growth reported in the whole of the 2014 financial year. Back in June, Non-Executive Director Derek Welch told Alliance News he expected that 40% growth rate to continue throughout the whole of 2015.
GTS Chemical is currently expanding its production capacity of both speciality chemicals and lubricant oils. It is currently installing a new speciality chemical line which will come online in the third quarter which will lead to production increasing to 480,000 tonnes per year compared to the current 300,000 tonne level.
It has also purchased a new plot of land opposite its existing facilities, where it plans to construct a new lubricant oil plant. GTS Chemical said this is also progressing well and is expected to be completed before the end of 2015.
"I am delighted that the group continues to build upon its strong start to the year. GTS's main business divisions continue to perform in line with expectations with the group's outlook for the full year remaining unchanged," said Chief Executive Cheng Liu.
Despite the positive news, the stock was down 4.5% to 53.50 pence per share on Thursday morning.
The company also reiterated its maiden dividend of 1.8 pence per share paid for the year ended December 31, 2014 will be paid at the end of July. Previously, Welch told Alliance News he understood there was "scepticism when it comes to dividends from Chinese companies".
"The company remains committed to paying dividends in the future, which will reflect the company's profitability taking into account its investment needs," said GTS.
By Joshua Warner; [email protected]; @JoshAlliance
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