TIDMAMBR
RNS Number : 0779T
Ambrian Capital PLC
22 September 2010
AMBRIAN CAPITAL PLC
Ambrian Capital Reports First Half Results
LONDON, 22 September 2010 - Ambrian Capital plc ("Ambrian Capital"), the natural
resources investment bank, today announces its unaudited results for the first
half ended 30 June 2010.
Financial Highlights
· Total income was GBP7.90 million in the first half of 2010, versus GBP10.13
million for the same period last year.
· Pre-tax profits generated in the first half by the Commodities businesses
and Principal Investments were impacted by a GBP1.77 million first half loss in
Corporate Finance & Equities.
· Profit attributable to shareholders before tax and share-based payment
charges was GBP0.07 million in the first half, compared with GBP2.41 million for
the same period last year.
· Net loss per share was 0.10p for the first half, versus basic earnings per
share of 1.61p for the same period last year.
· Net asset value per share decreased 3.5% during the first half to 32.4p.
· Interim dividend unchanged at 0.75p per share.
Strategic Highlights
· Ambrian Capital is committed to delivering better returns to its
shareholders by focusing on its strength in natural resources and has :
- addressed the performance of its Corporate Finance & Equities business by
cutting costs by approximately 20% since 30 June 2010 and focusing the business
on its core resource sector skills
- increased the trade finance capacity of its physical metals activities to
over US$300 million from US$200 million (as at 31 December 2009) attracting
support from major international banks such as Rabobank and UBS
- entered the physical energy business with senior hires and the acquisition
of a physical supplier of biofuels
- established Ambrian Resources AG, a Swiss based private equity arranger
"Ambrian demonstrated in the first half of 2010 that its diversified revenue
model focused within the natural resource sector provided resilience despite
weak conditions in the equity markets", said Tom Gaffney, Chief Executive.
"Profits from our Commodities businesses and Principal Investments offset losses
in Corporate Finance & Equities. We will put our Corporate Finance & Equities
business back on track as a profitable, specialist financial adviser and broker
to the mid and small cap natural resources sector and we intend to build on our
core strength supplying commodities globally."
Enquiries
+----------------------------+--------------------+
| Ambrian Capital plc | |
+----------------------------+--------------------+
| Tom Gaffney, Chief | + 44 (0)20 7634 |
| Executive | 4700 |
+----------------------------+--------------------+
| | |
+----------------------------+--------------------+
| Macquarie Capital (Europe) | |
| Limited | |
+----------------------------+--------------------+
| Simon Law | + 44 (0)20 3037 |
| Nicholas Harland | 5237 |
| | + 44 (0)20 3037 |
| | 2369 |
+----------------------------+--------------------+
| | |
+----------------------------+--------------------+
| M: Communications | |
+----------------------------+--------------------+
| Charlotte Kirkham | + 44 (0)20 7920 |
| Ann-Marie Wilkinson | 2330 |
+----------------------------+--------------------+
Notes to Editors:
AMBRIAN CAPITAL PLC
Ambrian Capital plc (AIM: AMBR) is a specialist natural resources investment
bank active in Commodities, Corporate Finance & Equities and Principal
Investments.
Commodities
Ambrian Metals Limited is a 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.
Ambrian Commodities Limited is a trader and broker specialising in London Metals
Exchange cleared base metals futures and options. Ambrian Commodities is an
Associate Broker Member of the London Metal Exchange and is authorised and
regulated by the Financial Services Authority.
Ambrian Energy Limited is a newly established physical energy trading company
focused on the supply of crude oil and biofuels.
Corporate Finance & Equities
Ambrian Partners Limited is known in the market 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.
Principal Investments
Ambrian Principal Investments Limited is an investment company which holds
Ambrian'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
CHIEF EXECUTIVE'S STATEMENT
The success of Ambrian Capital's diversified revenue model focused within the
natural resources sector was demonstrated in the first half of 2010. The
Commodities businesses both remained profitable despite a fall in revenues
compared with the same period last year and benefited from continuing demand for
raw materials from China.
Ambrian Principal Investments Limited, the Group's principal investment
portfolio, showed an excellent result for the first half with growth of 37.0% in
net asset value.
The profits generated by the Commodities businesses and Principal Investments
were, however, offset by a loss incurred in Corporate Finance & Equities. The
performance and focus of this division have been addressed and we remain
committed to delivering better returns to shareholders.
In August 2010 we established Ambrian Energy Limited and announced the
acquisition of a physical supplier of biofuels headquartered in Hamburg and with
a representative office in Singapore.
Income and Profits
Total income was GBP7.90 million for the first half of 2010 compared with
GBP10.13 million for the first half of 2009.
Total income for the first half of 2010 includes a gain on the principal
investment portfolio of GBP1.11 million compared with a gain of GBP0.22 million
in the first half of 2009.
Profit attributable to shareholders before tax and share-based payment charges
was GBP0.07 million in the first half, compared with GBP2.41million for the same
period last year.
