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East West Resources (AMBR)

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Friday 28 September, 2012

East West Resources

Half Yearly Report

RNS Number : 4982N
East West Resources PLC
28 September 2012
 

FOR IMMEDIATE RELEASE

 

 

EAST WEST RESOURCES PLC

 

Interim Report for the Six months to 30 June 2012

 

LONDON, 28 September 2012 - East West Resources plc ("EWR" or the "Company") today announces its unaudited consolidated results for the six months ended 30 June 2012.

 

Financial highlights

 

·    Against the backdrop of a challenging economic environment, the solid performance of the metal trading division has laid a foundation to expanding the Group's future footprint.

 

·    Total income for the period was affected predominantly by lower average metals' prices, a significantly eroded EU biodiesel demand and a weakening British pound against the US dollar.  As a result total income reported by the Group amounted to £2.33 million for H1 2012 (H1 2011: £6.02 million (restated)).

 

·    Group loss before tax for the period from continuing operations was £1.26 million (H1 2011: loss of £0.79 million (restated)), primarily reflecting lower premiums and volumes achieved in the biofuel operations, write-downs in the Group's investment portfolio and legacy corporate overheads.

 

·    Net loss per share for the period from continuing operations was 1.32p (H1 2011: net loss 1.04p (restated)).

 

·    Net asset value per share was 17.8p as at 30 June 2012 (19.8p as at 31 December 2011).

 

Commenting on the results, Robert Ashley, chief executive, stated:

 

"Despite difficult markets our metal trading division continued to perform well with healthy volume growth and a diversification from copper into other base metals.  Following the recent change in our shareholder base, we look forward to forging a new and strong relationship with our shareholders in supporting management's efforts in restructuring the Group and focusing future development on its trading franchise."

 

 

 

 

 

 

Enquiries

 

 

East West Resources  plc


Roger Clegg

+ 44 (0)20 7634 4700



Macquarie Capital (Europe) Limited


Nicholas Harland

Stephen Baldwin

+ 44 (0)20 3037 5237



M:Communications


Charlotte Kirkham

+ 44 (0)20 7920 2331



 

 

Notes to Editors

 

EWR is primarily active in the physical trading of base metals (primarily copper) and biofuel.  It sources and supplies a variety of commodities to end users all over the world.  Supported by its offices in London, Hamburg and Shanghai and a network of agents in North and South America, Asia and the Middle East, EWR provides producers and consumers with its marketing insight whilst emphasizing the financing and risk management aspect of its trading activities.  EWR also holds and manages a number of equity investments.  EWR is quoted on the AIM section of the London Stock Exchange under the ticker symbol EWR.

 

Further information on East West Resources plc is available on the Company's website: www.ewrplc.com

 

 



Results

 

Subdued growth outlook in most developed and emerging markets resulted in the Group's H1 2012 performance contrasting notably with the same period in 2011.  Against this backdrop, average period-on-period prices for the metal commodities traded by the Group fell between 15% and 20%.  EU biodiesel demand has been eroded by soy based biodiesel imports.  Reduced premiums have also contributed to very poor margins in the biofuel operations.  As a result of the foregoing, total income from continuing operations was £2.33 million for H1 2012 (H1 2011: £6.02 million (restated)).

 

The loss attributable to shareholders from continuing operations before tax was £1.26 million, compared with a loss of £0.79 million (restated) for the same period last year.  The biofuel division contributed a trading loss due to lower margins and turnover.  Period-on-period unallocated costs have been reduced but continue to include certain legacy costs that have yet to be reduced so as to be commensurate with the Group's current operating base.  Finally the write-downs which have affected the investment portfolio are a function of poor market conditions for the small cap stocks.  As the Group's investment portfolio has been wound down substantially, future impairments, if any, in the value of the portfolio are expected to have only a marginal effect on the Group's results going forward.

