(Alliance News) - Samarkand Group PLC on Monday said it expects annual results to top market expectations.

The company hailed how it "navigated a period of extended disruption in its largest market China".

The cross-border e-commerce technology, services and consumer brand group said revenue has grown in the range of 2.0% to 4.0% during the year ended March 31.

Its gross profit margins have "improved materially", helped by recent acquisitions. It added that it has trimmed its loss at an earnings before interest, tax, depreciation, and amortisation level by 50%.

Samarkand says that it is making good progress against several of its strategies. These include expanding its portfolio of client brands distributed in China, broadening its sales channels, and leveraging its Nomad Technology platform to enable new routes to consumer and merchant opportunities.

The group has strengthened its live-stream commerce capabilities and partnered with leading Chinese influencers. This has expanded Samarkand's role in enabling cross-border transactions on Chinese platforms such as Douyin, which is TikTok in China.

However, Samarkand also believes that continued growth in its owned brand portfolio will reduce its reliance on the Chinese market.

Samarkand anticipates that its performance in the new financial year will be in line with market expectations. It predicts an acceleration in revenue growth, as well as a return to profit.

Chief Executive Officer David Hampstead said: "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."

Samarkand was founded in 2016. It is headquartered in London with offices in Shanghai.

Shares surged 11% to 34.00 pence each in London on Monday.

By Emma Curzon, Alliance News reporter

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