Share-based payment charges were GBP0.26 million in the first half of 2010 (H1
2009: GBP0.13 million).
After tax, share-based payment charges and minority interests, the loss
attributable to shareholders was GBP0.15 million in the first half, compared
with a profit attributable to shareholders of GBP1.95 million in the first half
of 2009.
Commodities
The Commodities businesses had revenue of GBP4.05 million in the first half of
2010 compared with GBP6.52 million for the same period last year.
Ambrian Metals Limited
China had net imports of 1.54 million tonnes of refined copper in the first half
of 2010, down 15% from a record 1.80 million tonnes of net imports in the first
half of 2009. The drop in China's demand for imported refined copper can be
attributed to the withdrawal of the post-2008 crisis stimulus and to a copper
price that during the first half of 2010 was up 74% at an average price of US
$7,130/tonne compared with an average price of US$4,098/tonne during the first
half of 2009. As a consequence, copper premiums CIF Shanghai dropped from
exceptional levels and averaged US$90/tonne in the first half of 2010 compared
with US$120/tonne in the first half of 2009.
In this environment, Ambrian Metals performed relatively well with total tonnage
of refined copper supplied in the first half of 2010 of 110,892 tonnes, down
approximately 6% from the 117,865 tonnes Ambrian Metals supplied in the first
half of 2009.
Chinese customers served by the Shanghai office accounted for approximately 64%
of Ambrian Metal's sales tonnages with Middle Eastern customers accounting for
approximately 23% and US and European customers accounting for the balance.
During the first half of 2010, Ambrian Metals primarily sourced refined copper
from producers located in Zambia, Democratic Republic of Congo, Russia,
Kazakhstan, Chile and South Africa.
The representative office in Shanghai has been upgraded to the status of a
"Wholly Foreign Owned Entity" and now has a staff of five. WFOE status will
enable Ambrian Metals to supply a broader range of Chinese customers.
Ambrian Metals continued to benefit from the strong support of its bankers and
now has
uncommitted trade finance facilities totalling over US$300 million compared with
US$200 million at 31 December 2009 and US$120 million at 31 December 2008.
Existing providers of trade finance have increased their limits and new banks
have begun doing business with Ambrian Metals, including Rabobank and UBS.
Ambrian Commodities Limited
In order to ensure an adequate return on capital, the decision was taken at the
beginning of 2010 to reduce Ambrian Commodities' net assets to GBP4.08 million
from GBP8.89 million at 31 December 2009. The result of this action was to
reduce the total margin credit granted to its clients to US$32.0 million from
US$54.0 million at 31 December 2009 with a consequent reduction in total trading
volumes.
Management of Ambrian Commodities took decisive action in the first half of 2010
to streamline the client base and re-allocate margin credit lines to a reduced
number of more active and higher profit margin clients.
Corporate Finance & Equities
Corporate Finance & Equities' revenue was GBP2.72 million for the first half of
2010 compared with GBP3.39 million for the same period last year. Operating
costs in the first half, however, increased to GBP4.49 million from GBP3.15
million in the first half of 2009.
Corporate Finance & Equities had a pre-tax loss of GBP1.77 million in the first
half of 2010 compared with a pre-tax profit of GBP0.24 million in the previous
year.
The loss was the result of a combination of (i) a decline in the fee and
commission income in the core natural resources franchise as many transactions
did not complete due to weak equity market conditions and (ii) an increase in
personnel and recruitment costs associated with efforts to diversify Ambrian
Partners from its reliance on the AIM natural resources sector.
The management of Ambrian Partners sought to diversify its industry sector
specialisation only on the basis that the costs associated with new staff would
be recovered by incremental revenue. In a weak equity market environment and an
over supplied broking market it was quickly recognised that the costs of
investing further capital in non-core sectors would result in continuing cash
outflows. The decision was taken, therefore, in July 2010 for Ambrian Partners
to primarily focus on its core strengths as a corporate finance adviser and
broker to the mining, oil & gas, and cleantech sectors - areas in which it has
an outstanding reputation built up over many years. Swift action was taken to
terminate non-core sector initiatives, reduce staff and cut costs by
approximately 20%.
The objective is to put Ambrian Partners' cost base at a level that will ensure
sustained profitability and leverage to the upside in a more favourable market
environment.
Ambrian Partners continues to be recognised as London's leading financial
adviser and broker to the mid and small cap metals & mining sector.
· Ambrian Partners was ranked 1st in the AIM Basic Metals Sector by number of
both Nomad and Corporate Broking clients in the Hemscott July 2010 Advisers
Rankings Guide.
· Ambrian Partners was ranked 2nd in the UK small cap metals & mining sector
in the 2010 Thomson Reuters Extel Survey.
Among the transactions announced during the first half of 2010 in which Ambrian
Partners was involved were the following :
- Tiger Resources Limited's US$18.2 million equity placing.
