TIDMAMBR
RNS Number : 6241E
Ambrian Capital PLC
11 April 2011
11 April 2011
AMBRIAN CAPITAL PLC
Final Results
for the year ended 31 December 2010
Ambrian Capital plc ("Ambrian" or "the Company"), the natural
resources investment bank, today announced its final results for
the year ended 31 December 2010.
Financial Highlights
-- Total income of GBP22.65 million (2009: GBP18.78 million)
-- Profit before tax of GBP2.90 million (2009: GBP2.93
million)
-- Net asset value per share of 33.3p as at 31 December 2010
(2009: 33.3p)
-- Basic earnings per share of 1.99p (2009: 2.76p)
-- Final dividend of 0.75p per share recommended taking the full
year dividend to 1.50p (2009:1.50p)
Operating Highlights
-- Ranked 1(st) by number of retained corporate clients in the
AIM Basic Materials Sector for the 11(th) consecutive quarter
(Hemscott First Quarter 2011)
-- Raised more than GBP450 million for corporate clients during
the year
-- Ambrian handled 242,449 tonnes of refined copper in 2010
compared to 213,882 tonnes in 2009
-- Strengthened commodities business with entry into physical
energy with senior hires and acquisition of biofuels business
Commenting on the results, Lawrence Banks, Chairman of Ambrian,
said:
"A strong performance in the second half, driven by our equities
business and a significant increase in profits from our
investments, improved Ambrian's performance for the full year. Our
recent expansion into biofuels and oil trading are good examples of
how Ambrian's integrated and complementary client-focused equities
and physical metals trading businesses in the natural resources
sector offer excellent opportunities to develop and grow the
business.
In February 2011, Tom Gaffney resigned as Chief Executive to
fulfill family commitments. I would like to thank Tom for his
significant contribution to the Company and we wish him every
success for the future. We are fortunate to have secured Robert
Ashley, who had a distinguished career at NM Rothschild and has a
wealth of natural resources expertise, as Chief Executive. We are
committed to developing the Ambrian platform so the business can
achieve its full potential."
Enquiries
Ambrian Capital plc
Lawrence Banks, Chairman
Rob Ashley, Chief Executive + 44 (0)20 7634 4700
Macquarie Capital (Europe)
Limited
Simon Law + 44 (0)20 3037 5237
Nicholas Harland + 44 (0)20 3037 2369
M: Communications
Charlotte Kirkham + 44 (0)20 7920 2331
Ann-Marie Wilkinson + 44 (0)20 7920 2343
Notes to Editors:
AMBRIAN CAPITAL PLC
Ambrian Capital plc (AIM: AMBR) is a natural resources
investment bank active in Commodities, Corporate Finance &
Equities and Principal Investments.
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.
Commodities
Ambrian Metals Limited is an independent physical metals
supplier with a particular strength in refined copper. Through
Ambrian Metals' offices in London and Shanghai and agents in New
York, Santiago, Sao Paulo, Seoul and Tokyo, it sources non-ferrous
metals from producers for distribution to an international client
base of metals consumers and merchants.
Ambrian Energy Limited is a physical energy trading company
focused on the supply of biofuels, crude oil and fuel oil. Ambrian
Energy deploys agents in Turkey, Azerbaijan, the Middle East, South
Africa, USA, Korea and Australia/New Zealand. Ambrian Energy is the
founder and manager of Strategic Energy Assurance Limited, a
company focused on the needs of governments' strategic petroleum
reserves.
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 is available on the Company's
website: www.ambrian.com
CHAIRMAN'S REPORT
Ambrian made further progress in 2010 in developing its
integrated and complementary business model providing value-added
services to the natural resources sector.
Ambrian has built enviable market positions in the London
natural resources capital markets. We raise capital for companies
exploring and developing natural resources, we market their
production and we make principal investments in their businesses.
Good progress has been made to strengthen our position in commodity
markets, notably expanding into biofuels and oil trading.
Despite difficult markets, we have maintained a strong financial
position. Swift action was taken to refocus the equities business
on our core sector of natural resources where we have compelling
and sustainable competitive advantage. This led to a very sharp
turnaround in the financial performance of Ambrian Partners in the
second half of 2010.
In February 2011, Tom Gaffney resigned as Chief Executive to
fulfill family commitments. Tom was instrumental in Ambrian's
development, and the Board and I thank him for his contribution to
the business and wish him well for the future.