 

In July 2012, the Company agreed to dispose of its asset management subsidiary, Ambrian Asset Management Limited, for net asset value.  The disposal is subject to the approval of the Financial Services Authority ("FSA").  Once obtained, the Group will have no FSA regulated business left.

 

Metal trading

 

Owing to its efforts in diversifying from copper metal and increasing volumes, the metal trading operations reported for the period under review £1.09 million profit before tax (£1.14 million for H1 2011).  For H1 2012, approximately 150,000 tonnes of metal were sold, a 32% increase in tonnage over the same period last year.  Despite challenging market conditions, gross margins were improved overall by nearly 9%.

 

Despite lower revenues reported of £2.67 million for H1 2012 (H1 2011: £3.85 million), profit before tax was £1.09 million for the period under review, compared with £1.14 million for the same period in 2012.

 

The first half of 2012 saw volatile copper prices per tonne beginning in January at $7,600, reaching a first half high in early February of $8,765 and then retreating to a low in early June of $7,219 before closing the half year at $ 7,685.  However, the high premiums achieved for deliveries into the Chinese market during the last quarter of 2011 were carried into the New Year with spot premiums rising from circa $40 a tonne CIF Shanghai in July 2011 to a high of $130 in early January 2012.  A further build-up in Shanghai-bonded stocks coupled with the copper price rising by some $1,000 shortly after Chinese New Year in late January substantially curtailed demand in the division's most significant market, resulting in premiums falling back to a $40 to $60 a tonne level by the end of June 2012.

 

Demand in the Middle East remained consistent with many end users entering into additional long-term frame contracts from March 2012 onwards after liquidating excess inventory at the start of the year that had been built up as a result of economic and political tensions in the region.

 

Eurozone difficulties contributed to a slowdown with nearly all producers of wire-rod and cable reporting under budget sales, very much a function of reduced manufacturing and building activities throughout the European Community.

 

Biofuel trading

 

Total income in our biofuel operations for the period was a loss of £0.05 million (H1 2011: revenues of £2.27 million) and the division reported a loss before tax of £0.94 million for H1 2012 (H1 2011: profit of £1.81 million).  This disappointing performance was attributable to extremely poor market conditions.  The biodiesel market in Europe had a turbulent first half year being exposed to the downturn in the global economy as well as price volatility caused by political tensions in the Middle East and crop failure in some feedstocks.  Uncertainty in the biofuel sector was compounded by many of the EU member states not yet implementing favourable terms for second generation products as they transition to the use of certified products under the Renewable Energy Directive.  These difficult market conditions were further compounded by soy based biodiesel imports from South America.

 

In this environment, the biofuel operations sought to limit forward purchase orders in order to contain inventory to levels commensurate with conservative projections of future off-takes.  Consequently, turnover and the portfolio of stored and blended product were substantially reduced impacting the division's flexibility in distributing a variety of products and trading on arbitrage opportunities.  Reduced revenues resulted in the Group being unable to cover the division's overheads and storage commitments.  However, the biofuel operations are well positioned to benefit from a market that will soon require mainly certified product with a preference for second generation biofuels that are derived from environmentally sustainable sources and conditions.

 

 

Fossil fuels

 

During the period under review, the Group closed its fossil fuels business.  The net loss attributable to this closure was £0.4 million and included £0.8 million for redundancies and contract termination penalties and revenues of £0.4 million on contracts completed.

 

 

 

Investment portfolio

 

The investment portfolio recorded a loss before tax of £0.47 million (H1 2011: loss of £0.58 million).  This reflects a reduction of 19.1% in the value of the investment portfolio since 31 December 2011.

 

Since the beginning of the year, the portfolio has been returned to cash where possible given the on-going economic climate and the volatility of the stock market.  The majority of the loss in the first half of the year was attributed to the share price performance of legacy positions severely affected by the downturn in the small cap sector of the stock market.

