Walcom Group Ltd Trading Statement

 
TIDMWALG 
 
13 November 2017 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
                           (EU) No. 596/2014 ("MAR") 
 
                             WALCOM GROUP LIMITED 
 
                          ("Walcom" or "the Company") 
 
                               Trading Statement 
 
Walcom today provides an update on its trading. As indicated in the Company's 
half-yearly results for the six months ended 30 June 2017, announced on 19 
September 2017, the Company has continued to experience challenging trading 
conditions in PRC during the second half of the financial year. 
 
In addition, as set out in the Company's half-yearly results, the Company has 
been looking to increase the revenue generated from the integrated meat 
producing companies whose businesses include feed milling, pig farming, pig 
slaughtering and pork product production. Unfortunately, sales into one of the 
integrated meat producing companies in PRC has not continued as the Company had 
hoped.  However, further tenders are expected in the new year and the board 
remains optimistic about additional wins in this area. 
 
As a result, revenues generated by Walcom from PRC have and continue to be less 
than anticipated. 
 
Trading in the Company's overseas markets has remained consistent and in line 
with management's expectations. 
 
Accordingly, the Company expects that Group revenues for the full financial 
year will be materially less than those achieved in FY16 and as a consequence 
the Company expects to be loss making for the full year. 
 
The challenging trading conditions in the PRC and associated pressure on 
accounts receivable in the region, including a material outstanding customer 
payment owed to the Company, have had a consequential impact on the Company's 
cash resources.  The Company had cash and cash equivalents as at 31 October 
2017 of HK$3.4 million. The Company has negotiated and agreed a new short-term 
Renminbi bank loan equivalent to HK$2.3 million to replace its existing loan of 
the same currency and amount, which has been used to finance the Group's 
general working capital. Receipt of the new loan and repayment of the existing 
loan is due to occur in mid-November 2017. The Company will closely monitor its 
working capital requirements and proposes to seek further bank financing if 
necessary. 
 
Further enquiries: 
 
Walcom Group Limited                          [phone] 
Francis Chi (Chief Executive Officer) 
Albert Wong (Chief Financial Officer) 
 
Allenby Capital Limited                       [phone] 
Virginia Bull 
 
 
 
END 
 

(END) Dow Jones Newswires

November 13, 2017 05:37 ET (10:37 GMT)