TIDMAMBR
RNS Number : 9890I
Ambrian Capital PLC
23 March 2010
23 March 2010
AMBRIAN CAPITAL PLC
Preliminary Announcement of Results
for the year ended 31 December 2009
Ambrian Capital plc, the specialist investment bank, today announced its
preliminary results for the year ended 31 December 2009.
Highlights
· Total income GBP18.78 million in 2009 compared to negative total
income of GBP(1.07) million in 2008.
· Revenue GBP17.51 million in 2009, up 82% compared to 2008
(excluding gains and losses from the Investment Portfolio).
· Corporate Finance & Equities revenue GBP8.95 million in 2009, up
more than two and a half times compared to 2008.
· Commodities revenue GBP8.56 million in 2009, an increase of 34%
compared to 2008.
· Profit before share-based payment charges and tax GBP4.01 million
compared to a loss on the same basis of GBP(16.30) million in 2008.
· Ambrian ranked 1st in small cap metals & mining research (Thomson
Reuters Extel Survey 2009) and 1st by number of retained corporate clients in
the AIM Basic Materials Sector (Hemscott Fourth Quarter 2009).
· Ambrian handled 213,382 tonnes of refined copper in 2009, an
amount equivalent to approximately 6.9% of China's total imports of refined
copper in 2009.
· Net tangible asset value per share increased 7.23% during the
year to 31.18p at 31 December 2009.
· Basic earnings per share 2.76p in 2009 compared to a loss per
share of (12.92)p in 2008.
· Second interim dividend of 0.75p per share declared and no final
dividend proposed, taking total dividends for the year to 1.50p per share,
unchanged from 2008.
Commenting on the results, Tom Gaffney, Chief Executive of Ambrian Capital plc,
said:
"Ambrian's strong performance in 2009 demonstrates the substantial opportunities
for growth in our two businesses. Corporate Finance & Equities revenue
increased by more than two and a half times and Commodities revenue increased by
34%. Our growth is reflected in Ambrian's bottom line results.
We have had an encouraging start to 2010 and are well positioned to benefit from
continuing Chinese demand for commodities and a gradual improvement in the
economies of Europe and North America."
Enquiries
+------------------------+------------------------+
| Ambrian Capital plc | |
+------------------------+------------------------+
| Tom Gaffney, Chief | + 44 (0)20 7634 4700 |
| Executive | |
+------------------------+------------------------+
| | |
+------------------------+------------------------+
| Fox-Pitt Kelton | |
| Limited | |
+------------------------+------------------------+
| Simon Law/Marc Milmo | + 44 (0)20 3037 5237 |
+------------------------+------------------------+
| | |
+------------------------+------------------------+
| M: Communications | |
+------------------------+------------------------+
| Charlotte Kirkham / | + 44 (0)20 7920 2330 |
| Ben Simons | |
+------------------------+------------------------+
Notes to Editors:
AMBRIAN CAPITAL PLC
Ambrian Capital plc (AIM: AMBR) is a specialist investment bank active in
Corporate Finance & Equities, Commodities and Principal Investments.
Corporate Finance & Equities
Ambrian Partners Limited is known in the market today for its leading positions
in the metals & mining, oil & gas and cleantech sectors. It provides corporate
finance advice, equity research, sales and trading and market making services.
Ambrian Partners is a member of the London Stock Exchange and is authorised and
regulated by the Financial Services Authority.
Commodities
Ambrian Commodities Limitedis a 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 Limitedis an independent physical metals merchant with a
particular strength in refined copper. Through Ambrian Metals' offices in London
and Shanghai and agents in New York, Santiago, São Paulo, Seoul and Tokyo, it
sources non-ferrous metals from producers for distribution to an international
client base of metals consumers and merchants.
Principal Investments
Ambrian Principal Investments Limited is an investment company which holds the
Group's principal investment portfolio. It is managed by Ambrian Asset
Management Limited, which is authorised and regulated by the Financial Services
Authority.
Further information on Ambrian Capital is available on the Company's website:
www.ambrian.com
CHAIRMAN'S STATEMENT
Ambrian's financial and operating performance in 2009 demonstrated continued
progress in meeting our strategic objective. We are committed to building a
business that has intrinsic value substantially in excess of net asset value
based on a differentiated business model and an enduring franchise.
The growth in revenue and profit in 2009, in both Corporate Finance & Equities
and in Commodities, demonstrates the success of our natural resources focused
model. Ambrian continues to emphasise return on capital, cost control and
maintenance of a strong financial position. This year we have taken a charge to
Ambrian's consolidated statement of comprehensive income for the fair value of
share options granted to staff by the Ambrian Capital Employee Benefit Trust in
accordance with IFRS 2. We have also restated the 2008 accounts to reflect this
charge. Our remuneration policies are designed to retain and incentivise our
most talented staff and recruit the best people in the market in order to drive
growth in shareholder value. We are in the process of putting in place a more
effective share incentive scheme for our staff.