 

The total value of the investment portfolio (excluding cash and the holding in Consolidated General Minerals plc ("CGM")) at 30 June 2012 was £0.88 million of which unlisted investments represent approximately £0.44 million.  This compares with a principal investment portfolio valued at £1.73 million (excluding cash and the CGM holding) at 31 December 2011 of which £0.45 million represented unlisted investments.  The Company continues to hold a 12.5% interest in CGM valued at £1.56 million at 30 June 2012.  CGM continues to focus on developing its clinker grinding mill and cement packing plant in Beira, Mozambique.  CGM's last reported cash position was $19.7 million and in July 2012, CGM acquired a 29.9 per cent interest in the issued share capital of the Company.

 

Expenses

 

Group administrative expenses were £3.59 million in H1 2012 (H1 2011: £6.81 million (restated)), of which £0.94 million (H1 2011: £3.17 million) were represented by unallocated central costs.

 

Total headcount at 30 June 2012 was 25, a reduction of 5 since 31 December 2011.

 

Balance Sheet

 

Total assets decreased to £233.58 million at 30 June 2012 from £258.91 million at 31 December 2011, principally as a result of lower inventories reflecting primarily lower valuations in the metal trading division and a reduction of biofuel stocks in Belgium.

 

The Group's cash resources, net of amounts due to clients totalled £6.91 million at 30 June 2012 compared with £15.38 million at 31 December 2011.  The principal reason for the reduction was the use of cash within the metals and biofuel divisions for margin and working capital requirements.

 

Shareholders' equity was £17.94 million at 30 June 2012 compared with £19.89 million at 31 December 2011.  Tangible net asset value per share was 17.8p per share, representing a reduction of 10.1% from 31 December 2011.  Tangible net asset value per share is based on 100,251,864 ordinary shares outstanding at 30 June 2012 (excluding treasury shares and shares held by the Ambrian Capital Employee Benefit Trust).

Significant shareholder change

 

Following CGM's acquisition of shares in the Group, Mr Nicolas Rouveyre, who is a significant shareholder in and associated with CGM, has joined the Board of the Company as a non executive director.  Nicolas has spent most of his working life in the metals industry.  For many years he was a highly successful metals trader and was a founding partner of Glencore International AG.  With this background, EWR looks forward to Nicolas providing impetus in developing the strategic direction of the Group.

 

CGM has expressed its support for the metal trading operations and has offered to provide additional funding to this division if required to assist the development of its activities.

 

Outlook

 

Along with a challenging trading environment in commodities, the costs associated with the withdrawal from certain businesses are again a factor in the half year loss.  Also, the results for the biofuel trading division have been particularly poor.  However, this must be viewed in the context of a reduction in activity in a business that had already contracted as a result of a sharp drop in demand.

 

Since 30 June 2012, there has been no material change in the general trading environment affecting our markets but we enter the renewal season for our metal contracts looking to expand the business.  Work continues on reducing the Group's central cost base.  Management is dealing pragmatically with the infrastructure costs inherent to the previously larger organisation and as a matter of urgency, intends to reduce the Group's property costs and outside sourced services that are now clearly surplus to the Group's requirements.

 

During the period under review, management has continued the rationalisation of the Group's operating entities and disposal of investments.  The trading business has continued as the cornerstone revenue producer of the Group.  We are committed to consolidating its franchise and revenue potential but will review the Group's commodity mix diversification and the robustness of its marketing business so as to define a clear strategy to increase our trading footprint whilst improving the visibility and quality of our future results.

 

Robert Ashley

Chief Executive

 

 

 

EAST WEST RESOURCES PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED

30 JUNE 2012

 

Condensed consolidated statement of comprehensive income

 

 

 

 

6 mths to

30 June

2012

(unaudited)

£

6 mths to

30 June

2011

(unaudited-restated)

£

Year to

31 December 2011

(audited-restated)

£

Revenue

2,637,360

6,440,686

6,493,308

Investment portfolio (loss)

(303,411)

(417,806)

(1,409,649)

Total income

2,333,949

6,022,880

5,083,659

Administrative expenses

(3,591,288)

(6,811,384)

