Don't pay just to have an ISA. Find out more
(SORB.L) Sorbic International PLC Buy/Sell
Add to portfolio Set Alert Level 2 Desktop Trader
Summary
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Date/Time | Headline | Source |
|---|---|---|
| 15-01-10 | RNS |
|
|
RNS Number : 6436F Sorbic International PLC 15 January 2010
Sorbic International Plc ("Sorbic International or "the Group" or "the Company") Result of General Meeting Sorbic International, (AIM: SORB.L), the third largest sorbates producer in China, announces that, at the general meeting held today, all of the resolutions put to shareholders were duly passed.
For further information, please contact:
Sorbic International Plc
FinnCap
Media enquiries:
Joanne Shears / Mark Dixon joanne.shears@abchurch-group.com About Sorbic International Sorbic International, based in the Chinese province of Shandong, is involved in the production and sale of food preservative sorbates. Sorbic listed on AIM in September 2008 and operates from its 33,000 m2 production facility in Linyi City, (population 10 million), Shandong Province. The Company will double its sorbate production capacity to 15,000 tpa with 2 new lines to be located in Inner Mongolia. These are expected to be completed in autumn of 2010, with a total investment of RMB 103.5 million (£9.3 million). Sorbic International is the third largest sorbates producer in China, with a current production capacity of 7,500 tonnes per annum of sorbate, 46% of which is exported to the European and North American markets. Sorbic operates within a growing industry with global demand for sorbates being driven by the increase in the world's population and higher demand for food. As Sodium Benzoate, the main alternative to the Company's product is being phased out in the US, Europe and Japan, the market opportunity for Sorbic is significant. Further information on Sorbic International can be found at www.sorbicinternational.com. This information is provided by RNS The company news service from the London Stock Exchange END
ROMLELFFBFFZBBX More |
||
| 30-11-09 | RNS |
|
This news article is displayed preformatted as it may contain results tables
RNS Number : 2636D
Sorbic International PLC
30 November 2009
Sorbic International Plc
("Sorbic International" or "the Group" or "the Company")
Final Results
For the year ended 30 September 2009
Sorbic International, (AIM: SORB.L), the food preservative group, is pleased to announce its results for the year ended 30 September 2009. Sorbic International changed its year end to September as a result of the acquisition of Honour Field and thus comparative figures represent a nine month period.
Results Summary
* Revenue for the period is £14.45 million (2008: £11.66 million)
* Gross profit margin for the period of 35.0%
* Pre-tax profit of £3.30 million (2008: £3.26 million).Profit after tax £2.79 million (2008: £2.80 million)
* Net assets of £13.02 million (2008: £10.23 million)
* Basic earnings per share 9.87 pence (2008: 16.92 pence)
* Cash reserves at the end of the period of £5.99 million reflecting reliable cash flow and strength of the business model (2008: cash reserves of £6.50 million)
* Net capital investment of new facilities in China during the period approximates to £3.79million.
* As predicted in the interim results announced in May the Group has experienced reduced levels of order visibility in the second half. Visibility has since started to recover.
Post Year End - New Production Site
* Investment to build two new purpose built production lines in new site in Inner Mongolia
* Increasing production capacity to 7,500 tonnes per annum
* New production capacity will benefit from significant efficiencies
* The availability of resources such as coal, electricity and water at a lower cost will improve gross profit margins by approximately 20% and enhance the Company's competitive advantage;
* Tax incentive that lowers effective rate of tax from 25% to 15% (a 40% saving) for the next 10 years;
* New site benefits from modern infrastructure and excellent energy, water and transport links
* Build expected to commence Spring 2010 and completed Autumn 2010
Commenting, John McLean, Chairman of Sorbic International, said:
"We are delighted to report that trading remains robust and in the year ended 30 September 2009, results are broadly in line with expectations on a constant currency basis and are a great credit to the operational management team, particularly given that they have been achieved in a period of the most demanding economic conditions we have ever seen.
"The Board is confident that Sorbic International will continue to make progress during the current year, buoyed by a more robust economic environment and we remain focused on delivering value to shareholders. We are particularly excited by the opportunity that we now have in Inner Mongolia which is expected to drive the next phase of growth for the Company."
