Final Results
23 March 2009
Commoditrade Inc.
(“Commoditrade” or “the Company”)
Final Results for the year ended 31 December 2008
Commoditrade (ticker: CMM.L), the commodities investment group, is pleased to announce its audited results for the year ended 31 December 2008.
Summary Financials
Revenue H1 2008: £7,750,000
Revenue H2 2008: £9,956,000
Total Revenue 2008: £17,706,000
Profit from on-going operations prior to non-cash items: £2,548,000
· Gross Revenue £17.7 million (2007: £33.9 million)
· Profit from operations prior to non-cash and sign-on bonus items £2.6 million (2007: £16.1 million)
· Total of £8.9 million in cash back to shareholders during the period via a £5.0 million dividend and £3.9 million share buy back balance
· No debt at year end with net cash at bank of £5.7 million
· Translation reserve increased to £3.1 million due to foreign exchange gains
· After including non-cash items totalling £24.5 million (*note below) and sign-on bonus payments of £0.5 million the Company incurred a loss for the year of £22.4 million (2007: Loss £6.3 million)
Strategic and Operational highlights
· Management changes made during the year including the appointment of David Phipps as Chief Executive on 3 September 2008
· Formation of Commoditrade Asset Management Limited (“CMMAM”) and reorganisation of operational platform ahead of the Group’s future product diversification
· Strong LME base metals franchise was further enhanced with additional market professionals during the year
· Acquisition announced on 1 December 2008 of AMCO Management Services Limited, the controlling partner of AMCO Commodities LLP, a commodities fund manager (“AMCO”) and following receipt of approval to the transaction from the FSA on 18 February 2009, completion of the acquisition, took place on 20 February 2009.
*Note: Non-cash items include £11.8 million in respect of amortisation of intangible asset (2007: £12.1 million) the carrying value of which has been reduced to £3.9 million from £26.22 million at the beginning of 2007. Accordingly, amortisation of this intangible will have a significantly less material impact on future results. In addition, non-cash items include £11.2 million in respect of share based payments (2007: £5.5 million) of which £3 million related to the exercise of options by Graham Butt during the year and so will not recur in future years and £1.5 million in relation to the permanent diminution in the available for sale assets.
Commenting on the Group’s outlook, David Phipps, Chief Executive, said:
“Our core LME base metals franchise remains strong and although we anticipate that total LME volumes are likely to be lower in 2009 than last year we believe the changes we have made will enhance and increase revenue flows during the year.
“The acquisition of AMCO will add to our current revenue flows and provide cost savings as well as additional revenue growth as we add additional commodity asset classes to the product portfolio.
“Diversification into other commodity areas will be activated as soon as possible following the creation of the Group’s UK regulated entity and initial revenue flows from this area are expected to commence during the final quarter of 2009”
(“Commoditrade” or “the Company”)
Final Results for the year ended 31 December 2008
Commoditrade (ticker: CMM.L), the commodities investment group, is pleased to announce its audited results for the year ended 31 December 2008.
Summary Financials
Revenue H1 2008: £7,750,000
Revenue H2 2008: £9,956,000
Total Revenue 2008: £17,706,000
Profit from on-going operations prior to non-cash items: £2,548,000
· Gross Revenue £17.7 million (2007: £33.9 million)
· Profit from operations prior to non-cash and sign-on bonus items £2.6 million (2007: £16.1 million)
· Total of £8.9 million in cash back to shareholders during the period via a £5.0 million dividend and £3.9 million share buy back balance
· No debt at year end with net cash at bank of £5.7 million
· Translation reserve increased to £3.1 million due to foreign exchange gains
· After including non-cash items totalling £24.5 million (*note below) and sign-on bonus payments of £0.5 million the Company incurred a loss for the year of £22.4 million (2007: Loss £6.3 million)
Strategic and Operational highlights
· Management changes made during the year including the appointment of David Phipps as Chief Executive on 3 September 2008
· Formation of Commoditrade Asset Management Limited (“CMMAM”) and reorganisation of operational platform ahead of the Group’s future product diversification
· Strong LME base metals franchise was further enhanced with additional market professionals during the year
· Acquisition announced on 1 December 2008 of AMCO Management Services Limited, the controlling partner of AMCO Commodities LLP, a commodities fund manager (“AMCO”) and following receipt of approval to the transaction from the FSA on 18 February 2009, completion of the acquisition, took place on 20 February 2009.
*Note: Non-cash items include £11.8 million in respect of amortisation of intangible asset (2007: £12.1 million) the carrying value of which has been reduced to £3.9 million from £26.22 million at the beginning of 2007. Accordingly, amortisation of this intangible will have a significantly less material impact on future results. In addition, non-cash items include £11.2 million in respect of share based payments (2007: £5.5 million) of which £3 million related to the exercise of options by Graham Butt during the year and so will not recur in future years and £1.5 million in relation to the permanent diminution in the available for sale assets.
Commenting on the Group’s outlook, David Phipps, Chief Executive, said:
“Our core LME base metals franchise remains strong and although we anticipate that total LME volumes are likely to be lower in 2009 than last year we believe the changes we have made will enhance and increase revenue flows during the year.
“The acquisition of AMCO will add to our current revenue flows and provide cost savings as well as additional revenue growth as we add additional commodity asset classes to the product portfolio.
“Diversification into other commodity areas will be activated as soon as possible following the creation of the Group’s UK regulated entity and initial revenue flows from this area are expected to commence during the final quarter of 2009”