(6,434,422)

(Loss) before tax

(1,257,339)

(788,504)

(1,350,763)

Taxation

(68,957)

(216,004)

(1,436,937)

(Loss) from continuing operations

(Loss) on discontinued operations before tax

(1,326,296)

(404,183)

(1,004,508)

(446,496)

(2,787,700)

(6,420,110)

Taxation on discontinued operations

-

-

(399,870)

 

 

 

 

(Loss) after tax from continuing

and discontinued operations

 

(1,730,479)

 

(1,451,004)

 

(9,607,680)

 

 

 

 

Other comprehensive income

 

 

 

Exchange (loss)/profit arising from translation of foreign operations

 

(234,426)

 

730,052

 

245,460

 Total other comprehensive income

(234,426)

730,052

245,460

 

 

 

 

Total comprehensive (loss)

(1,964,905)

(720,952)

(9,362,220)

 

 

 

 

(Loss)/profit for the period attributable to:

 

 

 

Owners of the parent

(1,724,210)

(1,460,618)

(9,604,730)

Non-controlling interest

(6,269)

9,614

(2,950)

 

(1,730,479)

(1,451,004)

(9,607,680)

 

 

 

 

Total comprehensive (loss)/income attributable  to:

 

 

 

Owners of the parent

(1,958,636)

(730,566)

(9,359,270)

Non-controlling interest

(6,269)

9,614

(2,950)

 

(1,964,905)

(720,952)

(9,362,220)

 

 

 

 

(Loss) per share from continuing and discontinued operations:

 

 

 

Basic

(1.72) pence

(1.49) pence

(9.88) pence

 

 

 

 

Continuing operations

 

 

 

Basic

(1.32) pence

(1.04) pence

(2.86) pence


Condensed consolidated statement of financial position

 

 

30 June

2012

(unaudited)

£

30 June

2011

(unaudited - restated)

£

31 December 2011

(audited)

£

 

 

 

 

 

 

128,484

233,910

177,747

273,982

1,899,444

232,071

402,466

2,133,354

409,818

 

 

 

 

 

 

 

17,624,102

 

9,177,719

 

4,841,449

145,035,565

134,223,370

179,154,816

63,605,436

144,993,989

59,127,665

6,909,481

11,094,027

15,378,657

233,174,584

299,485,105

258,502,587

233,577,050

301,622,459

258,912,405

 

 

 

 

 

 

 

 

 

 

 

-

 

-

 

(5,008,970)

(125,372,039)

(181,302,494)

(159,207,524)

 

(64,456,789)

 

(58,593,246)

 

(45,057,643)

(25,536,004)

(32,613,119)

(29,459,659)

Current tax payable

(320,313)

(376,658)

(321,799)

(215,685,145)

(272,885,517)

(239,055,595)

Total net assets

17,891,905

28,736,942

19,856,810

 

 

 

 

Capital and reserves

 

 

 

Share capital

11,136,121

11,136,121

11,136,121

Share premium account

11,105,383

11,105,383

11,105,383

Merger reserve

-

1,245,256

-

Treasury shares

(1,128,716)

(1,128,716)

(1,128,716)

Retained earnings

(961,937)

7,981,993

762,273

Employee benefit trust

(5,471,023)

(5,471,023)

(5,471,023)

Share-based payments reserve

4,325,508

4,243,508

4,325,508

Exchange reserve

(1,064,898)

(345,880)

(830,472)

Total equity attributable to owners of the parent

 

17,940,438

 

28,766,642

 

19,889,074

Minority interest

(48,533)

(29,700)

(42,264)

Total equity

17,891,905

28,736,942

19,856,810

 

Condensed consolidated interim statement of changes in equity

 


Share

capital

 

Share premium account

 

 

Merger

 reserve

Share-

based

payments

 reserve

 

 

Employee

benefit

trust

 

 

 

Treasury

 shares

 

 

 

Retained earnings

 

 

 

Exchange reserve

 

 

