TIDMAMBR
RNS Number : 0558P
Ambrian Capital PLC
28 September 2011
AMBRIAN CAPITAL PLC
Half Year Results for the six months ended 30 June 2011
LONDON, 28 September 2011 - Ambrian Capital plc ("Ambrian
Capital") today announces its unaudited results for the six months
ended 30 June 2011.
Financial Highlights
-- Total income for the period from continuing operations
increased 40% to GBP9.40 million (H1 2010: GBP6.74 million)
-- Profit for the period from continuing operations, before tax
and impairment charges, was GBP1.05 million (H1 2010: GBP(0.21)
million)
-- After the impairment of intangible assets relating to Ambrian
Partners, the loss attributable to shareholders from continuing
operations was GBP1.46 million (H1 2010: GBP(0.10) million)
-- Net loss per share for the period was 1.49p (H1 2010:
(0.10)p)
-- Tangible net asset value per share was 31.48p as at 30 June
2011 compared with 31.14p as at 31 December 2010
Commenting on the results, Robert Ashley, Chief Executive of
Ambrian Capital, said:
"In relative terms Ambrian has had a reasonable trading
performance during the period, but economic and political headwinds
are making for a more difficult second half, particularly in our
investment banking business. We continue to look for ways to
enhance shareholder value."
Enquiries
Ambrian Capital plc
Rob Ashley, Chief Executive + 44 (0)20 7634 4700
Macquarie Capital (Europe)
Limited
Simon Law + 44 (0)20 3037 5237
M:Communications
Charlotte Kirkham + 44 (0)20 7920 2331
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 Limitedis 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,
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 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
manager of Strategic Energy Bank Limited, a company focused on the
needs of governments' strategic petroleum reserves.
Ambrian Energy GmbH is an energy products supplier and trader of
biofuels.
Corporate Finance & Equities
Ambrian Partners Limited is known in the market for its leading
position particularly in the metals & mining 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
Total Income and Pre-Tax Profits
Total income from continuing operations was GBP9.40 million for
the first half of 2010 compared with GBP6.74 million for the first
half of 2010. Following the disposal of Ambrian Commodities
Limited, the results of this company have been treated as a
discontinued operation.
Operating costs from continuing operations of GBP8.43 million
(before the impairment charges referred to below) were higher than
the operating costs for the same period last year of GBP7.21
million, largely by reason of the introduction of our new Energy
businesses.
Profit attributable to shareholders from continuing operations
before tax and impairment charges was GBP1.05 million, compared
with a loss of GBP0.21 million for the same period last year.
In light of the financial turmoil experienced this year and the
increasingly difficult and volatile market conditions currently
being experienced in global equity markets, the Board has reviewed
the carrying value of the Group's investment in its investment
banking business, Ambrian Partners Limited ("APL"). The Board has
concluded that the intangible assets attributable to this business
(of GBP2.15 million) should be impaired in full. As a result of
this impairment and after share-based payment charges and tax, the
loss attributable to shareholders from continuing operations was
GBP1.46 million in the first half, compared with a loss of GBP0.10
million in the first half of 2010.
Dividend
In view of the loss reported by the Group and the uncertain
economic climate, the Board has decided not to declare a dividend
in respect of the period ended 30 June 2011 (0.75p for 30 June
2010).
Commodities - Physical Metals
Revenue from Ambrian Metals Limited ("AML") was GBP3.85 million
in the first half of 2011 compared with GBP2.89 million for the
same period last year. Profit before tax for the division for the
period to 30 June 2011 was GBP2.59 million compared with GBP1.60
million for the same period in 2010.
Over the six months ended 30 June 2011, Chinese demand for
refined copper was more subdued than in the corresponding period in
2010. This arose largely as a result of increased volumes of scrap
being imported into China which has by far the largest secondary
copper refining capacity in the world. These imports were also
influenced by the closure of a number of other smelters caused by
the Japanese Tsunami in March 2011. An additional factor in the
increased interest in scrap was a reduction in demand for
concentrates following environmental concerns in India.