- Weatherly International plc's US$31.7 million divestiture of Namibia
Custom Smelters Pty Limited.
- Wildhorse Energy Limited's A$21.8 million equity placing.
Since the period end, Ambrian Partners has acted as Joint-Broker to Nautical
Petroleum plc in its GBP46.6 million placing of new and secondary shares.
Ambrian Partners has continued to upgrade its list of retained corporate clients
and has added eight new retained corporate clients since the start of the year
including Mwana Africa plc (mining), Chariot Oil & Gas Limited and TEG Group plc
(green technology). At 1 September 2010, Ambrian Partners had 33 retained
corporate clients compared with 32 at 31 December 2009.
The Market Making team had a profitable first half of the year despite volatile
market conditions with revenues of GBP0.33 million compared with GBP0.76 million
in the first half of 2009.
Principal Investments
At the beginning of 2010, the Group's investment portfolio was consolidated into
Ambrian Principal Investments Limited ("APIL") which is actively managed by
Ambrian Asset Management Limited, a wholly-owned FSA authorised investment
manager. APIL's investment objective is to produce superior investment returns
by investing in a portfolio of equities and derivatives in the metals and mining
and energy sectors.
In the first half of 2010, APIL generated income of GBP1.11 million compared
with GBP0.22 million of income generated by the Group's principal investments in
the first half of 2009.
APIL had a strong performance in the first half of 2010 with net asset value per
share growing by 37.0% versus increases over the same period in sterling terms
of 22.6% for gold, 6.1% for the AIM Basic Resources Index and 3.3% for oil.
The total value of APIL's investment portfolio at 30 June 2010 was GBP4.11
million compared with a principal investment portfolio valued at GBP2.53 million
at 31 December 2009. Of the growth in the value of the investment portfolio,
GBP1.11 million was attributable to capital growth and the balance of GBP0.47
million to an increase in capital allocated to APIL.
At 30 June 2010, APIL had 20 holdings and the three largest were Nyota Minerals
Limited (valued at GBP1.47 million), Fire River Gold Corp (valued at GBP0.42
million) and Emerging Metals Limited (GBP0.26 million).
The unlisted investments were valued at GBP350,000 at 30 June 2010, compared
with GBP160,000 at 31 December 2009.
Ambrian Resources AG was established in February 2010 in partnership with a team
of three former executives of Glencore International AG. Ambrian Resources AG,
based in Zug, Switzerland, is focused on arranging and managing strategic
investments in the metals and mining sector globally. Continued progress is
being made to identify suitable investment opportunities.
Expenses
Administrative expenses were GBP8.10 million in the first half of 2010 compared
with GBP7.85 million in the first half of 2009.
Remuneration expenses in the first half of 2010 were GBP4.86 million (H1 2009:
GBP5.29 million) which included (i) a year-end bonus provision of GBP0.75
million (H1 2009: GBP1.90 million) and (ii) share-based payment charges of
GBP0.26 million (H1 2009: GBP0.13 million). The ratio of total remuneration
expenses to total income was 61.5% for the first half of 2010 compared with
52.2% for the first half of 2009. Total headcount at 30 June 2010 was 78, up 5
during the first half of 2010.
Non-remuneration expenses were GBP3.24 million in the first half of 2010, (H1
2009: GBP2.56 million) 26.6% higher than in the first half of 2009. The
increase compared with the first half of 2009 was principally attributable to
Ambrian Partners and included one-off recruitment fees, increased settlement
charges, employment termination payments and a bad debt provision.
Statement of Financial Position
Total assets decreased to GBP271.61 million at 30 June 2010 from GBP281.55
million at 31 December 2009, primarily due to decreased volumes of physical
metals contracted for sale and for purchase by Ambrian Metals.
The Group's own cash resources, net of amounts due to clients totalled GBP18.43
million at 30 June 2010 compared with GBP23.77 million at 31 December 2009. The
decrease in the Group's own cash resources was attributable to the payment of
2009 employee bonuses of GBP3.33 million, the 2009 second interim dividend of
GBP0.75 million and cash losses relating to Ambrian Partners.
Shareholders' equity was GBP31.78 million at 30 June 2010 compared with GBP32.43
million at 31 December 2009.
Net asset value per share was 32.4p and tangible net asset value per share was
30.1p, both decreasing by 3.5% from 31 December 2009. Net asset value per share
and tangible net asset value per share are based on 98,094,424 ordinary shares
outstanding at 30 June 2010 (excluding Treasury shares and shares held by the
Ambrian Capital Employee Benefit Trust).
The aggregate regulatory capital requirements for the Group's regulated
subsidiaries was GBP3.38 million at 30 June 2010, which was substantially
exceeded by the aggregate regulatory resources of the regulated subsidiaries of
GBP17.47 million.
Dividend
The Board has declared a maintained interim dividend of 0.75p per share. The
dividend will be paid on 22 October 2010 to all shareholders on the register as
at 1 October 2010.
