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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Commoditrade | LSE:CMM | London | Ordinary Share | KYG174761059 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.875 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMCMM
RNS Number : 2613P
Commoditrade Inc.
23 March 2009
23 March 2009
Commoditrade Inc.
("Commoditrade" or "the Company")
Final Results for the year ended 31 December 2008
Commoditrade (ticker: CMM.L), the commodities investment group, is pleased to
announce its audited results for the year ended 31 December 2008.
Summary Financials
+--------------+--------------+------------------+---------------------------+
| Revenue H1 | Revenue H2 | Total Revenue | Profit from on-going |
| 2008 | 2008 | 2008 | operations prior to |
| | | | non-cash items |
+--------------+--------------+------------------+---------------------------+
| GBP7,750,000 | GBP9,956,000 | GBP17,706,000 | GBP2,548,000 |
| | | | |
+--------------+--------------+------------------+---------------------------+
* Gross Revenue GBP17.7 million (2007: GBP33.9 million)
* Profit from operations prior to non-cash and sign-on bonus items GBP2.6 million
(2007: GBP16.1 million)
* Total of GBP8.9 million in cash back to shareholders during the period via a
GBP5.0 million dividend and GBP3.9 million share buy back balance
* No debt at year end with net cash at bank of GBP5.7 million
* Translation reserve increased to GBP3.1 million due to foreign exchange gains
* After including non-cash items totalling GBP24.5 million (*note below) and
sign-on bonus payments of GBP0.5 million the Company incurred a loss for the
year of GBP22.4 million (2007: Loss GBP6.3 million)
Strategic and Operational highlights
* Management changes made during the year including the appointment of David
Phipps as Chief Executive on 3 September 2008
* Formation of Commoditrade Asset Management Limited ("CMMAM") and reorganisation
of operational platform ahead of the Group's future product diversification
* Strong LME base metals franchise was further enhanced with additional market
professionals during the year
* Acquisition announced on 1 December 2008 of AMCO Management Services Limited,
the controlling partner of AMCO Commodities LLP, a commodities fund manager
("AMCO") and following receipt of approval to the transaction from the FSA on 18
February 2009, completion of the acquisition, took place on 20 February 2009.
*Note: Non-cash items include GBP11.8 million in respect of amortisation of
intangible asset (2007: GBP12.1 million) the carrying value of which has been
reduced to GBP3.9 million from GBP26.22 million at the beginning of 2007.
Accordingly, amortisation of this intangible will have a significantly less
material impact on future results. In addition, non-cash items include GBP11.2
million in respect of share based payments (2007: GBP5.5 million) of which GBP3
million related to the exercise of options by Graham Butt during the year and so
will not recur in future years and GBP1.5 million in relation to the permanent
diminution in the available for sale assets.
Commenting on the Group's outlook, David Phipps, Chief Executive, said:
"Our core LME base metals franchise remains strong and although we anticipate
that total LME volumes are likely to be lower in 2009 than last year we believe
the changes we have made will enhance and increase revenue flows during the
year.
"The acquisition of AMCO will add to our current revenue flows and provide cost
savings as well as additional revenue growth as we add additional commodity
asset classes to the product portfolio.
"Diversification into other commodity areas will be activated as soon as
possible following the creation of the Group's UK regulated entity and initial
revenue flows from this area are expected to commence during the final quarter
of 2009"
www.commoditrade.net
+-------------------------------------------+---------------------------------------------------+
| Enquiries: | |
+-------------------------------------------+---------------------------------------------------+
| Commoditrade Inc | tel: +44(0)20 7245 1100 (on 23 March 2009) |
| David Phipps, Chief Executive | |
| | |
+-------------------------------------------+---------------------------------------------------+
| Nomad | tel: +44(0)20 7409 3494 |
| James Harris/Angela Peace | |
| Strand Partners | |
| | |
+-------------------------------------------+---------------------------------------------------+
| Media/IR | tel: +44(0) 7872 061007 |
| John Bick, Hansard Group | |
+-------------------------------------------+---------------------------------------------------+
Commoditrade Inc.