However, the re-imposition of a 10% duty on exports from Russia
(which had been lifted in 2010) resulted in our managing to
increase our market share of sales of Cathode and Copper Rod to the
Middle East.
Against this background, over the six months ended 30 June 2011,
AML supplied a total tonnage of refined copper of 115,678 tonnes
(compared with 110,892 tonnes supplied for the equivalent period in
2010).
During the period, AML primarily sourced refined copper from
producers located in Zambia, Democratic Republic of Congo, Russia,
Kazakhstan, Chile and South Africa.
AML continued to benefit from the strong support of its bankers
and now has uncommitted trade finance facilities totalling over
US$330 million compared to US$320 million at December 2010 and
US$200 million at 31 December 2009.
Energy Division
Total revenue in our energy division for the six months ended 30
June 2011 was GBP2.36 million generating a profit before tax of
GBP1.40 million. This was a strong performance for a new business
line. Most of the revenue and profit was generated from our
biofuels division supplying and blending principally palm methyl
ester for use in European biodiesel. Ambrian is at the forefront of
sustainability practices in its biofuels business with all palm oil
and other feedstock being supplied from sustainable sources.
As noted in our 2010 Annual Report, Ambrian Energy has been
granted a certificate of compliance with the International
Sustainability and Carbon Certification ("ISCC"). Amongst other
things, this accreditation is designed to promote the reduction of
greenhouse gas emissions, the protection of natural biospheres and
a sustainable and social use of land.
Ambrian's customers are predominantly European oil majors and
multinational groups involved in the production of biodiesel as
well as distribution companies. We are exploring the potential for
expanding our product range into bio-ethanol and bio-mass
products.
The business has been funded to date by US$6.2 million capital
provided by the Group and trade finance facilities of US$45 million
provided by commercial banks. New credit facilities are being
developed to cover the growth of the business.
In April 2011, Ambrian established Strategic Energy Bank Limited
("SEB") in partnership with Morgan Stanley. The objective of SEB is
to conclude transactions with the Strategic Stockpiling Agencies of
National Governments whereby their storage and petroleum reserves
are integrated with markets non-speculatively to create revenue,
upgrade oil stocks and/or reduce the cost of stockpiling.
Corporate Finance & Equities
Corporate Finance & Equities' revenue was GBP3.30 million
for the first half of 2010 compared with GBP2.71 million for the
same period last year, resulting in a break-even position for the
period (H1 2010: GBP(1.77) million).
This was a reasonable result against a background of
macro-economic uncertainty and difficult market conditions.
APL has 29 retained clients in the natural resources sector. The
most significant transaction in the period was the GBP90 million
placing for Chariot Oil & Gas PLC.
Market turmoil and political concerns have increased markedly
since 30 June 2011 and although there are potential transactions in
train and under consideration, it is impossible to predict their
outcome and, therefore, the future performance of the corporate
finance and equities division. In addition, given the continuing
uncertainty in the financial markets, we have reduced the size of
our market-making book.
As referred to above, in light of the performance to date this
year and the uncertain future performance of the division, the
Board decided to impair in full the intangible assets representing
the goodwill and customer relationships attributable to the
division in the books of the Group, amounting to GBP2.15
million.
Principal Investments
In the first half of 2011, Ambrian Principal Investments Limited
("APIL") recorded a loss (before expenses) of GBP0.49 million
compared with revenues of GBP1.11 million generated by the Group's
principal investments in the first half of 2010.
This reflects a reduction of 8.6% in the value of the investment
portfolio since 31 December 2010 but compares with increases over
the same period in sterling terms of 4% for gold and 15% for crude
oil and a decrease of 19% for the AIM Basic Resources Index.
The total value of APIL's investment portfolio at 30 June 2011
was GBP5.16 million compared with a principal investment portfolio
valued at GBP5.65 million at 31 December 2010.
At 30 June 2011, APIL had 19 holdings and the three largest were
Fire River Gold (valued at GBP0.63 million), Tiger Resources
(valued at GBP0.43 million) and Royal Coal Corp (valued at GBP0.39
million).
