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WALG - Walcom News Story

0.35p 0.0  0.0%

Last Trade - 17/09/19

Sector
Consumer Defensives
Size
Micro Cap
Market Cap £241k
Enterprise Value £533k
Revenue £3.55m
Position in Universe 1822nd / 1826

Walcom Group Ltd: Company update

Wed 3rd July, 2019 10:24am
3 July 2019

WALCOM GROUP LIMITED
(“Walcom” or “the Company”)

Company update

Further to the Company’s announcement on 4 June 2019, the Company provides
the following update.

As previously announced, the African swine fever in China has impacted
Walcom’s trading performance in the first six months of the current
financial year. There has been no easing in the prevalence of the disease,
which the Company believes is still spreading in China.  As a result, the
Board believes there will be no significant improvement in trading conditions
until the final quarter of this year.  Importantly, the Company continues to
work with its existing customers and it has not lost any major customers to
competitors. The Company continues to work on increasing its customer base and
customer penetration within the poultry feed sector and is hopeful the Company
will see the benefit of this in the latter part of the year.

The Board continues to expect that the Group will be able to meet its
liabilities as they fall due until at least the end of August 2019, and
continues to monitor closely its working capital position, whilst considering
alternative funding options. 

As announced on 12 June 2019, the Shanghai Pudong New Area People’s Court
had on 5 June 2019 affirmed the Company’s claim against the Group’s
largest customer in China (“the Customer”) for the outstanding debt of RMB
4.76 million (plus interest of RMB 196,000). The Customer was ordered to fully
settle the outstanding debt plus interest within 10 days of the date of
judgement and had the right to appeal the court judgement within 15 days of
the judgement date. The Shanghai Pudong New Area People’s Court received a
notice of appeal from the Customer on 26 June 2019 and the Company is taking
legal advice in this regard. It remains unclear whether the overdue
receivables will be recovered, and further announcements will be made in due
course. 

Further enquiries:

 Walcom Group Limited Francis Chi (Chief Executive Officer/Chief Financial Officer) Jessie Chan (Deputy Chief Financial Officer)  +852 2494 0133    
 Allenby Capital Limited David Hart / Asha Chotai                                                                                 +44 20 3328 5656  



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