Enquiries:
Sorbic International Plc, John McLean, Chairman Tel: +44 (0)7768 031 454
FinnCap, Geoff Nash / Ed Frisby Tel: +44 (0) 20 7600 1658
Hansard Group, John Bick Tel: +44 (0) 7872 061007
Tel: +44 (0) 20 7245 1100
www.sorbicinternational.com
Sorbic International Plc
CHAIRMAN'S STATEMENT
Introduction
We are delighted to report that trading remains robust and in the year ended 30 September 2009, results are broadly in line with expectations on a constant currency basis and are a great credit to the operational management team, particularly given that they have been achieved in a period of the most demanding economic conditions we have ever experienced.
The consolidated results for year ended 30 September 2009 show turnover of £14.44 million (nine month period ended 30 September 2008: £11.66 million), profit before tax of £3.30 million (2008: £3.26 million) and profit after tax of £2.79 million (2008: £2.80 million).
Gross margin decreased from 37.5% to 35.0%, while net profit margin also decreased from 24.0% to 19.3% due to a decrease in unit selling price.
In summary, the Group achieved earnings per share of 10 pence (2008: 17 pence).
The business climate that the Group experienced in the financial year has been unprecedented in terms of global financial crisis. On a domestic basis in China, the position was further exacerbated by the melamine contamination in Chinese milk products during early 2009. This unfortunate event heightened the awareness of food safety in China but it did not deter the strong demand for our products, partly due to our high food safety standards.
The long standing emphasis on customer service and the process and quality certification gained allowed the Group to maintain our customers' confidence during the challenging market conditions.
Market Overview
In response to the global economic recession, the Chinese government announced expansionary fiscal measures to stimulate the domestic economy, together a RMB4 trillion fiscal stimulus package to boost domestic investment and demand. The effects of the stimulus have been effective and most recently we have seen recent market indicators such as Purchasing Manager Index (PMI) that show China's manufacturing output operating in an expansionary mode. In addition most recently, the Chinese government has reiterated its high level of confidence that the economy will reach and perhaps exceed its GDP growth target of 8% in 2009.
In addition, a new food safety law was implemented on 1 June 2009, as part of the ongoing effort to ensure food safety and high food manufacturing standards.
The Group started the financial year strongly, however, it was unable to buck the recessionary trend that swept through the world. Faced with operational challenges in the industry, many of our competitors discounted heavily to de-stock and maintain sales and whilst the results for the first six months of the year were encouraging, the Group saw reduced levels of pricing and order visibility which, in the second half of the year, resulted in a lower level of profitability. We are pleased to have seen a gradual improvement in levels of trading as we moved into the new financial year, with a return to levels of enquiries which encourage the Board to now move ahead with its plans to expand production capacity which is referred to below under Strategy and Outlook.
Corporate Developments
We are committed to maintaining a high standard of corporate governance, financial controls and reporting systems. To further complement and support the Board, we have appointed BDO (Singapore) LLP, as our internal auditors.
Issue of deferred consideration shares
The profit after tax target of RMB 60 million for the year ending 31 December 2008 was exceeded. Accordingly 10,300,000 New Ordinary Shares of 6p each (Deferred Consideration Shares) were allotted and admitted to trading on AIM in March 2009.
Strategy and Outlook
China, as the fastest growing economy in the world, was not spared in the global economic crisis. However, the Board views the situation as temporary and is optimistic of the long term growth of the PRC economy. We are greatly encouraged by the recent statements from the Chinese government that the domestic is on track to meet its goal of 8 per cent growth in GDP for 2009.
Whilst the food additive industry in China remains highly competitive, the Group maintained its strong market position as the third largest sorbate salt producer in China and therefore one of the leading producers in the World today.
The Group's production and quality standards are maintained at the highest level, compliant with all key international food production standards which place Sorbic at the forefront of suppliers to the major international food manufacturers.
The Group is now very well placed to increase the scale of its production. This will broaden Sorbic's competitive position and expand its market share in China as part of the strategy to build sustainable long term growth.
New Production Lines - Inner Mongolia
On 28 October 2009 we were pleased to announce our decision to move ahead with the construction of Sorbic's new production lines in Inner Mongolia. The Board believes this will bring significant commercial advantages to the Company, not least in our competitive standing in both the domestic and international markets places as we see greater demand for our products.
