TIDMCMM
RNS Number : 5736Z
Commoditrade Inc.
24 September 2009
24 September 2009
AIM: CMM
Commoditrade Inc.
("Commoditrade" or "the Group")
Half Year Report
for the six months ended 30 June 2009
Commoditrade Inc., the AIM-listed commodities investment group, announces its
interim results for the six months ended 30 June 2009.
Summary Financials
* Total Group Revenue US$9.6 million (2008: US$12.9 million).
* Loss before tax prior to non-cash items US$3.0 million (2008: profit US$2.0
million).
* Loss after including non-cash items totalling US$9.3 million was US$12.3 million
(2008: US$23.6 million).
* No debt and net cash at 30 June 2009 of US$8.5 million.
Operations
* Continuation of the volatility in prices experienced in Q4 of 2008 into the
first half of 2009. However, in conjunction with this, liquidity also tightened.
* Given these market conditions the Board has continued to maintain its tight
control on risk during the first half of 2009.
* Despite the challenging market environment, fee based revenues continued to
perform robustly during the first half.
* The Group completed its programme commenced in late 2008 to build-out a new
operational and risk platform in line with the strategy to introduce a range of
asset trading desks.
Commenting on outlook, David Phipps, Chief Executive, said:
"The challenging market conditions experienced at the end of 2008, as
anticipated, continued into the first half of 2009 and the tightening of
liquidity in the base metals markets negatively impacted upon H1 Revenues. We
expect the business to benefit from more normalised market conditions in the
second half of the year.
"Our key focus has been to diversify our future revenue streams and we are
pleased to have achieved our target of developing a robust core operational and
risk platform to enable us to diversify in to other commodity areas by the end
of the half year. As a result of this diversification strategy we will be
entering into the energy market in the second half of the year closely followed
by other product developments. We expect the benefits of this to accrue in 2010.
+-----------------------------------------------+----------------------------------+
| Enquiries: | www.commoditrade.net |
+-----------------------------------------------+----------------------------------+
| Commoditrade Inc, David Phipps, Chief | tel: +44(0)20 7245 1100 |
| Executive | |
| | |
+-----------------------------------------------+----------------------------------+
| Nomad - Strand Partners | tel: +44(0)20 7409 3494 |
| James Harris/Angela Peace | |
| | |
+-----------------------------------------------+----------------------------------+
| Broker - Liberum Capital | tel: +44(0)20 3100 2000 |
| Chris Bowman/Ellen Francis | |
| | |
+-----------------------------------------------+----------------------------------+
| Media/IR - Hansard Group | tel: +44(0) 20 7245 1100 |
| John Bick/Justine James | tel: +44(0) 7872 061007 |
+-----------------------------------------------+----------------------------------+
Interim Statement
Results
The vast majority of commodity trading is executed in US dollars and the Group's
resultant revenue is generated in US dollars. Accordingly, when the Group
reported its last final results on 23 March 2009 the board indicated that it
proposed to change the Company's reporting currency, historically reported in
GBP, to US dollars for future reporting periods. The half year results have been
prepared in accordance with that change.
Gross revenue for the period was US$9.6 million before deduction of clearing and
administration fees (2008: US$12.9 million).
Operational clearing and related administration costs were US$5.2 million (2008:
US$4.3 million). Net loss for the period after direct trading costs and bonuses
but before amortisation of intangible assets and share options charges, was
US$3.0 million (2008: US$2.0 million profit).
Total non-cash charges during the period amounted to US$9.3 million consisting
of amortisation of intangible assets of US$7.1 million and charges associated
with the issue of share options of US$2.2 million resulting in a loss before tax
of US$12.3 million (2008: loss US$23.6 million). No final dividend is proposed.
As at 30 June 2009 the Group had no debt and its cash balances stood at US$8.5
million (2008: US$2.7 million).
Operational Review
We continued to see the challenging market conditions of 2008 carry on in to the
first half of 2009. As mentioned in our year end statement we anticipated a
downturn in market activity year on year but this was particularly true of the
first quarter in the forward base metals markets in which we specialise. Whilst
base metal flat price volatility has overall remained this has not been matched
by an improvement in liquidity and as a result the board has maintained its
policy of strict risk control and monitoring.
Despite the challenging market conditions, the Group's fee based income from its
core brokerage business has been encouraging particularly in the second quarter.
During the first six months the management team continued to make good progress
with the restructuring of the Group's international and UK operations including
both regulatory approvals and the Group's corporate structure. In addition on
20 February, following approval by the FSA, the Group completed the acquisition
of the outstanding equity in its commodities fund management business.
The Group completed its programme commenced in late 2008 to build-out a new
operational and risk platform in line with future strategy to introduce a range
of asset trading desks.
