LONDON (SHARECAST) - Herbalcos, the manufacturer and distributor of beauty, personal care and household care products, is to join the throng of Chinese companies listed on AIM.
Founded by the Executive Chairman, Charles Liu in 2000, the group began trading as an original equipment manufacturer (OEM) of personal care products for companies outside of China, but since the global financial crisis in 2008 has been focusing on its home market.
For the three years to the end of 2011, Herbalcos has grown its revenues and profit before taxation at compound annual growth rates of round 66% and 62% respectively.
In 2011, the group generated sales of RMB.437.6m and profit before taxation of RMB.128.6m. Further progress was made in the first half of 2012, with sales of RMB.258.2m and profit before tax of RMB.72.9m.
The group will raise £15m through a placing of shares, and intends to use those funds to grow the company, specifically through: enlarging production facilities; expansion of the distribution network; raise brand awareness; beef up research & development.
"Our ambition is to become a dominant multi-brand business in the cosmetic and consumer care markets in China. The company is well positioned to grow and through our targeted strategy, led by our highly experienced management team, it is our aim to deliver long term growth and value to our shareholders," Liu said.