Wishbone Gold sees profits improve as it proposes share reorganisation

Wishbone updated the market on its trading on Thursday, ahead of the end of its financial year on 31 December.

The AIM-traded firm said revenue in the year-to-date as at 17 December was $10.57m, which was a slight decrease of $0.32m from the previous full financial year.

It said it did expect there to be a year-on-year increase for the 12 month period ending 31 December.

Trading profit for the same period was around $57k, which was an increase of $10,715 from $46,271.

The board said the trading profit margin increased to .54% from .42% in the previous year.

Wishbone explained that it had expanded its operations in Hong Kong, and added that it was hopeful that the expansion would increase at a greater rate as the situation in the region settled.

“The company will begin operations in Europe at the end of December, which will have a positive impact on the group's turnover and profitability.”

It also said it had agreed to a settlement with the Scotia Group of Companies concerning the operations in Honduras.

That included the payment to the company of $0.6m over the next six months.

The first $50k had already been paid, and there is a further payment of up to $0.4m over the next two years to be paid out of profits, if any, from the Honduran operations.

It said the plant was currently not in production.

Wishbone Gold also issued a notice of a general meeting to be held on 10 January on Thursday.

That meeting would contain a resolution to effect a capital reorganisation.

It proposed that every 100 existing ordinary shares would be consolidated, and then subdivided into one deferred share of 9.9p each and one new ordinary share of 0.1p each.

That would mean that there would be fewer shares in issue, but the proportions held by each shareholder would remain the same.

At 1627 GMT, shares in Wishbone Gold were up 9.52% at 0.023p.