The unlisted investments were valued at GBP0.59 million at 30
June 2011, compared with GBP0.71million at 31 December 2010.
The Company continues to hold a 12.5% interest in Consolidated
General Minerals PLC ("CGM") which was de-listed from AIM on 1 July
2011. CGM is managed and part-owned by employees of Ambrian
Resources AG ("ARAG") which was established in February 2010 in
partnership with a team of three former executives of Glencore
International AG. ARAG employees are now charged to CGM. CGM
continues to focus on developing its clinker grinding mill and
cement packaging plant in Beira, Mozambique. As of 30 June 2011,
the company's reported cash position was US$20.3 million.
Discontinued Operation
In April 2011 we entered into an agreement for the sale to a
subsidiary of INTL FCStone Inc. of the whole of the issued share
capital of Ambrian Commodities Limited with effect from 31 March
2011. This agreement was completed on 31 August 2011 and resulted
in the return to the Company of its invested capital of GBP4.37
million. As a result of the disposal of ACL, the results of ACL for
the period to 30 June 2011 have been treated as a discontinued
operation.
Expenses
Group administrative expenses (including the GBP2.15 million
impairment charge referred to above) were GBP10.58 million in the
first half of 2011 (H1 2010: GBP7.21 million), of which GBP6.71
million (H1 2010: GBP6.39 million) were represented by fixed costs
(excluding provisions for year-end profit related bonuses and
share-based payment charges). Like for like expenses were broadly
in line with those for the same period last year. The increase in
operating costs was largely attributable to the costs attributable
to the new Energy businesses.
Remuneration expenses, before share-based payment charges, were
GBP5.38 million in the first half of 2011 (H1 2010: GBP4.43
million) of which (i) GBP3.67 million was represented by salaries,
employers' national insurance and benefits (H1 2010: GBP3.42
million) and (ii) GBP1.72 million represented a provision for
year-end profit related bonuses (H1 2010: GBP0.75 million). The
ratio of total remuneration expenses to total income was 58.2% for
the first half of 2011 compared with 65.8% for the first half of
2010. Total headcount at 30 June 2011 was 72, a reduction of 6
since 31 December 2010.
Share-based payment charges were GBP82,000 in the first half of
2011 (H1 2010: GBP260,000).
Non-remuneration expenses (excluding impairment charges of
intangible assets of GBP2.15 million) were GBP3.05 million in the
first half of 2011 (H1 2010: GBP2.78 million).
Balance Sheet
Total assets decreased to GBP468 million at 30 June 2011 from
GBP550 million at 31 December 2010 primarily due to lower
inventories.
The Group's own cash resources, net of amounts due to clients
totalled GBP11.1 million at 30 June 2011 compared with GBP18.97
million at 31 December 2010. As a result of the disposal of Ambrian
Commodities Limited, the GBP4.37 million cash due on sale which was
previously classified as own cash has been treated as a debtor. The
balance of the reduction in own cash amounting to GBP3.33 million
is principally attributable to the final dividend payment (of
GBP0.75 million) and the accrued bonuses of GBP2.18 million.
Shareholders' equity was GBP31.4 million at 30 June 2011
compared to GBP32.8 million at 31 December 2010.
Tangible net asset value per share was 31.48p representing an
increase of 1.17% from 31 December 2010. Net asset value per share
is based on 99,770,124 ordinary shares outstanding at 30 June 2011
(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 GBP1.8 million at 30 June 2011, which
was substantially exceeded by the aggregate regulatory resources of
the regulated subsidiaries of GBP7.5 million.
Board changes
As stated in the 2010 Annual Report, I became Chief Executive of
the Group following the departure of Tom Gaffney in February
2011.
In July 2011, Lawrence Banks retired as Chairman of the Group
and stood down from the Board. Lawrence had a long association with
Ambrian, having been chairman of Ambrian Partners Limited for some
time before it was merged into the Group in September 2004. His
retirement follows his announcement at this year's Annual General
Meeting in June. We owe a significant debt to Lawrence for his wise
counsel and leadership over the years and are grateful for his
contribution to the Group. We wish Lawrence well.