We are fortunate to have secured Robert Ashley as Chief
Executive. Rob had a distinguished career at NM Rothschild and has
a wealth of experience in the natural resources sector. He brings
an experienced leadership to grow our business and develop the
Ambrian platform so the business can achieve its full
potential.
We are also delighted to welcome Julian McIntyre to the Board;
Julian has a financial markets background, is a successful
entrepreneur and is a principal of MWB Capital which is a
significant shareholder in Ambrian.
I also take this opportunity to extend our thanks to the staff
for their support and considerable efforts throughout the year.
Financial Review
Total income was GBP22.65 million in 2010 up 20.6% from GBP18.78
million in 2009.
Profit before tax was GBP2.90 million in 2010 compared to
GBP2.93 million in 2009.
Basic earnings per share were 1.99p in 2010 compared to 2.76p in
2009.
The Corporate Finance & Equities division reported revenue
of GBP9.78 million in 2010 compared to GBP8.95 million in 2009. The
division experienced a very strong second half 2010 performance
with revenue of GBP7.06 million, up 260% from GBP2.72 million in
the first half of 2010.
Our Investment portfolio, principally held through Ambrian
Principal Investments Limited ("APIL") showed excellent performance
with gains of GBP4.09 million in 2010, an increase of 222% on the
GBP1.27 million gains generated by the Group's principal
investments in 2009.
The commodities physical metals division saw tonnage volume of
refined copper rise 13.4% to 242,449 tonnes in 2010 compared to
213,882 tonnes in 2009. The increased volumes were offset by lower
premiums that left profitability steady at GBP2.57 million (2009:
GBP2.69 million).
The commodities energy business had an impressive start,
reporting revenues of GBP1.34 million for its short first trading
period to the end of 2010.
The commodities futures and options business reported a higher
gross profit of GBP0.36 million in 2010 compared to GBP0.22 million
in 2009.
Administrative expenses were GBP19.75 million in 2010 compared
to GBP15.86 million in 2009. This increase included circa GBP1m of
costs incurred during 2010 by Ambrian Partners associated with the
non-natural resources stockbroking activities which we abandoned;
in addition, there were incremental costs associated with growth
initiatives including the physical energy business.
Remuneration expenses, before share-based payment charges, were
GBP10.73 million in 2010 (2009: GBP9.85 million) of which (i)
GBP8.18 million was represented by salaries, employers' national
insurance and benefits (2009: GBP6.53 million) and (ii) GBP2.52
million represented a provision for year-end profit-related bonuses
(2009: GBP3.33 million). The ratio of total remuneration expenses
(excluding share-based payment charges) to total income was 49.7%
for 2010 (2009: 52.5%). Share-based payment charges in 2010 were
GBP0.52 million compared to GBP1.08 million in 2009.
Total headcount as at 31 December 2010 stood at 78, an increase
of 5 (principally in Commodities) in 2010. Of the headcount, 45 are
in the Corporate Finance and Equities business and 33 in
Commodities activities.
Statement of Financial Position
Shareholders' Equity
Shareholders' equity was GBP32.82 million at 31 December 2010
compared to GBP32.43 million at 31 December 2009.
Net asset value per share was 33.3p and tangible net asset value
per share was 31.1p decreasing by 0.68% and 0.30% respectively from
31 December 2009. Net asset value per share and tangible net asset
value per share are based on 98,542,909 ordinary shares, being the
weighted average number of ordinary shares outstanding in 2010
(excluding Treasury shares and shares held by the Ambrian Capital
Employee Benefit Trust).
The aggregate regulatory capital requirement for the Group's
regulated subsidiaries was GBP4.10 million at 31 December 2010
(2009: GBP4.05 million). Aggregate regulatory resources of the
regulated subsidiaries were GBP17.60 million (2009: GBP16.14
million).
Liquidity
Cash and cash equivalents were GBP31.12 million at 31 December
2010 compared to GBP37.43 million at 31 December 2009.
The Group's own cash resources, net of amounts due to clients
totalled GBP18.97 million at 31 December 2010 compared to GBP23.77
million at 31 December 2009. This change results principally from
the working capital contribution to our physical energy business
and the increase in the investment portfolio managed by Ambrian
Asset Management Limited ("AAM").