Preliminary Statement for the year ended 31 December 2008
Results
Gross revenue for the period was GBP17.7 million before deduction of clearing
and administration fees (2007: GBP33.9 million). Net cash flow from operating
activities was GBP5.2 million (2007: GBP10.7 million). As at 31 December 2008
the Group had no debt and its cash balances stood at GBP5.7 million after GBP3.9
million of cash was used in the final part of the Company's share buy-back
programme and a final dividend was paid utilising a further GBP5.0 million of
cash.
Operational clearing and related administration costs were lower at GBP6.2
million (2007 GBP8.5 million). Net income for the period after direct trading
costs and bonuses but before amortisation of intangible assets, impairment of
available for sale assets, costs associated with the issue of share options and
sign-on bonus payments to the trading team, was GBP2.5 million (2007: GBP16.7
million).
Total non-cash charges during the period amounted to GBP25.0 million consisting
of amortisation of intangible assets of GBP11.8 million, costs associated with
the issue of share options of GBP11.2 million, sign-on bonus payments of GBP0.5
million and GBP1.5 million in respect of the diminution in the value of an
"available for sale" asset, resulting in a loss before and after tax of GBP22.4
million (2007: loss GBP6.3 million).
The Group announced that it completed its share buy-back programme on 25
February 2008. During the last period of the programme the Group completed the
purchase of 14,755,000 shares representing 3.8 per cent of the Group's issued
share capital immediately prior to the buy-back, at a total cost of GBP3.9
million. Since the commencement of the programme on 26 November 2007, the Group
purchased 45,505,000 shares representing 11.9 per cent. of the Group's issued
share capital immediately prior to the buy-back, at a total cost of GBP11.26
million. No final dividend is proposed.
Reporting currency
Historically the Group has reported results in GBP. The board proposes changing
this to US dollars for future reporting periods. The reasoning for this is that
the vast majority of commodity trading is effected and the Company's resultant
revenue is generated in US dollars. Changing the reporting currency to US
dollars will more accurately reflect the trading activities of the Group.
Strategy and Developments
Even in these most turbulent financial conditions the Group has continued to
benefit from the revenues generated by a very strong trading and broking team in
the base metals market. Our base metals revenues form a robust foundation from
which to build-out the business and last year we embarked on a strategy that
would enable the Group to diversify into other commodities. In order to achieve
this, the Group had to embark upon a period of change and this has been a year
of restructuring our current core operations and developing the platform to
diversify our revenue stream in to other commodity areas and products.
Whilst this work is ongoing, considerable progress has been made in terms of the
Risk Management Platforms and Operational System areas to effectively support
this strategy which we expect to be completed by the end of the first half of
2009.
Our recent acquisition of the interest in AMCO Management Services Limited
provides us with the first step in our product diversification and we are
excited by the opportunities this acquisition will bring. We have initiated a
strategy of widening the commodity coverage in the AMCO business, initially
maintaining the Relative Value Strategy but with the aim of adding additional
products in due course.
Core to our strategy of diversification into other commodity areas is the
creation of a UK FSA regulated entity and our ownership of FSA regulated AMCO
will help reduce the time and effort involved in this process.
Risk management and control remains an area of core focus and is key to the
success of the business. Management reacted to changes in the levels of activity
in the base metals market and associated continuance of very high levels of
volatility by significantly reducing the level of risk taken on in the last four
months of 2008. Whilst this may have reduced the Group's revenue opportunities
it was management's belief that the risk inherent in the market outweighed the
potential revenue opportunities.
As we commence operations in additional commodity asset classes we intend to
roll out our strict risk control policies across these areas. Counterparty risk
remains an ongoing concern for all businesses and in order to mitigate this for
the foreseeable future we have taken the decision to limit our trading
activities to exchange cleared products with a central counterparty cleared
model.
Outlook
Our core LME base metals franchise remains strong and has been enhanced with
addition of experienced market professionals during the year as part of the
restructuring process. Although we anticipate that total LME volumes are likely
to be lower in 2009 we believe the changes we have made will enhance and
increase revenue flows during the year.
The acquisition of AMCO will add to our current revenue flows and provide cost
savings as well as providing additional revenue growth as we add additional
commodity asset classes to our product portfolio.