Outlook
Ambrian Capital is well positioned to become a major supplier of commodities and
raw materials to industrial customers throughout the world. We already have a
sizeable market position in refined copper and after our recent entry into
biofuels and crude oil, we plan to build a physical energy business to match our
metals business.
We remain cautious regarding the outlook for the second half of the year. The
Commodities businesses will benefit from continued buoyant demand for refined
copper from China, although revenues are typically weighted towards the early
part of the year. The Corporate Finance & Equities business should begin to see
the results of cost cutting measures and the benefits of a growing deal
pipeline.
AMBRIAN CAPITAL PLC
INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED
30 JUNE 2010
Condensed consolidated statement of comprehensive income
+-----------------+-------------+-------------+--------------+
| | 6 mths | 6 mths | Year |
| | to | to | to |
| | 30 | 30 | 31 |
| | June | June | December |
| | 2010 | 2009 | 2009 |
| | (unaudited) | (unaudited) | (audited) |
| | GBP | GBP | |
| | | | GBP |
+-----------------+-------------+-------------+--------------+
| Revenue | 6,794,205 | 9,909,860 | 17,512,917 |
+-----------------+-------------+-------------+--------------+
| Investment | 1,109,381 | 219,982 | 1,270,636 |
| portfolio | | | |
| gains and | | | |
| losses | | | |
+-----------------+-------------+-------------+--------------+
| Total | 7,903,586 | 10,129,842 | 18,783,553 |
| income | | | |
+-----------------+-------------+-------------+--------------+
| Administrative | (8,099,195) | (7,847,801) | (15,857,033) |
| expenses | | | |
+-----------------+-------------+-------------+--------------+
| (Loss)/profit | (195,609) | 2,282,041 | 2,926,520 |
| before tax | | | |
+-----------------+-------------+-------------+--------------+
| Taxation | 54,770 | (738,130) | (276,759) |
+-----------------+-------------+-------------+--------------+
| (Loss)/profit | (140,839) | 1,543,911 | 2,649,761 |
| after tax | | | |
+-----------------+-------------+-------------+--------------+
| Other | | | |
| comprehensive | | | |
| income | | | |
+-----------------+-------------+-------------+--------------+
| Exchange | | | |
| (loss)/profit | (58,035) | 404,013 | (117,807) |
| arising from | | | |
| translation | | | |
| of foreign | | | |
| operations | | | |
+-----------------+-------------+-------------+--------------+
| Total | (198,874) | 1,947,924 | 2,531,954 |
| comprehensive | | | |
| income | | | |
+-----------------+-------------+-------------+--------------+
| | | | |
+-----------------+-------------+-------------+--------------+
| (Loss)/profit | | | |
| for the | | | |
| period | | | |
| attributable | | | |
| to: | | | |
+-----------------+-------------+-------------+--------------+
| Owners | (95,115) | 1,543,911 | 2,649,761 |
| of the | | | |
| parent | | | |
+-----------------+-------------+-------------+--------------+
| Minority | (45,724) | - | - |
| interest | | | |
+-----------------+-------------+-------------+--------------+
| | (140,839) | 1,543,911 | 2,649,761 |
+-----------------+-------------+-------------+--------------+
| | | | |
+-----------------+-------------+-------------+--------------+
| Total | | | |
| comprehensive | | | |
| income | | | |
| attributable | | | |
| to: | | | |
+-----------------+-------------+-------------+--------------+
| Owners | (153,150) | 1,947,924 | 2,531,954 |
| of the | | | |
| parent | | | |
+-----------------+-------------+-------------+--------------+
| Minority | (45,724) | - | - |
| interest | | | |
+-----------------+-------------+-------------+--------------+
| | (198,874) | 1,947,924 | 2,531,954 |
+-----------------+-------------+-------------+--------------+
| | | | |
+-----------------+-------------+-------------+--------------+
| (Loss)/earnings | | | |
| per share: | | | |
+-----------------+-------------+-------------+--------------+
| Basic | (0.10)pence | 1.61 | 2.76 |
| | | pence | pence |
+-----------------+-------------+-------------+--------------+
| Diluted | (0.10)pence | 1.60 | 2.74 |
| | | pence | pence |
+-----------------+-------------+-------------+--------------+
Condensed consolidated statement of financial position
+--------------------------------+----------------+--------+------+------+--------+
| | 30 June | 30 June | 31 December |
| | 2010 | 2009 | 2009 |
| | (unaudited) | (unaudited) | (audited) |
| | GBP | GBP | GBP |
+--------------------------------+----------------+---------------+---------------+
| ASSETS | | | |
+--------------------------------+----------------+---------------+---------------+
| Non-current assets | | | |
+--------------------------------+----------------+---------------+---------------+
| Property, plant and equipment | 247,008 | 374,836 | 317,511 |
+--------------------------------+----------------+---------------+---------------+
| Intangible assets | 2,220,109 | 2,360,109 | 2,290,109 |
+--------------------------------+----------------+---------------+---------------+
| Deferred tax asset | 1,254,128 | 451,157 | 1,254,128 |