The new investment was to take place at the Group's current production facility in Linyi, Shandong province where the existing facilities are operating at full capacity. As current demand exceeds production, two more production lines to double the existing capacity were proposed to be built on the existing site in Linyi. However, the Group was invited to build the planned new facility in Chahar Industrial Park in Inner Mongolia in August 2009. The proposal was approved after strong supportive feasibility reports that emphasized a number of advantages as follows:
* The availability of resources such as coal, electricity and water at a lower cost which will improve gross
profit margins by approximately 20% and enhance the Company's competitive advantage;
* Tax incentive that lowers effective rate of tax from 25% to 15% (a 40% saving) for the next 10 years;
* Cheap industrial land resource at less than 45% of the National benchmark land price; and
* As an early entrant into Chahar Industrial Park, the Company should be able to foster stronger relationship with local government which has committed full support for its construction project and future development plans.
We believe that the long term financial gains from relocation are substantial and these outweigh the additional investment amounting to £800,000 in addition to the overall planned investment of £9.5m to take the new operation to first production.
The Board is confident that Sorbic International will continue to make progress during the current year, buoyed by a more robust economic environment and we remain focused on delivering value to shareholders. We are particularly excited by the opportunity that we now have in Inner Mongolia which is expected to drive the next phase of growth for the Group. These new facilities will provide Sorbic International with purpose built production facilities which should benefit from significant efficiencies. Inner Mongolia is also very well logistically positioned with a modern infrastructure across energy, water and transport. The new site will also have the opportunity for additional expansion as we look towards greater capacity in order to meet growth in anticipated future demand.
The Board would like to thank the management and the employees for their hardwork and their continued dedication to the Group which has made Linyi Van Science and Technique Company Limited ("LVST") the Top-50 enterprise in Linyi City in 2008.
John McLean
Chairman
30 November 2008
Consolidated Income Statement
Notes Year ended Nine month period
30 September 2009 30 September 2008
£ £
Turnover 14,445,097 11,661,255
Cost of sales (9,392,628) (7,288,363)
Gross profit 5,052,469 4,,372,892
Distribution and selling (230,580) (131,172)
expenses
Administrative expenses (1,360,508) (849,667)
Profit from operations 3,461,281 3,392,053
Finance income 32,765 57,312
Finance costs (190,764) (184,370)
Profit before tax 3,303,382 3,264,995
Income tax expense 4 (511,330) (465,414)
Profit for the period 2,792,052 2,799,581
attributable to equity holders
of the Company
Earnings per share
- Basic (pence) 5 9.87 16.92
- Fully diluted (pence) 9.66 16.91
Consolidated Balance Sheet
As at30 September As at 30 September 2008
2009
Notes £ £
Assets
Non-current assets
Property, plant and equipment 7,778,036 4,143,381
Land use rights 2,218,282 1,541,067
Prepayments - 477,013
9,996,318 6,161,461
Current assets
Inventories 325,179 391,358
Trade receivables 989,697 1,774,080
Prepayments, deposits and 60,637 94,898
other receivables
Amount due from related 301,625 2,216,383
company - Hermes Financial
Cash and cash equivalents 5,992,035 6,501,950
7,669,173, 10,978,669
Total assets 17,665,491 17,140,130
Liabilities
Current liabilities
Trade payables 199,495 520,769
Advanced payments 138,339 63,540
Accruals and other payables 554,888 450,363
Amount due to directors 773,244 3,163,418
Borrowings 2,729,046 2,096,952
Current tax liabilities 95,500 315,436
Amount due to related company 144,727 72,444
-Hermes Capital
Amount due to related company 14,375 222,271
-Albany Capital
4,649,614 6,905,193
Equity
Capital and reserves
attributable to equity holders
of the Company
Share capital 6 2,003,310 1,385,310
Share premium 6 21,079,289 14,274,196
Capital reserves 2,519,393 2,290,956
Surplus reserves 449,114 408,393
Retained earnings 7,002,312 4,210,259
Share based payment reserve 30,000 30,000
Reverse acquisition reserve (20,911,925) (20,911,925)
Shares to be issued - Escrow - 7,725,000
scheme
Foreign currency translation 1,295,737 822,748
reserve
Hedging reserve (451,353) -
Total equity 13,015,877 10,234,937