Diversification into other commodity areas will be activated as soon as possible
following the creation of the Group's UK regulated entity and initial revenue
flows from this area are expected to start during the final quarter of 2009.
David Phipps
Chief Executive
23 March 2009
Consolidated income statement
for the year ended 31 December 2008
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 |
| | | Prior | | | Prior | | |
| | | to | Non | | to | Non | |
| | | non | cash | | non | cash | |
| | Note | cash | and | Total | cash | and | Total |
| | | and | sign | | and | sign | |
| | | sign | on | | sign | on | |
| | | on | bonus | | on | bonus | |
| | | bonus | costs | | bonus | costs | |
| | | costs | | | costs | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| LME | | 17,706 | - | 17,706 | 33,880 | - | 33,880 |
| trading | | | | | | | |
| revenues | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Clearing | | (6,150) | - | (6,150) | (8,470) | - | (8,470) |
| and | | | | | | | |
| related | | | | | | | |
| costs | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Direct | | (6,983) | - | (6,983) | | | |
| costs, | | | | | (7,834) | - | (7,834) |
| financing | | | | | | | |
| charges | | | | | | | |
| and | | | | | | | |
| trader | | | | | | | |
| bonuses | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Amortisation | | - | (11,740) | (11,740) | | | |
| of | | | | | - | (12,063) | (12,063) |
| intangible | | | | | | | |
| asset | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | ------ | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Net | 5 | 4,573 | (11,740) | (7,167) | 17,576 | (12,063) | 5,513 |
| income | | | | | | | |
| from | | | | | | | |
| associated | | | | | | | |
| business | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Revenue | | 514 | - | 514 | - | - | - |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Other | | 80 | - | 80 | 416 | - | 416 |
| income | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Total | | 5,167 | (11,740) | (6,573) | 17,992 | (12,063) | 5,929 |
| income | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Administrative | | - | (11,188) | (11,188) | - | (5,459) | (5,459) |
| expenses | | | | | | | |
| -share based | | | | | | | |
| payment | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| -sign-on | | - | (519) | (519) | - | (5,487) | (5,487) |
| bonus | | | | | | | |
| payments | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| -permanent | | - | (1,531) | (1,531) | - | - | - |
| diminution | | | | | | | |
| of | | | | | | | |
| available | | | | | | | |
| for sale | | | | | | | |
| asset | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| -other | | (2,595) | - | (2,595) | (1,888) | - | (1,888) |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Total | | (2,595) | (13,238) | (15,833) | (1,888) | (10,946) | (12,834) |
| administrative | | | | | | | |
| expenses | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Profit/(loss) | | 2,572 | (24,978) | (22,406) | 16,104 | (23,009) | (6,905) |
| from | | | | | | | |
| operations | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Finance | | 165 | - | 165 | 644 | - | 644 |
| income | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Finance | | (189) | - | (189) | - | - | - |
| costs | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Profit/(loss) | 2,548 | (24,978) | (22,430) | 16,748 | (23,009) | (6,261) |
| for the year | | | | | | |
| before tax | | | | | | |
+-------------------------+---------+----------+----------+---------+----------+----------+
| | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Tax | 3 | - | - | - | - | - | - |
| charge | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Net | 2,548 | (24,978) | (22,430) | 16,748 | (23,009) | (6,261) |
| profit/(loss) | | | | | | |
| for the year | | | | | | |
+-------------------------+---------+----------+----------+---------+----------+----------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| Basic | | | | (6.51)p | | | (1.66)p |
| and | 4 | | | | | | |
| diluted | | | | | | | |
| (loss) | | | | | | | |
| per | | | | | | | |
| share | | | | | | | |
| (pence) | | | | | | | |
+----------------+--------+---------+----------+----------+---------+----------+----------+
| | | | | ------- | | | ------- |
+----------------+--------+---------+----------+----------+---------+----------+----------+
Consolidated statement of changes in equity
for the year ended 31 December 2008
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| | | Capital | | | | Retained | Total |
| | | redemption | | | | earnings | equity |
| | Share | reserve | Share | Shares to | Translation | | |