Non-controlling interest

 

 

 

Total

equity


£

£

£

£

£

£

£

£

£

£

Balance at 31 December 2010

11,136,121

11,105,383

1,245,256

4,161,508

(5,445,444)

(1,128,716)

12,858,252

(1,075,932)

 

(39,314)

32,817,114

Prior year adjustment

-

-

-

-

-

-

(2,670,276)

-

-

(2,670,276)

Balance at 31 December 2010 restated

11,136,121

11,105,383

1,245,256

4,161,508

(5,445,444)

(1,128,716)

10,187,976

(1,075,932)

 

(39,314)

30,146,838

Loss for the period

-

-

-

-

-

-

(1,460,618)

-

 

9,614

(1,451,004)

Other comprehensive income

-

-

-

-

-

-

-

730,052

 

-

730,052

Share-based payment charge

-

-

-

82,000

-

-

-

-

 

-

82,000

Purchase of shares

-

-

-

-

(57,809)

-

-

-

-

(57,809)

Sale of shares

-

-

-

-

32,230

-

-

-

-

32,230

Dividends

-

-

-

-

-

-

(745,365)

-

-

(745,365)












Balance at 30 June 2011 restated

11,136,121

11,105,383

1,245,256

4,243,508

(5,471,023)

(1,128,716)

7,981,993

(345,880)

 

 

(29,700)

28,736,942

Loss for the period

-

-

-

-

-

-

(8,144,112)

-

 

(12,564)

(8,156,676)

Elimination on disposal

-

-

(1,245,256)

-

-

-

924,392

-

 

-

(320,864)

Other comprehensive income

-

-

-

-

-

-

-

(484,592)

 

-

(484,592)

Share-based payment charge

-

-

-

82,000

-

-

-

-

 

-

82,000












Balance at 31 December 2011

11,136,121

11,105,383

-

4,325,508

(5,471,023)

(1,128,716)

762,273

(830,472)

 

(42,264)

19,856,810

Loss for the period

-

-

-

-

-

-

(1,724,210)

-

 

(6,269)

(1,730,479)

Other comprehensive income

-

-

-

-

-

-

-

(234,426)

 

-

(234,426)

Share-based payment charge

-

-

-

-

-

-

-

-

 

-

-

Purchase of shares

-

-

-

-

-

-

-

-

 

-

-

Sale of shares

-

-

-

-

-

-

-

-

 

-

-

Dividends

-

-

-

-

-

-


-

 

-

-












Balance at 30 June 2012

11,136,121

11,105,383

-

4,325,508

(5,471,023)

(1,128,716)

(961,937)

(1,064,898)

 

(48,533)

17,891,905


Condensed consolidated cash flow statement

 

6 months

to 30 June

2012

(unaudited)

£

6 months

to 30 June

2011

(unaudited)

£

Year to 31 December 2011

(audited)

£

 

 

 

 

(Loss) for the period               

(1,730,479)

(1,451,003)

(9,607,680)

Adjustments for:

 

 

 

Depreciation of property, plant and equipment       

40,228

138,745

52,600

Amortisation and impairment of intangible assets

-

2,150,109

2,150,109

Foreign exchange losses

-

-

96,538

Taxation (credit)/expense    

(43,397)

216,004

1,836,807

Unrealised (losses) on financial assets designated at fair value

 (14,648,675)

 (403,446)

 155,366

Realised losses on financial assets designated at fair value

889,333

 552,481

 2,213,170

Net proceeds from disposal / (cost on acquisition) of financial assets designated at fair value

 976,689

 (2,075,938)

 40,831

Decrease in inventories   

34,119,251

103,698,147

58,766,701

(Increase)/Decrease in trade and other receivables

(4,477,771)

(41,580,021)

41,936,350

Unrealised (losses) on financial liabilities at fair value

(5,008,970)

(18,745,460)

(13,736,490)

(Decrease) in trade and other payables 

(3,923,655)

(41,533,423)

(43,447,274)

