LONDON (Alliance News) - Sorbic International PLC Wednesday said it performed well in the first half of the year, improving both revenue and gross margins, but the group warned that it is still reliant on transferring funds from its Chinese bank account to keep the company afloat.
The Chinese sorbates producer said it expects revenues for the six months to March 31 to be up 7%, while also reporting a significant improvement in overall gross margin for the group.
However, the group said that while the business continues to perform well, it remains reliant on transferring funds out of China, or raising additional capital, to meet the ongoing costs of the company.
It said it had in excess of GBP6 million in its bank in China as at March 31.
Shares in Sorbic International were down 6.7% to 7.00 pence Wednesday afternoon.
Sorbic International also said that it is still in negotiations with authorities in Inner Mongolia regarding the forced relocation of a planned production facility. Earlier this year, the company said that it was still anticipating that the compensation agreement will be 'fair and reasonable' to both parties.