At 31 December 2010, the Group had access to uncommitted trade
finance facilities exceeding $320 million (31 December 2009 : $200
million) which provide short term finance capacity to support the
growth of the physical commodities businesses. Ambrian Metals
benefits from the strong support of its bankers, with existing
providers of these short term borrowings increasing their limits
and a number of new banks providing credit lines during the year.
The principal providers of trade finance are BNP Paribas, Standard
Chartered Bank, Standard Bank, ING, Rabobank, Credit Suisse, BCV
and UBS.
Working Capital
The growth of Ambrian's physical commodities business, with
increased tonnage volumes and higher commodity prices resulted in
larger working capital requirements. Some of our inventory is
financed by the use of short term borrowings which are refinanced
by sale and repurchase agreements (repos). Both the asset and
liability relating to these repos are recognised in our balance
sheet. These factors and the commencement of trading in our
physical energy business, explain the substantial expansion in our
balance sheet.
Inventory levels increased to GBP225.27 million at 31 December
2010 compared to GBP58.55 million at 31 December 2009. 67% of
inventory comprised pre-sold material in transit with the metal
price risk on the inventory fully hedged reflecting prevailing
competitive market conditions, the Group's inventory days unsold
increased to 24 days in 2010 compared to 15 days in 2009.
Trade receivables increased to GBP87.22 million as at 31
December 2010, compared to GBP38.75 million as at 31 December
2009.
Prepayments and accrued income rose to GBP194.56 million as at
31 December 2010 from GBP134.48 million as at 31 December 2009.
Prepayments and accrued income mainly consisted of sales of
physical commodities that will be realised in 2011.
Trade and other payables mainly consist of accruals and deferred
income in respect of purchases of physical commodities that have
been contracted but not paid for (2010: GBP204.47 million, 2009:
GBP132.00 million) and trade payables (2010: GBP31.11 million, 2009
GBP21.46 million). Excluding the fair value losses/gains, the trade
and other payables and accrued liabilities days were 24 days in
2010 compared to 20 days in 2009.
Short term borrowings, providing trade finance facilities to the
Commodities businesses, amounted to GBP177.85 million (2009:
GBP85.59 million). In addition, there was GBP82.36 million
outstanding as at 31 December 2010 under repos.
Business Review
Corporate Finance & Equities
Our equities business is committed to providing client-focused
financial advisory services to companies operating in the mining,
oil & gas and cleantech sectors.
Corporate Finance
Ambrian is the recognised leader in the AIM Basic Metals Sector.
For the 11(th) consecutive quarter, we were ranked first by number
of retained corporate clients in the Hemscott First Quarter 2011
AIM Advisers Rankings Guide.
Ambrian is focused on providing corporate finance advisory
services to a select group of retained Nomad and/or Corporate
Broking clients, with quality assets and management teams, and
growth potential. Retained corporate broking clients include the
best performing mining share on AIM in 2010 (Condor Resources plc)
and two of the top three best performing AIM oil & gas shares
in 2010 (Chariot Oil & Gas Limited and Nautical Petroleum
Limited).
At 31 December 2010, Ambrian Partners had 33 retained corporate
clients compared to 32 at 31 December 2009. Ambrian's retained
quoted clients had an average market capitalisation of GBP178.6
million at 31 December 2010 compared to the average market
capitalisation of an AIM-listed company at that date of GBP66.3
million.
Capital Markets
In 2010, Ambrian strengthened its reputation for bringing
attractive companies to the London market. In 2010, Ambrian was
involved in 20 transactions including 16 where new capital in
excess of GBP450 million was raised, including the following:-
-- Kalahari Minerals plc's GBP41.8 million equity offering
-- Nautical Petroleum plc's GBP30.4 million equity offering
-- Oilex Limited's GBP6 million equity offering
-- Tiger Resources Limited's A$21.9 million equity offering
-- Archipelago Resources plc's two equity offerings raising a
total of GBP58 million
-- Aurelian Oil & Gas plc's GBP98.0 million secondary
offering
Equities
During early 2010, efforts were made to diversify the equities
business; however, in an over-supplied stockbroking environment it
was quickly recognised that the costs of investing further capital
in non-core sectors would result in continuing cash outflows. The
decision was swiftly taken, therefore, in July 2010 for Ambrian to
focus on its core strengths in natural resources.
