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Naibu Global Intl Co (NBU)

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Monday 24 November, 2014

Naibu Global Intl Co

Trading Update

RNS Number : 7711X
Naibu Global International Co PLC
24 November 2014
 



 

 

Press Release

24 November 2014

 

Naibu Global International Company Plc

 

("Naibu" or the "Company")

 

Trading Update

 

The Directors of Naibu Global International Company Plc(AIM:NBU), a leading Chinese manufacturer and supplier of branded sportswear, announcethe following trading update.

 

In the period since the interim results for the half year to 30 June 2014, there has been a slowdown in sales at the retail level of Naibu products that has led to some overstocking by distributors.  This is expected to lead to a lower level of orders from distributors for next season's spring and summer collection 2015.

 

The Company therefore expects that it will need to introduce a limited programme of discounting of its 2014 sales prices to distributors in order to reduce the overstocking within the distribution system.  The Directors expect this discounting programme will lead to a significant reduction in margins in the final quarter of 2014 and the first quarter of 2015.  Once the excess stock levels have been reduced the directors expect margins to return to more normal levels.  The Directors intend to invest in the Naibu brand, by way of new design launches and increased marketing spend in the first half of 2015 once the current overstocking issues have been resolved.

 

Naibu has substantial cash balances (RMB 315 million as at 31 October 2014) and the Directors are confident that the Company has sufficient resources to implement the programme referred to above.

 

The Directors intend to resume the payment of dividends in 2015, once the overstocking issues referred to have been resolved.  They intend to move, over time to a dividend pay-out ratio in line with their listed competitor companies.  The Directors will consider whether to recommend payment of a final dividend in respect of 2014 when the results of the discounting programme are more readily apparent.

 

Commenting today, Mr Lin Huoyan, Executive Chairman of Naibu, said: "Market conditions are difficult at present.  However, I am confident that with the steps we are taking it will allow Naibu to navigate these challenging markets and emerge strongly."

 

- Ends -

 

 

For further information:

Naibu Global International Company Plc


Huoyan Lin, Executive Chairman

Tel: +44 (0) 20 7398 7702

Li Zhen, Chief Financial Officer

www.naibu.com

 

Daniel Stewart & Company Plc

Tel: +44 (0) 20 7776 6550

Paul Shackleton / Martin Lampshire

www.danielstewart.co.uk

 

Media enquiries:

Abchurch Communications


Henry Harrison-Topham / Quincy Allan

Tel: +44 (0) 20 7398 7702

[email protected]

www.abchurch-group.com

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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