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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Ambrian | LSE:AMBR | London | Ordinary Share | GB0003763140 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 1.50 | 1.25 | 1.75 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS Number:4969R Ambrian Capital PLC 03 April 2008 3rd April 2008 AMBRIAN CAPITAL PLC Preliminary announcement of unaudited results for the Year Ended 31 December 2007 Ambrian Capital plc (AIM:AMBR), the specialist investment bank, today announces its preliminary results for the year ended 31 December 2007: Highlights * Investment Banking revenue up 26.2 % to £10.64 million (2006: £8.43 million) - completed 16 transactions with a total value of £300 million - commenced Market Making in July 2007 - expanded LME metals sales team * The Investment Portfolio showed gains of £5.20 million (2006: £9.41million) - 17.3% increase in value of Investment Portfolio, including realised gains - 2006 was an exceptional year for the Investment Portfolio * Profit before tax of £5.79 million (2006: £8.07 million) made up of £4.16 million from Investment Banking (2006: £3.26 million) and £1.63 million from the Investment Portfolio (2006: £4.81 million) * Basic earnings per share of 4.32p (2006: 4.81p) * Shareholders' equity at 31 December 2007 of £45.04 million, after accounting for £6.04 million in respect of EBT and Treasury shares * Cash resources, net of client deposits, totalled £22.20 million at 31 December 2007 * Net asset value per share of 45.1p (2006: 43.8p) * Proposed final dividend of 1.00p per share making 1.75p for the full year (2006: 1.75p for the full year) Commenting on the results, Tom Gaffney, Chief Executive of Ambrian Capital plc, said: "Despite the challenging market conditions in the second half of 2007, our Investment Banking activities held up well and generated a significant improvement in revenues and profits over the previous year. The strength of commodities prices during 2007, and especially gold and oil prices, benefited us. Gains from our Investment Portfolio were up overall for the year after a weak second half. Market conditions at the start of 2008 remain volatile. Nevertheless, our Investment Banking subsidiaries and our Investment Portfolio made profits in the two months to the end of February. Our commodities business, in particular, profited from the high volatility in metals prices and had a record month in February. We have a talented team, a focus on the most dynamic sectors in the market and capital that we plan to invest in our businesses to support our objectives. We firmly believe that this combination of strengths will enable us to weather 2008 and grow our business for the future." Enquiries: Tom Gaffney Chris Howard Justine Howarth / Louise Goodeve Chief Executive Officer Collins Stewart Europe Parkgreen Communications Ambrian Capital plc Tel: +44 (0)20 7634 4700 Tel: +44 (0)20 7523 8314 Tel: +44 (0)20 7851 7480 Notes to Editors: 1. Ambrian Capital plc is an AIM listed specialist investment banking group focused on the mining, oil & gas, alternative energy and new technology sectors. Ambrian Capital plc provides corporate finance, stockbroking, commodity broking and investment management services to institutional and corporate clients. Ambrian Capital is also an active principal investor in the natural resources sector. 2. Ambrian Partners Limited, Ambrian Commodities Limited and Ambrian Asset Management are each authorised and regulated by the Financial Services Authority. Ambrian Partners Limited is a member of the London Stock Exchange and Ambrian Commodities Limited is an Associate Broker member of the London Metal Exchange. 3. Further information on Ambrian Capital is available on the Company's website: www.ambrian.com Chairman's Statement During 2007, the Investment Banking businesses made excellent progress as we continued the transformation of Ambrian Capital from an asset-based investment company into a sector focused investment bank with a growing stream of operating earnings. As a result of the adoption of International Financial Reporting Standards (" IFRS") in 2007, we are required to mark-to-market the value of our investments. The figures for 2006 have been re-stated for comparative purposes. Changes in the value of the Investment Portfolio are now reported as revenues and this will result in short-term fluctuations in our reported profits. The Investment Portfolio achieved significant gains during the year despite a difficult second half; while