CHINA SHOTO (LON:CHNS) – amazing turnaround in ‘cash’ fortunes!
The China based producer of industrial batteries and power supply systems, today announced its preliminary results for the year ended 31st December 2008 which came with a quite unexpected surprise.
The big increase in revenue of 70% to £183m was much as anticipated as was the increase in net profit of 79% to £10.07m. Diluted earnings per share were up 76% to 43.14p. However, the big surprise for me from this China based business was the quite unexpected turnaround in cash generation. China based small caps have earned a reputation for poor cash management and credit control and China Shoto’s (LON:CHNS) previous results implied that it too was going the same way as many of its China based peers. I acknowledge that a business whose turnover has risen over 800%…