Our sectoral strength was again affirmed with the equities team
ranked second overall in the UK small-cap metals and mining sector
in the 2010 Thomson Reuters Extel Survey.
The business also benefitted from the continued strength in the
shares of companies exposed to commodities prices. The FTSE AIM
Basic Resource Index rose by 90.1% in 2010 compared to growth of
42.7% in the broader AIM market.
Ambrian made further progress during the year in improving
research-driven brokerage revenue. In 2010, revenue from brokerage
commissions and commission sharing arrangements (CSAs) increased by
53.7%.
Ambrian makes markets in the shares of 47 companies which
contributes to the provision of liquidity in our "house stocks".
Equity market making was profitable in 2010 and generated revenue
of GBP1.24 million compared to GBP1.49 million in 2009.
Commodities
Ambrian's commodities businesses are focused on the sourcing and
supply of metals globally (Ambrian Metals Limited) and trading
physical energy products (Ambrian Energy GmbH). Both companies have
well-developed franchises in their respective products. Ambrian
Energy has also established a base and positioned itself for early
growth in fossil fuel products.
Ambrian Metals
Ambrian has become a recognised independent refined copper
trader with a particular focus on LME grade copper cathode and
copper wire-rod.
In 2010, Ambrian handled 242,449 tonnes of refined copper
compared to 213,882 tonnes in 2009.
With offices in London and Shanghai, and a network of agents in
New York, Santiago, Sao Paulo, Seoul and Tokyo, Ambrian's direct
presence in local markets enables us to provide a value-added
service in the flow of metals by integrating sourcing and sales of
copper on a global basis. We source copper from mines, refiners and
wire-rod manufacturers located in Brazil, Chile, India, Japan,
Kazakhstan, Russia and Zambia, offering them cost-effective
marketing, logistical and financing services and spot and long-term
sales.
For copper consumers, Ambrian provides a reliable and flexible
source of metal. Our independence from metals producers ensures
that we are objective in matching customer needs in terms of
quantity, specifications, financial terms and delivery schedule.
Approximately 24% of Ambrian's tonnage volume in 2010 was sold to
customers in the Middle East and 64% was sold to Chinese customers,
with the balance taken up by customers in Europe and North
America.
Ambrian generates its revenue at the margin taking into account
the location and quality of the product shipped. Hedges are put in
place to minimise exposure to underlying benchmark metals price
fluctuations.
Copper premiums were highly volatile during 2010 reflecting
varying supply and demand equations for physical supplies
throughout the world. Copper premiums on CIF (Cost, Insurance and
Freight) to Shanghai rose to a high of $120/tonne in March 2010
when the copper price averaged $7,460/tonne and ended the year at
$40/tonne with a year end 2010 copper price of $9,600/tonne.
In the Middle East, demand for copper at the start of 2010 was
muted as surplus inventory remaining from the second half of 2009
was consumed. Demand for copper has since recovered with copper
premiums ranging between $80 and $100/tonne at the end of 2010
depending on quality.
The spot market for copper in North America remained subdued
throughout 2010 as consumers made their purchases under their
long-term contracts or swapped copper cathode for high grade scrap
being put on to the spot market due to the high copper price.
In a competitive environment, Ambrian was able to increase its
tonnage volume by 12.7% in 2010 but experienced downwards pressure
on gross profit margin per tonne compared to the exceptionally high
gross profit per tonne achieved in 2009. In 2010, the gross profit
per tonne averaged $33.7/tonne compared to an average of
$44.1/tonne for 2009.
Ambrian Energy
During the second half of 2010, Ambrian entered the physical
energy products market with the acquisition of the physical
biofuels business of the Masefield Group, which operates as Ambrian
Energy GmbH. Its head office is in Hamburg and it has a
representative office in Singapore.
Ambrian attaches great importance to ecological concerns and
sustainability requirements. We are a member of the Roundtable on
Sustainable Palm Oil ("RSPO"), an organisation that promotes the
growth and use of sustainable palm oil. All PME sold into the EU
must meet ISCC certification of sustainability as from the start of
2011. Ambrian Energy has been granted a certificate of compliance
with ISCC (International Sustainability & Carbon
Certification).
