TIDMEWR
RNS Number : 6158D
East West Resources PLC
30 April 2013
East West Resources plc
East West Resources plc ("EWR") today announces its audited
results for the 12 months ended 31 December 2012.
Financial Highlights
-- Total income for the year from continuing operations GBP4.05
million (2011: GBP2.89 million restated)
-- Significant reduction in the Group loss from continuing
operations, after tax, down to GBP1.23 million for the year (2011:
GBP3.32million loss restated)
-- Marked improvement in the overall Group loss for the year
from all operations, after tax, at GBP4.46 million (2011: GBP 9.61
million loss restated)
-- Modest net loss per share for the period from continuing
operations of 1.23p (2011: loss 3.41p restated)
-- Tangible net asset value per voting share of 15.12p as at 31
December 2012 compared with 19.83p as at 31 December 2011.
Commenting on the results, Charles Crick, non-executive Chairman
of EWR, said:
"Following another year of change for the Group and having now
disposed of our biofuels business, we have finally turned a new
page focusing on our metals trading activities. The business has
had a good start to the year which has continued into the first
quarter with orders significantly ahead of the equivalent period
last year. We have also made further progress in reducing our
central costs.
We look forward to the future with confidence in our business
model and our strategy for growth. "
Enquiries
East West Resources plc
Roger Clegg, Chief Operating
Officer + 44 (0)20 7634 4700
Cenkos PLC
Jon Fitzpatrick + 44 (0)20 7397 1953
Neil McDonald + 44 (0)20 7397 1953
Notes to Editors:
EWR is active in the physical trading of base metals (primarily
copper). It sources and supplies a variety of commodities to end
users all over the world. Supported by its offices in London and
Shanghai and a network of agents in North and South America, Asia
and the Middle East, EWR provides producers and consumers with its
marketing insight whilst emphasizing the financing and risk
management aspect of its trading activities. EWR also holds and
manages a number of equity investments. EWR is quoted on the AIM
section of the London Stock Exchange under the ticker symbol
EWR.
Further information on East West Resources plc is available on
the Company's website: www.ewrplc.com
CHAIRMAN'S STATEMENT
Introduction
2012 was another year of change for the Group but one in which
we have laid the foundations for a new beginning for the Group.
During the year, we formulated our strategy to focus on the
Group's most profitable business and in the process sell or close
our remaining legacy businesses and reduce our central costs. I am
pleased to report that we made significant progress in these
aims.
In March, we completed the sale of our investment banking and
stockbroking business (with effect from 31 October 2011) and
towards the end of the year we started negotiations for the
disposal of our biofuels business - a transaction which we
completed earlier this year but which was made with effect from 31
December 2012. We also disposed of our asset management business
and closed our fossil fuel activities.
As a result, we have entered 2013 with the single business of
metals trading and a small residual investment portfolio.
During the year we also had a number of changes at Board level,
in the management of the Group and in our shareholder base, all of
which are referred to below.
Results
For the year ended 31 December 2012, Ambrian Metals Limited
("AML"), our metals trading business and now our principal
operating activity, produced another solid performance. AML net
revenues for the year rose to GBP4.19 million, an increase of 12
per cent on the previous year (GBP3.75 million) and the company
reported an operating profit before tax of GBP0.99 million for the
year (2011: GBP1.65 million). The Group recorded a significantly
lower post-tax loss on continuing operations of GBP1.23 million for
the year ended 31 December 2012 compared with a post-tax loss of
GBP3.32 million (restated) for the previous year. The loss resulted
principally from the continued drain on our resources from our
central overheads and a small number of one-off costs but, overall,
represented a major improvement on the loss reported for the
previous year. We made progress in the year to reduce our central
costs and work continues on further reductions. More detail on the
results is contained in the Financial Review which follows this
statement.
Board changes
In July, Consolidated General Minerals PLC ("CGM") acquired a
near 30 per cent interest in the Company's shares and in October we
were pleased to welcome Nicolas Rouveyre to the Board as the
representative of CGM. Nicolas' background and experience in metals
trading gained whilst at Glencore is proving invaluable to us in
assisting with the business of AML and its development.