Following Lawrence's retirement, Nathan Steinberg (one of the
non executive Directors and someone who has been associated with
the Group for many years) has taken over as Chairman.
Outlook
Relative to the performance of the Group for the same period
last year, the Group has performed effectively for the 6 months to
30 June 2011. However, the weakness and volatility experienced in
global equity markets since the end of March 2011 have weighed on
the Group's corporate finance and equities division. As a result,
the transaction pipeline has been weakened and primary and
secondary placement activity significantly reduced with little
visibility for a short term upswing. The commodities trading
divisions continue to trade profitably.
The Board is conscious of the substantial discount at which the
Company's share price stands to its net asset value and continues
to look at ways of reducing this and otherwise enhancing
shareholder value.
Robert Ashley
Chief Executive
AMBRIAN CAPITAL PLC
INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED
30 JUNE 2011
Condensed consolidated statement of comprehensive income
6 mths to
30 June
2011 6 mths to 30 June Year to 31 December
(unaudited) 2010 (unaudited, 2010 (audited,
GBP restated) GBP restated) GBP
Revenue 9,813,862 5,638,343 16,384,505
Investment
portfolio
(loss)/gains (417,806) 1,109,381 4,094,224
------------- ------------------- --------------------
Total income 9,396,056 6,747,724 20,478,729
Administrative
expenses (10,577,419) (7,209,951) (17,943,884)
(Loss)/profit
before tax (1,181,363) (462,227) 2,534,845
Taxation (216,004) 54,770 (1,025,157)
------------- ------------------- --------------------
(Loss)/profit from
continuing
operations (1,397,367) (407,457) 1,509,688
(Loss)/profit on
discontinued
operation, net of
tax (53,637) 266,618 363,798
------------- ------------------- --------------------
(Loss)/profit (1,451,004) (140,839) 1,873,486
------------- ------------------- --------------------
Other comprehensive
income
Exchange
profit/(loss)
arising from
translation of
foreign
operations 730,052 (58,035) (459,080)
------------- ------------------- --------------------
Total other
comprehensive
income 730,052 (58,035) (459,080)
Total comprehensive
(loss)/income (720,952) (198,874) 1,414,406
------------- ------------------- --------------------
(Loss)/profit for
the period
attributable to:
Owners of the
parent (1,460,618) (95,115) 1,963,931
Non-controlling
interest 9,614 (45,724) (90,445)
------------- ------------------- --------------------
(1,451,004) (140,839) 1,873,486
------------- ------------------- --------------------
Total comprehensive
income attributable
to:
Owners of the
parent (730,566) (153,150) 1,504,851
Non-controlling
interest 9,614 (45,724) (90,445)
------------- ------------------- --------------------
(720,952) (198,874) 1,414,406
------------- ------------------- --------------------
(Loss)/earnings per
share continuing
and discontinued
operations:
Basic (1.49) pence (0.10) pence 1.99 pence
Diluted (1.48) pence (0.10) pence 1.97 pence
============= =================== ====================
Continuing
operations
Basic (1.44) pence (0.38) pence 1.76 pence
Diluted (1.43) pence (0.38) pence 1.74 pence
============= =================== ====================
Condensed consolidated statement of financial position
30 June 30 June
2011 2010 31 December 2010
(unaudited) (unaudited) (audited)
GBP GBP GBP
ASSETS
Non-current assets
Property, plant and
equipment 233,910 247,008 288,754
Intangible assets - 2,220,109 2,150,109
Deferred tax asset 1,145,903 1,254,128 1,284,734
-------------- ---------------- -----------------
1,379,813 3,721,245 3,723,597
Current assets
Financial assets at fair
value through profit or
loss 9,177,719 18,250,086 7,250,816
Inventory 121,568,529 89,600,563 225,266,676
Trade and other receivables 324,715,145 128,827,248 283,135,124
Cash at bank and in hand 11,094,027 31,212,096 31,121,434
-------------- ---------------- -----------------
466,555,420 267,889,993 546,774,050
-------------- ---------------- -----------------
Total assets 467,935,233 271,611,238 550,497,647
============== ================ =================
LIABILITIES
Current liabilities
Financial liabilities at
fair value through profit
or loss - - (18,745,460)