+--------------------------------+----------------+---------------+---------------+
| | 3,721,245 | 3,186,102 | 3,861,748 |
+--------------------------------+----------------+---------------+---------------+
| | | | |
+--------------------------------+----------------+---------------+---------------+
| Current assets | | | |
+--------------------------------+----------------+---------------+---------------+
| Financial assets at fair value | | | |
| through profit or loss | 18,250,086 | 2,471,651 | 4,698,734 |
+--------------------------------+----------------+---------------+---------------+
| Inventory | 89,600,563 | 20,353,398 | 58,551,732 |
+--------------------------------+----------------+---------------+---------------+
| Trade and other receivables | 128,827,248 | 74,819,557 | 175,898,683 |
+--------------------------------+----------------+---------------+---------------+
| Current tax recoverable | - | 1,107,496 | 1,107,775 |
+--------------------------------+----------------+---------------+---------------+
| Cash at bank and in hand | 31,212,096 | 40,530,176 | 37,432,137 |
+--------------------------------+----------------+---------------+---------------+
| | 267,889,993 | 139,282,278 | 277,689,061 |
+--------------------------------+----------------+---------------+---------------+
| Total assets | 271,611,238 | 142,468,380 | 281,550,809 |
+--------------------------------+----------------+---------------+---------------+
| | | | |
+--------------------------------+----------------+---------------+---------------+
| LIABILITIES | | | |
+--------------------------------+----------------+---------------+---------------+
| Current liabilities | | | | |
+--------------------------------+----------------+--------+-------------+--------+
| Financial liabilities at fair | - | (9,756,524) | (7,709,922) |
| value through profit or loss | | | |
+--------------------------------+----------------+---------------+---------------+
| Trade and other payables | (239,696,792) | (100,858,218) | (240,956,741) |
+--------------------------------+----------------+---------------+---------------+
| Current tax payable | (130,297) | (130,646) | (453,535) |
+--------------------------------+----------------+---------------+---------------+
| Total liabilities | (239,827,089) | (110,745,388) | (249,120,198) |
+--------------------------------+----------------+---------------+---------------+
| Total net assets | 31,784,149 | 31,722,992 | 32,430,611 |
+--------------------------------+----------------+---------------+---------------+
| | | | |
+--------------------------------+----------------+---------------+---------------+
| 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 | (1,128,716) | (1,098,728) | (1,093,889) |
+--------------------------------+----------------+---------------+---------------+
| Retained earnings | 11,537,700 | 12,605,907 | 12,357,624 |
+--------------------------------+----------------+---------------+---------------+
| Employee benefit trust | (5,342,707) | (5,862,735) | (5,342,707) |
+--------------------------------+----------------+---------------+---------------+
| Share-based payments reserve | 3,900,592 | 2,686,820 | 3,639,675 |
+--------------------------------+----------------+---------------+---------------+
| Exchange reserve | (674,887) | (95,032) | (616,852) |
+--------------------------------+----------------+---------------+---------------+
| Total equity attributable to | 31,778,742 | 31,722,992 | 32,430,611 |
| owners of the parent | | | |
+--------------------------------+----------------+---------------+---------------+
| Minority interest | 5,407 | - | - |
+--------------------------------+----------------+---------------+---------------+
| Total equity | 31,784,149 | 31,722,992 | 32,430,611 |
+--------------------------------+----------------+---------------+---------------+
| | | | | | |
+--------------------------------+----------------+--------+------+------+--------+
Condensed consolidated interim statement of changes in equity
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | Share | Share | | Share- | | | | | | |
| | capital | premium | | based | | | | | | |
| | | account | Merger | payments | Employee | | | | | |
| | | | reserve | reserve | benefit | Treasury | Retained | Exchange | Minority | Total |
| | | | | | trust | shares | earnings | reserve | interest | equity |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP | GBP |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Balance | 11,136,121 | 11,105,383 | 1,245,256 | 2,555,461 | (5,880,660) | (1,092,831) | 11,783,542 | (499,045) | | 30,353,227 |
| at 31 | | | | | | | | | - | |
| December | | | | | | | | | | |
| 2008 | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Total | - | - | - | - | - | - | 1,543,911 | 404,013 | | 1,947,924 |
| comprehensive | | | | | | | | | - | |
| income | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Share-based | - | - | - | 131,359 | 17,925 | - | - | - | | 149,284 |
| payment | | | | | | | | | - | |
| charge | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Purchase | - | - | - | - | - | (5,897) | - | - | - | (5,897) |
