14th Aug 2019 15:47
(Alliance News) - Walcom Group Ltd on Wednesday said the African Swine Fever outbreak in China has continuing to hurt sales and without additional funding the company may be forced into liquidation.
Shares in the company were down 11% in London at 0.40 pence each.
The animal feed additives producer said current revenue is lower than expected and the swine flu impact is expected to continue for at least the next six months.
Walcom expects to meet its liabilities as they fall due until mid-September 2019 and continues to monitor its working capital position.
"The board continues to seek alternative funding to safeguard the group's liquidity and, whilst the company is hopeful that it will secure the necessary funding, in the event that it is unable to address the working capital shortfall, the company may be unable to continue its operations and may be forced into liquidation with a consequential diminution in value to shareholders," Walcom said.
The company is working on increasing its customer base within the poultry feed sector and is exploring opportunities in the beef cattle sector, with benefits anticipated in the latter part of 2019.
Related Shares:
WALG.L