Increase/(Decrease) in short-term liabilities under sale and repurchase agreements

 19,399,146

 (23,770,360)

 (37,305,963)

(Decrease)/increase in short-term borrowings

(33,835,485)

3,450,784

(18,644,186)

Share-based payment charge

Loss on disposal of subsidiaries

-

-

82,000

-

164,000

1,500,000

Cash used in operations

(8,243,785)

(19,271,381)

(13,829,121)

Taxation (paid) 

-

(631,234)

(481,175)

Net cash outflow used in operating activities                                                                                      

(8,243,785)

(19,902,615

(14,310,296)

Investing activities

 

 

 

Disposal of subsidiary undertakings

-

-

(868,139)

Purchase of property, plant and equipment

(2,789)

(83,901)

(83,405)

Disposal of property, plant and equipment

-

-

141,115

Net cash (used in) investing activities

(2,789)

(83,901)

(810,429)

Financing activities

 

 

 

Purchase of shares by employee benefit trust

-

(57,809)

(25,579)

Sale of shares by employee benefit trust

-

32,230

-

Dividend paid to owners of the parent 

-

(745,365)

(745,365)

Net cash used in financing activities 

-

(770,944)

(770,944)

Net decrease in cash and cash equivalents

(8,246,574)

(20,757,460)

(15,891,669)

Cash and cash equivalents at the beginning of the year  

15,378,657

31,121,434

31,121,434

Foreign exchange (losses)/gains

(222,602)

730,053

148,892

Cash and cash equivalents at the end of the year

6,909,481

11,094,027

15,378,657

 

 

 

Notes to the condensed consolidated interim financial statements

 

1.    Basis of preperation

 

The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies previously adopted for the year ended 31 December 2011 are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 31 December 2011.

The interim financial statements are for the six months ended 30 June 2012.  They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2011.

The interim financial statements have been prepared under the historical cost convention, except for revaluation of certain financial assets.

The consolidated statement of financial position as at 30 June 2011 has been restated to show the effect the prior year adjustment included in the financial statements for the year ended 31 December 2011, full details of which are set out in note 5 to those financial statements.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of the interim financial statements.

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006 and is unaudited.  The Group's statutory financial statements for the year ended 31 December 2011, prepared under IFRS, have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

These interim financial statements have neither been audited nor reviewed by the Group's external auditors.

The interim financial statements were approved by the Directors on 28 September 2012 and copies are available to the public free of charge from the company at Old Change House, 128 Queen Victoria Street, London EC4V 4BJ during normal office hours, Saturdays, Sundays and Bank Holidays excepted, for 14 days from today.

 

2.     Segmental Analysis

The Group has three reportable segments attributable to its continuing operations and unallocated central:

·    Physical metals: comprises Ambrian Metals Limited, a physical metals merchant.

·    Biofuels : comprises Ambrian Energy GmbH, a biofuels trader.

·    Investment portfolio : comprises the Group's principal investment portfolio held in Ambrian Principal Investments Limited and includes the activities of Ambrian Asset Management Limited

·    Unallocated central : principally relates to overheads incurred in operating the public limited company and include the share-based payment charges in relation to the staff share option schemes and the remuneration of the Directors of East West Resources plc. This segment also includes the activities of Ambrian Resources AG.

The Fossil Fuels division, comprising Ambrian Energy Limited and Strategic Energy Bank, was closed down during the period and has therefore been treated as discontinued activity. For comparative periods, discontinued activities comprise, in addition to the Fossil Fuels Division, Corporate Finance and Equities and LME futures broking.

 

Total income disclosed below includes investment and other income.  The investment portfolio includes realised and unrealised gains on financial assets.

