Samarkand Group PLC - London-based e-commerce company focused on China - Posts narrowed half-year loss but expects continued volatility in China market. Pretax loss in the six months to September 30 narrows to GBP2.2 million from GBP3.5 million a year prior. Revenue climbs 15% to GBP8.3 million from GBP7.2 million. Cost of sales increase 25% to GBP3.8 million from GBP3.1 million. However, selling & distribution expenses decrease to GBP2.3 million from GBP3.3 million, while administrative expenses contract slightly to GBP3.8 million from GBP3.9 million.

Samarkand expects underlying trends from the first half to continue in China, but it notes that revenue from its UK and international markets is increasing.

An eight-week lockdown in Shanghai hurt its base of operations, as well as the city being a "significant" customer base. Looking ahead, Samarkand says: "The situation in China has steadily been improving with the loosening of restrictions on transport and travel leading to a reduction in logistical issues when compared to the peak earlier in the year. Although the overall situation remains fluid and difficult to predict, we remain positive in the long-term outlook for cross-border e-commerce in the world's second largest economy and largest e-commerce market. It is frustrating that factors beyond our control are impacting performance, although the resilience of the business has come to the fore and we retain a strong degree of confidence in our medium-term prospects."

Current stock price on AQSE in London: 53 pence

12-month change: down from 155p

By Tom Budszus, Alliance News reporter

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