In July, Julian McIntyre and Seng Huang Lee resigned from the
Board and Peter Curry was appointed as a non-executive Director in
Mr Lee's place. I re-joined the Board in October having resigned in
March following completion of the sale of our investment banking
and stockbroking business and in December, I was elected as
Chairman following the resignation of Nathan Steinberg when Peter
Curry also resigned from the Board.
Rob Ashley stood down as chief executive in October but remains
on the Board as a non-executive director. At the same time, we
established an executive committee comprising Roger Clegg as the
Group's Chief Operating Officer, Mark Homer (the Managing Director
of AML) and John Coles, the Finance Director. We preferred this
structure with no chief executive because of our more focused
business model. Members of the executive committee meet on a
regular basis and report to the Board which meets not less
frequently than every two months.
We thank all our staff for their loyalty, commitment and efforts
during the year and we also thank the retiring Directors for their
respective contributions to the Group during their tenure of
office.
Reporting currency
Now that the Group's principal operating business is AML which
accounts in US Dollars, shareholders should note that with effect
from the commencement of this financial year, the Group will in
future report in that currency.
Outlook
In February we announced that AML had made a good start to the
year in improved market conditions. Orders continue to be
significantly ahead of the equivalent position last year and we
continue to make progress in reducing the Group's central overhead.
More work remains to be done in managing our costs and developing
our metals trading business but the groundwork has been done and we
look forward to the future with confidence in our business model
and our strategy for growth.
Charles Crick
Chairman
Financial review
Total Income and Pre-Tax Results
Total income from continuing operations was GBP4.05 million for
the year ended 31 December 2012 compared with GBP2.89 million
(restated) for the year ended 31 December 2011, a 40 per cent
increase resulting principally from higher revenues in our metals
trading business and reduced losses in our investment
portfolio.
Operating costs from continuing operations of GBP5.19 million
were marginally higher than the operating costs for the same period
last year of GBP5.04 million (restated).
The loss attributable to shareholders from continuing operations
before tax was GBP1.14 million, a significant improvement on the
loss of GBP2.15 million (restated) for the same period last
year.
As a result of the recent disposal of Ambrian Energy GmbH
("AEG") with effect from 31 December 2012 and the closure of our
fossil fuels businesses during the year, we have treated the
results of these operations as discontinued operations. The Group
incurred trading losses in AEG in the second half and small
residual closure costs in the fossil fuel businesses, giving rise
to an overall post-tax loss of GBP3.22 million for the year
attributable to our investments in these operations. The overall
Group loss attributable to shareholders from all operations was
GBP4.46 million after tax, compared with an after tax loss of
GBP9.61 million (restated) for the year ended 31 December 2011.
Dividend
The Board is not recommending payment of a dividend in respect
of the year ended 31 December 2012 (2011: nil).
Continuing operations
Net revenue from Ambrian Metals Limited ("AML"), our metals
trading business, was GBP4.19 million for the year ended 31
December 2012 (2011: GBP3.75 million), a 12 per cent improvement
over the year. Profits were reduced from the previous year due to a
number of one-off costs including professional fees and retention
bonuses.
The 2012 year continued the pattern of 2011 with volatility in
the market price of copper, though within a narrower range than
during 2011. Having started the year at $7,661 per tonne, the price
reached a high in early February of $8,765 per tonne falling to a
low of $7,220 by mid-June but ended the year at $7,907.
Global copper inventories increased steadily throughout the year
- particularly in China where Shanghai Bonded warehouse rose from
circa 250,000 Mt at the start of 2012 reaching close to 900,000 Mt
at the end of the year. Free stocks on the LME also rose from circa
150,000 Mt to 270,000 Mt over the same period.
These statistics evidence a sharp fall in Chinese demand over
the year but, despite this, AML managed to increase its sales in
China by some 10 per cent over the previous year - largely due to
its continued expansion in direct Chinese consumer sales. China
continues to be the single largest market for AML, accounting for
c.55 per cent of its sales in 2012.
Following lacklustre demand in near and Middle East regions
during 2011, there were expectations of an upturn in that area for
2012. However, after an encouraging first quarter, volumes and spot
business soon returned to levels approximating to those experienced
in the preceding year. Nevertheless, AML's market share of
available business increased slightly upon 2011 with new clientele
emerging within the sales portfolio. The Middle and near East
regions represented around 34 per cent of AML's turnover in
2012.