Ambrian Partners continued to strengthen its position in the UK small and
mid-cap metals & mining sector. It took advantage of the fall-out from the
credit crisis in the UK investment banking sector to hire talented individuals
in corporate finance, equity sales and trading and research. Ambrian Partners
took steps during 2009 to improve the size, quality and sustainability of its
equities business by selectively recruiting specialist research analysts in
non-cyclical sectors. Equity market making showed a significant turnaround
during the year as a result of the rebound in the junior natural resources
sector.
Ambrian Commodities remained profitable in 2009 despite a drop in customer
trading volumes and lower interest rates. In the second half of the year we
changed to a new clearing bank and we now fund client margins due to the London
Metal Exchange (LME) from our own cash resources.
Ambrian Metals benefited in the first half of 2009 from the strength in demand
for refined copper from China and the Middle East. We are taking steps to
upgrade our office in Shanghai from a representative office to a "Wholly Foreign
Owned Enterprise" (WFOE) which will enable Ambrian Metals to trade with a wider
range of Chinese customers. We expect the WFOE to become fully operational in
the second half of 2010.
In January 2010, we transferred Ambrian's remaining investment portfolio into
Ambrian Principal Investments Limited (APIL), a wholly-owned Jersey registered
company, which is managed by Ambrian Asset Management Limited. This will enable
the performance of our principal investment portfolio to be clearly identified
and provides the basis for an audited track record.
We continue to broaden both the services we offer to clients and our
geographical presence. In February 2010, we formed Ambrian Resources AG in
partnership with three ex-Glencore International executives. Based in
Switzerland, Ambrian Resources is focused on arranging and managing strategic
investments which offer the opportunity to complement the activities of our
other businesses. We expect to allocate approximately 10% of the Group's
shareholders' equity to strategic principal investments.
A second interim dividend of 0.75p per share will be paid to shareholders on 30
March 2010. This takes the total dividend for the year to 1.50p per share,
unchanged from 2008. We are not recommending payment of a final dividend.
Since our first dividend payment in October 2005, Ambrian has paid shareholders
a cumulative total of GBP7.12 million in cash dividends. A further GBP1.10
million has been returned to shareholders through share buybacks over the same
period.
The current year will no doubt provide further challenges in a fragile economic
world but there will also be opportunities for Ambrian. Despite our
accomplishments in 2009, we know that there is still much to be done if we are
to achieve our objective and build our business in the long term. We benefit
greatly from our Chief Executive, Tom Gaffney, who has shown outstanding
leadership in expanding and diversifying our business in a difficult
environment.
Finally, I would like to thank our clients for entrusting us with their
business, all of our staff for their hard work over the past year and my fellow
directors for their guidance and support.
W L Banks
Chairman
23 March 2010
CHIEF EXECUTIVE'S REPORT
Ambrian's strong performance in 2009 demonstrates the substantial opportunities
for growth in our two businesses. Corporate Finance & Equities revenue
increased more than two and a half times and Commodities revenue increased by
34%. Our growth is reflected in Ambrian's bottom line results.
Our activities have grown in size and complexity in recent years which requires
an increasing emphasis on risk management throughout the Group. Ambrian's
businesses generate recurring revenue by acting as an intermediary on most
transactions. As an intermediary, Ambrian minimises its market risk by matching
buyers and sellers. Our market risk taking, other than in the Investment
Portfolio, is for the most part limited to providing our clients with liquidity
to facilitate the execution of a transaction.
We are enthusiastic about the strength of our platform and our vision is to
build the pre-eminent investment bank to the natural resources sector that draws
on our skills in equities, derivatives and physical metals.
Financial Review
Total income for 2009 was GBP18.78 million, compared with negative income of
GBP(1.07) million in 2008.
Revenue grew by 82% to GBP17.51 million in 2009 from GBP9.64 million in 2008
(excluding gains and losses from the Investment Portfolio).
Corporate Finance & Equities revenue increased by 175% in 2009 to GBP8.95
million from GBP3.25 million in 2008. Excluding equity market making gains in
2009 of GBP1.49 million and losses in 2008 of GBP(2.04) million, Corporate
Finance & Equities revenue was up 41% in 2009 reflecting the recovery in equity
markets.
Commodities saw revenue increase by 34% in 2009 to GBP8.56 million from GBP6.39
million in 2008. The growth in revenue was driven by an increase in physical
tonnage traded and a widening of metal premiums, particularly during the first
half of 2009.
