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Samarkand Group PLC - London-based e-commerce company focused on China - Posts narrowed half-year loss but expects continued volatility in China market. Pretax loss in the six months to September 30 narrows to £2.2 million from £3.5 million a year prior. Revenue climbs 15% to £8.3 million from £7.2 million. Cost of sales increase 25% to £3.8 million from £3.1 million. However, selling & distribution expenses decrease to £2.3 million from £3.3 million, while administrative expenses contract slightly to £3.8 million from £3.9 million.
Samarkand expects underlying trends from the first half to continue in China, but it notes that revenue from its UK and international markets is increasing.
An eight-week lockdown in Shanghai hurt its base of operations, as well as the city being a ‘significant’ customer base. Looking ahead, Samarkand says: ‘The situation in China has steadily been improving with the loosening of restrictions on transport and travel leading to a reduction in logistical issues when compared to the peak earlier in the year. Although the overall situation remains fluid and difficult to predict, we remain positive in the long-term outlook for cross-border e-commerce in the world’s second largest economy and largest e-commerce market. It is frustrating that factors beyond our control are impacting performance, although the resilience of the business has come to the fore and we retain a strong degree of confidence in our medium-term prospects.’
Current stock price on AQSE in London: 53 pence
12-month change: down from 155p
By Tom Budszus, Alliance News reporter
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