The balance of AML's sales was split between South Korea, Europe
and the rest of SE Asia. The majority of AML's supplies during the
year were sourced from Russia, Africa, Latin America and India.
Over the 12 months ended 31 December 2012, AML supplied a total
tonnage of refined copper of 273,000 tonnes (compared with 240,000
tonnes supplied for the equivalent period in 2011).
AML continued to benefit from the strong support of its bankers
in difficult economic global conditions and had uncommitted trade
finance facilities as at 31 December 2012 totalling over US$295
million (31 December 2011: US$370 million).
During the year, AML received a subordinated loan of US$3
million from the Company's major shareholder, Consolidated General
Minerals plc ("CGM"). The loan is due to be repaid on 30 June
2013.
Profit before tax for AML for the 12 months to 31 December 2012
was GBP0.99 million compared with GBP1.65 million for the same
period in 2011 and net assets of AML at 31 December 2012 were
GBP10.12 million (2011: GBP9.05 million).
Principal Investments
In the 12 months ended 31 December 2012, our investment
portfolio recorded a pre-tax loss of GBP0.56 million compared with
a pre-tax loss of GBP1.66 million in the 12 months ended 31
December 2011.
Following the Board's decision last year to substantially reduce
the Group's exposure to junior resource stocks, the total value of
the Group's investment portfolio, including all net assets, held by
Ambrian Principal Investments Limited ("APIL") at 31 December 2012
was GBP1.00 million compared with a principal investment portfolio,
including net assets, valued at GBP2.08 million at 31 December
2011. The investment portfolio itself was valued at GBP0.46 million
at 31 December 2012 compared to GBP1.73 million at 31 December
2011.
At 31 December 2012, APIL had 5 holdings with the largest being
RDX Minerals (GBP0.13 million). Three of the holdings are
unquoted.
The Company continues to hold an 11.4 per cent interest in CGM
(which in turn holds a near 30 per cent interest in the Company).
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, one
of whom, Nicolas Rouveyre, is a now a Director of the Company. ARAG
employees are charged to CGM. CGM continues to focus on developing
its clinker grinding mill and cement packaging plant in Beira,
Mozambique.
In March 2013, CGM announced that it was expecting plant
construction to commence shortly. At the same time, CGM reported
shareholders' equity as at 31 December 2012 of US$16 million
compared with US$18.8 million as at 31 December 2011. The Board
considers its interest in CGM a core holding for the future
development of the Group and the Company's investment in CGM has
been valued at its fair value of GBP1.56 million.
It is to be emphasized that there is a high degree of
subjectivity (and therefore uncertainty) involved in the valuation
of unquoted investments. This applies to all of the Group's
unquoted investments.
Discontinued operations
Biofuels - Ambrian Energy GmbH ("AEG")
In February 2013, the Company completed the sale of the whole of
the issued share capital of AEG. Under the sale and purchase
agreement, the change of control in AEG's business passed to the
purchaser with effect from 31 December 2012. As a result, this
activity has been treated as a discontinued operation in 2012.
Total revenue in AEG for the 12 months ended 31 December 2012
was GBP0.17 million compared with GBP2.19 million in 2011.
The loss arising from discontinued operations of AEG for the 12
months to 31 December 2012 was GBP2.68 million, compared with a
profit of GBP0.96 million for the same period in 2011.
Fossil fuels - Ambrian Energy Limited ("AEL") and Strategic
Energy Bank Limited ("SEB")
Total revenue in AEL and SEB for the 12 months ended 31 December
2012 was GBP0.47 million (2011: GBP0.40 million) and these
companies recorded an aggregate loss before tax for the 12 months
to 31 December 2012 of GBP0.46 million (2011: GBP1.31 million).
Following the decision by the Board last year to cease providing
capital to AEL and curtail its activities in these businesses,
these operations have been treated as discontinued operations and
there is no longer any activity in these businesses.
Further details of the discontinued operations are contained in
note 4 of this announcement.