 


6 mths to

30 June

2012

(unaudited)

£

6 mths to

30 June

2011

(unaudited-restated)

£

Year to

31 December 2011

(audited-

restated)

£

Revenue/Income



 

Physical metals

2,665,468

3,845,750

3,751,879

Biofuels

(47,665)

2,270,705

2,194,656

Investment portfolio

(303,411)

(417,806)

(1,409,649)

Unallocated central

19,557

324,231

546,773

Total Income

2,333,949

6,022,880

5,083,659

 




Profit/(loss) from continuing activities before taxation




Physical metals

1,089,796

1,144,028

1,653,681

Biofuels

(937,606)

1,814,794

955,990

Investment portfolio

(467,614)

(581,674)

(1,660,189)

Unallocated central

(941,915)

(3,165,652)

(2,300,245)

Total Profit/(Loss) from continuing activities before taxation

(1,257,339)

(788,504)

(1,350,763)

 




Net Assets




Physical metals

10,745,196

11,111,396

9,047,898

Biofuels

4,039,319

5,089,721

4,041,533

Investment portfolio

1,657,753

3,851,293

2,048,466

Unallocated central

3,270,969

5,587,988

5,017,846

Discontinued activities

(1,821,332)

3,096,544

(289,933)

Total Net Assets

17,891,905

28,736,942

19,856,810

 

 

 

 

 

3.         Administrative expenses

Administrative expenses amounting to £3,591,288 (30 June 2011: £6,811,384 and 31 December 2011: £6,434,422) include an impairment charge of intangible assets of £nil (30 June 2011: £2,150,109 and 31 December 2011: £nil - as the impairment charge of intangible assets was included within Loss on discontinued operations before taxation).

4.         Cash at bank and in hand

Own cash resources included in cash at bank and in hand amounted to £6,909,481 as at 30 June 2012 (30 June 2011: £11,094,027 and 31 December 2011: £15,378,657).

5.         Earnings per 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, excluding shares held in the Employee Benefit Trust on 30 June 2012 of 6,609,286 (2011: 6,851,524) and Treasury shares 30 June 2012 of 4,500,058 (2011: 4,500,058).

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

6 months to 30 June 2012 - unaudited

Earnings

 

 

£

Weighted average number of shares

Per share amount

 

Pence

Continuing operations

 

 

 

Basic earnings per share

(1,320,027)

100,035,872

(1.32)

 

 

 

 

Continuing and discontinued operations

 

 

 

Basic earnings per share

(1,724,210)

100,035,872

(1.72)

 

 

 

 

6 months to 30 June 2011 - unaudited - restated

Earnings

 

 

£

Weighted average number of shares

Per share amount

 

Pence

Continuing operations

 

 

 

Basic earnings per share

(1,014,122)

97,863,342

(1.04)

 

 

 

 

Continuing and discontinued operations

 

 

 

Basic earnings per share

(1,460,618)

97,863,342

(1.49)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to 31 December 2011 - audited - restated

Earnings

 

 

£

Weighted average number of shares

Per share amount

 

Pence

Continuing operations

 

 

 

Basic earnings per share

(2,784,750)

97,260,778

(2.86)

 

 

 

 

Continuing and discontinued operations

 

 

 

Basic earnings per share

(9,604,730)

97,260,778

(9.88)

 

 

 

 

 

 

 

 

The loss attributable to the owners of the company for continuing and discontinued operations used in the above calculations is that presented in the condensed consolidated statement of comprehensive income. The loss attributable to the owners of the company for continuing operations is derived from the loss from continuing operations which is adjusted for the loss for the period attributable to the non-controlling interest.

The diluted earnings per share for each reporting period is the same as the basic earnings per share.

6. Post balance sheet event

On 18 July 2012, East West Resources plc entered into a conditional agreement to sell its regulated asset management subsidiary, Ambrian Asset Management Limited.

7. Minority interest

The minority interest disclosed in the interim statement of comprehensive income and interim statement of financial position represents a 20% minority interest in Ambrian Resources AG held by shareholders other than East West Resources plc.

Ambrian Resources AG, a private equity business, was established in February 2010 in partnership with a team of three former executives from Glencore who hold 20% of the share capital of the company.

 

 

 


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