Short-term borrowings (181,302,494) - (177,851,710)
Short-term liabilities under
sale and repurchase
agreements (58,593,246) - (82,363,606)
Trade and other payables (195,555,732) (239,696,792) (237,089,155)
Current tax payable (1,076,543) (130,297) (1,630,602)
-------------- ---------------- -----------------
Total liabilities (436,528,015) (239,827,089) (517,680,533)
-------------- ---------------- -----------------
Total net assets 31,407,218 31,784,149 32,817,114
============== ================ =================
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) (1,128,716) (1,128,716)
Retained earnings 10,652,269 11,537,700 12,858,252
Employee benefit trust (5,471,023) (5,342,707) (5,445,444)
Share-based payments reserve 4,243,508 3,900,592 4,161,508
Exchange reserve (345,880) (674,887) (1,075,932)
-------------- ---------------- -----------------
Total equity attributable to
owners of the parent 31,436,918 31,778,742 32,856,428
============== ================ =================
Minority interest (29,700) 5,407 (39,314)
-------------- ---------------- -----------------
Total equity 31,407,218 31,784,149 32,817,114
============== ================ =================
Condensed consolidated interim 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 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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Total
comprehensive
income - - - - - - (95,115) (58,035) (45,724) (198,874)
Minority
interest on
incorporation
of subsidiary - - - - - - - - 51,131 51,131
Share-based
payment charge - - - 260,917 - - - - - 260,917
Purchase of
shares - - - - - (34,827) - - - (34,827)
Dividends - - - - - - (724,809) - - (724,809)
Balance at 30
June 2010 11,136,121 11,105,383 1,245,256 3,900,592 (5,342,707) (1,128,716) 11,537,700 (674,887) 5,407 31,784,149
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Total
comprehensive
income - - - - - - 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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
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
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Total
comprehensive
income - - - - - - (1,460,618) - 9,614 (1,451,003)
Other
comprehensive
income - - - - - - 730,052 - 730,052
Share-based
payment charge - - - 82,000 - - - - - 82,000
Purchase of
shares - - - - (57,809) - - - - (57,809)
Sale of shares - - - - 32,230 - - - - 32,230
Dividends - - - - - - (745,365) - - (745,365)
Balance at 30
June 2011 11,136,121 11,105,383 1,245,256 4,243,508 (5,471,023) (1,128,716) 10,652,269 (345,880) (29,700) 31,407,218
---------- ---------- --------- --------- ----------- ----------- ----------- ----------- --------------- -----------
Condensed consolidated cash flow statement
6 months 6 months
to 30 June to 30 June
2011 2010
(unaudited) (unaudited) Year to 31 December
GBP GBP 2010 (audited) GBP
Profit/(loss) for the
period (1,451,003) (140,839) 1,873,486
Adjustments for:
Depreciation of
property, plant and
equipment 138,745 105,748 217,392
Amortisation of
intangible assets 2,150,109 70,000 140,000
Foreign exchange
losses/(gains) - - (38,311)
Taxation
(credit)/expense 216,004 (54,770) 1,025,157
Unrealised gains on
financial assets
designated at fair
value (403,446) (10,467,764) 48,845
Realised
losses/(gains) on
financial assets
designated at fair
value 552,481 263,567 263,567
Net cost on
acquisition of
financial assets
designated at fair
value (2,075,938) (3,347,155) (2,864,494)
Decrease/(increase) in
inventories 103,698,147 (31,048,831) (166,714,945)
Decrease/(increase) in
trade and other
receivables (41,580,021) 47,071,435 (107,236,441)
Unrealised gains on
financial liabilities
at fair value (18,745,460) (7,709,922) 11,035,538
(Decrease)/increase in
trade and other
payables (41,533,423) (1,259,947) 81,722,485
(Decrease)/increase in
short-term
liabilities under
sale and repurchase
agreements (23,770,360) 82,363,606
Increase in short-term
borrowings 3,450,784 92,261,639
Share-based payment
charge 82,000 260,917 521,833
------------- ------------- -----------------------
Cash used in
operations (19,271,381) (6,257,561) (5,380,643)
Taxation
recovered/(paid) (631,234) 839,307 1,229,080
------------- ------------- -----------------------
Net cash flow used in
