News Column

Global Market Group Swings To Pretax Loss On Revenue Drop

May 28, 2014

Tom McIvor

LONDON (Alliance News) - Global Market Group Ltd Wednesday said it swung to a pretax loss in 2013 as changes to the company's strategy and lower demand weighed on revenue.

The developer of an online market place to link international buyers with Chinese manufacturers, posted a pretax loss of USD9.4 million, compared with a pretax profit of USD1.2 million in 2012, as revenue fell 34% to USD25.7 million, from USD39.1 million. It blamed its investment plan and a prolonged dip in global demand for manufactured goods.

The company announced in January that its adjusted marketing strategy and planned investment in the Free Global Manufacturer Certificate programme impacted revenues from the core business during the year, and the company was expecting to record an operating loss for the year.

However, Global Market Group said at the time that it had recruited more companies to its Free GMC scheme, which meant it met its registration target of 30,000 Free GMC members by the end of the year.

Global Market Group is currently carrying out a two-year revamp that will run until the end of this year. It is developing two initiatives, the Free GMC scheme and FeiFei, a retail portal which was previously known as M2C China.

It said on Wednesday that trading conditions remain difficult, but the changes it has put in place have positioned the company to deal with wider economic challenges in the second half of the year, and it expects to meet its objectives of steady growth and a return to profitability by the end of 2015.

Global Market Group shares were untraded at 62 pence per share on Wednesday.

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Source: Alliance News

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