News Column

Asia Ceramics 2013 Pretax Profit Drops On Higher Chinese Costs

April 30, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Asia Ceramics Holdings PLC Wednesday reported higher revenues but a drop in profits in 2013, on the back of cost increases in China, its main market.

In 2013, the group reported a lower pretax profit of GBP36,000, compared with a pretax profit of GBP162,000 in 2012.

The group said its gross margin and profit in 2013 was hit by increased costs in China and increased competition in the market.

"The board is actively taking steps to improve the gross margin, as well as to achieve further sales in its export markets, as well as in China, and thus increase the group's profit in 2014," said Chairman Frank Lewis in a statement.

The group's main trading activity is the export of ceramic products from China, which grew significantly during the year. The group's revenue for the year was GBP11.0 million, up from GBP9.6 million in 2012.

Asia Ceramics main export markets are Europe, Asia, Far East, America and Australia. It said that export sales for the year amounted to GBP8.6 million of sales, up from GBP7.8 million in 2012, representing 78% of group revenue for the year.

Shares in the company were up 1.9% at 55.00 pence per share Wednesday afternoon.

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Source: Alliance News