The growth in demand for biofuels in Europe is driven by the EU
Renewable Energy Directive (RED) 2009/28/EC which set a 10% target
for energy from renewable sources for road transport by 2020. In
2010, it was estimated that 5.1% of energy used for road transport
was from renewable sources.
Ambrian Energy supplies a European client base with bio-diesel
and other renewable fuels. Price risk is substantially hedged
through the use of futures and swap contracts. The major focus of
the business is on Palm Methyl Ester ("PME") and we also trade
Rapeseed Methyl Ester ("RME"), Soybean Methyl Ester ("SME") and
blends of all three. The business leases 10,000 tonnes of
bio-diesel storage capacity in Ghent, Belgium which enables us to
blend bio-diesel feedstock to meet customer specifications.
From start-up of the business, Ambrian Energy has supplied,
through spot transactions, a number of major European customers
with a range of bio-diesel products. We have also contracted with a
number of major South East Asian producers of PME.
The goal for Ambrian Energy is to become one of the top five PME
suppliers to the European bio-diesel market.
The skills and delivery infrastructure of Ambrian Energy have
also been applied to establish a platform for developing a physical
crude oil and refined products business. We have recruited a small
team of traders and have put in place a network of agents in
Turkey, Austria, USA, South Africa, Korea and New Zealand. We have
already secured an exclusive off-take contract for crude oil and
refined products from a major oil producing nation which we
anticipate to commence shipments during 2011. We are looking at
several avenues to develop this business.
Ambrian Commodities
Towards the end of the year we decided to withdraw from the LME
futures & options brokerage business to focus on trading
physical metals and physical energy products which we believe offer
greater growth potential and higher returns on capital. On 7 April
2011, we announced the disposal (conditional, inter alia, upon the
approval of the Financial Services Authority) of our investment in
Ambrian Commodities Limited for a net consideration equivalent to
its book cost.
Asset Management
The total value of the Group's investment portfolio at 31
December 2010 was GBP5.93 million, compared to GBP2.53 million at
31 December 2009. The investment portfolio includes the Group's
principal investment in Consolidated General Minerals Limited which
was acquired in late 2010.
At the beginning of 2010, substantially all of the Group's
investment portfolio was consolidated into Ambrian Principal
Investments Limited ("APIL") which is actively managed by Ambrian
Asset Management Limited ("AAM"), a wholly-owned FSA authorised
investment manager. APIL's investment objective is to apply our
familiarity and expertise in the natural resources sector to
produce superior investment returns by investing in a portfolio of
equities and derivatives in mining and energy companies.
APIL commenced with an investment portfolio of GBP2.53 millon in
January 2010, to which was added a cash contribution of GBP0.47
million. The portfolio returned a gross profit of GBP3.35 million
out of which fund overheads and performance fees (payable to AAM)
amounted to GBP0.7 million, producing a net result of GBP2.65
million. This represents a net asset per share performance of 88.4%
compared to its benchmark of 49.3%. The benchmark comprises 33.3%
gold price (in sterling), 33.3% oil price (in sterling) and 33.3%
AIM Basic Resources Index.
At 31 December 2010, APIL had 24 holdings, the three largest
being Tiger Resources Limited (valued at GBP0.54 million), Fire
River Gold (valued at GBP0.51 million) and Hummingbird Limited
(valued at GBP0.44 million).
The unlisted investments were valued at GBP0.71 million at 31
December 2010, compared to GBP0.16 million at 31 December 2009.
Dividend
The Board is recommending a final dividend of 0.75p per share,
which will be paid on 24 June 2011 to shareholders on the register
at 27 May 2011. This would take the total dividend for the year to
1.50p per share.
Outlook
Whilst the economic climate continues to be uncertain and
volatile, the longer term outlook for the natural resources sector
remains positive. China remains a key driver and its GDP growth
appears well maintained in excess of 7% per annum.
These factors present Ambrian with both opportunities as well as
challenges, and we are convinced that our strength of expertise in
the natural resources sector and experienced staff will stand us in
good stead in growing our business in the future.
This is an exciting phase in the growth of Ambrian. We believe
that there will be opportunities to add new staff and services in
complementary areas of activity and to further strengthen our
leading position in the natural resources equities business.