Expenses
Administrative expenses attributable to the Group's continuing
operations for the year ended 31 December 2012 were GBP5.19
million(2011: GBP5.04 million restated), which included provisions
for year-end profit related bonuses and share-based payment
charges. Like for like expenses were broadly in line with those for
last year but the expenses for 2012 included professional fees
related to the disposal of certain activities and a number of one
off costs.
Remuneration expenses attributable to continuing operations were
GBP2.55 million for the 12 months ended 31 December 2012 (2011:
GBP2.65 million restated). Total headcount in our continuing
operations at 31 December 2012 was 22 (31 December 2011: 30).
Share-based payment charges were GBP0.02 million in the 12
months ended 31 December 2012 (2011: GBP 0.16 million).
Balance Sheet
Total net assets of the Group at 31 December 2012 were GBP15.21
million, down from GBP19.86 million at 31 December 2011. The major
factors impacting the Group's net assets were the losses
attributable to our loss on disposal of AEG (GBP2.68 million), the
losses on our investment portfolio (GBP0.56 million), the losses
arising from our fossil fuels business (GBP0.46 million) and
significant central costs.
The Group's own cash resources totalled GBP17.36 million at 31
December 2012 compared with GBP15.38 million at 31 December 2011.
The cash resources at the year-end included the US$ 3 million loan
from CGM (GBP1.85 million).
Net tangible asset value per share at 31 December 2012 was
15.12p(compared with 19.83p as at 31 December 2011). Net tangible
asset value is based on 100,602,104 ordinary shares outstanding at
31 December 2012 (excluding Treasury shares and shares held by the
Ambrian Capital Employee Benefit Trust) (2011: 100,136,584
shares).
John M Coles
Finance Director
East West Resources plc
Consolidated statement of comprehensive income
for the year ended 31 December 2012
Year to 31 Year to 31
December 2012 December 2011
Restated
GBP GBP
Turnover 1,129,067,594 1,549,455,324
Cost of Sales (1,124,540,252) (1,545,156,672)
---------------- ----------------
Net Revenue 4,527,342 4,298,652
Investment portfolio (losses) (476,778) (1,409,649)
---------------- ----------------
Total income 4,050,564 2,889,003
Administrative expenses (5,192,299) (5,036,082)
(Loss) before tax from continuing
operations (1,141,735) (2,147,079)
Taxation (92,829) (1,170,369)
---------------- ----------------
(Loss) after tax from continuing
operations (1,234,564) (3,317,448)
(Loss) on discontinued operations
net of tax (3,220,476) (6,290,232)
(Loss) after tax from continuing
and discontinued operations (4,455,040) (9,607,680)
---------------- ----------------
Other comprehensive income
Exchange (loss)/profit arising
from translation of foreign operations (216,527) 245,460
---------------- ----------------
Total other comprehensive income (216,527) 245,460
---------------- ----------------
Total comprehensive (loss) (4,671,567) (9,362,220)
(Loss) for the period attributable
to:
Owners of the parent (4,451,270) (9,604,730)
Non-controlling interest (3,770) (2,950)
---------------- ----------------
(4,455,040) (9,607,680)
---------------- ----------------
Total comprehensive loss attributable
to:
Owners of the parent (4,667,797) (9,359,270)
Non-controlling interest (3,770) (2,950)
---------------- ----------------
(4,671,567) (9,362,220)
---------------- ----------------
Earnings per share continuing
and
discontinued operations:
Basic EPS in pence (4.45) (9.88)
Continuing operations:
Basic EPS in pence (1.23) (3.41)
East West Resources plc
Consolidated statement of financial position
at 31 December 2012
2012 2011
ASSETS GBP GBP
Non-current assets
Property, plant and equipment 53,777 177,747
Deferred tax asset 33,251 232,071
-------------- --------------
87,028 409,818
Current Assets
Financial assets at fair
value through profit or loss 2,223,558 4,841,449
Inventory 222,960,314 179,154,816
Trade and other receivables 67,223,096 59,127,665
Cash and cash equivalents 17,361,477 15,378,657
-------------- --------------
309,768,445 258,502,587
-------------- --------------
Total Assets 309,855,473 258,912,405
-------------- --------------
LIABILITIES
Current liabilities
Financial liabilities at
fair value through profit
or loss (597,569) (5,008,970)
Short term borrowings (146,358,657) (159,207,524)
Short term liabilities under
sale & repurchase agreements (108,028,112) (45,057,643)