The Investment Portfolio had income of GBP1.27 million in 2009 compared with
negative income of GBP(10.71) million in 2008. The recovery in the value of the
investment in Minerva Resources plc (now Nyota Minerals Limited) accounted for
the majority of the income of the Investment Portfolio in 2009.
Administrative expenses were GBP15.86 million in 2009 (2008: GBP16.54 million),
of which GBP11.07 million (2008: GBP11.46 million) were represented by fixed
costs (excluding bonuses, share-based payment charges and non-recurring costs).
Remuneration expenses, before share-based payment charges, were GBP9.85 million
in 2009 (2008: GBP6.78 million) of which (i) GBP6.53 million was represented by
salaries, employers' national insurance and benefits (2008: GBP5.47 million) and
(ii) GBP3.33 million represented a provision for the year-ended profit-related
bonuses (2008:GBP1.31 million). The ratio of total remuneration expenses
(excluding share-based payment charges) to total income was 52.5% for 2009.
Share-based payment charges in 2009 were GBP1.08 million compared with GBP1.33
million in 2008 as restated.
Non-personnel costs were GBP4.92 million in 2009, 42% lower than 2008. The
decrease compared with 2008 is principally attributable to a rigorous focus on
cost control in 2009 and the non-recurring costs incurred in 2008.
Total headcount as at 31 December 2009 stood at 73, up 2 during 2009.
Profit before share-based payment charges and tax for 2009 was GBP4.01 million
compared to a loss of GBP(16.30) million in 2008.
Profit before tax for 2009 was GBP2.93 million compared to a loss of (GBP17.63)
million in 2008.
Basic earnings per share were 2.76p compared to a basic loss per share of
(12.92)p in 2008.
The tax charge for 2009 was GBP0.28 million (2008: tax credit GBP4.77 million)
which is equivalent to a tax rate of 9.5%. The reduced tax is primarily due to
a deferred tax credit of GBP0.54 million arising from the share-based payment
charge.
Consolidated statement of financial position
Total assets increased to GBP281.55 million at 31 December 2009 from GBP94.35
million at 31 December 2008 primarily due to increased volumes of physical
metals contracted for sale and for purchase by Ambrian Metals.
Cash, trade and other receivables and inventory accounted for 49% of total
assets at the year end. Trade and other receivables are short-dated and almost
all are either backed by a letter of credit from a major financial institution
or we have obtained credit insurance for substantially all of the credit
exposure. Our inventory position reflects metals that we hold in conjunction
with future contractual sales. The metals we trade in are readily convertible
for cash.
Contractual obligations from a diverse group of major metals consumers to
purchase tonnages of physical metals for periods of up to 12 months represents a
further 48% of the Group's assets. These assets are valued at the LME closing
valuation prices at the year end.
The Group's own cash resources, net of amounts due to clients, totalled GBP23.97
million at 31 December 2009 compared with GBP22.56 million at 31 December 2008.
The Group's own cash resources at the year end included GBP9.02 million (2008:
GBP nil) of own cash held with Fortis Bank Global Clearing NV (100% owned by the
Dutch State), our LME clearer, in respect of margin credit granted to clients of
Ambrian Commodities. Cash is also held on deposit principally with Barclays
Bank plc and Royal Bank of Scotland plc.
The Investment Portfolio was valued at GBP2.53 million at 31 December 2009
compared with GBP1.50 million at 31 December 2008.
It has always been the Group's policy to provide a reserve in the consolidated
statement of financial position for the full cost of the potential exercise of
share options granted by the Ambrian Capital Employee Benefit Trust (EBT). At
31 December 2009 the EBT reserve was GBP5.34 million (2008: GBP5.88 million).
Shareholders' equity was GBP32.43 million at 31 December 2009 (31 December 2008:
GBP30.35 million).
Net asset value per share was 33.55p and tangible net asset value per share was
31.18p, increases of 6.14% and 7.23%, respectively during 2009. Net asset value
per share and tangible net asset value per share are based on 96,652,953
ordinary shares outstanding at 31 December 2009 (excluding Treasury shares and
shares held by the EBT).
The aggregate regulatory capital requirement for the Group's regulated
subsidiaries was GBP4.05 million at 31 December 2009 which was substantially
exceeded by the aggregate regulatory capital resources of the regulated
subsidiaries of GBP16.14 million.
Corporate Finance & Equities
Corporate Finance
Ambrian Partners has built a strong franchise in providing high value-added
corporate finance advisory services with a particular focus on the metals &
mining sector. Our corporate clients recognise Ambrian Partners' industry
expertise, ability to handle complex multi-jurisdictional transactions and
Nominated Adviser ("Nomad") services.