good, they were not as large as the exceptional gains experienced in 2006. The effect has been a year-on-year reduction in consolidated net profits for Ambrian Capital. We took market opportunities to realise a substantial portion of our investments and have reduced the Investment Portfolio to less than half of Ambrian Capital's net asset value at the end of 2007. Our cash resources, net of client deposits, totalled £22.20 million at 31 December 2007, an increase of 30% over the corresponding figure as at 31 December 2006. During the year there were a number of changes to the board of Ambrian Capital. I was appointed Chairman of Ambrian Capital in succession to Malcolm Burne who stood down at the Annual General Meeting on 22 May 2007. Malcolm remains an adviser to Ambrian Capital and a director of Golden Prospect Precious Metals Limited and we thank Malcolm for his significant contribution to the Company whilst Chairman. We would also like to extend our thanks to Richard Lockwood, who stood down from the Board on 22 May, for his guidance and support. During the year Lee Seng Huang became a non-executive director of Ambrian Capital. Lee Seng Huang is Chairman of Sun Hung Kai Financial (the leading non bank financial institution in Hong Kong) which purchased a 9.10% interest in Ambrian Capital in March 2007. Charles Crick joined us as a Non-Executive Director in May. Charles trained as a Solicitor with Allen & Overy and from 1996 to 2004 was head of corporate finance and a main board director of Numis Corporation PLC. John Coles, who is the Finance Director of our regulated subsidiaries, succeeded Nathan Steinberg as Group Finance Director on 6 January 2008. Nathan Steinberg continues as a non-executive director. In a business such as Ambrian Capital where our people are our principal asset it is vital to align the long-term interests of shareholders and employees. We took steps during 2007 to increase significantly the number of shares held by the Ambrian Capital plc Employee Benefit Trust ("EBT"). At 31 December 2007, the shareholdings of the Directors and employees of Ambrian Capital amounted in aggregate to approximately 19.5% of Ambrian Capital's share capital on a fully diluted basis, including 9.3% held by the EBT. Despite the continuing market volatility Ambrian Capital has a resilient business model based on a young, exceptionally talented team with a specialist focus on some of the fastest growing sectors of the global economy and a strong and liquid balance sheet. I would like to thank our clients for their support and our staff and my fellow Directors for their contribution to another successful year and we look forward to the challenges and opportunities that 2008 will present. W. Lawrence Banks, CBE Chairman 3 April 2008 Chief Executive's Statement The Investment Banking businesses delivered very good results in 2007. Our performance reflects the continued effectiveness of our strategy of providing a range of services that are focused on the resources and new technology sectors. Investment Banking revenue grew 26% during 2007 to £10.64 million. Commodity dealing and equity Market Making more than compensated for the slow down in equity new issue activity in the second half of 2007. The Investment Portfolio showed gains of £5.20 million in 2007. While not as high as 2006, this still represented a 17.3% increase in value during the year including realisations. Ambrian Capital's shareholders' equity stood at £45.04 million, or 45.1p per share at 31 December 2007 and included £22.20 million of cash resources. Our strong balance sheet ensures the resilience of our business in difficult markets. Ambrian Capital is committed to creating value for our institutional and corporate clients, our employees and our shareholders. Financial Review From 2007, Ambrian Capital is required to report its full year consolidated financial statements under IFRS as adopted by the European Union rather than under UK Generally Accepted Accounting Principles ("UK GAAP") as we have done in the past. Accordingly, (i) our Investment Portfolio at 31 December 2007 was valued on the Group's balance sheet at then market prices rather than at the lower of cost or net realisable value and (ii) changes in the value of the Investment Portfolio are reported as revenue. Operating revenue for 2007 was £15.84 million (2006: £17.84 million). Investment Banking operating revenue for 2007 was £10.64 million (2006: £8.43 million). This represented a 26 % increase over 2006 and accounted for 67% of