On 7 May the Board was pleased to announce the appointment of Liberum Capital
Limited as Broker to the Company. Strand Partners Limited are Nomad to the
Company.
Current Trading and Outlook
The challenging market conditions experienced at the end of 2008, as
anticipated, continued into the first half of 2009 and the tightening of
liquidity in the base metals markets negatively impacted upon H1 Revenues. We
expect the business to benefit from more normalised market conditions in the
second half of the year.
Our key focus has been to diversify our future revenue streams and we are
pleased to have achieved our target of developing a robust core operational and
risk platform to enable us to diversify in to other commodity areas by the end
of the half year. As a result of this diversification strategy we will be
entering into the energy market in the second half of the year closely followed
by other product developments. We expect the benefits of this to accrue in 2010.
+------------------------------------+----------------------------------+
| David Phipps, Chief Executive | Graham Porter, Chairman |
+------------------------------------+----------------------------------+
| 24 September 2009 | 24 September 2009 |
+------------------------------------+----------------------------------+
www.commoditrade.net
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2009
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | Note | Six | Six | Six | Six | Six | Six |
| | | months | months | months | months | months | months |
| | | ended | ended | ended | ended | ended | ended |
| | | 30 | 30 | 30 | 30 | 30 | 30 |
| | | June | June | June | June | June | June |
| | | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 |
| | | Prior | Non | Total | (restated) | (restated) | (restated) |
| | | to | cash | | Prior to | Non cash | Total |
| | | non | and | | non cash | and sign | |
| | | cash | sign | | and sign | on | |
| | | and | on | | on | bonus | |
| | | sign on | bonus | | bonus | costs | |
| | | bonus costs | costs | | costs | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Continuing | | | | | | | |
| operations | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| LME | | 8,454 | - | 8,454 | 12,853 | - | 12,853 |
| trading | | | | | | | |
| revenues | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Clearing | | (5,212) | - | (5,212) | (4,284) | - | (4,284) |
| and | | | | | | | |
| related | | | | | | | |
| costs | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Direct | | (3,954) | - | (3,954) | (4,182) | - | (4,182) |
| costs, | | | | | | | |
| financing | | | | | | | |
| charges | | | | | | | |
| and | | | | | | | |
| trader | | | | | | | |
| bonuses | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Amortisation of | - | (7,070) | (7,070) | | (10,606) | (10,606) |
| intangible | | | | | | |
| asset | | | | | | |
+-------------------------+-------------+---------+----------+------------+------------+------------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Net | 6 | (712) | (7,070) | (7,782) | 4,387 | (10,606) | (6,219) |
| loss | | | | | | | |
| from | | | | | | | |
| associate | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Revenue | | 1,096 | - | 1,096 | - | - | - |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Other | | - | - | - | 265 | - | 265 |
| income | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Share | | - | (2,249) | (2,249) | - | (14,183) | (14,183) |
| based | | | | | | | |
| payment | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Sign-on | | - | - | - | - | (772) | (772) |
| bonus | | | | | | | |
| payments | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Other | | (2,696) | - | (2,696) | (2,938) | - | (2,938) |
| administrative | | | | | | | |
| expenses | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Total | (2,696) | (2,249) | (4,945) | (2,938) | (14,955) | (17,893) |
| administrative | | | | | | |
| expenses | | | | | | |
+-------------------------+-------------+---------+----------+------------+------------+------------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Operating | | (2,312) | (9,319) | (11,631) | 1,714 | (25,561) | (23,847) |
| loss | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Finance | | 2 | - | 2 | 290 | - | 290 |
| income | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Finance | | (711) | - | (711) | - | - | - |
| cost | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Loss for the | (3,021) | (9,319) | (12,340) | 2,004 | (25,561) | (23,557) |
| year before tax | | | | | | |
+-------------------------+-------------+---------+----------+------------+------------+------------+
| | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Tax | 4 | - | - | - | - | - | - |
| charge | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Net loss for | (3,021) | (9,319) | (12,340) | 2,004 | (25,561) | (23,557) |
| the period | | | | | | |
+-------------------------+-------------+---------+----------+------------+------------+------------+
| | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Currency | | - | (50) | (50) | - | - | - |
| translation | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Available | | 359 | - | 359 | - | (516) | (516) |
| for sale | | | | | | | |
| assets | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Total | | (2,662) | (9,369) | (12,031) | 2,004 | (26,077) | (24,073) |
| comprehensive | | | | | | | |
| income for | | | | | | | |