| | capital | | premium | be issued | reserve | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| At 31 December 2006 | 376 | - | 33,452 | 1,800 | (459) | 5,756 | 40,925 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Currency translation | - | - | - | - | (470) | - | (470) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Available for sale assets | - | - | - | - | - | (119) | (119) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Net expense recognised in equity | | - | - | | (470) | (119) | (589) |
| | - | | | - | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Net loss for the year | - | - | - | - | - | (6,261) | (6,261) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Total recognised income and expenses for year | | - | - | | (470) | (6,380) | (6,850) |
| | - | | | - | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Issue of new shares | 6 | - | 3,279 | (1,800) | - | - | 1,485 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Shares cancelled | (40) | 40 | - | - | - | (10,225) | (10,225) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Share based payment | - | - | - | - | - | 5,459 | 5,459 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| At 31 December 2007 | 342 | 40 | 36,731 | - | (929) | (5,390) | 30,794 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Currency translation | - | - | - | - | 4,076 | - | 4,076 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Revaluation of available for sale assets | | - | - | | - | (50) | (50) |
| | - | | | - | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Loss recycled through income statement on available for sale asset | | - | - | | - | 461 | 461 |
| | | | | | | | |
| | - | | | - | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Net income recognised in equity | | - | - | | 4,076 | 411 | 4,487 |
| | - | | | - | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Net loss for the year | - | - | - | - | - | (22,430) | (22,430) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Total recognised income and expenses for year | | - | - | | 4,076 | (22,019) | (17,943) |
| | - | | | - | | | |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Dividends paid | - | - | - | - | - | (5,051) | (5,051) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Issue of new shares | 12 | - | - | - | - | - | 12 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Shares cancelled | (5) | 5 | - | - | - | (1,039) | (1,039) |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| Share based payment | - | - | - | - | - | 11,188 | 11,188 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
| At 31 December 2008 | 349 | 45 | 36,731 | - | 3,147 | (22,311) | 17,961 |
+--------------------------------------------------------------------+----------+------------+----------+-----------+-------------+-----------+----------+
+-------------+--------+----------+---------+
| Consolidated balance sheet |
| for the year ended 31 December |
| 2008 |
| |
+-------------------------------------------+
| | | 2008 | 2007 |
+-------------+--------+----------+---------+
| | Note | GBP'000 | GBP'000 |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Assets | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Non-current | | | |
+-------------+--------+----------+---------+
| Investment | 5 | 3,913 | 15,653 |
| in | | | |
| associated | | | |
| business | | | |
+-------------+--------+----------+---------+
| Other | | 1,368 | 1,022 |
| receivable | | | |
+-------------+--------+----------+---------+
| | | 5,281 | 16,675 |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Current | | | |
+-------------+--------+----------+---------+
| Available | | 1,825 | 3,503 |
| for sale | | | |
| financial | | | |
| assets | | | |
+-------------+--------+----------+---------+
| Trade | | 5,342 | 4,934 |
| and | | | |
| other | | | |
| receivables | | | |
+-------------+--------+----------+---------+
| Cash | | 5,659 | 8,636 |
| and | | | |
| cash | | | |
| equivalents | | | |
+-------------+--------+----------+---------+
| Total | | 12,826 | 17,073 |
| current | | | |
| assets | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Total | | 18,107 | 33,748 |
| assets | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Liabilities | | | |
+-------------+--------+----------+---------+
| Current | | | |
+-------------+--------+----------+---------+
| Trade | | 146 | 2,954 |
| and | | | |
| other | | | |
| payables | | | |
+-------------+--------+----------+---------+
| Total | | 146 | 2,954 |
| liabilities | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Equity | | | |
+-------------+--------+----------+---------+
| Share | | 349 | 342 |
| capital | | | |
+-------------+--------+----------+---------+
| Capital | | 45 | 40 |
| redemption | | | |
| reserve | | | |
+-------------+--------+----------+---------+
| Share | | 36,731 | 36,731 |
| premium | | | |
+-------------+--------+----------+---------+
| Translation | | 3,147 | (929) |
| reserve | | | |
+-------------+--------+----------+---------+
| Retained | | (22,311) | (5,390) |