Group revenue (2006: 47%). Revenue from the Investment Portfolio was £5.20 million compared with £9.41 million for 2006. Administrative expenses were £10.01 million (2006: £9.74 million), and included £2.51 million for discretionary director and employee incentive payments. Profit before tax was £5.79 million (2006: £8.07 million). Investment Banking profit before tax for 2007 was £4.16 million (2006: £3.26 million). This represented a 28% increase over 2006 and accounted for 72% of Group profit before tax (2006: 40%). Profit before tax from the Investment Portfolio was £1.63 million compared with £4.81 million for 2006. All central costs are allocated to the Investment Portfolio. Net profit for the year was £4.51 million (2006: £5.07 million) after a reduced tax charge reflecting Substantial Shareholder Relief on certain investments and pre-IFRS 2 exercise of share options. Basic earnings per share decreased by 10.2% to 4.32p (2006: 4.81p). Balance Sheet The consolidated balance sheet remains strong with a substantial excess over total regulatory capital requirements. Shareholders' equity was £45.04 million at 31 December 2007 (2006: £45.75 million), or 45.1p per share (2006: 43.8p), after accounting for £6.04 million in respect of EBT and Treasury shares. Our Financial Assets include the Investment Portfolio which was valued at £20.52 million at 31 December 2007 of which 96% was in quoted investments. The Group's cash resources, net of client deposits, totalled £22.20 million at 31 December 2007 compared with £17.04 million at 31 December 2006. Our cash is held largely in the form of call deposits with our bankers, the Royal Bank of Scotland plc and Barclays Bank plc. In March 2008 we entered into an £8.5 million unsecured, multi-currency revolving credit facility with the Royal Bank of Scotland plc which remains undrawn. The facility recognises our financial strength and provides a source of additional liquidity to take advantage of opportunities that may arise. Dividend The Board recommends payment of a final dividend of 1.00p per share (2006: 1.00p) making a total of 1.75p for the full year (2006: 1.75p). The dividend will be payable on 6 June 2008 to all shareholders on the register as at 16 May 2008. Investment Banking During 2007, each of our corporate finance and stockbroking, commodity dealing and asset management subsidiaries made further progress in strengthening their market positions. Our strategy of involvement in a range of different business activities in the natural resources sector has proved to be successful. In 2007, revenue from equity placings accounted for approximately 30% of Investment Banking revenue. We have been particularly successful in developing our M&A advisory activities. Mining clients remain key to our business and accounted for approximately 33% of Investment Banking revenue in 2007 compared with 59% in 2006. This demonstrates our success in building a client base that includes oil & gas clients, alternative energy and new technology clients. Ambrian Partners Limited Ambrian Partners Limited, our corporate finance and stockbroking subsidiary, had 35 retained corporate clients at 31 December 2007 with an average market capitalisation of approximately £86 million. Ambrian Partners' strategy is to provide NOMAD, Corporate Broking and Financial Advisory services to a selected number of high quality, higher market capitalisation companies. Retained corporate clients include Centamin Egypt, Metorex, Avocet Mining and Zenergy Power. Ambrian Partners has a particularly strong market position in the AIM Basic Materials Sector and was ranked, in a January 2008 survey by Hemscott, second by number of retained corporate clients and third by their aggregate market capitalisation. During 2007, Ambrian Partners was involved in 13 capital raisings with a total value of approximately £148 million. Significant equity placements included: - £18 million for Sylvania Resources Limited - A$35 million (£15 million) for Monto Minerals Limited - £15 million for TMO Renewables Limited - £6 million for Zenergy Power plc - £4.5 million for IPSO Ventures plc Ambrian Partners was also active in providing M&A advisory services during 2007; notable transactions included: - Co-adviser to the Zijin Consortium on its recommended £95 million cash offer for Monterrico Metals plc - Adviser to Pan African Resources in connection with the £35.6 million acquisition of Barberton Mines (Pty) Limited and re-admission to AIM - Adviser to Kalahari Minerals plc in connection with the £26.4 million merger of its uranium assets with Extract Resources Ltd In July 2007, Ambrian Partners became a registered Market Maker and currently makes markets in the shares of 61 companies listed on AIM. Our focus is on making markets in the shares of our corporate clients and our research coverage list. Market Making has enabled Ambrian Partners to provide a superior level of service to its institutional clients and has further strengthened revenue from secondary market activities. In February 2008, Ambrian Partners established Ambrian Asia and opened a representative office in Hong Kong. One of the senior members of the Ambrian Partners' corporate finance team has been seconded to Hong Kong. We are excited by the prospects of developing business in Asia and in particular capitalising on our partnership with Sun Hung Kai Financial. Ambrian Commodities Limited Ambrian Commodities' London Metal Exchange ("LME") metals business made good progress in 2007 and benefited from volatility in metals prices and high customer activity levels. Ambrian Commodities added to its sales team with the appointment of three highly experienced individuals who each brought with them his own client base to complement the existing one. These appointments have further strengthened Ambrian Commodities' presence in the global metals market and at the same time have broadened the geographical client base. The number of active clients has increased to 96 at 31 December 2007 from 53 at 30 June 2007. Approximately 20% of Ambrian Commodities' clients are now located in Asia. We are actively looking at a range of growth initiatives for Ambrian Commodities to build on our core expertise. For example, we have begun to explore the potential for participating in the market for Exchange Traded Funds ("ETFs") which are equity instruments listed on the London Stock Exchange that track underlying commodity prices. Our primary focus is on ETFs for industrial metals traded on the LME. We have decided to concentrate the activities of Ambrian Commodities on industrial metals and we provide soft commodity and carbon credit broker-dealer services as required by our clients. Ambrian Asset Management Limited Ambrian Asset Management is the manager of Golden Prospect Precious Metals Limited ("GPPM"), a Guernsey registered, closed-ended investment fund listed on AIM dedicated to equity investments in the precious metals sector. GPPM was launched in November 2006 with an opening Net Asset Value ("NAV") per share of 96.20p. GPPM had an NAV per share at 31 December 2007 of 111.22p, an increase of 15.6% since launch. GPPM's share price at 31 December 2007 was 96.5p and its market capitalisation was £12.5 million. Ambrian Asset Management receives a monthly management fee for managing GPPM and is eligible to receive an annual performance related fee equal to 20% of the increase in the NAV of GPPM after a hurdle of 8% has been attained. Ambrian Asset Management continues to explore the possibility of launching new funds in sectors in which it has expertise. Investment Portfolio Operating revenue from the Investment Portfolio for the year ended 31 December 2007 was £5.20 million. Gains of over £1 million were made in each of the investments in Nido Petroleum, Anglesey Mining and Jubilee Platinum. The total value of Ambrian Capital's Investment Portfolio at 31 December 2007 was £20.52 million compared with £30.05 million at 31 December 2006. Approximately 96% of the Investment Portfolio is in the shares of quoted companies. Our major realisations during 2007 included the sale of 4.5 million Jubilee Platinum plc shares with total proceeds of approximately £4.00 million and the sale of 2.85 million GPPM shares with total proceeds of approximately £3.16 million. As at 31 December 2007, precious metals investments represented approximately 52% of the Investment Portfolio and energy investments represented a further 30% of the Investment Portfolio. The balance comprised a range of other resources and technology orientated investments. As at 29 February 2008 the Investment Portfolio was valued at £20.96 million, including profits realised since 31 December 2007. Quoted Investments At 31 December 2007, the market value of our portfolio of our quoted investments was £19.8 million. Our top ten holdings had a total market value of £19.2 million and were as follows: Golden Prospect Precious Metals £6.1 million Nido Petroleum £2.7 million Jubilee Platinum £2.3 million Anglesey Mining £2.1 million Minerva Resources £2.0 million Kairiki