| the year | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | ------- | ------- | ------- | ------- | ------- | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Basic | 5 | | | (3.53) | | | (6.31) |
| loss | | | | | | | |
| per | | | | | | | |
| share | | | | | | | |
| (cents) | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| Diluted | 5 | | | (3.53) | | | (6.31) |
| loss | | | | | | | |
| per | | | | | | | |
| share | | | | | | | |
| (cents) | | | | | | | |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
| | | | | ------- | | | ------- |
+----------------+--------+-------------+---------+----------+------------+------------+------------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2008
+----------------+--------+-------------+----------+----------+
| | Note | Prior | Non | Total |
| | | to | cash | |
| | | non | and | |
| | | cash | sign | |
| | | and | on | |
| | | sign on | bonus | |
| | | bonus costs | costs | |
+----------------+--------+-------------+----------+----------+
| | | US$'000 | US$'000 | US$'000 |
+----------------+--------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| LME | | 30,289 | - | 30,289 |
| trading | | | | |
| revenues | | | | |
+----------------+--------+-------------+----------+----------+
| Clearing | | (11,974) | - | (11,974) |
| and | | | | |
| related | | | | |
| costs | | | | |
+----------------+--------+-------------+----------+----------+
| Direct | | (7,114) | - | (7,114) |
| costs, | | | | |
| financing | | | | |
| charges | | | | |
| and | | | | |
| trader | | | | |
| bonuses | | | | |
+----------------+--------+-------------+----------+----------+
| Amortisation of | - | (21,211) | (21,211) |
| intangible | | | |
| asset | | | |
+-------------------------+-------------+----------+----------+
| | | ------- | ------- | ------- |
+----------------+--------+-------------+----------+----------+
| Net | 6 | 11,201 | (21,211) | (10,010) |
| loss | | | | |
| from | | | | |
| associate | | | | |
+----------------+--------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| Revenue | | 820 | - | 820 |
+----------------+--------+-------------+----------+----------+
| Other | | 148 | - | 148 |
| income | | | | |
+----------------+--------+-------------+----------+----------+
| Share | | - | (22,369) | (22,369) |
| based | | | | |
| payment | | | | |
+----------------+--------+-------------+----------+----------+
| Sign-on | | - | (1,020) | (1,020) |
| bonus | | | | |
| payments | | | | |
+----------------+--------+-------------+----------+----------+
| Other | | (6,203) | - | (6,203) |
| administrative | | | | |
| expenses | | | | |
+----------------+--------+-------------+----------+----------+
| Available | | - | (2,238) | (2,238) |
| for sale | | | | |
| assets | | | | |
| write off | | | | |
+----------------+--------+-------------+----------+----------+
| Total | (6,203) | (25,627) | (31,830) |
| administrative | | | |
| expenses | | | |
+-------------------------+-------------+----------+----------+
| | | ------- | ------- | ------- |
+----------------+--------+-------------+----------+----------+
| Operating | | 5,966 | (46,838) | (40,872) |
| loss | | | | |
+----------------+--------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| Finance | | 305 | - | 305 |
| income | | | | |
+----------------+--------+-------------+----------+----------+
| Finance | | (314) | - | (314) |
| cost | | | | |
+----------------+--------+-------------+----------+----------+
| | | ------- | ------- | ------- |
+----------------+--------+-------------+----------+----------+
| Loss for the | 5,957 | (46,838) | (40,881) |
| year before tax | | | |
+-------------------------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| Tax | 4 | - | - | - |
| charge | | | | |
+----------------+--------+-------------+----------+----------+
| | | ------- | ------- | ------- |
+----------------+--------+-------------+----------+----------+
| Loss for the | 5,957 | (46,838) | (40,881) |
| year | | | |
+-------------------------+-------------+----------+----------+
| | | ------- | ------- | ------- |
+----------------+--------+-------------+----------+----------+
| Other | | | | |
| comprehensive | | | | |
| income | | | | |
+----------------+--------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| Available | | | (354) | (354) |
| for sale | | | | |
| assets | | | | |
+----------------+--------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| Total | | 5,957 | (47,192) | (41,235) |
| comprehensive | | | | |
| income for | | | | |
| the year | | | | |
+----------------+--------+-------------+----------+----------+
| | | ------- | ------- | ------- |
+----------------+--------+-------------+----------+----------+
| | | | | |
+----------------+--------+-------------+----------+----------+
| Basic | 5 | | | (11.86) |
| loss | | | | |
| per | | | | |
| share | | | | |
| (cents) | | | | |
+----------------+--------+-------------+----------+----------+
| | | | | ------- |
+----------------+--------+-------------+----------+----------+
| Diluted | 5 | | | (11.86) |
| loss | | | | |
| per | | | | |
| share | | | | |
| (cents) | | | | |
+----------------+--------+-------------+----------+----------+
| | | | | ------- |
+----------------+--------+-------------+----------+----------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2009
+-------------+--------+-----------+------------+------------+
| | Note | Unaudited | Unaudited | Audited |
| | | Six | six | year |