Lawrence Banks
Chairman
8 April 2011
AMBRIAN CAPITAL PLC
FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2010
Consolidated statement of comprehensive income
Year to 31 December
Year to 31 December 2010 2009
GBP GBP
Revenue 18,556,612 17,512,917
Investment portfolio gains
and losses 4,094,224 1,270,636
------------------------- --------------------
Total income 22,650,836 18,783,553
Administrative expenses (19,752,193) (15,857,033)
Profit before tax 2,898,643 2,926,520
Taxation (1,025,157) (276,759)
------------------------- --------------------
Profit after tax 1,873,486 2,649,761
Other comprehensive income
Exchange (loss)/profit
arising from translation of
foreign operations (459,080) (117,807)
------------------------- --------------------
Total comprehensive income 1,414,406 2,531,954
------------------------- --------------------
Profit for the period
attributable to:
Owners of the parent 1,963,931 2,649,761
Non-controlling interest (90,445) -
------------------------- --------------------
1,873,486 2,649,761
------------------------- --------------------
Total comprehensive income
attributable to:
Owners of the parent 1,504,851 2,531,954
Non-controlling interest (90,445) -
------------------------- --------------------
1,414,406 2,531,954
------------------------- --------------------
Earnings per share:
Basic 1.99 pence 2.76 pence
Diluted 1.97 pence 2.74 pence
========================= ====================
Consolidated statement of financial position
2010 2009
GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 288,754 317,511
Intangible assets 2,150,109 2,290,109
Deferred tax asset 1,284,734 1,254,128
------------ ------------
3,723,597 3,861,748
Current Assets
Financial assets at fair value through
profit or loss 7,250,816 4,698,734
Inventory 225,266,676 58,551,732
Trade and other receivables 283,135,124 175,898,683
Current tax recoverable - 1,107,775
Cash and cash equivalents 31,121,434 37,432,137
------------ ------------
546,774,050 277,689,061
------------ ------------
Total Assets 550,497,647 281,550,809
------------ ------------
LIABILITIES
Current liabilities
Financial liabilities at fair value
through profit or loss (18,745,460) (7,709,922)
Short term borrowings (177,851,710) (85,590,071)
Short term liabilities under sale &
repurchase agreements (82,363,606) -
Trade and other payables (237,089,155) (155,366,670)
Current tax payable (1, 630,602) (453,535)
------------ ------------
Total liabilities (517,680,533) (249,120,198)
------------ ------------
Total net assets 32,817,114 32,430,611
======= =======
CAPITAL AND RESERVES
Share capital 11,136,121 11,136,121
Share premium account 11,105,383 11,105,383
Merger reserve 1,245,256 1,245,256
Treasury shares (1,128,716) (1,093,889)
Retained earnings 12,858,252 12,357,624
Share-based payment reserve 4,161,508 3,639,675
Employee benefit trust (5,445,444) (5,342,707)
Exchange reserve (1,075,932) (616,852)
------------ ------------
Total equity attributable to the owner
of the parent 32,856,428 32,430,611
Non-controlling interest (39,314) -
------------ ------------
Total equity 32,817,114 32,430,611
======= =======
Consolidated statement of changes in equity
Share-
Share based Employee
Share premium Merger payments benefit Treasury Retained Exchange Non-controlling Total
capital account reserve reserve trust shares earnings reserve interest equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 31
December 2008 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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Profit for the
period - - - - - - 2,649,761 - - 2,649,761
Other
comprehensive
income - - - - - - - (117,807) - (117,807)
Share-based
payment charge - - - 1,084,214 - - - - - 1,084,214
Purchase of
shares - - - - (232,960) (1,058) - - - (234,018)
Sale of shares - - - - 770,913 - (632,348) - - 138,565
Dividends - - - - - - (1,443,331) - - (1,443,331)
Balance at 31
December 2009 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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Balance at 31
December 2009 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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Profit for the
period - - - - - - 1,963,931 - (90,445) 1,873,486
Other
comprehensive
income - - - - - - - (459,080) - (459,080)
Non-controlling
interest on
incorporation
of subsidiary - - - - - - - - 51,131 51,131
Share-based
payment charge - - - 521,833 - - - - 521,833
Purchase of
shares - - - - (268,295) (34,827) - - - (303,122)
Sale of shares - - - - 165,558 - - - - 165,558
Dividends - - - - - - (1,463,303) - - (1,463,303)
Balance at 31
December 2010 11,136,121 11,105,383 1,245,256 4,161,508 (5,445,444) (1,128,716) 12,858,252 (1,075,932) (39,314) 32,817,114
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Consolidated cash flow statement
