Things are looking up for Aquis-quoted Samarkand (LON: SMK) since the easing of Covid restrictions in China. Although there was a short-term rise in infections, consumer confidence is improving since Chinese New Year. Samarkand could be profitable in the next financial year.
Savings have increased sharply over three years and there is pent up demand. The Chinese government is keen to boost consumption. Partner brands using the company’s Nomad software platform are planning for growth this year and more premium beauty brands have been added.
Samarkand’s own brands are trading well. Napiers beauty and skincare products have been launched in China. Probio7 and fertility brand Zita West are growing.
This year’s figures are likely to be in line with expectations with a full year loss of £4.1m forecast, following a £2.18m loss in the first half. The Samarkand share price fell 2.5p to 42.5p. The March 2021 placing price was 115p.
