Naibu Global International Co PLC Trading Update (7711X)

TIDMNBU

RNS Number : 7711X

Naibu Global International Co PLC

24 November 2014

 
 Press Release   24 November 2014 
 

Naibu Global International Company Plc

("Naibu" or the "Company")

Trading Update

The Directors of Naibu Global International Company Plc(AIM:NBU), a leading Chinese manufacturer and supplier of branded sportswear, announcethe following trading update.

In the period since the interim results for the half year to 30 June 2014, there has been a slowdown in sales at the retail level of Naibu products that has led to some overstocking by distributors. This is expected to lead to a lower level of orders from distributors for next season's spring and summer collection 2015.

The Company therefore expects that it will need to introduce a limited programme of discounting of its 2014 sales prices to distributors in order to reduce the overstocking within the distribution system. The Directors expect this discounting programme will lead to a significant reduction in margins in the final quarter of 2014 and the first quarter of 2015. Once the excess stock levels have been reduced the directors expect margins to return to more normal levels. The Directors intend to invest in the Naibu brand, by way of new design launches and increased marketing spend in the first half of 2015 once the current overstocking issues have been resolved.

Naibu has substantial cash balances (RMB 315 million as at 31 October 2014) and the Directors are confident that the Company has sufficient resources to implement the programme referred to above.

The Directors intend to resume the payment of dividends in 2015, once the overstocking issues referred to have been resolved. They intend to move, over time to a dividend pay-out ratio in line with their listed competitor companies. The Directors will consider whether to recommend payment of a final dividend in respect of 2014 when the results of the discounting programme are more readily apparent.

Commenting today, Mr Lin Huoyan, Executive Chairman of Naibu, said: "Market conditions are difficult at present. However, I am confident that with the steps we are taking it will allow Naibu to navigate these challenging markets and emerge strongly."

- Ends -

For further information:

 
 Naibu Global International Company 
  Plc 
 Huoyan Lin, Executive Chairman       Tel: [phone] 
                                                      7702 
 Li Zhen, Chief Financial Officer            www.naibu.com 
 
 
 Daniel Stewart & Company Plc            Tel: [phone] 
                                                         6550 
 Paul Shackleton / Martin Lampshire   www.danielstewart.co.uk 
 

Media enquiries:

 
 Abchurch Communications 
 Henry Harrison-Topham / Quincy Allan     Tel: [phone] 
                                                          7702 
 [e-mail]            www.abchurch-group.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTLFFELLALVFIS