Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

Ambrian Capital PLC (AMBR)

  Print      Mail a friend

Thursday 19 March, 2009

Ambrian Capital PLC

Final Results

RNS Number : 1055P
Ambrian Capital PLC
19 March 2009
 



19 March 2009    




AMBRIAN CAPITAL PLC


Preliminary Announcement of Results

for the year ended 31 December 2008


Ambrian Capital plc, the natural resources investment bank, today announced its preliminary results for the year ended 31 December 2008.


Highlights

 
Year ended 
31 December 2008
£m
Year ended
 31 December 2007
£m
Commodities Revenue
6.39
2.53
Corporate Finance & Equities Revenue
3.25
8.10
Operating Revenue
9.64
10.63
Investment Portfolio Losses & Gains
(10.71)
5.20
Total Income
(1.07)
15.83
(Loss)/Profit Before Tax
(16.50)
5.79
(Loss)/Earnings per Share : Basic (pence)
(11.78)
4.32
Annual Dividend per Share (pence)
1.50
1.75
 
 
 
Shareholders' Equity
30.35
45.04
Net Asset Value per Share (pence)
 
31.6
45.1



  • Operating revenue decreased by 9.3% to £9.64 million from £10.63 million 


  • Operating revenue benefited from strong results in Commodities which partially offset a weaker performance from Corporate Finance Equities


  • The Investment Portfolio's substantial loss reflects the sharp fall in market values in the junior natural resources sector.  The Investment Portfolio was valued at £1.50 million at the year end after realisations and write downs to market values


  • Ambrian ended the year in a strong financial position, with shareholders' equity of £30.35 million and own cash resources slightly up on the previous year at £22.56 million


  • Net asset value per share decreased 30% to 31.6p in a year when the FTSE All-Share Index declined by 33% and the FTSE AIM Basic Resources Index declined by 72%


  • Final dividend of 0.75p per ordinary sharetaking the full year dividend to 1.50p



Commenting on the results, Tom GaffneyChief Executive of Ambrian Capital plc, said: 

'During a tumultuous year for commodities and equities Ambrian broadened its business model and strengthened its franchise. Our Commodities business had aexcellent year with revenue and profit growth also benefiting from the new physical metals business. The Corporate Finance & Equities business was adversely affected by the sharp downturn in the junior natural resources sector and its equity market making activity suffered accordingly.


The Investment Portfolio has now been substantially realised for cash which ensures Ambrian's ability to withstand difficult market conditions.


Despite the challenging market conditions, Ambrian has had a strong start to 2009. Operating revenue in the first two months is up 70%  over the same period last year with most of the growth coming from our Commodities business. Although our outlook for the rest of the year is cautious, these figures are encouraging.


This is a time of opportunity for Ambrian. We have the cash resources and the team that will enable us to take advantage of the continuing uncertainty in the markets.'


Enquiries : -
 
 
 
 
 
Tom Gaffney
Mark Connelly/Ileana Antypas
Charlotte Kirkham
Chief Executive Officer
Collins Stewart Europe Ltd
M Communications
Ambrian Capital plc
 
 
Tel + 44 (0)20 7634 4700
Tel + 44 (0)20 7523 8350
Tel + 44 (0)20 7153 1531



Notes to Editors : 


Ambrian Capital plc


Ambrian Capital (AIM : AMBR) is the holding company of Ambrian Partners Limited, Ambrian Commodities Limited and Ambrian Metals Limited.  


Ambrian Partners Limited is a specialist investment bank focussed on the metals & mining, oil & gas, and cleantech sectors. It provides corporate finance advice, equity research, sales and trading and market making services. Ambrian Partners was ranked first in the AIM Basic Materials Sector in the Hemscott 1st Quarter 2009 Advisers Rankings Guide.  Ambrian Partners is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority.


Ambrian Commodities Limited is trader and broker specialising in London Metals Exchange cleared base metals futures and options. Its customers include metals producers, consumers, merchants, traders and financial investors. Ambrian Commodities is an Associate Broker Member of the London Metal Exchange and is authorised and regulated by the Financial Services Authority.


Ambrian Metals Limited is an independent physical metals trader with particular strengths in copper, aluminium and lead. Through Ambrian Metals' offices in London and Shanghai and agents in CalcuttaNew YorkSantiago, Sao PaoloSeoul and Tokyo, it sources non-ferrous metals from producers for distribution to an international client base of metals consumers and merchants.


Further information on Ambrian Capital is available on the Company's website: www.ambrian.com




CHAIRMAN'S STATEMENT


2008 was a significant year for Ambrian that saw the Group complete substantially the realisation of the legacy Investment Portfolio and take a number of important steps to position the operating businesses for future growth.


The Group's results for the year were severely affected by the sharp downturn in most markets and asset classes. In particular, our Investment Portfolio incurred a significant non-cash mark-to-market loss during the year which under International Financial Reporting Standards ('IFRS') is reported as negative revenue.


During 2008, Ambrian's net asset value per share declined by 30% to 31.6p compared with a 33% decline in the FTSE All-Share Index and a 72% decline in the FTSE AIM Basic Resources Index.  The Group's net asset value per share would have been more seriously eroded by the collapse in the junior natural resources sector had we not in 2008 and in previous years taken advantage of liquidity opportunities and de-risked Ambrian's asset base. In 2008, we realised a net £8.31 million in cash from sales of the Investment Portfolio, almost all of which was achieved in the first seven months of the year.  Own cash represented 74.3% of our net asset value at 31 December 2008 compared with 49.3% at 31 December 2007 and 34.5% at 31 December 2006. Cash has become much more valuable today than it was a year ago.


The process of shifting the Investment Portfolio into cash and working capital is now almost complete  In future, we expect that market movements in the value of the Investment Portfolio will have a much more limited impact on the Group's total revenue.


The year saw the further development of the Commodities business. Ambrian Commodities Limited, our LME futures and options trading business, made substantial progress as it benefited from high customer volumes in base metals despite the sharp drop in metals prices.


In June, we entered the physical metals business with the recruitment of a highly experienced London-based team and opened an office in Shanghai with a staff of four. Ambrian Metals Limited has made a positive contribution and we expect to see further gains in this business in 2009.


In October, we entered into a strategic alliance with Mizuho Financial Group, one of Japan's largest financial institutions, to provide LME futures and options brokerage services to their clients globally.  


Ambrian Partners, our Corporate Finance & Equities business, benefited in the first half of 2008 from commodity prices reaching record highs. However, during the second half of the year, commodity prices declined sharply as demand decline caused excess supply. The second half of 2008 proved to be an extremely challenging operating environment for Ambrian Partners, characterised by a significant drop in AIM equity prices, reduced levels of liquidity and negligible investor interest in the small cap natural resources sector.    Our equity market making activity was particularly vulnerable and often found itself in the position of 'buyer of last resort' as it sought to maintain orderly markets.  Ambrian Partners partially mitigated the downward market pressure by maintaining a low cost base and expanding its retained corporate client base through the acquisition of Nabarro Wells & Co Limited in April 2008.  


The Board is recommending a final dividend of 0.75p per share, which will be paid on 12 June 2009 to shareholders on the register at 22 May 2009. This would take the total dividend for the year to 1.50p.


In addition, some 4.38 million shares were bought back during 2008 at a cost of £0.93 million and at an average price of 21.1p per share. The Board sees merit in having a buy-back capability in place and will be seeking to renew the necessary authority to buy back shares at the AGM on 2 June 2009.  


In December 2008, we announced that we were in merger discussions with Panmure Gordon & Co plc. The proposed transaction was designed to accelerate the growth of our Corporate Finance & Equities business and to position Ambrian to benefit when markets improve and investor confidence returns. After careful consideration, it was determined that terms could not be agreed that would be in the best interests of our shareholders. Although the transaction did not proceed, we regularly assess other strategic opportunities that arise and will only pursue a transaction that has clear and compelling benefits to our shareholders.


Finally, I would like to thank the hard working and talented individuals who make up the Ambrian team for their contributions over the year. There is no doubt that ours is an intellectual capital business and this combined with the strength of our balance sheet enables us to navigate short-term market uncertainties - the outlook for Ambrian continues to look promising.






W L Banks

Chairman

19 March 2009







CHIEF EXECUTIVE'S STATEMENT


During a tumultuous year for commodities and equities Ambrian broadened its business model and strengthened its franchise. The Commodities business had an excellent year with revenue and profit growth also benefiting from the new physical metals business. The Corporate Finance & Equities business was adversely affected by the sharp downturn in the junior natural resources sector and its equity market making activity suffered accordingly.


Despite the current global economic uncertainties, we remain convinced that the long-term investment case for natural resources remains intact. Cyclicality is inherent in the commodities sector.  At some point, sentiment will turn and industrial output will rise and demand for raw materials will increase.  Growing demographics and the continued industrialisation of China and other emerging economies are themes that are not going away.  Resources and, in particular, metals, minerals and carbon based energy deplete.  In due course, these resources will need to be replaced with new discoveries or new technologies in recycling, energy conservation and in cleantech.


Natural resources are our core expertise. Ambrian finances and advises explorationdevelopment and production companies, we arrange physical metals distribution once mines are in production and through our LME business we provide metals price hedging services to producers and consumers. Ambrian's vision is to become the pre-eminent investment bank to the natural resources sector. Our strategy is to re-deploy the capital released from the sale of the Investment Portfolio in revenue generating businesses. 


Financial Review


Total income for 2008 was £(1.07) million (2007: £15.83 million).  


Operating revenue declined by 9.3% to £9.64 million in 2008 from £10.63 million in 2007.


Commodities saw revenue increase by 153% in 2008 to £6.39 million from £2.53 million in 2007. The growth in revenue was driven by higher customer activity and entry into the physical metals business.


Before market making, Corporate Finance & Equities had operating revenue of £5.29 million in 2008 (2007: £7.35 million), a decrease of 28%.  The decrease is primarily attributable to the reduced level of capital markets activity in the junior natural resources sector.


After market making losses of £2.04 million in 2008 (2007: gains of £0.76 million), Corporate Finance & Equities operating revenue was £3.25 million for the year (2007: £8.11 million), a decrease of 60%.


The Investment Portfolio had negative income of £10.71 million in 2008 compared with positive revenue of £5.20 million for 2007.  The primary reasons for the negative revenue were the reduced share prices of publicly-held investments consistent with declines in the junior natural resources sector and write-downs in the value of our unlisted investments.


Administrative expenses were £15.41 million (2007: £10.01 million) of which £11.45 million (2007: £7.05 million) were represented by fixed costs (these exclude non-recurring costs and bonuses). Administrative expenses included one-off costs associated with the acquisition of Nabarro Wells, start-up costs associated with the physical metals business and costs associated with the move to our new offices.   Rigorous control of fixed costs is a central feature of the Group and staff remuneration is geared towards performance. Total headcount as at 31 December 2008 stood at 70, up 19 during 2008.


The loss before tax for 2008 was £16.50 million (2007: profit before tax £5.79 million).


The loss before tax from the operating businesses (Commodities and Corporate Finance & Equities) for 2008 was £1.87 million (2007: profit before tax £4.16 million).


Excluding results from equities market making, the operating businesses generated profit before tax of £0.17 million (2007: profit before tax £3.40 million). 


The loss before tax from the Investment Portfolio was £14.63 million in 2008 compared with a profit before tax of £1.63 million for 2007. All central costs are allocated to the Investment Portfolio.


The net loss after tax for 2008 was £11.73 million (2007: net profit after tax £4.51 million).


Basic loss per share was 11.78p (2007 : basic earnings per share 4.32p).


Balance Sheet


We have sought to manage our balance sheet prudently and to continually improve its liquidity and transparency.  Shareholders' equity was £30.35 million at 31 December 2008 (31 December 2007: £45.04 million), or 31.6p per share (31 December 2007: 45.1p per share).


Financial Position 

£ million
As at 31 December 2008
As at 31 December 2007
 
 
 
 
 
Total Assets
£94.35
 
£56.96
 
 
 
 
 
 
Own Cash
£22.56
74.3%
£22.20
49.3%
Working Capital & Fixed Assets
£6.29
20.7%
£2.32
5.2%
Investment Portfolio
£1.50
5.0%
£20.52
45.5%
Shareholders’ Equity
£30.35
100.0%
£45.04
100.0%


Total assets increased in 2008 primarily as a result of an increase in trade and other receivables, and a corresponding increase in trade and other payables associated with the new physical metals business.


The Group's own cash resources, net of amounts due to clients, totalled £22.56 million at 31 December 2008 compared with £22.20 million at 31 December 2007.  Cash is held on deposit at major UK clearing banks, these being principally Barclays Bank plc and Royal Bank of Scotland plc.  


The aggregate regulatory capital requirement for the Group's regulated subsidiaries (Ambrian Partners Limited and Ambrian Commodities Limited) was £11.01 million at 31 December 2008 which was substantially exceeded by the Group's regulatory capital resources.


Our Investment Portfolio was valued at £1.50 million at 31 December 2008 compared with £20.52 million at 31 December 2007. The reduction in the size of the Investment Portfolio was due to a combination of the sale during 2008 of investments with a net value of approximately £8.31 million and reductions of £10.71 million ithe mark-to-market value of our investments.  


While the Group is in a strong financial position, it is applying a disciplined approach to capital allocation decisions and other expenditures in the current economic environment.


Corporate Finance & Equities


Ambrian Partners Limited, our Corporate Finance & Equities business, had 42 retained corporate clients at 3December 2008 compared with 35 at 31 December 2007. In addition to the new clients brought by Nabarro Wells, significant new client wins include our appointments as nominated adviser to Avocet Mining plc, BPC Limited and Weatherly International plc.   In a challenging equity market environment, our retained corporate client base provides a stream of recurring revenue and positions Ambrian Partners at the centre of providing financial advisory and capital raising services to our clients.


Despite the difficult market conditions prevailing in 2008, Ambrian Partners completed a number of notable transactions including :


  • financial adviser to BPC Limited on its £35.5 million reverse takeover of Falkland Gold and Minerals Limited


  • Nominated Adviser to First Calgary Petroleum Limited on its C$923 million takeover by Eni SpA


  • £14.4 million equity capital raising for Kalahari Minerals plc


  • Nominated Adviser to Solana Resources Limited on its £154 million merger with Gran Tierra Energy Inc


Ambrian Partners has a particularly strong position in the AIM natural resources sector. According to the Hemscott 1st Quarter 2009 Advisers Rankings Guide, Ambrian Partners was ranked first in terms of both (i) number and aggregate market capitalisation of retained Nominated Adviser clients and (ii) number and aggregate market capitalisation of Corporate Broking clients in the Basic Materials sector (which includes the metals and mining sector) on AIM. Ambrian Partners was also ranked fifth in terms of number of Nominated Adviser clients in the Oil & Gas sector on AIM.


Ambrian Partners' market making activities suffered in the second half of 2008 from the sharp decline in the share prices of junior natural resources companies listed on AIM and the absence of orderly two-way markets.  Two-thirds of the loss incurred by market making was in the shares of eight companies which dropped by an average of 83% during 2008.  We have now reduced the number of shares in which we make markets to 40; these are almost entirely retained corporate clients. We have also reduced the maximum amount of equity capital allocated to this activity to £1.0 million and have instructed our experienced traders to focus on facilitating client orders and to protect against risk. It is the nature of market making in the shares of smaller companies that gains and losses are abrupt and irregular.


Ambrian Partners' strategy is to use the current dislocation in the markets to acquire new corporate clients from weaker and less focussed competitors and to recruit industry veterans who share our goal of providing a differentiated, value-added service that institutional and corporate customers are willing to pay for. The intention is to gain market share in our existing sectors of expertise and to selectively build a more broadly-based sector led equities business. Ambrian Partners will then be in a position to benefit from strong leverage to the upside when equity markets recover. 


Commodities


Ambrian Commodities Limited


Ambrian Commodities trades with a select client base located globally and generates revenue not by taking speculative positions but  by capturing dealing spreads and earning commissions. The business is client order driven and benefited from increased customer activity in 2008.  Trading volumes on the LME were significantly higher in 2008 compared with 2007, for example, the volume of nickel traded was up 37%, grade A copper volume was up 24% and primary aluminium volume was up 20%. Ambrian Commodities' international client base of industrial users of metals made active use of the LME to hedge either their raw material costs or output prices.  


In October 2008, Ambrian Commodities entered into a co-operative arrangement with Mizuho Financial Group, one of Japan's largest financial institutions, to provide LME futures and options brokerage services to clients globally.


Under this arrangement, Mizuho will be able to offer to its clients around the world direct access to Ambrian Commodities' LME execution capabilities so that Mizuho can focus on providing global clearing services.  It is anticipated that the alliance will commence generating earnings in 2009.


Ambrian Metals Limited


In June 2008, we entered the physical metals business with the recruitment of an experienced international physicals metals team and the establishment of Ambrian Metals Limited, a wholly-owned Swiss-registered subsidiary. The team comprises salesmen, traders and logistics managers based in London and Shanghai. In addition, we now have agents based in CalcuttaNew YorkSantiagoSao Paolo, Seoul and Tokyo.  This has significantly expanded our Commodities business.


Ambrian Metals globally sources non-ferrous metals, with a particular focus on copper, aluminium and lead, from producers for distribution primarily on a matched and hedged basis to an international client base.  In its first six months of operation, Ambrian Metals traded physical metals with a value of approximately US$524 million.  Ambrian Metals does not take unhedged metals price risk but generates revenue by charging its clients a 'premium' over the metal price for providing them with a consistently high-quality product, logistics services and price management.  Ambrian Metals manages all facets of marketing and distribution including financing from producers to consumers and has put in place committed trade finance facilities with a syndicate of major international banks including BNP Paribas, ING, Standard Chartered Bank and Banque Cantonale Vaudoise.


Investment Portfolio


The Investment Portfolio incurred negative income, before central overheads, of £10.71 million in 2008 as a result of the sharp decline in the market values of junior natural resources companies. The most significant losses were attributable to our investments in Minerva Resources plc (loss of £2.34 million after being written down to nil), Golden Prospect Precious Metals Limited ('GPPM') (loss of £1.94 million), and Jubilee Platinum plc (loss of £1.03 million).


The total value of the Investment Portfolio at 31 December 2008 was £1.50 million compared with £20.52 million at 31 December 2007. The reduction in the size of the Investment Portfolio was due to a combination of £8.31 million of net realisations and a reduction of £10.71 million in market values.


On 28 July 2008, Ambrian Capital sold its 49.96% stake in GPPM for total cash proceeds of approximately £4.24 million and with effect from 15 September 2008 Ambrian Asset Management Limited novated the investment management agreement with GPPM to a new investment manager.


The largest remaining publicly listed holdings in the Investment Portfolio at 31 December 2008 were Anglesey Mining plc (valued at £0.45 million) and Rivington Street Holdings plc (formerly CommodityWatch plc ) (valued at £0.44 million).


Our unlisted portfolio investments have either been realised or written down and had a book value at 31 December 2008 of £0.28 million (31 December 2007 : £0.72 million).


Outlook


After the sharp falls in commodity prices in the second half of 2008, we are seeing signs of stability in the crude oil markets and a rebound in metals prices with copper, for example, up 30% since its low point in December 2008.


The Chinese government has pledged to keep economic growth in 2009 at 8% and has put in place a stimulus package which should support demand for raw materials.  Ambrian's office in Shanghai is seeing at current price levels signs of metals re-stocking in China and purchases of copper by China's State Reserve Bureau.


Despite the challenging market conditions we have had a good start to 2009. Operating revenue in the first two months is up 70% over the same period last year with most of the growth coming from our Commodities business. Although our outlook for the rest of the year is cautious, these figures are encouraging.




Tom Gaffney

Chief Executive

19 March 2009






CONSOLIDATED INCOME STATEMENT

Year ended 31 December 2008 







2008

2007





£

£







Revenue




9,642,656

10,635,226

Investment portfolio gains and losses


(10,711,147)

5,199,494





----------------

---------------

Total Income




(1,068,491)

15,834,720







Administrative expenses




(15,410,659)

(10,014,900)

Finance costs




(20,928)

(32,628)





----------------

---------------

(Loss)/profit from operations




(16,500,078)

5,787,192








Income taxes 




4,765,777

(1,273,636)





--------------

-----------------







(Loss)/profit for the year 




(11,734,301)

4,513,556





==========

==========







(Loss)/Earnings per ordinary share






- basic




(11.78)p

4.32p

- diluted




(11.78)p

4.81p




All of the activities of the group are classed as continuing.










CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2008




2008

2007



£

£

ASSETS




Non-current assets




Property, plant and equipment


352,317

126,852

Intangible assets


2,430,109

1,836,828

Deferred tax asset


1,051,417

-



------------

------------



3,833,843

1,963,680

Current Assets




Financial assets at fair value through profit or loss


2,636,135

23,888,023

Inventory

Trade and other receivables



9,008,759

30,578,089

-

5,989,445

Current tax recoverable


1,169,155

-

Cash at bank and in hand


47,123,092

27,080,761



-------------

------------



90,515,230

56,958,229



-------------

------------

Total Assets


94,349,073

58,921,909



-------------

-------------





LIABILITIES




Current liabilities




Trade and other payables


(63,614,307)

(10,311,594)

Current tax payable


(381,539)

(1,482,563)



-------------

------------



(63,995,846)

(11,794,157)



-------------

-------------

Non-current liabilities




Deferred tax liabilities


-

(2,090,110)



-------------

------------

Total Liabilities


(63,995,846)

(13,884,267)



-------------

------------

Net Assets


30,353,227

45,037,642

==========

==========





CAPITAL AND RESERVES




Called up share capital


11,136,121

11,136,121

Share premium account


11,105,383

11,105,383

Merger reserve


1,245,256

1,245,256

Treasury shares


(1,092,831)

(163,217)

Retained earnings


13,503,722

26,957,576

Reserve for share based payments


835,281

636,342

Employee benefit trust


(5,880,660)

(5,879,819)

Exchange reserve


(499,045)

-



-------------

-------------



30,353,227

45,037,642

==========

==========





CONSOLIDATED CASH FLOW STATEMENT

Year ended 31 December 2008




2008

2007


£

£

Cash flows from operating activities






(Loss)/profit for the year

(11,734,301)

4,513,556

Adjustments for



Depreciation 

174,691

104,954

Impairment of property plant and machinery

Impairment of intangible assets

Foreign exchange (gains)/losses

118,571

140,000

(2,979)

-

-

(357,915)

Taxation (credit)/expense recognised in 

income statement


(4,765,777)


1,273,636

Unrealised (gains)/losses on financial assets 

designated at fair value


9,532,263


4,009,590

Realised losses/(gains) on financial assets designated at fair value


1,148,420


(9,209,084)

Net proceeds on disposals of financial assets 

designated at fair value


10,571,205


17,608,262

(Increase) in inventory

(Increase) in trade and other receivables

(9,008,759)

(24,588,644)

-

(2,132,815)

Increase/(decrease) in trade and other payables

53,302,713

(7,258,813)

Share based payment

198,939

93,080


-------------

-------------

Cash generated from operations

25,086,342

8,644,451

Taxation

(645,929)

(3,499,196)


-------------

-------------

Net cash from operating activities

24,440,413

5,145,255


-------------

-------------




Cash flows from investing activities



Purchase of property, plant and equipment

(577,559)

  (32,040)

Disposal of property, plant and equipment

58,832

-

Disposal/acquisition of subsidiary (net of 

cash acquired)


(733,281)


(3,483,677)


-------------

-------------

Net cash used by investing activities

(1,252,008)

(3,515,717)


-------------

-------------



Cash flows from financing activities



Proceeds of issue of share capital

-

586,000

Employee share benefit trust

(841)

(4,066,262)

Treasury shares acquired

(929,614)

-

Dividends paid

(1,719,553)

(1,834,719)


-------------

-------------

Net cash used in financing activities

(2,650,008)

(5,314,981)


-------------

-------------




Net increase/(decrease) in cash and cash equivalents 

20,538,397

(3,685,443)

Cash and cash equivalents at the beginning of the year

27,080,761

30,408,289

Foreign exchange (losses)/gains

(496,066)

  357,915


------------

------------

Cash and cash equivalents at the end of the year

47,123,092

27,080,761

==========

==========







NOTES TO THE ACCOUNTS 

Year ended 31 December 2008


1          The financial information set out in the announcement does not constitute the company's statutory 

            accounts for the years ended 31 December 2008 or 2007. The financial information for the

            year ended 31 December 2007 is derived from the statutory accounts for that year which have been

            delivered to the Registrar of Companies. 

The audit of the statutory accounts for the year ended 31 December 2008 is complete. The auditors reported on those accounts; their report was unqualified and did not include references to any matters to which the auditors drew attention to by way of emphasis without qualifying their report and did not contain a statement under s237(2) or (3) Companies Act 1985. These accounts will be delivered to the Registrar of Companies following the company's annual general meeting. 

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs in April 2009.


2         Earnings per Ordinary Share 


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. 


Reconciliations of the earnings and weighted average number of shares in the calculations are set out below.




           Continuing Operations

 
 
2008
 
 
2007
 
(Loss)
£
Weighted average number of shares
Per share amount (pence)
Earnings
£
Weighted average number of shares
Per share amount (pence)
Basic (loss)/earnings per share
 
 
(11,734,301)
 
 
99,579,821
 
 
(11.78)p
 
 
4,513,556
 
 
104,406,818
 
 
4.32p
 
==========
 
==========
=========
 
=======
Dilutive effect of share options
 
 
 
-
 
 
 
 
 
 
 
3,612,831
 
 
 
------------
 
 
------------
 
Diluted (loss)/earnings per share
 
 
(11,734,301)
 
 
99,579,821
 
 
(11.78)p
 
 
4,513,556
 
 
108,019,649
 
 
4.18p
 
==========
==========
==========
=========
==========
=======


No dilutive effect of the share options is shown for the year ended 31 December 2008 as their effect is anti-dilutive. Had there been a dilutative effect for the year ended 31 December 2008, the calculation would have been based on weighted average number of shares of 99,733,870.


3          Cash at Bank and in Hand


Cash at bank and in hand includes amounts of £24,561,062 (2007: £4,877,995) held as deposits on trading positions and on behalf of third parties.


Copies of the 2008 accounts will be posted to shareholders in due course. Copies of this announcement are available from the Company at Old Change House, 128 Queen Victoria Street, London EC4V 4BJ.


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

a d v e r t i s e m e n t