10th Nov 2014 10:55
LONDON (Alliance News) - Sorbic International PLC said Monday that its operating subsidiary's margin and earnings before interest, tax, depreciation and amortisation have been hit by increased fluctuations on the selling price of potassium sorbate, although demand for its products remains strong.
The company said in the year to end-September, its operating subsidiary Linyi Van Science and Technique Co Ltd saw revenues of CNY143 million, compared to CNY142 million a year before.
The company said that fluctuations on the selling price of potassium sorbate in its second half is expected to reduce its operating margin to 10% for the fully year, compared to 13% a year before, and earnings to CNY11 million from CNY16 million.
At the time of its interim results, it had noted that the Chief Executive of its operating subsidiary Wang Yan Ting had been reluctant to allow funds to be transferred out of China. The company had intended to replace him as legal representative, however following a board meeting Wang Yan Ting agreed for funds to be used to repay loan stock, so it has deferred this change.
Sorbic said that it is progressing discussions over compensation negotiations in Inner Mongolia, and the proposed Linyi relocation. It will provide a further update with its full year results.
Shares in Sorbic are trading down 2.4% at 5.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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