China Food Co. said it expects trading for 2009 to be “moderately ahead” of market expectations.
In a trading update prior to the release of its full-year results for the year ended 31 December, the Chinese manufacturer of cooking and dipping sauces, said that it continues to trade “profitably”, that it is “cash generative”, has low gearing and a “strong” balance sheet.
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With the benefit of convertible loan notes, raising GBP3m (US$4.7m) in November 2009, and strong cash flow, the company said it has “sufficient resources” to complete the new 266,666 sq. ft. soya sauce facility in Shou Guang City.
China Food said it remains on target to start trial production in the coming months with the formal opening planned for May.
John McLean, non-executive chairman of China Food, said: “The board is pleased with progress made over the past financial year and looks forward to the new Shou Guang City facility becoming fully operational in the coming months. This will allow China Food to significantly increase both its production and market share. In addition, the improving Chinese economy, healthy GDP growth and the company’s additional financial resources put us in a strong position to continue to deliver on our growth strategy.”
The company will be announcing its preliminary results on 22 March.
