Prosperity Minerals Holdings Ltd (AIM: PMHL), which operates a cement manufacturing business and an iron ore trading business in the People’s Republic of China, reported a 28 percent increase in full-year revenue, but profits dropped due to the effect of the global economic crisis.
In its results statement for the year ended March 31 2009, the group said is well positioned to take advantage of growth in both the cement and iron ore markets in China and, despite the ongoing difficult economic backdrop, is looking forward to a year of further progress.
China's approximately US$585 million stimulus package announced in November 2008 is already having a positive effect on the demand for both cement and steel, Prosperity added.
Revenue rose to US$647.7 million from US$507.5 million a year earlier, EBITDA fell 43 percent year-on-year to US$44.3 million. Adjusted pretax profit came in at US$15.9 million, down from US$59.3 million a year earlier.
The period under review saw an increase particularly in the cost of sales and in finance and administrative expenses.