Trade and other payables (39,648,821) (29,459,659)
Current tax payable (12,307) (321,799)
-------------- --------------
Total liabilities (294,645,466) (239,055,595)
-------------- --------------
Total net assets 15,210,007 19,856,810
-------------- --------------
CAPITAL AND RESERVES
Share capital 11,136,121 11,136,121
Share premium account 11,105,383 11,105,383
Treasury shares (1,128,716) (1,128,716)
Retained earnings (3,891,941) 762,273
Share-based payment reserve 4,646,478 4,325,508
Employee benefit trust (5,767,229) (5,471,023)
Exchange reserve (844,055) (830,472)
-------------- --------------
Total equity attributable to
the owner of the parent 15,256,041 19,899,074
Non-controlling interest (46,034) (42,264)
Total equity 15,210,007 19,856,810
-------------- --------------
East West Resources plc
Consolidated statement of changes in equity
for the year ended 31 December 2012
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
2010 11,136,121 11,105,383 1,245,256 4,161,508 (5,445,444) (1,128,716) 10,187,976 (1,075,932) (39,314) 30,146,838
Profit
for the
period - - - - - - (9,604,730) - (2,950) (9,607,680)
Elimination
on disposal - - (1,245,256) - - - 924,392 - - (320,864)
Other
comprehensive
income - - - - - - - 245,460 - 245,460
Share-based
payment
charge - - - 164,000 - - - - - 164,000
Purchase
of shares - - - - (57,809) - - - - (57,809)
Sale of
shares - - - - 32,230 - - - - 32,230
Dividends - - - - - - (745,365) - - (745,365)
Balance
at 31
December
2011 11,136,121 11,105,383 - 4,325,508 (5,471,023) (1,128,716) 762,273 (830,472) (42,264) 19,856,810
--------------- --------------- ---------------- -------------------- ---------------- ---------------- ---------------- ---------------------- ------------------------ ------------------
(Loss)
for the
period - - - - - - (4,451,270) - (3,770) (4,455,040)
Elimination
on disposal - - - - - - (202,944) 202,944 - -
Other
comprehensive
income - - - - - - - (216,527) - (216,527)
Share-based
payment
charge - - - 24,764 - - - - - 24,764
Transfer - - - 296,206 (296,206) - - - - -
-------------------- ---------------- ------------------
Balance
at 31
December
2012 11,136,121 11,105,383 - 4,646,478 (5,767,229) (1,128,716) (3,891,941) (844,055) (46,034) 15,210,007
--------------- --------------- ---------------- -------------------- ---------------- ---------------- ---------------- ---------------------- ------------------------ ------------------
East West Resources plc
Consolidated statement of cash flows
for the year ended 31 December 2012
Year to 31 Year to 31
December December
2012 2011
GBP GBP
(Loss) for the year (4,455,040) (9,607,680)
Adjustments for:
Depreciation of property, plant and
equipment 19,690 52,600
Amortisation of intangible assets - 2,150,109
Foreign exchange losses 31,215 96,538
Taxation expense 92,829 1,836,807
Unrealised gains on financial assets
designated at fair value 307,703 155,366
Realised losses on financial assets
designated at fair value (564,800) 2,213,170
Net cost on acquisition of financial
assets designated at fair value 2,178,932 40,831
(Increase)/ decrease in inventories (45,134,639) 58,766,701
(Increase)/ decrease in trade and
other receivables (6,477,737) 41,936,350
Unrealised (losses) on financial liabilities
at fair value (4,411,401) (13,736,490)
Increase/ (decrease) in trade and
other payables 10,430,606 (43,447,274)
Share-based payment charge 24,764 164,000
Loss on disposal of subsidiaries 814,289 1,500,000
Cash used in operations (47,143,589) 42,121,028
Taxation (paid) (203,501) (481,175)
----------------------- -------------
Net cash flow (used)/ generated in
operating activities (47,347,090) 41,639,853
----------------------- -------------
Investing activities
Disposal of subsidiary undertakings (571,394) (868,139)
Purchase of property, plant and equipment (2,417) (83,405)
Disposal of property, plant and equipment 29,859 141,115
----------------------- -------------
Net cash (used) in investing activities (543,952) (810,429)
----------------------- -------------
Financing activities
Purchase of shares by employee benefit
trust - (25,579)
Increase/ (decrease) in short term
liabilities under sale and repurchase
agreements 62,970,469 (37,305,963)
(Decrease) in short term borrowings (12,848,867) (18,644,186)
Dividends paid to owners of the parent - (745,365)
----------------------- -------------
Net cash generated/(used)in financing
activities 50,121,602 (56,721,093)