Total equity and liabilities 17,665,491 17,140,130
Consolidated Cash flow statement
Nine month
Year ended period ended
30 September 30 September
2009 2008
£ £
CASH FLOWS FROM OPERATING
ACTIVITIES
Profit for the period before 2,852,030 3,264,995
tax
Adjustments for:
Amortisation of prepaid land 46,669 21,360
lease payments
Depreciation 469,073 270,043
Interest income (31,177) (57,312)
Interest expense 190,375 184,370
Gain on disposal of fixed (1,588) -
assets
Operating cash flows 3,525,382 3,683,456
Changes in working capital:
Decrease in inventories 105,202 314,436
Decrease/ (increase) in trade 2,887,497 (2,966,311)
and other receivables
(Decrease)/ increase in trade (3,592,953) 726,380
and other payables
Cash generated from operations 2,925,128 1,757,961
Income tax paid (658,206) (393,971)
Interest paid (190,375) (184,370)
Net cash generated from 2,076,547 1,179,620
operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Net cash flow arising from - 1,973,913
acquisitions
Additions to prepaid lease (89,718) (438,548)
payments
Acquisition of property, plant (3,786,482) (63,281)
and equipment
Sales of property, plant and 3,083 -
equipment
Interest received 31,177 57,312
Net cash (used in)/ from (3,841,940) 1,529,396
investing activities
CASH FLOWS FROM FINANCING
ACTIVITIES
Loan from financial institution 423,002 -
raised
Shareholders loan raised 773,244 -
Dividend - (2,734,443)
Proceeds from issue of ordinary - 3,490,124
shares
Share issue costs (301,907) (195,618)
Net cash from financing 894,339 560,063
activities
NET (DECREASE)/ INCREASE IN (871,054) 3,269,079
CASH AND CASH EQUIVALENTS
Exchange gains / (losses) on 361,139 (452,509)
cash and cash equivalents
CASH AND CASH EQUIVALENTS AT 6,501,950 3,685,380
BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT 5,992,035 6,501,950
END OF PERIOD
Consolidated Statement of Changes in Equity
Share capital Share premium Capital reserve Surplus reserve Retained earnings Share based payment Foreign currency Reverse acquisition Shares to be Hedging reserve Total equity
reserve translation reserve reserve issued-Escrow scheme
£ £ £
£
£ £ £ £ £ £
At 1 January 2008 - - 1,913,469 341,100 1,282,411 - 128,267 730,973 - - 4,396,220
Foreign currency translation - - 377,487 67,293 128,267 - 694,481 - - - 1,267,528
differences
Issue of ordinary shares 393,710 3,096,414 - - - - - - - - 3,490,124
Share-options granted - - - - - 30,000 - - - - 30,000
Reverse acquisition of Honour 991,600 11,403,400 - - - - - (21,642,898) 7,725,000 - (1,522,898)
Field
Share issue costs - (225,618) - - - - - - - - (225,618)
Profit for the period - - - - 2,799,581 - - - - - 2,799,581
At 30 September 2008 1,385,310 14,274,196 2,290,956 408,393 4,210,259 30,000 822,748 (20,911,925) 7,725,000 - 10,234,937
Foreign currency translation - - 228,437 40,721 - - 472,989 - - - 742,147
differences
Net investment hedge - - - - - - - - - (451,353) (451,353)
Issue of ordinary shares 618,000 7,107,000 - - - - - - (7,725,000) - -
Share issue costs - (301,907) - - - - - - - - -
Profit for the period - - - - 2,792,053 - - - - - 2,792,053
At 30 September 2009 2,003,310 21,079,289 2,519,393 449,114 7,002,312 30,000 1,295,737 (20,911,925) - (451,353) 13,015,877
Notes to the Financial Information
1. General information and principal activities
The Group's principal activities comprise the production and sale of food preservatives, Sorbic Acid and Potassium Sorbate. The Group's main operations are in the People's Republic of China ("PRC").
Sorbic International Plc, a public limited company, is the Group's ultimate parent company. It is incorporated and domiciled in the United Kingdom. The address of Sorbic International's registered office is 17 Hanover Square, London W12 1HU. Sorbic International's shares are listed on the AIM Market of the London Stock Exchange.
2. Basis of preparation
The financial information set out in this preliminary announcement does not constitute the Group's financial statements for the year ended 30 September 2009 and the nine month period ended 30 September 2008, but is derived from those financial statements. This financial information has been prepared in accordance with applicable International Financial Reporting Standards as adopted by the European Union ("IFRS") and using accounting policies which are consistent with those applied in the financial statements for the nine month period ended 30 September 2008.
The financial statements for the year ended 30 September 2008 were prepared in accordance with IFRSs and under the historical cost convention and have been delivered to the Registrar of Companies.
