Trading Update

RNS Number:9616T
Crosby Asset Management Inc
08 May 2008


                    CROSBY ASSET MANAGEMENT INC. ("CROSBY")

                 TRADING UPDATE - THREE MONTHS TO MARCH 31 2008

8 May 2008



Turnover US$7.9 million (Q1 2007 US$5.3 million)

Loss attributable to shareholders US$26.2 million* (Q1 2007 US$20.8 million
loss)

Assets under management US$2.2 billion (Q1 2007 US$1.4 billion)


* Loss attributable to shareholders was largely caused by non-cash
mark-to-market losses on Crosby's shareholding in IB Daiwa due to the fall in IB
Daiwa's share price from 41 Yen on 1 January 2008 to 17 Yen on 31 March 2008.



HIGHLIGHTS

IB Daiwa ("IBD") - during the first quarter of 2008, Leed Petroleum, in which
IBD has a 41.7% interest, announced that it had been awarded additional leases
and interests at Main Pass and Ship Shoal in the Gulf of Mexico and that
drilling at its Eugene Island A-6 well had been a success, with confirmed 2P
reserves more than three times pre-drill estimates. An updated reserve audit
showed that as at 1 April 2008 1P, 2P and 3P reserves had increased by +43.1%,
+30.3% and +17.6% respectively over 1 June 2007, with 2P reserves standing at
123.5 bcfe.


Crosby Wealth Management ("CWM") - due to market corrections and changes in
investor sentiment during the first three months of the year, CWM experienced a
small decline in assets under management and a significant contraction in
margins. However, CWM remained profitable during the quarter.


Crosby Forsyth ("CF") - restructuring of the business continued during the first
quarter with the appointment of a global head of sales and the rebranding of the
business from Forsyth Partners to Crosby Forsyth. It is anticipated that the
restructuring will be completed in the second quarter. In the first three months
of the year, assets under management fell 15% through a combination of declines
in value broadly in line with market and client redemptions.


SW1 Capital ("SW1") - in February, Crosby announced that it had taken a stake in
SW1, a newly formed partnership that has been established with an institutional
standard operating and management platform to facilitate the development of an
integrated asset management business.

Orchard Petroleum ("Orchard") - A reserve audit completed in late 2007, and
issued in January 2008 shows an increase in 2P reserves to 16mmboe from approx
10mmboe at the time of the acquisition in May 2007.


As of March 31st 2008, Orchard had 32 wells on production, with a further 5
wells (4 of them in the South Belridge field and one in the Forbes field) having
been drilled and logged but awaiting completion and being tied into production.


Additionally, there are 7 other wells that have been drilled but not yet tested.
It is expected that a number of these will be tested during the coming few
weeks.


During the period under review, a long-term financing package of approximately
US$240 million in debt and equity was put into place. Some of this financing has
been completed and drawn-down, other parts are in late-stage documentation.


As part of this funding package, US$50 million was drawn down in April and
utilised to repay the original acquisition bridge facility from Commonwealth
Bank of Australia. Orchard also used part of the facility and bought out (and
effectively cancelled) in February a 4.25% royalty interest in South Belridge
thus increasing net cash flow from the increasing number of producing wells in
this field.


The fund raising package also enables Orchard to undertake a major accelerated
drilling programme in which between 30 and 50 new wells will be drilled and
bought into production over the next 12 months in the South Belridge Field. In
addition, a number of development and exploration wells will be drilled in other
leased areas that are held by the Orchard


Corporate Restructuring and Name Change - alongside the publication of the 2007
Interim Results in March, Crosby announced that, given the recent growth in its
asset management businesses and the opportunities within the asset management
industry, it was restructuring its business mix to become a 'pure-play' asset
management company. Consequently, the company also announced that it would be
seeking shareholder approval at the AGM on 1 May 2008 to change its name to
Crosby Asset Management. The name change was unanimously approved at the AGM,
and became effective from the 8th May 2008.



Trading Summary

                                                 Unaudited            Unaudited
                                        three months ended   three months ended
                                             31 March 2008        31 March 2007
                                                   US$'000              US$'000

Turnover/Revenue                                    7,913                5,338
Loss on financial assets at fair
value through profit or loss                      (20,914)              (9,591)
Loss on financial liabilities at
fair value through profit or loss                       -                 (399)
Other income                                          226                  164
Administrative expenses                           (10,554)              (8,562)
Distribution expenses                                  (1)                  (5)
Other operating expenses                           (2,452)              (3,192)
                                                 ----------            ---------
Loss from operations                              (25,782)             (16,247)

Finance costs                                         (20)                   -
Amortisation of intangible assets                    (155)                   -
Share of profits/(losses) of
associates /                                           49                  (39)
a jointly controlled entity
                                                 ----------            ---------
Loss before taxation                              (25,908)             (16,286)

Taxation expenses                                     (76)                 (38)
                                                 ----------            ---------

Loss for the period                               (25,984)             (16,324)
                                                 ==========            =========

Attributable to:
Equity holders of the Company                     (26,180)             (20,803)
Minority interests                                    196                4,479
                                                 ----------            ---------

Loss for the period                               (25,984)             (16,324)
                                                 ==========            =========

Loss per share for loss attributable              US cents             US cents
to the equity holders of the Company
during the period

- Basic                                            (10.76)               (8.56)
                                                 ==========            =========

- Diluted                                             N/A                  N/A
                                                 ==========            =========




Enquiries:

Crosby Asset Management Inc.
Steve Fletcher - Chief Operating Officer [phone]


Dawnay, Day Corporate Finance Limited
David Rae/Ed Gay                                               [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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