China Food drives expansion

08/04/2008 Robert Tyerman

Soya sauce, vinegar and bean paste producer China Food sees a big 2009 boost from new capacity in Shandong province.

China Food, which came to AIM in December through the reverse takeover of Singapore-based food holding company Full Fortune, lifted pre-tax profits 23.7 per cent to £6.1 million last year on turnover up 31 per cent to £25.3 million. The company, whose ‘Fushi Hao Tai Tai’ product was named one of the top 50 brands in China for soya sauce and vinegar, is building a new state-of-the-art production facility in Shiu Gang City, Weifang, in China’s Shandong province. It is on track for completion and commissioning late this year.

Followers expect the company, headed by chairman John McLean, to increase pre-tax profits ten per cent this year to £8.3 million, but say the big lift should come next year from Shiu Gang. China Food raised £5 million at 30p in December to fund the Full Fortune deal, which accompanied its AIM float. The price has fluctuated since.

Now 46p, up 5p this morning, the shares value the company at £30.5 million and have speculative specialist appeal.

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