| of | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Dividends | - | - | - | - | - | - | (721,546) | - | - | (721,546) |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Balance | 11,136,121 | 11,105,383 | 1,245,256 | 2,686,820 | (5,862,735) | (1,098,728) | 12,605,907 | (95,032) | - | 31,722,992 |
| at 30 | | | | | | | | | | |
| June | | | | | | | | | | |
| 2009 | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Balance | 11,136,121 | 11,105,383 | 1,245,256 | 2,555,461 | (5,880,660) | (1,092,831) | 11,783,542 | (499,045) | | 30,353,227 |
| at 31 | | | | | | | | | - | |
| December | | | | | | | | | | |
| 2008 | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Total | - | - | - | - | - | - | 2,649,761 | (117,807) | | 2,531,954 |
| comprehensive | | | | | | | | | - | |
| income | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Share-based | - | - | - | 1,084,214 | - | - | - | - | | 1,084,214 |
| payment | | | | | | | | | - | |
| charge | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Purchase | - | - | - | - | (232,960) | (1,058) | - | - | - | (234,018) |
| of | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Sale | - | - | - | - | 770,913 | - | (632,348) | - | - | 138,565 |
| of | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Dividends | - | - | - | - | - | - | (1,443,331) | - | - | (1,443,331) |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Balance | 11,136,121 | 11,105,383 | 1,245,256 | 3,639,675 | (5,342,707) | (1,093,889) | 12,357,624 | (616,852) | | 32,430,611 |
| at 31 | | | | | | | | | - | |
| December | | | | | | | | | | |
| 2009 | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Balance | 11,136,121 | 11,105,383 | 1,245,256 | 3,639,675 | (5,342,707) | (1,093,889) | 12,357,624 | (616,852) | | 32,430,611 |
| at 31 | | | | | | | | | - | |
| December | | | | | | | | | | |
| 2009 | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Total | - | - | - | - | - | - | (95,115) | (58,035) | | (198,874) |
| comprehensive | | | | | | | | | (45,724) | |
| income | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Minority | - | - | - | - | - | - | - | - | | 51,131 |
| interest | | | | | | | | | 51,131 | |
| on | | | | | | | | | | |
| incorporation | | | | | | | | | | |
| of subsidiary | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Share-based | - | - | - | 260,917 | - | - | - | - | | 260,917 |
| payment | | | | | | | | | - | |
| charge | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Purchase | - | - | - | - | - | (34,827) | - | - | - | (34,827) |
| of | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Dividends | - | - | - | - | - | - | (724,809) | - | - | (724,809) |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
| Balance | 11,136,121 | 11,105,383 | 1,245,256 | 3,900,592 | (5,342,707) | (1,128,716) | 11,537,700 | (674,887) | | 31,784,149 |
| at 30 | | | | | | | | | 5,407 | |
| June | | | | | | | | | | |
| 2010 | | | | | | | | | | |
+---------------+------------+------------+-----------+-----------+-------------+-------------+-------------+-----------+----------+-------------+
Condensed consolidated cash flow statement
+---------------------+---------------+--------------+---------------+
| | 6 | 6 | Year |
| | months | months | to 31 |
| | to 30 | to 30 | December |
| | June | June | 2009 |
| | 2010 | 2009 | (audited) |
| | (unaudited) | (unaudited) | GBP |
| | GBP | GBP | |
+---------------------+---------------+--------------+---------------+
| | | | |
+---------------------+---------------+--------------+---------------+
| (Loss)/profit | (140,839) | 1,543,911 | 2,649,761 |
| for the year | | | |
+---------------------+---------------+--------------+---------------+
| Adjustments | | | |
| for: | | | |
+---------------------+---------------+--------------+---------------+
| Depreciation | 105,748 | 92,252 | 192,574 |
| of property, | | | |
| plant and | | | |
| equipment | | | |
+---------------------+---------------+--------------+---------------+
| Amortisation | 70,000 | 70,000 | 140,000 |
| of | | | |
| intangible | | | |
| assets | | | |
+---------------------+---------------+--------------+---------------+
| Foreign | - | - | (84,552) |
| exchange | | | |
| losses | | | |
+---------------------+---------------+--------------+---------------+
| Taxation | (54,770) | 738,130 | 276,759 |
| (credit)/expense | | | |
+---------------------+---------------+--------------+---------------+
| Unrealised | (10,467,764) | - | (550,268) |
| gains on | | | |
| financial | | | |
| assets | | | |
| designated | | | |
| at fair | | | |
| value | | | |
+---------------------+---------------+--------------+---------------+
| Realised | | | |
| losses/(gains) | 263,567 | 164,484 | (1,244,789) |
| on financial | | | |
| assets | | | |
| designated at | | | |
| fair value | | | |
+---------------------+---------------+--------------+---------------+
| Net | | | |
| cost | (3,347,155) | - | (267,542) |
| on | | | |
| acquisition | | | |
| of | | | |
| financial | | | |
| assets | | | |
| designated | | | |
| at fair | | | |
| value | | | |
+---------------------+---------------+--------------+---------------+
| Increase | (31,048,831) | (11,344,639) | (49,542,973) |