operating activities (19,902,615 (5,418,254) (4,151,563)
------------- ------------- -----------------------
Investing activities
Cash introduced by
non-controlling
interest on
incorporation of
subsidiary - 51,131 51,131,
Purchase of property,
plant and equipment (83,901) (35,245) (188,767)
Disposal of property,
plant and equipment - - 133
------------- ------------- -----------------------
Net cash from/(used
in) investing
activities (83,901) 15,886 (137,503)
------------- ------------- -----------------------
Financing activities
Purchase of shares by
employee benefit
trust (57,809) - (268,295)
Sale of shares by
employee benefit
trust 32,230 - 165,558
Purchase of treasury
shares - (34,827) (34,828)
Dividend paid to
owners of the parent (745,365) (724,809) (1,463,303)
------------- ------------- -----------------------
Net cash used in
financing activities (770,944) (759,636) (1,600,868)
============= ============= =======================
Net decrease in cash
and cash equivalents (20,757,460) (6,162,004) (5,889,934)
Cash and cash
equivalents at the
beginning of the
year 31,121,434 37,432,137 37,432,137
Foreign exchange
gains/(losses) 730,053 (58,037) (420,769)
------------- ------------- -----------------------
Cash and cash
equivalents at the
end of the year 11,094,027 31,212,096 31,121,434
============= ============= =======================
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 2010 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
2010.
The interim financial statements are for the six months ended 30
June 2011. 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 2010.
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 2010, 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 27 September 2011 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 :
-- Energy: comprises Ambrian Energy GmbH and Ambrian Energy
Limited, a physical fuels merchant.
-- 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.
2. Segmental Analysis (Continued)
Revenue/Income
6 months Corporate Energy Commodities: Central & Total
to 30 June finance & Physical investment
2011 - equities metals portfolio
unaudited
Total GBP3,303,601 GBP2,360,280 GBP3,845,751 (GBP113,576) GBP9,396,056
income
============= ============= ============= ============= ==============
6 months Corporate Energy Commodities: Central & Total
to 30 June finance & Physical investment
2010 - equities metals portfolio
unaudited,
restated
Total GBP2,715,490 - GBP2,892,853 GBP1,139,381 GBP6,747,724
income
============= ============= ============= ============= ==============
Year to 31 Corporate Energy Commodities: Central & Total
December finance & Physical investment
2010 - equities metals portfolio
audited,
restated
Total GBP9,776,968 GBP1,342,539 GBP5,264,998 GBP4,094,224 GBP20,478,729
income
============= ============= ============= ============= ==============
Total income includes investment and other income. The
investment portfolio includes realised and unrealised gains on
financial assets.
Net assets
6 months Corporate Energy Commodities: Central & Unallocated Total
to 30 finance & Physical investment taxation
June 2011 equities metals portfolio
-
unaudited
Net GBP3,541,865 GBP4,644,400 GBP13,781,672 GBP9,369,920 GBP69,361 GBP31,407,218
assets
============= ============= ============== ============== ============= ==============
6 months Corporate Energy Commodities: Central & Unallocated Total
to 30 finance & Physical investment taxation
June 2010 equities metals portfolio
-
unaudited
Net GBP5,950,785 - GBP12,345,473 GBP12,364,061 GBP1,123,830 GBP31,784,149
assets
============= ============= ============== ============== ============= ==============
Year to Corporate Energy Commodities: Central & Unallocated Total
31 finance & Physical investment taxation
December equities metals portfolio
2010 -
audited
Net GBP3,571,114 GBP2,234,608 GBP11,146,648 GBP16,210,612 (GBP345,868) GBP32,817,114
assets
============= ============= ============== ============== ============= ==============
3. Administrative expenses
Administrative expenses amounting to GBP10,577,419 (30 June
2010: GBP7,209,951 and 31 December 2010: GBP17,943,884) include an
impairment charge of intangible assets of GBP2,150,109 (30 June
2010: GBP70,000 and 31 December 2010: GBP140,000).