----------------------- -------------
Net increase/(decrease) in cash and
cash equivalents 2,230,560 (15,891,669)
Cash and cash equivalents at the beginning
of the year 15,378,657 31,121,434
Foreign exchange gains on translation
of foreign subsidiaries (247,740) 148,892
----------------------- -------------
Cash and cash equivalents at the end
of the year 17,361,477 15,378,657
----------------------- -------------
1. Basis of preparation
The financial information set out in this announcement does not
constitute the Group's statutory accounts for the year ended 31
December 2012 or 2011 but is derived from those accounts. Statutory
accounts for the 2011 have been delivered to the Registrar of the
Companies, and those for 2012 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 2012 were approved by the Board of
Directors on 29 April 2012 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 (IFRS's) as endorsed for use in the European Union, this
announcement does not itself contain sufficient information to
comply with IFRS's. The accounting policies adopted in this
announcement have been consistently applied and are consistent with
the policies used in the preparation of the statutory accounts for
the period ending 31 December 2012.
The consolidated financial statements of the Group have been
prepared in accordance with the Companies Act 2006 and
International Financial Reporting Standards (IFRS) as developed and
published by the International Accounting Standards Board (IASB) as
adopted by the European Union (EU).
2. Segmental analysis
The Group has two reportable segments attributable to its
continuing operations and unallocated central revenues and
costs:
Physical metals - comprises Ambrian Metals Limited, a physical
metals merchant.
Investment portfolio - comprises the Group's principal
investment portfolio held in Ambrian Principal Investments
Limited.
Unallocated central revenues principally represent recharges of
costs from Ambrian Resources AG ("ARAG"). Unallocated central costs
relate to overheads incurred in connection with operating the
public limited company and include the share-based payment charges
in relation to the staff share option schemes, the remuneration of
the Directors of East West Resources plc and the costs of ARAG.
During the year the Group disposed of its Asset Management
business and entered into an agreement to dispose of its Biofuels
business (which was completed after the year-end). During the year,
the Group closed down its fossil fuels activities. As a result of
these disposals and closures, the three divisions have been treated
as discontinued activities of the Group.
During 2011, the Group disposed of its LME futures broking
business and its Corporate finance & equities division (which
was completed after the year-end). The two divisions were treated
as discontinued activities of the Group in 2011.
The measurement of the segmental revenue, profit before tax,
capital expenditure, depreciation, total assets, total liabilities
and net assets have been prepared using consistent accounting
policies across the segments.
Total income Physical Metals Investment Unallocated Total
Portfolio Central
Continuing operations 2012 2012 2012 2012
GBP GBP GBP GBP
Turnover 1,128,734,216 - 333,378 1,129,067,594
Cost of Sales (1,124,540,252) - - (1,124,540,252)
Revenue - (476,778) - (476,778)
------------------------- --------------- ---------------- ----------------
4,193,964 (476,778) 333,378 4,050,564
------------------------- --------------- ---------------- ----------------
Physical Metals Investment Unallocated Restated
Portfolio Central Total
2011 2011 2011 2011
GBP GBP GBP GBP
Turnover 1,548,908,551 - 546,773 1,549,455,324
Cost of Sales (1,545,156,672) - - (1,545,156,672)
Revenue - (1,409,649) - (1,409,649)
------------------------- --------------- ---------------- ----------------
3,751,879 (1,409,649) 546,773 2,889,003
------------------------- --------------- ---------------- ----------------
There has been a change in the presentation of the Revenue
during the 2012 financial year given the change in the Group's
primary business operations. This has lead to the Revenue line
being disclosed as a combination of Turnover (gross revenues
generated predominantly from physical sales and a small margin of
unallocated central revenue), Cost of Sales (direct costs
associated with the sales of physical metals trading) and Revenue
(the investment portfolio gains/(losses).