| earnings | | | |
+-------------+--------+----------+---------+
| Total | | 17,961 | 30,794 |
| equity | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
| Total | | 18,107 | 33,748 |
| equity | | | |
| and | | | |
| liabilities | | | |
+-------------+--------+----------+---------+
| | | | |
+-------------+--------+----------+---------+
+-----------------------------------------+------+----------+---------+
| Consolidated cash flow statement |
| for the year ended 31 December 2008 |
| |
+---------------------------------------------------------------------+
| | | 2008 | 2007 |
+-----------------------------------------+------+----------+---------+
| | | GBP'000 | GBP'000 |
+-----------------------------------------+------+----------+---------+
| | | | |
+-----------------------------------------+------+----------+---------+
| Operating activities | | | |
+-----------------------------------------+------+----------+---------+
| (Loss) after tax | | (22,430) | (6,261) |
+-----------------------------------------+------+----------+---------+
| Permanent diminution of available for | | 1,531 | - |
| sale asset | | | |
+-----------------------------------------+------+----------+---------+
| Amortisation of intangible asset in | | 11,740 | 12,063 |
| associated business | | | |
+-----------------------------------------+------+----------+---------+
| Share based payment | | 11,188 | 5,459 |
+-----------------------------------------+------+----------+---------+
| Change in trade and other receivables | | (754) | (132) |
+-----------------------------------------+------+----------+---------+
| Change in trade and other payables | | (1) | 25 |
+-----------------------------------------+------+----------+---------+
| Foreign exchange | | 3,917 | (451) |
+-----------------------------------------+------+----------+---------+
| Net cash inflow from operating | | 5,191 | 10,703 |
| activities | | | |
+-----------------------------------------+------+----------+---------+
| | | | |
+-----------------------------------------+------+----------+---------+
| Investing activities | | | |
+-----------------------------------------+------+----------+---------+
| Sale of available for sale financial | | 717 | - |
| assets | | | |
+-----------------------------------------+------+----------+---------+
| Purchase of available for sale | | - | (1,577) |
| financial assets | | | |
+-----------------------------------------+------+----------+---------+
| | | 717 | (1,577) |
+-----------------------------------------+------+----------+---------+
| | | | |
+-----------------------------------------+------+----------+---------+
| Financing activities | | | |
+-----------------------------------------+------+----------+---------+
| Purchase of own shares | | (3,846) | (7,418) |
+-----------------------------------------+------+----------+---------+
| Issue of shares | | 12 | - |
+-----------------------------------------+------+----------+---------+
| Dividend paid | | (5,051) | - |
+-----------------------------------------+------+----------+---------+
| Net cash outflow from financing | | (8,885) | (7,418) |
| activities | | | |
+-----------------------------------------+------+----------+---------+
| | | | |
+-----------------------------------------+------+----------+---------+
| | | | |
+-----------------------------------------+------+----------+---------+
| Net (reduction)/increase in cash and | | (2,977) | 1,708 |
| cash equivalents | | | |
+-----------------------------------------+------+----------+---------+
| Cash and cash equivalents at beginning | | 8,636 | 6,928 |
| of year | | | |
+-----------------------------------------+------+----------+---------+
| Cash and cash equivalents at end of | | 5,659 | 8,636 |
| year | | | |
+-----------------------------------------+------+----------+---------+
1. ACCOUNTING POLICIES
Basis of preparation
The Group was incorporated as a Corporation in the Cayman Islands which does not
prescribe the adoption of any particular accounting framework. The Board has
therefore adopted and complied with International Financial Reporting Standards
as adopted by the European Union (IFRS).
The Group's shares are listed on the AIM market of the London Stock Exchange.
The principal accounting policies of the Group, which have been applied
consistently are detailed in the Group's annual report and financial statements.
2. SEGMENTAL REPORTING
(a) By business segment (primary segment):
As defined under International Accounting Standard 14 (IAS 14), the only
material business segment the Group has is that of an investment company
specialising in investments in the commodities trading sector.
(b) By geographical segment (secondary segment):
Under the definitions contained in IAS 14, the only material geographic segment
that the Group operates in is currently Switzerland.
