The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR")
27 February
2019
WALCOM GROUP
LIMITED
(“Walcom” or “the
Company”)
Trading update
Update on working
capital position
Further to the Company’s announcement on 21 November 2018, the Company provides an update
on trading and its resultant working capital position.
Trading in the first two months of the financial year has been
significantly below budget due to the impact of slower growth in
the Chinese economy which has, in conjunction with the continuing
impact of African swine fever, affected Walcom’s revenues. In
addition, whilst the Company has received RMB 200,000 (approximately £22,573) in relation
to the default on payments owed to the Company by its largest
customer, the Company has still not received payment of the
outstanding amount of an aggregate RMB 4.76
million (approximately £537,233) and therefore is still
pursuing its legal proceedings.
As a result of these matters, Walcom’s working capital position
is severely constrained such that the Company may not be able to
meet its liabilities as they fall due by the end of March 2019. The Company is taking all possible
steps to mitigate this position by means of cost savings,
negotiating with suppliers on extended payment schedules and other
actions the Company could take to generate additional cash
resources.
The actions outlined above are subject to a number of variables
which are not wholly within the Company’s control. In the
event that the Company is unable to address its working capital
shortfall, the Company may be unable to continue its operations and
may be forced into liquidation with a consequential diminution in
value to shareholders.
Further announcements will be made in due course.
Further enquiries:
Walcom Group Limited
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
David Hart / Asha Chotai |
+44 20 3328 5656 |