There is no change to the net profit of the Group due to the
change in the presentation; however the presentation better
reflects the operations. Further there is no effect on the
presentation of the earnings per share, nor the diluted earnings
per share.
Restated
2012 2011
Discontinued operations GBP GBP
Biofuels 166,644 2,194,656
Fossil Fuels 466,425 401,285
Asset Management 30,324 90,000
Corporate finance & equities* - 4,119,339
LME futures broking* - 513,891
---------- ------------
663,393 7,319,171
---------- ------------
663,393 7,319,171
---------- ------------
2012 2011
Investment portfolio income GBP GBP
represents:
Unrealised gains/ (losses)
on financial assets designated
at fair value 278,865 (1,260,821)
Realised losses on financial
assets designated at fair
value (779,036) (155,366)
Dividends, distributions
and other 23,393 6,538
---------- ------------
(476,778) (1,409,649)
---------- ------------
2012 2011
Profit/(loss) before tax GBP GBP
Continuing operations
Physical metals 987,287 1,653,681
Investment portfolio (555,977) (1,660,189)
Unallocated central (1,573,045) (2,140,571)
------------------------- ------------
(1,141,735) (2,147,079)
------------------------- ------------
Restated
2012 2011
Discontinued operations GBP GBP
Biofuels (2,680,185) 689,422
Fossil Fuels (455,096) (1,307,346)
Asset Management (85,195) (159,674)
Corporate finance & equities* - (5,458,997)
LME futures broking* - (53,637)
------------------------- ------------
(3,220,476) (6,290,232)
------------------------- ------------
(4,362,211) (8,437,311)
------------------------- ------------
Capital expenditure
Biofuels - 11,252
Unallocated central - 72,153
------------------------- ------------
- 83,405
------------------------- ------------
Depreciation
Biofuels 7,214 22,714
Unallocated central 19,690 29,886
26,904 52,600
------------------------- ------------
*These operations were discontinued during the 2011 financial
year
2012 2011
Total assets GBP GBP
Physical metals 303,767,119 239,251,286
Investment portfolio 1,109,262 2,084,079
Unallocated central 4,954,244 6,565,542
Biofuels - 10,556,315
Fossil fuels 24,848 455,183
------------------------- ------------
309,855,473 258,912,405
------------------------- ------------
Total liabilities
Physical metals 293,641,980 230,203,388
Investment portfolio 109,716 35,613
Unallocated central 869,166 1,547,696
Biofuels - 6,514,782
Fossil fuels 24,604 754,116
------------------------- ------------
294,645,466 239,055,595
------------------------- ------------
The majority of the Group's non-current assets are located in
the UK. The information required to disclose the geographical
analysis of revenues from customers is not available and the cost
to develop it would be excessive.
3 Earnings per Ordinary Share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year,
excluding shares held in the Employee Benefit Trust and Treasury
shares.
The calculation of diluted earnings per share is based on the
basic earnings per share adjusted to allow for the issue of shares
through the share option schemes on the assumed conversion of all
dilutive options.
Options exercisable in 2012 and 2011 have been excluded from the
diluted earnings per share calculation because they are
antidilutive.
Reconciliations of the earnings and weighted average number of
shares in the calculations are set out below.
