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CMM Commoditrade

2.875
0.00 (0.00%)
14 Jun 2024 - Closed
Delayed by 15 minutes
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

Final Results

23/03/2009 7:00am

UK Regulatory



 

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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