Among the transactions on which Ambrian Partners advised during 2009 were the
following:
· Avocet Mining plc's US$145 million acquisition of Wega Mining ASA
· Centamin Egypt plc's GBP1.40 billion move to the Official List of
the London Stock Exchange from AIM
· Weatherly International plc's US$33 million sale of its smelter
assets
Ambrian Partners is the recognised leader in the AIM Basic Materials Sector and
was ranked first by number of retained corporate clients in the Hemscott Fourth
Quarter 2009 AIM Advisers Rankings Guide.
Ambrian Partners' strategy is to focus its resources on a select group of
retained Nomad and/or Corporate Broking clients which are of high quality, have
high growth potential and offer Ambrian Partners the potential to generate
significant fees on a recurring basis. At 31 December 2009, Ambrian Partners
Limited had 32 retained corporate clients compared with 42 at 31 December 2008.
Ambrian Partners' retained quoted clients had an average market capitalisation
of GBP104 million at 31 December 2009 compared with the average market
capitalisation of an AIM listed company at that date of GBP44 million.
Capital Markets
Based on a reputation for bringing attractive companies to the market, Ambrian
Partners has become a key market intermediary for natural resources companies
seeking to raise capital in the London market.
In 2009, Ambrian Partners was involved in 20 transactions that provided GBP292
million in financing for growing companies.
Among the fund raisings announced in 2009 in which Ambrian Partners played a
role were the following:
· African Consolidated plc's GBP10 million equity offering
· Centamin Egypt plc's C$69 million equity offering
· Kalahari Minerals plc's GBP17.9 million and GBP20.0 million equity
offerings
· SeaEnergy plc's GBP7.5 million equity offering
· Sylvania Resources plc's GBP10 million equity offering
Equities
Ambrian Partners' equities business performed well in 2009 as a result of the
rebound in equity markets and, in particular, the sharp recovery in the junior
natural resources sector. The FTSE AIM Basic Resources Index rose by 153% in
2009 after dropping by 73% in 2008.
Ambrian Partners made significant progress in further strengthening its
institutional client base and improving the consistency of its research-driven
brokerage revenue. In 2009, revenue from institutional brokerage commissions
and commission sharing arrangements (CSAs) increased by 24%.
Ambrian Partners' equities team was ranked first overall in the UK small cap
metals & mining sector in the 2009 Thomson Reuters Extel Survey.
During the year, Ambrian Partners expanded its mining research coverage from the
small and mid-cap sector to include the major London-listed mining companies.
The decision was taken during 2009 to take advantage of the dislocation in the
UK stockbroking sector to recruit a limited number of top quality research
analysts and equity salesmen to broaden Ambrian Partners' product offering
beyond the mining sector and AIM.
The plan is to build a larger, more profitable equities business to enable our
fixed cost base to be shared among a greater number of income generators and
build on Ambrian Partners' first-rate reputation in the natural resources
sector.
Our strategy is to build our brokerage presence in equities bought largely for
their defensive qualities as a counter-balance to the highly cyclical and
volatile natural resources sector in which Ambrian Partners already has a strong
presence. Since the beginning of 2010, Ambrian Partners has hired "thought
leading" equity research analysts specialising in defensive sectors such as
utilities, pharmaceutical companies and food retailers.
Ambrian Partners is committed to being a specialist securities firm with
recognised industry expertise. Increasingly, Ambrian Partners' skills in
natural resources will be complemented by expertise in new sectors which will
provide diverse and sustainable sources of revenue.
Ambrian Partners makes markets in the shares of 55 companies and had GBP2.00
million of capital allocated to the activity at 31 December 2009.
Equity market making was profitable in all but one month in 2009 and generated
revenue of GBP1.49 million in 2009 compared to a loss of GBP(2.04) million in
2008. Equity market making plays a vital role providing liquidity to our "house
stocks" and thereby facilitating client activity. Over 75% of the revenue
generated by equity market making was in the shares of Ambrian Partners'
corporate clients.
Commodities
Commodities comprises Ambrian Commodities Limited, the LME broker-dealer and
Ambrian Metals Limited, the physical metals merchant.
Ambrian Commodities Limited
Ambrian Commodities had a more difficult year in 2009 than in 2008 as a result
of a 19% reduction in customer activity levels, lower average metals prices and
lower interest rates. Nevertheless, Ambrian Commodities remained profitable.
Total LME trading volume was almost unchanged with 112 million lots traded in
2009 compared with 113 million lots in 2008. However, in 2009 the US dollar
notional value of lots traded on the LME declined by 28% to US$7.41 trillion due
to lower metals prices. LME volumes were maintained by the activity of
financial investors despite a decline in end user demand.
Ambrian Commodities' client base primarily consists of industrial metals
fabricators, of which approximately two-thirds are located in Continental
Europe.