3. TAX
There is no tax charge/income for either year. The Group does not operate in any
taxable jurisdiction and there is no tax arising on its operations. The
relationship between the expected tax expense/income at 30% and the tax
expense/income actually recognised in the income statement can be reconciled as
follows:
+----------+----------+--------+---------+--------+
| | 2008 | 2007 |
+----------+-------------------+------------------+
| | GBP'000 | % | GBP'000 | % |
+----------+----------+--------+---------+--------+
| | | | | |
+----------+----------+--------+---------+--------+
| (Loss) | (22,430) | - | (6,261) | - |
| for | | | | |
| the | | | | |
| period | | | | |
| before | | | | |
| taxation | | | | |
+----------+----------+--------+---------+--------+
| | | | | |
+----------+----------+--------+---------+--------+
| Expected | (6,729) | (30) | (1,878) | (30) |
| tax | | | | |
| (credit) | | | | |
+----------+----------+--------+---------+--------+
| Loss | 6,729 | - | 1,878 | - |
| not | | | | |
| subject | | | | |
| to tax | | | | |
+----------+----------+--------+---------+--------+
| Actual | - | - | - | - |
| tax | | | | |
| income | | | | |
+----------+----------+--------+---------+--------+
4. (LOSS) PER SHARE
The calculation of the basic (loss)/earnings per share is based on the net loss
for the year of GBP22,430,000 (2007: loss GBP6,261,000) divided by the weighted
average number of shares in issue during the year of 344,465,505 (2007:
377,118,251).
The impact of the warrant and share options is anti-dilutive on the basic loss
per share in 2008 and 2007.
An adjusted earnings per share has also been calculated based on the profit for
the year before amortisation of the intangible asset within the associated
business, sign-on bonus payments, the permanent diminution of available for sale
asset and the share based payment charge amounting to a total of GBP24.978
million. (2007: GBP23.009 million) The adjusted earnings per share is therefore
based on the adjusted net profit for the year of GBP2.548 million (2007:
GBP16.748 million) divided by the weighted average number of shares in issue
during the year of 344,465,505 (2007: 377,118,251) which results in an adjusted
profit per share of 0.74 pence (2007: 4.44 pence).
The diluted adjusted profit per share is based on a weighted average number of
shares in issue on a fully diluted basis of 381,288,186 (2007: 426,038,732)
which results in an adjusted diluted profit per share of 0.67 pence (2007: 3.93
pence).
The diluted profit per share calculations for 2008 and 2007 are based on a
weighted average number of shares in issue on a fully diluted basis calculated
as follows:
+----------+-------------+-------------+
| | 2008 | 2007 |
+----------+-------------+-------------+
| | | |
+----------+-------------+-------------+
| Weighted | 344,465,505 | 377,118,251 |
| average | | |
| shares | | |
| in issue | | |
+----------+-------------+-------------+
| Dilutive | 3,822,681 | 3,420,481 |
| impact | | |
| of | | |
| warrant | | |
+----------+-------------+-------------+
| Dilutive | 33,000,000 | 45,500,000 |
| impact | | |
| of share | | |
| options | | |
+----------+-------------+-------------+
| Weighted | 381,288,186 | 426,038,732 |
| average | | |
| diluted | | |
| shares | | |
| in issue | | |
+----------+-------------+-------------+
5. INVESTMENT IN ASSOCIATED BUSINESS
The investment in associated business included in the balance sheet is analysed
as follows:
+----------------+----------+----------+
| | 2008 | 2007 |
+----------------+----------+----------+
| | GBP'000 | GBP'000 |
+----------------+----------+----------+
| | | |
+----------------+----------+----------+
| Additions | - | 1,485 |
| in the | | |
| year at | | |
| cost | | |
+----------------+----------+----------+
| Profit | 4,573 | 17,576 |
| for | | |
| the | | |
| financial | | |
| year | | |
+----------------+----------+----------+
| Foreign | 2,516 | (303) |
| exchange | | |
+----------------+----------+----------+
| Amortisation | (11,740) | (12,063) |
+----------------+----------+----------+
| | (4,651) | 6,695 |
+----------------+----------+----------+
| Increase/ | 288 | (25) |
| (reduction) | | |
| in amounts | | |
| included in | | |
| trade and | | |
| other | | |
| receivables | | |
+----------------+----------+----------+
| Bonuses | (392) | (4,737) |
| beyond | | |
| contractual | | |
| amounts | | |
