Sorbic International Books Loss As Inner Mongolia Facility Rebuild Is Abandoned
LONDON (Alliance News) - Chinese sorbic acid producer Sorbic International PLC Tuesday reported a drop in revenues, and a significantly larger loss for the year ended September 30, due to a GBP6.7 million impairment loss, as plans to rebuild its existing facility in Inner Mongolia were abandoned.
The company produces and sells the food preservatives sorbic acid and potassium sorbate, of which half of its production is sold to overseas markets and half into the Chinese domestic market. It said that its pretax loss for the financial year widened to GBP6.1million, compared with a loss of GBP144,406 a year earlier.
Sorbic said revenues for the year fell to GBP14.6 million, down from GBP16.8 million last year.
During the year, Sorbic decided not to continue to pursue the rebuilding of its existing facility in Inner Mongolia. It said that it continues to seek compensation, and negotiations are currently taking place on the understanding that the compensation agreement will be 'fair and reasonable' to both parties.
Before the impairment loss, the group reported a profit from operations of GBP603,671, compared with GBP21,699 a year earlier.
The group said that it is now focused on improving operational efficiencies at its Linfi facility, in the Shandong province in China.
Its shares were up 5.6% Tuesday morning at 9.50 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2013 Alliance News Limited. All Rights Reserved.
The company produces and sells the food preservatives sorbic acid and potassium sorbate, of which half of its production is sold to overseas markets and half into the Chinese domestic market. It said that its pretax loss for the financial year widened to GBP6.1million, compared with a loss of GBP144,406 a year earlier.
Sorbic said revenues for the year fell to GBP14.6 million, down from GBP16.8 million last year.
During the year, Sorbic decided not to continue to pursue the rebuilding of its existing facility in Inner Mongolia. It said that it continues to seek compensation, and negotiations are currently taking place on the understanding that the compensation agreement will be 'fair and reasonable' to both parties.
Before the impairment loss, the group reported a profit from operations of GBP603,671, compared with GBP21,699 a year earlier.
The group said that it is now focused on improving operational efficiencies at its Linfi facility, in the Shandong province in China.
Its shares were up 5.6% Tuesday morning at 9.50 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2013 Alliance News Limited. All Rights Reserved.
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