These industrial customers have a regular need for the metals price hedging
services provided by Ambrian Commodities regardless of the actual level of
metals prices. However, their volume of LME activity is directly related to
their manufacturing production. Given the weak European economic recovery in
2009, output was reduced and this depressed Ambrian Commodities' volume of
activity.
In addition, in the low interest rate environment prevailing in 2009, Ambrian
Commodities was unable to maintain interest income on cash balances held at the
same level as in 2008. During 2009, overnight US$ LIBOR averaged only 0.23%
compared with 2.33% in 2008.
The allocation of capital to support the granting of margin credit represents
the largest single constraint to the future growth of Ambrian Commodities and we
are actively pursuing initiatives to resolve this issue.
Ambrian Metals Limited
Ambrian Metals globally sources non-ferrous metals, with a particular focus on
LME-grade copper cathode and copper wire-rod, from producers for distribution
primarily on a matched and hedged basis to an international client base.
Headquartered in London, and with an office in Shanghai, Ambrian Metals has
agents in New York, Santiago, São Paulo, Seoul and Tokyo.
Ambrian Metals does not speculate on movements in metals prices but generates
revenue by charging its clients a market-based "premium" over the metal price
for providing them with a consistently high quality product and logistics
services.
Ambrian Metals manages all facets of marketing and distribution. The growth in
tonnage handled by Ambrian Metals has been supported by major international
banks that have been prepared to provide growing amounts of trade finance.
These banks include BNP Paribas, ING, Standard Chartered, Credit Suisse and
Banque Cantonale Vaudoise. At the year end, Ambrian Metals had US$200 million
in uncommitted trade financing facilities compared with US$120 million at the
end of 2008.
Ambrian Metals benefited during 2009 from record flows of refined copper into
China. The total volume of refined copper imported into China in 2009 rose by
29% to 3.1 million tonnes from 2.4 million tonnes in 2008.
Chinese demand for copper was particularly strong during the first half of 2009
and was fuelled by strategic stockpiling but also, in large part, by the RMB 4
trillion (US$585 billion) stimulus package announced by China in November 2008.
Approximately US$450 billion was targeted for investment in infrastructure,
rural development and other fixed asset investments which are large consumers of
raw materials. Refined copper, for example, is converted into a range of
products within the building, construction and electrical sectors.
The effect of increased Chinese demand for refined copper was to push up
worldwide market premiums per tonne. Premiums per tonne "CIF Shanghai" rose
sharply from approximately US$38/tonne at the start of 2009 to a high of
approximately US$170/tonne in April. Premiums fell back to around US$40/tonne
in the second half of the year but rebounded at the year end to approximately
US$100/tonne in anticipation of further Chinese demand and a recovery in global
economies in 2010.
In 2009, Ambrian Metals handled 246,296 tonnes of physical metals. This
included 213,382 tonnes of refined copper which was equivalent to approximately
6.9% of China's total imports of refined copper in that year. In 2008, Ambrian
Metals handled 79,573 tonnes of physical metals. Total sales of physical metals
in 2009 were $1,238 million compared to $630 million in 2008.
Approximately 39% of Ambrian Metals' tonnage volume in 2009 was to customers
located in the Middle East and 37% was sold to Chinese customers through Ambrian
Metals' office in Shanghai. The balance was primarily taken up by customers in
Europe and North America.
Financial events in Dubai in the second half of 2009 had only a limited impact
on the tonnages sold by Ambrian Metals into the Middle East.
During 2009, Ambrian Metals sourced refined copper from producers located around
the world including Russia, Kazakhstan, Japan, Zambia, Brazil, India and Chile.
Principal Investments
The Investment Portfolio generated income of GBP1.27 million in 2009 compared
with negative income of GBP(10.71) million in 2008. The most significant gain
of GBP0.80 million was attributable to the investment in Minerva Resources plc
which was acquired in an all share transaction by Nyota Minerals Limited in
August 2009.
The total value of the Investment Portfolio at 31 December 2009 was GBP2.53
million compared with GBP1.50 million at 31 December 2008.
At 31 December 2009, the largest publicly listed holdings in the Investment
Portfolio were Nyota (valued at GBP0.80 million) and Rivington Street Holdings
plc (valued at GBP0.32 million). The unlisted investments had an aggregate
value of GBP0.16 million (2008: GBP0.28 million).
On 4 January 2010, the holdings in the Investment Portfolio were transferred
from Ambrian Capital and Ambrian Partners to Ambrian Principal Investments
Limited (APIL), a new wholly-owned Jersey registered limited company. The
assets of APIL are now managed by Ambrian Asset Management Limited, an FSA
regulated investment management company, which is wholly owned by Ambrian
Capital.
APIL's investment objective is to produce superior investment returns by
investing in a portfolio of equities and derivatives in the metals & mining and
energy sectors.