| in | | | |
| inventories | | | |
+---------------------+---------------+--------------+---------------+
| Decrease/(increase) | 47,071,435 | (43,085,261) | (145,320,594) |
| in trade and other | | | |
| receivables | | | |
+---------------------+---------------+--------------+---------------+
| Unrealised | (7,709,922) | - | (12,271,169) |
| gains on | | | |
| financial | | | |
| liabilities | | | |
| at fair | | | |
| value | | | |
+---------------------+---------------+--------------+---------------+
| (Decrease)/increase | (1,259,947) | 45,844,227 | 197,323,525 |
| in trade and other | | | |
| payables | | | |
+---------------------+---------------+--------------+---------------+
| Share-based | 260,917 | 131,359 | 1,084,214 |
| payment | | | |
| charge | | | |
+---------------------+---------------+--------------+---------------+
| Cash | (6,257,561) | (5,845,537) | (7,615,054) |
| used | | | |
| in | | | |
| operations | | | |
+---------------------+---------------+--------------+---------------+
| Taxation | 839,307 | (327,103) | (346,094) |
| recovered/(paid) | | | |
+---------------------+---------------+--------------+---------------+
| Net | (5,418,254) | (6,172,640) | (7,961,148) |
| cash | | | |
| flow | | | |
| used | | | |
| in | | | |
| operating | | | |
| activities | | | |
+---------------------+---------------+--------------+---------------+
| Investing | | | |
| activities | | | |
+---------------------+---------------+--------------+---------------+
| Cash | | | |
| introduced | 51,131 | - | - |
| by | | | |
| minority | | | |
| interest | | | |
| on | | | |
| incorporation | | | |
| of subsidiary | | | |
+---------------------+---------------+--------------+---------------+
| Purchase | (35,245) | (114,771) | (157,768) |
| of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+---------------------+---------------+--------------+---------------+
| Net | 15,886 | (114,771) | (157,768) |
| cash | | | |
| from/(used | | | |
| in) | | | |
| investing | | | |
| activities | | | |
+---------------------+---------------+--------------+---------------+
| Financing | | | |
| activities | | | |
+---------------------+---------------+--------------+---------------+
| Purchase | - | - | (232,960) |
| of | | | |
| shares | | | |
| by | | | |
| employee | | | |
| benefit | | | |
| trust | | | |
+---------------------+---------------+--------------+---------------+
| Sale | - | 17,925 | 138,565 |
| of | | | |
| shares | | | |
| by | | | |
| employee | | | |
| benefit | | | |
| trust | | | |
+---------------------+---------------+--------------+---------------+
| Purchase | (34,827) | (5,897) | (1,058) |
| of | | | |
| treasury | | | |
| shares | | | |
+---------------------+---------------+--------------+---------------+
| Dividend | (724,809) | (721,546) | (1,443,331) |
| paid to | | | |
| owners | | | |
| of the | | | |
| parent | | | |
+---------------------+---------------+--------------+---------------+
| Net | (759,636) | (709,518) | (1,538,784) |
| cash | | | |
| used | | | |
| in | | | |
| financing | | | |
| activities | | | |
+---------------------+---------------+--------------+---------------+
| Net | (6,162,004) | (6,996,929) | (9,657,700) |
| decrease | | | |
| in cash | | | |
| and cash | | | |
| equivalents | | | |
+---------------------+---------------+--------------+---------------+
| Cash | 37,432,137 | 47,123,092 | 47,123,092 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at the | | | |
| beginning | | | |
| of the year | | | |
+---------------------+---------------+--------------+---------------+
| Foreign | (58,037) | 404,013 | (33,255) |
| exchange | | | |
| (losses)/gains | | | |
+---------------------+---------------+--------------+---------------+
| Cash | 31,212,096 | 40,530,176 | 37,432,137 |
| and | | | |
| cash | | | |
| equivalents | | | |
| at the end | | | |
| of the year | | | |
+---------------------+---------------+--------------+---------------+
Notes to the condensed consolidated interim financial statements
1. Basis of preparation
The condensed consolidated interim financial statements have been prepared in
accordance with the accounting policies previously adopted for the year ended 31
December 2009 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
2009.
The interim financial statements are for the six months ended 30 June 2010.
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 2009.
The interim financial statements have been prepared under the historical cost
convention, except for revaluation of certain financial assets.
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 2009, 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 21 September
2010 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 four main reportable segments :
· Commodities : Futures & options - comprises Ambrian Commodities Limited, a
broker-dealer of metals futures and options.
· Commodities : Physical metals - comprises Ambrian Metals Limited, a
physical metals merchant.
· Corporate Finance & Equities - comprises Ambrian Partners Limited which
provides corporate finance advice, equity research, sales & trading and market
making services.
