Trading Statement (9942W)
February 08 2012 - 2:00AM
UK Regulatory
TIDMAMBR
RNS Number : 9942W
Ambrian Capital PLC
08 February 2012
Ambrian Capital PLC
Trading update
Ambrian Capital PLC ("Ambrian" or "the Company") provides a
trading update for the year ended 31 December 2011.
In September 2011, the Company reported a loss of GBP1.46
million for the six months ended 30 June 2011, reflecting, amongst
other things, a write-down of its intangible assets of GBP2.15
million attributable to its investment in Ambrian Partners Limited
("APL"). Subsequently, the Company announced that it had entered
into a conditional agreement to dispose of APL to RFC Group Limited
("RFC"). In November 2011, the Company expected that the
transaction would result in a further write-down of its investment
in APL amounting to GBP1.5 million. It is now expected that this
write-down will be approximately GBP2 million. In addition, APL
incurred operating losses of c. GBP1.0 million during the six
months ended 31 December 2011. By virtue of the agreement with RFC,
the Company does not anticipate any further losses in APL after 31
December 2011. It is anticipated that this disposal will be
completed by 31 March 2012.
The Company's commodity operations during the second half of the
financial year have been affected by the global slowdown.
After a strong start to the year, the biofuels business was
impacted by a period of low biodiesel premiums relative to gasoil
and delayed shipments of biodiesel from Asia leading to increased
inventory storage and financing expenses. In addition, the start-up
costs of Ambrian Energy Limited, an adviser and arranger of fossil
fuel transactions, were only partially offset by revenues. Overall
the Company sustained losses in its Energy division of c. GBP1.0
million in the six months ended 31 December 2011.
Ambrian Metals Limited also encountered a subdued market with
lower demand in the US and Europe and deferred demand from the
Middle East due to overstocking in the region. Ambrian does not
expect this business to make a positive contribution in the second
half of the financial year to add to its strong first half
performance.
Market conditions have also affected the value of the Company's
principal investments in public and private resource-based mining,
exploration and service companies resulting in a loss of c. GBP1.0
million during the second half.
The Board expects that the combined effect of these events will
be for the Company to report a substantial loss before tax for the
year ended 31 December 2011. The Board is currently taking remedial
action to address the position including a substantial cost-cutting
exercise.
-ENDS-
Enquiries
Ambrian Capital plc
Robert Ashley, Chief Executive + 44 (0)20 7634 4784
Macquarie Capital (Europe)
Limited
Nicholas Harland + 44 (0)20 3037 2369
M:Communications
Charlotte Kirkham + 44 (0)20 7920 2331
Ann-Marie Wilkinson + 44 (0)20 7920 2343
About Ambrian Capital PLC
Ambrian Capital plc (AIM: AMBR) is a natural resources
investment bank active in Commodities, Corporate Finance &
Equities and Principal Investments.
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.
Ambrian Partners Limited is known in the market for its leading
positions in the metals & mining and oil & gas 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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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