In due course, Ambrian Asset Management intends to widen its activities from
managing Ambrian Capital's proprietary investments to managing funds on behalf
of third parties.
Outlook
China remains the largest single factor driving demand for raw materials.
Despite near term concerns about financial overheating, China remains
underdeveloped. China's GDP per capita is estimated by the IMF to be $3,566.
According to analysts, in real terms, this is the same as the US in 1934 and
Japan in 1960. China's 2009 GDP per capita is 23% of Taiwan's, 22% of South
Korea's and less than one-tenth that of the United States.
2010 has started well with Ambrian's total income in the first two months of the
year exceeding total income in the same period last year. Ambrian Partners and
Ambrian Metals have again been the drivers of growth.
The range of Ambrian's activities in the natural resources sector and London's
position at the world's centre of equity capital raising and metals trading,
positions us well to benefit from continuing Chinese demand for commodities and
a gradual improvement in the economies of Europe and North America.
Tom Gaffney
Chief Executive
23 March 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2009
+---------------------------+----------+----------+----------+----------+------------------+------------------+
| | | | | 2009 | 2008 |
| | | | | | Restated |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | GBP | GBP |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Revenue | | | | 17,512,917 | 9,642,656 |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Investment portfolio | | | | 1,270,636 | (10,711,147) |
| gains and losses | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | ---------------- | ---------------- |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Total income | | | | 18,783,553 | (1,068,491) |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| Administrative expenses | | | | (15,857,033) | (16,537,853) |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| Finance costs | | | | - | (20,928) |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| | | | | ---------------- | ---------------- |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| Profit/(loss) before tax | | | | 2,926,520 | (17,627,272) |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| Taxation | | | | (276,759) | 4,765,777 |
+---------------------------+----------+----------+----------+-----------------------------+------------------+
| | | | | ---------------- | -------------- |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Profit/(loss) for the | | | | | |
| year attributable to | | | | | |
| owners of the parent | | | | 2,649,761 | (12,861,495) |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | ========== | ========== |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Other comprehensive | | | | | |
| income | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Exchange loss arising on | | | | (117,807) | (499,045) |
| translation of foreign | | | | | |
| operations | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | ---------------- | -------------- |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Total comprehensive | | | | 2,531,954 | (13,360,540) |
| income attributable to | | | | | |
| owners of the parent | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | ========== | ========== |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| Earnings/(loss) per | | | | | |
| ordinary share | | | | | |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| - basic | | | | 2.76p | (12.92)p |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| - diluted | | | | 2.74p | (12.92)p |
+---------------------------+----------+----------+---------------------+------------------+------------------+
| | | | | | | |
+---------------------------+----------+----------+----------+----------+------------------+------------------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2009
+---------------------------------------+----+---------------+---------------+---------------+
| | | 2009 | 2008 | 2007 |
| | | | Restated | Restated |
+---------------------------------------+----+---------------+---------------+---------------+
| | | GBP | GBP | GBP |
+---------------------------------------+----+---------------+---------------+---------------+
| ASSETS | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Non-current assets | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Property, plant and equipment | | 317,511 | 352,317 | 126,852 |
+---------------------------------------+----+---------------+---------------+---------------+
| Intangible assets | | 2,290,109 | 2,430,109 | 1,836,828 |
+---------------------------------------+----+---------------+---------------+---------------+
| Deferred tax asset | | 1,254,128 | 1,051,417 | - |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------ | ------------ |
+---------------------------------------+----+---------------+---------------+---------------+
| | | 3,861,748 | 3,833,843 | 1,963,860 |
+---------------------------------------+----+---------------+---------------+---------------+
| Current Assets | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Financial assets at fair value | | 4,698,734 | 2,636,135 | 23,888,023 |
| through profit or loss | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Inventory | | 58,551,732 | 9,008,759 | - |
| Trade and other receivables | | 175,898,683 | 30,578,089 | 5,989,445 |
+---------------------------------------+----+---------------+---------------+---------------+
| Current tax recoverable | | 1,107,775 | 1,169,155 | - |
+---------------------------------------+----+---------------+---------------+---------------+
| Cash and cash equivalents | | 37,432,137 | 47,123,092 | 27,080,761 |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| | | 277,689,061 | 90,515,230 | 56,958,229 |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| Total Assets | | 281,550,809 | 94,349,073 | 58,921,909 |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| LIABILITIES | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Current liabilities | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Financial liabilities at fair value | | (7,709,922) | (19,981,091) | - |
