3rd Jun 2016 11:04
LONDON (Alliance News) - GTS Chemical Holdings PLC on Friday reported growth in revenue in the first quarter of 2016, boosted a strong performance in its two core divisions.
The specialty chemicals and lubricating oil producer said revenue in the three months ended March 31 grew by 34% to CNY223.2 million from CNY167.0 million in the same period the year before, with specialty chemicals revenue rising by 39% and lubricant oils revenue increasing by 35%, but revenue in the much smaller recarburizer division fell by 21%.
Its gross margin also increased slightly to 21.7%.
GTS said revenue in specialty chemicals was driven by increases in sales throughout the customer mix, but in particular in the chemicals and paper sector. In the quarter, GTS added three distributors to the division.
It also added three distributors to the lubricant oils division, taking the total to 70.
GTS said the fall in recarburizer sales was consistent with its strategy to focus on its principal product divisions.
"We continue to grow strongly and exceed market expectations. Despite the ongoing restructuring of the Chinese economy, by concentrating on the production of the highest quality products in the most efficient manner and, in specialty chemicals through the use of recycled waste materials, the revenue growth of both core divisions continues to exceed 30% whilst slightly improving our gross margin," Chief Executive Cheung Liu said in a statement.
Shares in GTS were trading up 1.9% at 54.00 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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