2012 2011
(Loss) Weighted Per share (Loss) Weighted Per share
Attributable average amount Attributable average amount
to number to number
Owners of shares Owners of shares
of the of the
Company Company
GBP (pence) GBP (pence)
Continuing and discontinued operations
Basic earnings
per share (4,451,270) 100,007,699 (4.45) (9,604,730) 97,260,778 (9.88)
------------- --------------
Dilutive - -
effect of
share options
---------------------- ----------------------
Diluted
earnings
per share (4,451,270) 100,007,699 (4.45) (9,604,730) 97,260,778 (9.88)
------------- --------------
Continuing operations
Basic earnings
per share (1,230,794) 100,007,699 (1.23) (3,314,498) 97,260,778 (3.41)
------------- --------------
Dilutive - -
effect of
share options
---------------------- ----------------------
Diluted
earnings
per share (1,230,794) 100,007,699 (1.23) (3,314,498) 97,260,778 (3.41)
------------- --------------
The loss attributable to the owners of the company for
continuing and discontinued operations used in the above
calculation is that presented in the consolidated statement of
comprehensive income.
The loss attributable to owners of the company for discontinued
operations is derived from the loss from continuing operations of
GBP1,234,564 (2011: loss GBP3,317,448) adjusted for the loss for
the period attributable to the non-controlling interest of GBP3,770
(2011: loss GBP2,950).
4 Discontinued operations
On 18 July 2012, the Group entered into an agreement to dispose
of its entire interest in Ambrian Asset Management Limited ("AAM")
which was completed on 7 December 2012 and on 11 December 2012, the
Group entered into heads of terms to sell its entire interest in
Ambrian Energy GmbH ("AEG"). The sale of AEG was completed on 18
February 2013 but with the change of control passing with effect
from 31 December 2012. As a result of these disposals, the
operations of AAM and AEG during the year ended 31 December 2012
have been treated as discontinued operations.
During the year the businesses carried out by Ambrian Energy
Limited ("AEL") and Strategic Energy Bank Limited ("SEB"), as
advisers and arrangers of fossil fuel transactions, ceased trading
and have been treated as discontinued operations.
Trade and other receivables contain a sum of GBP1,630,468
representing the sale proceeds from the disposal of AEG. This
amount had been received before the date of signing these financial
statements.
The assets attributable to the discontinued operations as at
their respective effective disposal dates are set out below.
At disposal
2012 2011 2011*
GBP GBP GBP
Property, plant and
equipment 76,838 105,439 697
Trade and other receivables 12,774 828,133 3,247,998
Inventory 1,329,141 5,742,300 -
Cash 1,338,196 1,592,681 5,338,335
Trade and other payables (266,048) (3,493,803) (1,716,834)
------------ ------------ ------------
Net asset position 2,490,901 4,774,750 6,870,196
------------ ------------ ------------
*These figures are the 2011 figures for the operations that were
discontinued during the 2011 financial year and are disclosed for
comparative reasons only
The post-tax loss on disposal of discontinued operations was
determined as follows:
Result of discontinued operations
2012 2011 2011*
GBP GBP GBP
Revenue 4,545,521 2,686,404 4,633,230
Administrative expenses (6,951,709) (3,197,434) (8,245,994)
--------------- -------------------- ------------
Loss on operating
activities (2,406,188) (511,030) (3,612,764)
Loss from selling
discontinued operations (814,289) - (1,500,000)
--------------- -------------------- ------------
(3,220,477) (511,030) (5,112,764)
Taxation (expense) - (266,568) (399,870)
--------------- -------------------- ------------
(Loss) for the year (3,220,477) (777,598) (5,512,634)
--------------- -------------------- ------------
(Loss) per share on discontinued operations:
Basic in pence (3.22) (5.67)
*These figures are the 2011 figures for the operations that were
discontinued during the 2011 financial year and are disclosed for
comparative reasons only
The total proceeds of sale from Ambrian Asset Management Limited
were GBP63,196 and the total proceeds of sale from Ambrian Energy
GmbH were GBP1,630,468.
Statement of cash 2012 2011 2011*
flows from discontinued
operations
GBP GBP GBP
Operating activities (673,247) (55,362) (13,483,920)
Investing activities (571,394) - (868,139)
Net cash from
discontinued operations (1,244,641) (55,362) (14,352,059)
------------ -------------------- -------------
*These figures are the 2011 figures for the operations that were
discontinued during the 2011 financial year and are disclosed for
comparative reasons only
In the above tables, the comparative information for 2011 has
been restated to present comparatives for the activities
discontinued in 2012, rather than the results actually arising from
the activities discontinued in 2011.
5 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 East West Resources plc.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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