Energy £1.4 million Samson Oil & Gas £1.2 million Commodity Watch £0.7 million Uranium One £0.4 million European Gas £0.3 million _____________ Total £19.2 million ============= In 2007, we concluded the capitalisation of our exploration assets by the sale of our exploration subsidiary, Golden Prospect Mining Company Limited, in exchange for a 39.84% interest in the share capital of Minerva Resources plc, an AIM listed exploration company. Also of note, during 2007, Commodity Watch plc (previously known as Minesite) was listed on Plus Markets. Ambrian Capital has a 25% holding in the company. Our Investment Portfolio will continue to be realised as fair value is achieved and liquidity opportunities arise. Unquoted Investments At 31 December 2007, the book value of Ambrian Capital's unquoted investments was £ 0.72 million. The reduction from £4.83 million at 31 December 2006 was attributable primarily to the sale of the exploration assets in return for listed shares of Minerva and the listing of Commodity Watch. Our unquoted investments include a £450,000 investment in TMO Renewables Limited. Employee Benefit Trust During 2007, in a series of market transactions, the EBT acquired a total of 7,798,710 Ambrian Capital plc ordinary shares for a total cash consideration of £4.07 million and now owns a total of 11,092,043 Ambrian Capital plc ordinary shares representing 9.96% of Ambrian Capital's outstanding share capital. These purchases have been funded by the EBT with loans from Ambrian Capital plc. Going Forward Our objective is to build an investment banking business, focused on growing sectors requiring high intellectual capital, that deserves to be valued at a substantial premium to net asset value. Ambrian Capital's results will fluctuate in line with market conditions and, in particular, the revenues associated with the Investment Portfolio. Volatile market conditions at the start of this year have proved to be a challenge. Nevertheless, each of our businesses made a profit in the first two months of 2008 and in, particular, our commodities business profited from the volatility and had a record month in February. In March 2008 we moved to new and much needed larger premises in the City of London on favourable terms. Our new offices provide scope for our future growth. We have a talented team, a focus on the most dynamic sectors in the market and capital that we plan to invest in our businesses to support our objectives. We firmly believe that this combination of strengths will enable us to weather 2008 and grow our business for the future. Tom Gaffney Chief Executive 3 April 2008 AMBRIAN CAPITAL PLC CONSOLIDATED INCOME STATEMENT Year ended 31 December 2007 2007 2006 (as restated) £ £ Revenue 15,834,720 17,841,224 Administrative expenses (10,014,900) (9,735,426) Finance costs (32,628) (36,615) ------------- ------------ Profit on ordinary activities before taxation 5,787,192 8,069,183 Tax on profit on ordinary activities (1,273,636) (2,995,305) ------------ ------------- Profit for the year from continuing activities 4,513,556 5,073,878 ------------ ------------- Profit for the year 4,513,556 5,073,878 ======= ======= Earnings per ordinary share - basic 4.32p 4.81p - diluted 4.18p 4.57p CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2007 2007 2006 (as restated) £ £ ASSETS Non-current assets Property, plant and equipment 126,852 199,766 Goodwill 1,836,828 1,836,828 ------------ ------------ 1,963,680 2,036,594 Current Assets Financial assets 23,888,023 34,739,291 Trade and other receivables 5,989,445 3,856,631 Cash at bank and in hand 27,080,761 30,408,289 ------------- ------------ 56,958,229 69,004,211 Non-current assets classified as assets for resale - 1,557,500 ------------- ------------ 56,958,229 70,561,711 ------------- ------------ Total Assets 58,921,909 72,598,305 LIABILITIES Current liabilities Trade and other payables (5,433,599) (4,198,794) Amounts due to clients (4,877,995) (13,371,613) Current tax payable (1,482,563) (3,091,685) ------------- ------------ (11,794,157) (20,662,092) ------------- ------------- Non-current liabilities Deferred tax liabilities (2,090,110) (2,706,549) ------------- ------------ Total Liabilities (13,884,267) (23,368,641) ------------- ------------ Net Assets 45,037,642 49,229,664 ======= ======= CAPITAL AND RESERVES Called up share capital 11,136,121 10,806,121 Share premium account 12,350,639 12,094,639 Treasury shares (163,217) (163,217) Retained earnings 26,957,576 24,278,739 Reserve for share based payments 636,342 