The financial statements for the year ended 30 September 2009 will be delivered to the Registrar of Companies following the Company's Annual General Meeting on 15 January 2010. The auditors' report on both accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under sections 237(2) or (3) of the Companies Act 1985.
The full audited financial statements of Sorbic International Plc for the year ended 30 September 2009 are expected to be posted to shareholders in due course and will be available to the public at the Company's registered office, and available to view on the Company's website at www.sorbicinternational.com.
The directors do not propose a dividend in respect of the year ended 30 September 2009 (2008: nil).
The directors have approved the financial statements for the year ended 30 September 2009 and this announcement on 30 November 2009.
3. Turnover
All revenue relates to the sales of goods. Turnover represents the invoiced value of goods, net of discounts and returns.
An analysis of the Group's turnover is as follows:
Year ended Nine Month period ended
30 September 30 September 2008
2009
£ £
Sale of Sorbic Acid 6,655,770 4,716,339
Sale of Potassium Sorbate 7,789,327 6,944,916
14,445,097 11,661,255
4. Income tax expense
Year ended Nine Month period ended
30 September 30 September 2008
2009
£ £
Current tax 511,330 465,414
Deferred tax - -
511,530 465,414
Profit before tax 3,303,382 3,264,995
Tax on profit at standard rate 825,846 816,249
(25%; 2008: 25%)*
Non-deductible expenditure - -
Tax effect of exempt income (314,516) (350,835)
Current tax expense recognised in 511,330 465,414
income statement
Effective tax rate 15.5% 14.3%
* Sorbic International is subject to a United Kingdom Tax rate of 28% from 31 April 2008. No tax provision is provided at the Sorbic International level as all current revenues are foreign derived income.
Honour Field International is a BVI registered company and therefore has tax exempt status.
LVST is subject to a PRC Enterprise Income Tax rate of 25% (2008: 25%).
The tax charge on profits assessable has been calculated at the rates of tax prevailing in China, in which the Group through its China subsidiary operates, based on existing legislation, interpretation and practices in respect thereof.
The Group's subsidiary, LVST has had the benefit of a tax holiday from 2004 in which it is entitled to exempt the Enterprise Income Tax ("ETI") for two years starting from first profit making year following by a 50% tax relief for the next three years.
Deferred income tax assets are recognised for tax loss carried forward to the extent that the realisation of the related tax benefit through the future taxable profits is probable. The Group did not recognise deferred income tax assets of £192,541 (2008: £27,931) in respect of losses amounting to £687,648 (2008: £99,755) that can be carried forward against future taxable income since future profits were not considered probable.
5. Earning per share and dividends
Basic
2009 2008
£ £
Profit attributable to equity holders of the Company 2,792,053 2,799,581
Weighted average number of Ordinary shares in issue 28,280,828 16,550,614
(number)
9.87
Basic earnings per share 16.92
Diluted
Diluted earnings per share is calculated buy adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share options. For the share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
2009 2008
£ £
Profit attributable to equity holders of the Company 2,792,053 2,799,581
Weighted average number of Ordinary shares in issue 28,280,828 16,550,614
(number)
Adjustments for:
Share options 600,000 2,190
28,880,828 16,552,804
pence pence
9.66
Diluted earnings per share 16.91
6. Share capital
As at 30 September 2009 As at 30 September 2008
Authorised £ £
100,000,000 Ordinary share of 6,000,000 6,000,000
£0.06 each
The movement on the share capital account was as follows:
Issued, called up and fully paid £
At 1 October 2008
33,388,500 Ordinary shares of £0.06 each 1,385,310
Issue of shares on 23 March 2009
10,300,000 Ordinary shares of £0.06 each 618,000
2,003,310
The movement on the share premium account was as follows:
Share premium
£
At incorporation
Issue of shares on 24 October 2007 for a consideration of 2,875,500
£0.01 per share
Issue of shares on 29 September 2008 for a consideration of 11,624,314
£0.75 per share
Share issue costs (195,618)
Transfer to share-based payment reserve (30,000)
As at 30 September 2008 14,274,196
Issue of shares on 23 March 2009 for a consideration of £0.75 7,107,000
per share
Share issue costs (301,907)
At 30 September 2009 21,079,289
The Company was incorporated on 15 June 2007 with an authorised share capital of £50,000 divided into 5,000,000 ordinary shares of £0.01 each.
Following written resolutions dated 26 July 2007, the authorised share capital of the Company was increased to £500,000 and sub-divided so that the authorised share capital was 500,000,000 ordinary shares of £0.001 each.