| treated as | | |
| administrative | | |
| expenses | | |
+----------------+----------+----------+
| Cash | (6,985) | (12,511) |
| received | | |
| from | | |
| associated | | |
| business | | |
+----------------+----------+----------+
| Net | (11,740) | (10,578) |
| movement | | |
| in year | | |
+----------------+----------+----------+
| Net | 15,653 | 26,231 |
| book | | |
| value | | |
| brought | | |
| forward | | |
+----------------+----------+----------+
| Net | 3,913 | 15,653 |
| book | | |
| value | | |
| carried | | |
| forward | | |
+----------------+----------+----------+
6. POST BALANCE SHEET EVENT
Acquisition of AMCO Management Services Limited
On 20 February 2009 Commoditrade Inc acquired the entire share capital of AMCO
Management Services Limited, a business regulated by the financial services
authority based in the United Kingdom. The principal activity of AMCO Management
Services Limited is asset management.
The estimated total consideration of GBP4 million consists of an initial payment
at completion of GBP2 million of cash plus additional deferred consideration of
a further GBP2 million, contingent on performance, which will be settled in
cash.
The book values under IFRS and the provisional fair values of the assets and
liabilities acquired as at the date of acquisition were as follows:
+---------------+-------------+-------------+--------------+
| | Book | Fair | Fair |
| | value | value | value |
| | before | adjustments | to |
| | acquisition | | Commoditrade |
| | under IFRS | | Inc |
+---------------+-------------+-------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------+-------------+-------------+--------------+
| Non-current | | | |
| assets | | | |
+---------------+-------------+-------------+--------------+
| Property, | 10 | - | 10 |
| plant & | | | |
| equipment | | | |
+---------------+-------------+-------------+--------------+
| Current | | | |
| assets | | | |
+---------------+-------------+-------------+--------------+
| Trade | 186 | - | 186 |
| and | | | |
| other | | | |
| receivables | | | |
+---------------+-------------+-------------+--------------+
| Cash | 256 | - | 256 |
+---------------+-------------+-------------+--------------+
| Total | 452 | - | 452 |
| assets | | | |
+---------------+-------------+-------------+--------------+
| Current | | | |
| liabilities | | | |
+---------------+-------------+-------------+--------------+
| Trade | 220 | - | 220 |
| and | | | |
| other | | | |
| payables | | | |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Total | 220 | - | 220 |
| liabilities | | | |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Net | 232 | - | 232 |
| assets | | | |
+---------------+-------------+-------------+--------------+
| Goodwill | 3,768 | - | 3,768 |
| arising | | | |
| on | | | |
| acquisition | | | |
+---------------+-------------+-------------+--------------+
| Consideration | 4,000 | - | 4,000 |
+---------------+-------------+-------------+--------------+
The directors expect that the deferred consideration will be payable in full two
years from the date of the acquisition. The deferred consideration has not been
discounted as the discounted amount would not be materially different from the
full consideration. The intangible assets of AMCO Management Services Limited
will be independently valued and any remaining difference between the fair value
of net assets acquired and the fair value of the consideration will be treated
as goodwill.
Chris Adams, a director of the Company, is also a director of AMCO Management
Services Limited.
7. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The balance sheet at 31 December 2008 and the income statement, statement of
changes in equity, cash flow statement and associated notes for the year ended
31 December 2008 have been extracted from the Company's 2008 financial
statements upon which the auditors opinion is unqualified and does not include
any statement under Section 237 of the Companies Act 1985.
The accounts for the year ended 31 December 2008 will be posted to shareholders
and laid before the Company at the Annual General Meeting on 30 April 2009.
Copies will also be available from 30 Quai Gustave-Ador, 1207 Geneva 3,
Switzerland and via the website (www.commoditrade.net) in accordance with AIM
Rule 26.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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