Samarkand Group plc : Trading Update (1608421)
17 April 2023 - 8:00AM
UK Regulatory
Samarkand Group plc (SMK) Samarkand Group plc : Trading Update
17-Apr-2023 / 07:00 GMT/BST
-----------------------------------------------------------------------------------------------------------------------
17th April 2023
Samarkand Group plc
("Samarkand", the "Company" or together with its subsidiaries
the "Group")
Trading Update
Samarkand Group plc (AQSE:SMK), the cross-border eCommerce
technology, services and consumer brand group, this morning
provides a trading update for the year ended 31 March 2023
("FY23").
FY23 results are expected to be slightly ahead of market
guidance, demonstrating the ability with which the Group has
navigated a period of extended disruption in its largest market,
China.
Despite the well-documented headwinds, Samarkand has grown top
line revenues in the range of 2% to 4% year on year. Gross profit
margins have improved materially on the prior year due to
improvements in mix and bolstered by the contribution from recent
acquisitions. As a result of selective adjustments to our cost base
and improvements in operating efficiency the Group has cut EBITDA
losses by over 50% against the prior period and is making strong
progress in returning to profitable growth in FY24.
The reopening of China following extended Covid lockdowns marks
a return to a more normal trading environment and the Company is
optimistic with regards to consumer demand for international
brands, the prospects for cross border eCommerce and the overall
consumer market in China. We note that consumer confidence in China
remains impacted since the onset of COVID and that the overall rate
of growth in the Chinese market is lower than the exceptional
levels before the pandemic.
Good progress is being made against our strategy of:
-- Expanding our portfolio of client brands distributed in
China, with increasing gross margins fromdistribution
activities
-- Increasing our routes to consumer and broadening our sales
channels
-- Growing revenues of our owned-brand portfolio
-- Leveraging our Nomad Technology platform to enable new routes
to the consumer and merchant opportunities
Client wins include a number of new niche international brands
in trending categories in China, such as hair colouring, clinic led
skin care and beauty devices. We have strengthened our live-stream
commerce capabilities and formed partnerships with leading domestic
and international Chinese influencers to offer brands new sales
opportunities. This has expanded Samarkand's role in enabling cross
border transactions on fast growing Chinese platforms such as
Douyin (TikTok in China) for international brands and
merchants.
We are well-positioned to capitalise on the fast growth of the
live-streaming sector in China which has been used to great effect
for clients and the Group's owned brand. Across a series of four
livestreams in the last quarter of FY23, we have seen a significant
sales uplift in China, particularly Napiers.
FY24 performance is currently anticipated to be in line with
market expectations, delivering an acceleration in top line growth
and returning to profit as a result of the Company's improvement in
mix and operational leverage. The continued growth in Samarkand's
owned brand portfolio is accretive to margin structure and has the
added benefit of reducing reliance on the China market.
David Hampstead, Chief Executive Officer of Samarkand Group,
commented "After an unprecedented twelve months we have finished
the year ahead of guidance and are making good progress on our
return to profitability. There is no doubt that the experience of
the last 3 years will have an impact on consumer demand in China
but we are well placed to capitalise on the opportunities ahead of
us. Our owned brands have performed well throughout the period of
disruption and now account for around 40% of group revenues. Zita
West, as a premium fertility supplement brand, is well positioned
both in China and globally given global fertility trends. Napiers
has performed particularly well in recent months. We have leveraged
our technology and channels enabling a 160 year old brand to reach
an audience of millions via live-streaming in China."
For more information, please contact:
Samarkand Group plc Via Alma PR
David Hampstead, Chief Executive Officer
http://samarkand.global/
Eva Hang, Chief Financial Officer
VSA Capital - AQSE Corporate Adviser and Broker +44(0)20 3005 5000
Andrew Raca, Evon Chan, Alex Cabral (Corporate Finance)
IPO@vsacapital.com
Alma PR +44(0)20 3405 0213
Josh Royston
Robyn Fisher samarkand@almapr.co.uk
Joe Pederzolli
Notes to Editors
Samarkand is a cross-border eCommerce technology and retail
group focusing on connecting International Brands with China, the
world's largest eCommerce market. The Group has developed a
proprietary software platform, the Nomad platform, which is
integrated across all necessary touchpoints required for eCommerce
in China including eCommerce platforms, payments, logistics, social
media and customs. The Nomad platform is the foundation on which
the Group's Nomad technology and service solutions are built. The
core products include Nomad Checkout, Nomad Storefront and Nomad
Distribution.
Founded in 2016, Samarkand is headquartered in London, UK with
offices in Shanghai.
For further information please visit
https://www.samarkand.global/
-----------------------------------------------------------------------------------------------------------------------
Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BLH1QT30
Category Code: MSCM
TIDM: SMK
Sequence No.: 237107
EQS News ID: 1608421
End of Announcement EQS News Service
=------------------------------------------------------------------------------------
Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1608421&application_name=news
(END) Dow Jones Newswires
April 17, 2023 02:00 ET (06:00 GMT)
Samarkand (AQSE:SMK)
Historical Stock Chart
Von Okt 2024 bis Nov 2024
Samarkand (AQSE:SMK)
Historical Stock Chart
Von Nov 2023 bis Nov 2024