On incorporation, the Company allotted and issued 20 ordinary shares of 0.1p each at par.
On 26 July 2007, the Company allotted and issued 55,000,000 ordinary shares of £0.001 each for a total cash consideration of £55,000.
On 24 October 2007, the Company allotted and issued 319,500,000 ordinary shares of £0.001 each for a total cash consideration after expenses of £3,195,000.
On 29 September 2008, following written resolutions, the authorised share capital of the Company was decreased to £6,000,000 and a 1 for 60 consolidations took place so that the authorised share capital was 100,000,000 Ordinary shares of £0.06 each.
On 29 September 2008, the Company allotted and issued 320,166 Ordinary shares for a cash consideration of £0.75 each, giving rise to an increased share capital of £19,210 and an increased share premium of £220,915.
On 29 September 2008, the Company allotted and issued 16,526,667 Ordinary shares for a consideration of £0.75 each, giving rise to an increased share capital of £991,600 and an increased share premium of £11,403,400. These shares were issued as consideration for the acquisition of the Honour Field Group.
The share option cost has been deducted from the share premium since the cost relates to professional services in relation to the issue of shares.
On 23 March 2009, the Company allotted and issued a further 10,300,000 Ordinary shares when Honour Field achieved the profit target for the 12 months ended 31 December 2008 of RMB60 million as stipulated in the business transfer agreement.
Additional cost has been deducted from the share premium since these costs relate to professional services in relation to the issue of shares.
7. Contingent liability
The Group has been informally told by the Chinese tax authorities that a tax liability of up to £1 million may be due arising from the acquisition of LVST. However, the Company has sought advice and based on this advice the Board do not believe that any amount is due.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FDISMSSUSELF
More |
||
| 26-11-09 | RNS |
|
This news article is displayed preformatted as it may contain results tables
RNS Number : 1583D
Sorbic International PLC
26 November 2009
26 November 2009
Sorbic International plc
("Sorbic" or the "Company")
Notification of Final Results
Sorbic international (AIM: SORB.L), the food preservatives group will be announcing its results for the period ended 30 September 2009 on Monday 30 November 2009.
Enquiries:
Sorbic International plc, John McLean, Chairman Tel: +44 (0)7768 031 454
FinnCap, Geoff Nash Tel: +44 (0) 20 7600 1658
Hansard Group Tel: +44 (0) 20 7245 1100
John Bick/Justine James Tel: +44 (0) 7872 061007
Notes to Editors: www.sorbicinternational.com
About Sorbic International plc
Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China. Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market.
Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals.
This information is provided by RNS
The company news service from the London Stock Exchange
END
NOREALFKASDNFFE
More |
||
| 28-10-09 | RNS |
|
|
RNS Number : 5124B Sorbic International PLC 28 October 2009 28 October 2009 Sorbic International plc ("Sorbic International" or "the Company") Trading Update and Expansion Plans Loan from Albany Capital Trading update Sorbic International (ticker: SORB.L), the food preservatives group, is pleased to announce that trading remains robust and in the year ended 30 September 2009, results are broadly line with expectations, on a constant currency basis. This performance has been achieved despite a 10 day closure of production facilities following a small explosion and fire at a nearby factory not related to Sorbic. Since this incident, operating and environmental controls in Linyi, Shandong Province have been further tightened and Sorbic, whilst not involved in the incident, passed its inspection. Expansion of production facilities Sorbic International, through its subsidiary, LVST currently operates from a site in Linyi City. The existing facility has two production lines which are currently operating at their full capacity. Since production capacity cannot meet current demand the Company proposes to construct new production facilities to meet future growth in demand. As detailed in the readmission document of September 2008, Sorbic International intends to expand its facility with the addition of two more production lines which would double the existing capacity. The Board approved the construction of the new production lines in November 2008. It was originally proposed these would be built at the Company's existing site in Linyi. However, in August 2009, the Company received an offer from Economic Development Bureau of Ulanquab, Inner Mongolia to build the planned new production facility in Chahar Industrial Park and a study trip was conducted by the Board. This was followed by the commissioning of an independent report into the feasibility of the proposal for the Company's new production facilities. The main drivers of the relocation of the new facilities are:
