StockMarketWire.com - Animal feed supplier Walcom warned that it may be forced into liquidation next month if it is unable to secure further funding, as an ongoing outbreak of swine flu in China crimps its sales.

Walcome said African Swine Fever had continued to spread in China and that its revenue would consequently be lower than it expected three months ago.

The company currently had enough funding to meet its liabilities until mid-September.

'The board continues to seek alternative funding to safeguard the group's liquidity,' it said.

'Whilst the company is hopeful that it will secure the necessary funding, in the event that it is unable to address the working capital shortfall, the company may be unable to continue its operations and may be forced into liquidation with a consequential diminution in value to shareholders,' it added.

A vaccine has not yet been made available to control the swine flu outbreak, which has resulted in a significant reduction in the size of China's swine population.

Walcom said it expected the impact of the disease to continue for at least the next six months, following which it was hopeful that pork producers would start to increase swine numbers.

It was also actively working on increasing customer penetration within the poultry feed sector, and exploring opportunities in the beef cattle sector, with the benefits of those efforts hoped for in the latter part of the year.


At 1:22pm: [LON:WALG] Walcom Group Ltd share price was -0.15p at 0.3p



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