· Central & investment portfolio - comprises the Group's principal investment
portfolio, plus the assets and liabilities of the parent holding company, which
includes a general provision for the yearend profit-related bonuses across the
Group.
Revenue/Income
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| 6 months to 30 June 2010 - unaudited | Corporate finance & equities | Commodities: Futures & options | Commodities: Physical metals | Central & investment portfolio | Total |
| | | | | | |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| Total income | GBP2,715,490 | GBP1,155,862 | GBP2,892,853 | GBP1,139,381 | GBP7,903,586 |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| | | | | | |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| 6 months to 30 June 2009 - unaudited | Corporate finance & equities | Commodities: Futures & options | Commodities: Physical metals | Central & investment portfolio | Total |
| | | | | | |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| Total income | GBP3,392,233 | GBP1,633,397 | GBP4,884,230 | GBP219,982 | GBP10,129,842 |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| | | | | | |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| Year to 31 December 2009 - audited | Corporate finance & equities | Commodities: Futures & options | Commodities: Physical metals | Central & investment portfolio | Total |
| | | | | | |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
| Total income | GBP8,954,164 | GBP2,692,991 | GBP5,865,762 | GBP1,270,636 | GBP18,783,553 |
+--------------------------------------+-------------------------------+---------------------------------+------------------------------+---------------------------------+---------------+
Total income includes investment and other income. The investment portfolio
includes realised and unrealised gains on financial assets.
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| Net | | | | | | |
| assets | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| 6 months | Corporate finance & equities | Commodities: Futures & options | Commodities: Physical metals | Central & investment portfolio | Unallocated taxation | Total |
| to 30 | | | | | | |
| June | | | | | | |
| 2010 - | | | | | | |
| unaudited | | | | | | |
| | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| Net | GBP5,950,785 | GBP4,076,740 | GBP12,345,473 | GBP8,287,321 | GBP1,123,830 | GBP31,784,149 |
| assets | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| 6 months | Corporate finance & equities | Commodities: Futures & options | Commodities: Physical metals | Central & investment portfolio | Unallocated taxation | Total |
| to 30 | | | | | | |
| June | | | | | | |
| 2009 - | | | | | | |
| unaudited | | | | | | |
| | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| Net | GBP7,142,755 | GBP7,932,915 | GBP13,033,749 | GBP2,185,566 | GBP1,428,007 | GBP31,722,992 |
| assets | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| Year to | Corporate finance & equities | Commodities: Futures & options | Commodities: Physical metals | Central & investment portfolio | Unallocated taxation | Total |
| 31 | | | | | | |
| December | | | | | | |
| 2009 - | | | | | | |
| audited | | | | | | |
| | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
| Net | GBP7,416,217 | GBP8,891,809 | GBP10,213,517 | GBP5,254,828 | GBP654,240 | GBP32,430,611 |
| assets | | | | | | |
+-----------+-------------------------------+---------------------------------+------------------------------+--------------------------------+----------------------+---------------+
3. Cash at bank and in hand
Own cash resources included in cash at bank and in hand amounted to
GBP18,431,300 as at 30 June 2010 (30 June 2009: GBP23,770,660 and 31 December
2009: GBP23,968,739).
4. 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 2010 of 8,766,726 (2009: 10,741,121) and Treasury shares 30
June 2010 of 4,500,058 (2009: 4,382,058).
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 used in
the calculations are set out below.
+-----------+-----------+------------+--------+
| 6 | Loss | Weighted | Per |
| months | | average | share |
| to 30 | | number | amount |
| June | GBP | of | |
| 2010 - | | shares | Pence |
| unaudited | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| Basic | (95,115) | 97,732,446 | (0.10) |
| loss | | | |
| per | | | |
| share | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| Diluted | (95,115) | 98,024,720 | (0.10) |
| loss | | | |
| per | | | |
| share | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| 6 | Earnings | Weighted | Per |
| months | | average | share |
| to 30 | | number | amount |
| June | GBP | of | |
| 2009 - | | shares | Pence |
| unaudited | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| Basic | 1,543,911 | 96,188,563 | 1.61 |
| earnings | | | |
| per | | | |
| share | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| Diluted | 1,543,911 | 96,694,340 | 1.60 |
| earnings | | | |
| per | | | |
| share | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| | Earnings | Weighted | Per |
| Year | | average | share |
| to 31 | | number | amount |
| December | GBP | of | |
| 2009 - | | shares | Pence |
| audited | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| Basic | 2,649,761 | 96,169,277 | 2.76 |
| earnings | | | |
| per | | | |
| share | | | |
+-----------+-----------+------------+--------+
| | | | |
+-----------+-----------+------------+--------+
| Diluted | 2,649,761 | 96,721,262 | 2.74 |
| earnings | | | |
| per | | | |
| share | | | |
+-----------+-----------+------------+--------+
5. 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 Ambrian Capital 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
END
IR KMGZLNMFGGZM
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