In addition, increasing regulatory requirements by the local authorities at the Company's existing site will result in additional environmental costs over the longer term and further reinforces the benefits of relocation to the new proposed facilities for the Company's new production capacity. Whilst there is an additional investment of approximately £800,000 in relocating to Inner Mongolia, the Board believes that the long term financial gains from relocation are substantial and these outweigh the costs and a necessary delay in completing the new facilities As at 30 September 2009, Sorbic International had already committed RMB 41.7million to the construction of the two new production lines. Of this, approximately RMB7.9 million relates to the new dormitory, canteen and office building. The balance of RMB 33.8 million are down payments for equipment that will be transferred to Inner Mongolia. The two new lines in Linyi were originally estimated to begin production from March 2010. Construction in Inner Mongolia is expected to commence from spring next year and be completed by autumn the same year. Loan from Albany Capital Sorbic International continues to make progress and its wholly owned subsidiary in China, LVST, remains profitable and cash generative. However, until LVST receives its appropriate tax clearance from the Chinese tax authorities, which is currently in process, under the Company's current tax structure LVST cannot release administrative funds to the holding company, Sorbic International plc, without incurring the significant costs of withholding taxes. Consequently, Albany Capital Group Limited ("ACGL") (formerly Albany Capital plc), which is a significant shareholder (20.4%) in the Company, has agreed to provide Sorbic International with a one year term loan facility of up to £300,000 on a fixed rate of 7.5 per cent. per annum in order to fund head office costs until such time as the Group restructures its tax affairs to allow a more economic flow of funds to the UK from Asia. The directors, excluding John McLean who is also a director of ACGL, having consulted with Finncap the Company's nominated adviser, consider the terms of the loan are fair and reasonable insofar as shareholders are concerned. Commenting, John McLean, Chairman of Sorbic International, said: "We are pleased that trading to 30 September 2009 was broadly in line with our expectations on a constant currency basis. The Board remains confident of the future prospects for Sorbic International, and is particularly excited by the opportunity that has arisen in Inner Mongolia. These new facilities will provide Sorbic International with purpose built production facilities which should benefit from significant efficiencies. Inner Mongolia is also very well logistically positioned with a modern infrastructure across energy, water and transport. The new site will also have the opportunity for additional expansion as we look towards greater capacity in order to meet growth in anticipated future demand." Enquiries: Sorbic International plc, John McLean, Chairman Tel: +44 (0)7768 031 454
Notes to Editors: www.sorbicinternational.com About Chahar Industrial Park Chahar Industrial Park is located in Ulanqab City, Inner Mongolia, in the north of the Peoples Republic of China ("PRC") and is the traffic hub that links North China with its neighbour, Mongolia and the main land route for international trade from China to Mongolia, Russia and Europe. Ulanqab City has a total land area of 54.5 thousand square kilometres and a population of 2.73 million people and is a one hour to drive from Hohhot Baita Airport, which lies 130 kilometers east of Hohhot. Beijing is 300 kilometers (3 hour drive) to the south and Tianjin port is 400 kilometers away. About Sorbic International plc Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China. Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market. Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals. This information is provided by RNS The company news service from the London Stock Exchange END
TSTILFVLIRLTFIA More |
||
| Date/Time | Subject | Author | ||
|---|---|---|---|---|
| 02-02-10 | ||||
|
| ||||
|
| ||||
|
Just to be clear tpkiwi it wasnt a tip and im not currently a holder in either SORB or CFC, I just thought it might help your research.
|
||||
| 01-02-10 | ||||
|
| ||||
|
| ||||
|
Thanks for the tip Davy but I am trying not to buy any more shares, it's very addictive but so far all I have done is lost money! Maybe once I actually see some profit I will look at CFC, I recall reading about them when I did my initial research. cheers
T |
||||
| 01-02-10 | ||||
|
| ||||
|
| ||||
|
Yeah it is fun.
If you like Sorbic, have you looked at China Food Company CFC? They are linked through investors and managements, and have similar growth plans. |
||||
| 31-01-10 | ||||
|
| ||||
|
| ||||
|
Thanks Davy, that makes sense. Why choose Sorbic? I stumbled across them somehow - just researching companies randomly to get a feel for the whole thing and quite liked what I read about mongolia etc, also I really liked how transparent they were in their annual report about their risks. Just got a good feeling for some reason - however they've since lost over 10 per cent of their value so maybe I was wrong! It's fun though eh...
|
||||
They have not been approved or issued by Interactive Investor Trading Limited.
Discussion Board Terms & Conditions FSA Market Abuse Fact Sheet
More...