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Samarkand Group PLC - London-based e-commerce company focused on China - On Monday posts swing to loss for financial year ended March 31 as administrative costs balloon. Pretax loss stands at £7.8 million from a profit of £229,543 a year ago. Revenue falls 20% to £16.6 million from £20.6 million. Administrative expenses widen by 82% to £8.2 million from £4.5 million ‘as a result [of] significant investment in its people, marketing and the additional regulatory and compliance costs as a result of being publicly listed’. Books no exceptional profit versus £2.0 million a year ago.
Looking ahead, says revenue in first quarter of financial year 2023 is up 24% and loss before interest, tax, depreciation and amortisation significantly reduced despite extended lockdowns in mainland China. Aims to capitalise on improving prospects within China and increase scale of opportunities. ‘We have adapted to the unfavourable trading environment and our long-term confidence in the business is as unwavering as it has ever been,’ says Chief Executive Officer David Hampstead.
Separately, firm intends to raise up to £3.0 million via proposing to offer 5.5 million new shares at 55 pence each, which is a 12% discount to closing price of 62.5p last week Friday. ‘The company intends to deploy funds raised in the open offer to promote existing strategic priorities; to scale its eCommerce technology and services and accelerate growth in our owned brands,’ it says.
Current stock price: 60.5p
12-month change: down 59%
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