Year to 31 December Year to 31 December 2009
2010 GBP GBP
Profit for the year 1,873,486 2,649,761
Adjustments for:
Depreciation of
property, plant and
equipment 217,392 192,574
Amortisation of
intangible assets 140,000 140,000
Foreign exchange (gains) (38,311) (84,552)
Taxation expense 1,025,157 276,759
Unrealised gains on
financial assets
designated at fair
value 48,845 (550,268)
Realised losses/(gains)
on financial assets
designated at fair
value 263,567 (1,244,789)
Net cost on acquisition
of financial assets
designated at fair
value (2,864,494) (267,542)
Increase in inventories (166,714,945) (49,542,973)
(Increase) in trade and
other receivables (107,236,441) (145,320,594)
Unrealised gains on
financial liabilities
at fair value 11,035,538 (12,271,169)
Increase in trade and
other payables 81,722,485 197,323,525
Increase in short term
liabilities under sale
and repurchase
agreements 82,363,606 -
Increase in short term
borrowings 92,261,639 -
Share-based payment
charge 521,833 1,084,214
------------------------ -------------------------
Cash used in operations (5,380,643) (7,615,054)
Taxation
recovered/(paid) 1,229,080 (346,094)
------------------------ -------------------------
Net cash flow used in
operating activities (4,151,563) (7,961,148)
------------------------ -------------------------
Investing activities
Cash introduced by
non-controlling interest
on incorporation of
subsidiary 51,131 -
Purchase of property,
plant and equipment (188,767) (157,768)
Disposal of property,
plant and equipment 133 -
------------------------ -------------------------
Net cash from/(used in)
investing activities (137,503) (157,768)
------------------------ -------------------------
Financing activities
Purchase of shares by
employee benefit trust (268,295) (232,960)
Sale of shares by
employee benefit trust 165,558 138,565
Purchase of treasury
shares (34,828) (1,058)
Dividends paid to owners
of the parent (1,463,303) (1,443,331)
------------------------ -------------------------
Net cash used in
financing activities (1,600,868) (1,538,784)
======================== =========================
Net decrease in cash and
cash equivalents ) (5,889,934) (9,657,700)
Cash and cash
equivalents at the
beginning of the year 37,432,137 47,123,092
Foreign exchange
(losses) on translation
of foreign
subsidiaries (420,769) (33,255)
------------------------ -------------------------
Cash and cash
equivalents at the end
of the year 31,121,434 37,432,137
======================== =========================
Notes to the condensed consolidated financial statements
1. Basis of preparation
The financial information set out in this announcement does not
constitute the Group's statutory accounts for the years ended 31
December 2010 or 2009 but is derived from those accounts. Statutory
accounts for 2009 have been delivered to the Registrar of
Companies, and those for 2010 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 statements under
section 498 (2) or (3) of the Companies Act 2006. The results for
the year ended 31 December 2010 were approved by the Board of
Directors on 8 April 2011 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) as endorsed for use in the European Union, 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. Cash at bank and in hand
Cash and cash equivalents includes amounts of GBP12,149,805
(2009 - GBP13,463,398) held as deposits on trading positions and on
behalf of third parties.
Within the above amounts held as deposits on trading positions,
there is a restriction in the use of GBP1,029,509 (2009:
GBP4,203,770) 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 a potential
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.
3. 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 31 December
2010 of 8,383,899 (2009: 10,326,197) and Treasury shares 31
December 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.
Year to 31 December Profit Weighted average Per share amount
2010 GBP number of shares Pence
Basic earnings per
share 1,963,931 98,542,909 1.99
========== ====================== =================
Diluted earnings per
share 1,963,931 99,537,869 1.97
========== ====================== =================
Year to 31 December Earnings Weighted average Per share amount
2009 GBP number of shares Pence
Basic earnings per
share 2,649,761 96,169,277 2.76
========== ====================== =================
Diluted earnings per
share 2,649,761 96,721,262 2.74
========== ====================== =================
4. Non-controlling interest
The non-controlling interest disclosed in the statement of
comprehensive income and 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.
Copies of the 2010 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
FR DKFDKABKDFQK
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