| through profit or loss | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Trade and other payables | | (240,956,741) | (43,633,216) | (10,311,594) |
+---------------------------------------+----+---------------+---------------+---------------+
| Current tax payable | | (453,535) | (381,539) | (1,482,563) |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| | | (249,120,198) | (63,995,846) | (11,794,157) |
+---------------------------------------+----+---------------+---------------+---------------+
| | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Non current liabilities | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Deferred tax liabilities | | - | - | (2,090,110) |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Total liabilities | | (249,120,198) | (63,995,846) | (13,884,267) |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| Total net assets | | 32,430,611 | 30,353,227 | 45,037,642 |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ======= | ======= | ======= |
+---------------------------------------+----+---------------+---------------+---------------+
| | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| 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 | 1,245,256 | 1,245,256 |
+---------------------------------------+----+---------------+---------------+---------------+
| Treasury shares | | (1,093,889) | (1,092,831) | (163,217) |
+---------------------------------------+----+---------------+---------------+---------------+
| Retained earnings | | 12,357,624 | 11,783,542 | 26,364,590 |
+---------------------------------------+----+---------------+---------------+---------------+
| Share-based payment reserve | | 3,639,675 | 2,555,461 | 1,229,328 |
+---------------------------------------+----+---------------+---------------+---------------+
| Employee benefit trust | | (5,342,707) | (5,880,660) | (5,879,819) |
+---------------------------------------+----+---------------+---------------+---------------+
| Exchange reserve | | (616,852) | (499,045) | - |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ------------ | ------------- | ------------- |
+---------------------------------------+----+---------------+---------------+---------------+
| Total equity attributable to owner of | | 32,430,611 | 30,353,227 | 45,037,642 |
| the parent | | | | |
+---------------------------------------+----+---------------+---------------+---------------+
| | | ======= | ======= | ======= |
+---------------------------------------+----+---------------+---------------+---------------+
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2009
+----------------------------------------+---------------+---------------+
| | 2009 | 2008 |
| | | Restated |
+----------------------------------------+---------------+---------------+
| | GBP | GBP |
+----------------------------------------+---------------+---------------+
| Cash flows from operating activities | | |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Profit/(loss) for the year | 2,649,761 | (12,861,495) |
+----------------------------------------+---------------+---------------+
| Adjustments for : | | |
+----------------------------------------+---------------+---------------+
| Depreciation of property, plant and | 192,574 | 174,691 |
| equipment | | |
+----------------------------------------+---------------+---------------+
| Impairment of property, plant and | - | 118,571 |
| equipment | 140,000 | 140,000 |
| Amortisation of intangible assets | (84,552) | (2,979) |
| Foreign exchange gains | | |
+----------------------------------------+---------------+---------------+
| Taxation expense/(credit) | 276,759 | (4,765,777) |
+----------------------------------------+---------------+---------------+
| Unrealised (gains)/losses on financial | | |
| assets designated at fair value | (550,268) | 9,606,263 |
+----------------------------------------+---------------+---------------+
| Realised (gains)/losses on financial | | |
| assets designated at fair value | (1,244,789) | 1,148,420 |
+----------------------------------------+---------------+---------------+
| Net (cost on acquisitions)/proceeds on | | |
| disposals of financial assets | (267,542) | 10,571,205 |
| designated at fair value | | |
+----------------------------------------+---------------+---------------+
| Increase in inventories | (49,542,973) | (9,008,759) |
| Increase in trade and other | (145,320,594) | (23,834,652) |
| receivables | | |
+----------------------------------------+---------------+---------------+
| Unrealised (gains)/losses on financial | (12,271,169) | 19,981,091 |
| liabilities at fair value | | |
+----------------------------------------+---------------+---------------+
| Increase in trade and other payables | 197,323,525 | 32,200,320 |
+----------------------------------------+---------------+---------------+
| Share-based payment charge | 1,084,214 | 1,326,133 |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Cash generated from operations | (7,615,054) | 24,793,032 |
+----------------------------------------+---------------+---------------+
| Taxation paid | (346,094) | (693,635) |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Net cash flow (used in)/from operating | (7,961,148) | 24,099,397 |
| activities | | |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Investing activities | | |
+----------------------------------------+---------------+---------------+
| Purchase of property, plant and | (157,768) | (424,172) |
| equipment | | |
+----------------------------------------+---------------+---------------+
| Disposal of property, plant and | - | 58,832 |
| equipment | | |
+----------------------------------------+---------------+---------------+
| Acquisition of subsidiary (net of | | |
| cash acquired) | - | (545,652) |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Net cash used in investing activities | (157,768) | (910,992) |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Financing activities | | |
+----------------------------------------+---------------+---------------+
| Purchase of shares by employee benefit | (232,960) | (841) |
| trust | | |
+----------------------------------------+---------------+---------------+