543,262 Employee benefit trust (5,879,819) (1,813,557) ------------- ------------- Total equity attributable to equity holders of the parent 45,037,642 45,745,987 Minority interest - 3,483,677 ------------- ------------- 45,037,642 49,229,664 ======= ======== CONSOLIDATED CASH FLOW STATEMENT Year ended 31 December 2007 2007 2006 (as restated) £ £ Cash flows from operating activities Profit after taxation 4,513,556 5,073,878 Adjustments for Depreciation 104,954 79,118 Foreign exchange (gains)/losses (357,915) 548,737 Investment income (763,043) (593,096) Taxation expense recognized in profit and loss 1,273,636 2,995,305 (Increase) in trade and other receivables (2,132,815) (2,226,795) Unrealised gains/(losses) on financial assets designated at fair value 4,009,590 (3,103,396) Realised gains on financial assets designated at fair value (9,209,084) (6,308,489) Decrease in trade and other payables 1,234,805 2,797,618 (Decrease)/increase in amounts owed to clients (8,493,618) 13,371,613 Employee share benefit trust (4,066,262) (1,701,921) Share based payment reserve 93,080 262,669 ------------- ------------- Cash generated from operations (13,793,116) 11,195,241 Taxation (3,499,196) (4,302,766) ------------- ------------- Net cash from operating activities (17,292,312) 6,892,475 ------------- ------------- Cash flows from investing activities Purchase of property, plant and equipment (32,040) (140,085) Purchase of intangible fixed assets - (558,805) Net proceeds on disposals of financial assets designated at fair value 17,608,262 18,052,949 Disposal / acquisition of subsidiary (3,483,677) 3,483,677 Investment income 763,043 593,096 ------------- ------------- Net cash generated by investing activities 14,855,588 21,430,832 ------------- ------------- Cash flows from financing activities Proceeds of issue of share capital 586,000 126,000 Treasury shares acquired - (163,217) Bank loan repayment - (1,500,000) Dividends paid (1,834,719) (1,586,231) ------------- ------------- Net cash from investing activities (1,248,719) (3,123,448) ------------- ------------- (Decrease)/increase in cash and cash equivalents (3,685,443) 25,199,859 CONSOLIDATED CASH FLOW STATEMENT (continued) Year ended 31 December 2007 2007 2006 (as restated) £ £ Net increase in cash and cash equivalents (3,685,443) 25,199,859 Cash and cash equivalents at the beginning of the year 30,408,289 5,757,167 Foreign exchange gains/(losses) 357,915 (548,737) ------------ ---------- Cash and cash equivalents at the end of the year 27,080,761 30,408,289 ======== ======== NOTES TO THE UNAUDITED ACCOUNTS Year ended 31 December 2007 1. The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. Reconciliation of the earnings and weighted average number of shares in the calculations are set out below. 2007 2006 Earnings Weighted Per Earnings Weighted Per £ average Share £ average Share number of Amount number of Amount shares Shares Basic earnings per share 4,513,556 104,406,818 4.32p 5,073,878 105,748,058 4.81p ======= ==== ======= ==== Dilutive effect of share options 3,612,831 5,390,248 ------------ ----------- Diluted earnings per share 4,513,556 108,019,649 4.18p 5,073,878 111,138,306 4.57p ======= ========= ==== ======= ======== ==== 2. Segmental Analysis The group's revenue and profit before tax derived from the following activities : Revenue 2007 2006 £ £ Investment Banking 10,635,226 8,429,339 Managed Portfolio 5,199,494 9,411,885 ------------- ------------- 15,834,720 17,841,224 ======== ======== Profit before tax 2007 2006 £ £ Investment banking 4,156,037 3,257,494 Managed portfolio 1,631,155 4,811,689 ------------ ----------- 5,787,192 8,069,183 ======= ======= Managed portfolio revenue represents Unrealised losses on financial assets designated at fair value (4,009,590) 3,103,396 Realised gains on financial assets designated at fair value 9,209,084 6,308,489 3. The preliminary results for the year ended 31 December 2007 are unaudited. The financial information set out above does not constitute statutory accounts within the meaning of s. 240 of the Companies Act 1985. 4. The accounting policies have been changed to reflect the introduction of IFRS accounting. The comparatives for 2006 are re-stated to reflect the changes required by the introduction of IFRS accounting and the effect of these changes were shown in the interim accounts previously amended. This information is provided by RNS The company news service from the London Stock Exchange END FR FKBKDNBKBOQK
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