The intangible assets relating to the business of Ambrian
Partners Limited have been impaired in full.
4. Cash at bank and in hand
Own cash resources included in cash at bank and in hand amounted
to GBP11,094,027 as at 30 June 2011 (30 June 2010: GBP18,431,300
and 31 December 2010: GBP18,971,629).
Own cash resources have decreased compared to previous periods,
due in part to Ambrian Commodities Limited leaving the Group.
GBP4.37m of cash receivable for the sale of this company is treated
as a Trade and other receivable at 30 June 2011 (See note 6).
5. Earnings per share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year,
excluding shares held in the Employee Benefit Trust on 30 June 2011
of 7,091,026 (2010: 8,766,726) and Treasury shares 30 June 2011 of
4,500,058 (2010: 4,500,058).
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 months to 30 June Earnings Weighted average Per share amount
2011 - unaudited GBP number of shares Pence
Basic profit per
share (1,460,617) 97,863,342 (1.49)
============ ===================== =================
Diluted profit per
share (1,460,617) 98,858,302 (1.48)
============ ===================== =================
6 months to 30 June Earnings Weighted average Per share amount
2010 - unaudited GBP number of shares Pence
Basic earnings per
share (95,115) 97,732,446 (0.10)
============ ===================== =================
Diluted earnings per
share (95,115) 98,024,720 (0.10)
============ ===================== =================
Year to 31 December Earnings Weighted average Per share amount
2010 - audited 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
============ ===================== =================
6. Discontinued operation
In March 2011, the Group sold its 100% interest in Ambrian
Commodities Limited which is the only operation presented as a
discontinued operation in 2011. The comparative information for
2010 was restated to present income generated and expenses incurred
by Ambrian Commodities Limited's discontinued operation.
Trade & other receivables contain a sum of GBP4,370,196
being the post tax consideration for the disposal.
30 June 30 June
2011 2010 December 2010
(unaudited) (unaudited) (audited)
GBP GBP GBP
Property, plant and equipment 697 2,252 919
Trade and other receivables 477,994 1,642,428 3,503,149
Cash 2,904,881 11,664,732 15,787,435
Trade and other payables 986,624 (9,371,330) (15,179,553)
------------- ------------- --------------
Net asset position 4,370,196 3,938,082 4,111,950
------------- ------------- --------------
The following shows the contribution of the discontinued
operation:
6 months 6 months
to 30 June to 30 June
2011 2010
(unaudited) (unaudited) Year to 31 December
GBP GBP 2010 (audited) GBP
Result of discontinued
operation
Revenue 513,891 1,155,862 2,172,107
Expenses (567,528) (889,243) (1,808,309)
Tax credit/(expense)
------------- ------------- -----------------------
(Loss)/profit for the
period (53,637) 266,619 363,798
------------- ------------- -----------------------
Earnings per share
from discontinued
operation (0.05 pence) 0.28 pence 0.23 pence
------------- ------------- -----------------------
Statement of cash
flows from
discontinued
operation
Operating activities (10,909,396) (11,779,060) (7,656,357)
Investing activities - - -
Financing activities - - -
Net cash from
discontinued
operation (10,909,396) (11,779,060) (7,656,357)
------------- ------------- -----------------------
7. Minority interest
The minority interest disclosed in the interim statement of
comprehensive income and interim statement of financial position
represents a 20% minority interest in Ambrian Resources AG held by
shareholders other than 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 DMGZLRNDGMZM
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