| Sale of shares by employee benefit | 138,565 | - |
| trust | | |
+----------------------------------------+---------------+---------------+
| Purchase of treasury shares | (1,058) | (929,614) |
+----------------------------------------+---------------+---------------+
| Dividend paid to owners of the parent | (1,443,331) | (1,719,553) |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Net cash used in financing activities | (1,538,784) | (2,650,008) |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Net (decrease)/increase in cash and | (9,657,700) | 20,538,397 |
| cash equivalents | | |
+----------------------------------------+---------------+---------------+
| Cash and cash equivalents at the | 47,123,092 | 27,080,761 |
| beginning of the year | | |
+----------------------------------------+---------------+---------------+
| Foreign exchange gains/(losses) | (33,255) | (496,066) |
| | | |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------ |
+----------------------------------------+---------------+---------------+
| Cash and cash equivalents at the end | 37,432,137 | 47,123,092 |
| of the year | | |
+----------------------------------------+---------------+---------------+
| | ======= | ======= |
+----------------------------------------+---------------+---------------+
NOTES TO THE ACCOUNTS
Year ended 31 December 2009
1 The financial information set out in this announcement does not
constitute the Group's statutory accounts for the years ended 31 December 2009
or 2008 but is derived from those accounts. Statutory accounts for 2008 have
been delivered to the Registrar of Companies, and those for 2009 will be
delivered in due course. The auditors have reported on those accounts; their
reports were (i) unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under section 237 (2) or (3) of the
Companies Act 1985 in respect of the accounts for 2008 nor a statement under
section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for
2009. The results for the year ended 31 December 2009 were approved by the Board
of Directors on 22 March 2010 and are audited.
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 Group expects to
publish full financial statements that comply with IFRSs in May 2010.
2 Prior Year Adjustment
The Group has restated its prior year consolidated statement of comprehensive
income and consolidated statement of financial position to reflect the
share-based payments charge on options granted by the Employee Benefit Trust.
This charge in relation to 2008 amounted to GBP1,127,194 and has been included
within administrative expenses. This increased the loss for the year by
GBP1,127,194 with a corresponding adjustment to share based payment reserve and
this has GBPnil impact on total equity.
The charge for previous years amounted to GBP592,986 and has been treated as an
adjustment between the opening balances on retained earnings and the share-based
payments reserve in 2008.
3 Financial Reporting Review Panel
The Group has recently concluded discussions about its 2008 Annual Report and
Financial Statements with the Financial Reporting Review Panel. Certain
additional disclosures have been included in our 2009 Financial Statements as a
consequence of these discussions, particularly in relation to the 2008
Consolidated Statement of Cash Flows which has been restated and the
classification of intangible assets between goodwill on consolidation and
customer relationships.
4 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, excluding shares held in the Employee Benefit
Trust and treasury shares.
The calculation of diluted earnings per share is based on the basic earnings per
share adjusted to allow for the issue of shares through the share option schemes
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 :
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| | | 2009 | | 2008 | |
+-----------------+--------------+--------------+----------------------------+--------------+--------------+
| | Earnings | Weighted | Per | Restated | Weighted | Restated |
| | GBP | average | share | | average | Per |
| | | number | amount | Earnings | number | share |
| | | of | (pence) | GBP | of | amount |
| | | shares | | | shares | (pence) |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| Basic | | | | | | |
| earnings/(loss) | | | | | | |
| per share | 2,646,761 | 96,169,277 | 2.76 | (12,861,495) | 99,579,821 | (12.92)p |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| | ======= | ======= | ======= | ======= | ======= | ======= |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| Dilutive | | | | | | |
| effect of | | | | | | |
| share | | 551,985 | | | - | |
| options | | | | | | |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| | ------------ | ------------ | ----------- | ------------ | ------------ | ------------ |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| Diluted | | | | | | |
| earnings/(loss) | | | | | | |
| per share | 2,649,761 | 96,721,262 | 2.74 | (12,861,495) | 99,579,821 | (12.92)p |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
| | ======= | ======= | ======= | ======= | ======= | ======= |
+-----------------+--------------+--------------+-------------+--------------+--------------+--------------+
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 dilutive effect for the
year ended 31 December 2008, the calculation would have been based on a weighted
average number of shares of 99,733,870.
5 Cash and Cash Equivalents
Cash and cash equivalents includes amounts of GBP13,463,398 (2008:
GBP24,561,062) held as deposits on trading positions and on behalf of third
parties.
Within the above amounts held as deposits in trading positions,
there is a potential restriction in the use of GBP4,203,770 (2008:
GBP11,993,088) cash to the extent that contracts for the future physical
delivery of metals move to a liability position due to adverse market price
movements. Where the bank has an exposure in connection with that liability it
has the right to withhold repayment of these cash deposits. This relates to the
business of Ambrian Metals Limited.
Copies of the 2009 Report and Financial Statements 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
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