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RAB Capital plc (RAB)

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Thursday 16 September, 2010

RAB Capital plc

Trading Statement

RNS Number : 8536S
RAB Capital plc
16 September 2010

RAB Capital plc

("RAB" or "the Group")


Trading update


Following a detailed review of its anticipated revenue and costs for the current year, the Group has concluded that its financial results for the year to 31 December 2010 are likely to be significantly below current market expectations. The Group has initiated measures to reduce costs with a view to returning to profitability as soon as possible. This will cause a material exceptional charge for the year of approximately £5.5m.


RAB continues to enjoy a very strong capital position and a liquid balance sheet: at 30 June 2010 the Group's net current assets plus investments amounted to £93.6m. It is not expected that the impact of the results for the current year will materially alter the Group's financial strength as the total estimated impact on the Group's free cash loss after taxation for the year (including exceptional charges) is expected to amount to less than 6% of this figure.


A number of the Group's funds continue to perform very well and it is expected that that a leaner cost base and a more focussed marketing effort on the Group's successful strategies will improve the prospects for raising assets. RAB Energy and RAB European Credit Opportunities strategies continue to post very good investment results (+32.8% and +7.8% respectively for the eight months to 31 August). RAB Global Mining and Resources and RAB Octane have also outperformed their benchmarks. As merger and acquisition activity increases in the European market, it is expected that RAB Cross Europe will enjoy an improving opportunity environment from which to generate returns.


At 31 August 2010, RAB's assets under management amounted to $1.05bn. This number takes account of the repatriation of capital by a European bank from the Group's fund of funds and the reduction in the value of a substantial position within RAB Special Situations strategy, both of which were referred to in the Group's announcement of the half year results. These major movements aside, the Group has experienced modest inflows into its more successful strategies since the end of the first half.


Charles Kirwan-Taylor, Chief Executive Officer, commented, "We have decided it is necessary to address our cost-base but remain fully confident in our main investment strategies and that we will continue to deliver strong risk adjusted returns for our investors."


16 September 2010



Further Enquiries:


RAB Capital

Michael Alen-Buckley, Executive Chairman

Charles Kirwan-Taylor, Chief Executive

Tel: +44 (0)20 7389 7000


Tel: +44 (0)20 7920 2330

Charlotte Kirkham

Caroline Villiers

Fox-Pitt, Kelton Limited (Nominated Adviser and Broker)

Tel: +44 (0) 20 3037 5231

Jonny Franklin-Adams


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