| | | months | months | ended |
| | | ended | ended | 31 |
| | | 30 June | 30 June | December |
| | | 2009 | 2008 | 2008 |
| | | US$'000 | (restated) | (restated) |
| | | | US$'000 | US$'000 |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Assets | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Non-current | | | | |
| assets | | | | |
+-------------+--------+-----------+------------+------------+
| Goodwill | 13 | 2,671 | - | - |
+-------------+--------+-----------+------------+------------+
| Investment | 6 | - | 17,676 | 7,070 |
| in | | | | |
| associate | | | | |
+-------------+--------+-----------+------------+------------+
| Property | | 1,040 | - | - |
| plant | | | | |
| and | | | | |
| equipment | | | | |
+-------------+--------+-----------+------------+------------+
| Other | 8 | 2,000 | 6,000 | 2,000 |
| receivable | | | | |
+-------------+--------+-----------+------------+------------+
| | | 5,711 | 23,676 | 9,070 |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Current | | | | |
+-------------+--------+-----------+------------+------------+
| Available | 7 | 3,327 | 6,434 | 2,668 |
| for sale | | | | |
| financial | | | | |
| assets | | | | |
+-------------+--------+-----------+------------+------------+
| Trade | 8 | 4,009 | 3,942 | 7,811 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+-------------+--------+-----------+------------+------------+
| Cash | | 8,534 | 2,702 | 8,274 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+-------------+--------+-----------+------------+------------+
| Total | | 15,870 | 13,078 | 18,753 |
| current | | | | |
| assets | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Total | | 21,581 | 36,754 | 27,823 |
| assets | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Liabilities | | | | |
+-------------+--------+-----------+------------+------------+
| Current | | | | |
+-------------+--------+-----------+------------+------------+
| Trade | 9 | 3,753 | 168 | 213 |
| and | | | | |
| other | | | | |
| payables | | | | |
+-------------+--------+-----------+------------+------------+
| Total | | 3,753 | 168 | 213 |
| liabilities | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Equity | | | | |
+-------------+--------+-----------+------------+------------+
| Share | 10 | 629 | 629 | 629 |
| capital | | | | |
+-------------+--------+-----------+------------+------------+
| Capital | | 92 | 92 | 92 |
| redemption | | | | |
| reserve | | | | |
+-------------+--------+-----------+------------+------------+
| Share | | 66,496 | 66,496 | 66,496 |
| premium | | | | |
+-------------+--------+-----------+------------+------------+
| Translation | | (50) | - | - |
| reserve | | | | |
+-------------+--------+-----------+------------+------------+
| Profit | | (49,339) | (30,631) | (39,607) |
| and | | | | |
| loss | | | | |
| account | | | | |
+-------------+--------+-----------+------------+------------+
| Total | | 17,828 | 36,586 | 27,610 |
| equity | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
| Total | | 21,581 | 36,754 | 27,823 |
| equity | | | | |
| and | | | | |
| liabilities | | | | |
+-------------+--------+-----------+------------+------------+
| | | | | |
+-------------+--------+-----------+------------+------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 June 2009
+---------+--------+---------+---------+------------+-------------+----------+----------+
| | | Share | Share | Capital | Translation | Profit | Total |
| | | capital | premium | redemption | reserve | and | equity |
| | | | account | reserve | | loss | |
| | | | | | | account | |
+---------+--------+---------+---------+------------+-------------+----------+----------+
| | | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------+--------+---------+---------+------------+-------------+----------+----------+
| | | | | | | | |
+---------+--------+---------+---------+------------+-------------+----------+----------+
| Balance at 1 | 629 | 66,496 | 92 | - | (39,607) | 27,610 |
| January 2009 | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| Share-based | - | - | - | - | 2,249 | 2,249 |
| payments | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| Transactions | 629 | 66,496 | 92 | | (37,358) | 29,859 |
| with owners | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| | | | | | | | |
+---------+--------+---------+---------+------------+-------------+----------+----------+
| Loss | | - | - | - | - | (12,340) | (12,340) |
| for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
+---------+--------+---------+---------+------------+-------------+----------+----------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income: | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| Reclassification | - | - | - | - | 359 | 359 |
| to profit or | | | | | | |
| loss in respect | | | | | | |
| of the available | | | | | | |
| for sale asset | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| Exchange | - | - | - | (50) | - | (50) |
| differences on | | | | | | |
| translation of | | | | | | |
| foreign | | | | | | |
| operations | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| Total | | | | | | |
| comprehensive | - | - | - | (50) | (11,981) | (12,031) |
| income for the | | | | | | |
| period | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| Balance at 30 | 629 | 66,496 | 92 | (50) | (49,339) | 17,828 |
| June 2009 | | | | | | |
+------------------+---------+---------+------------+-------------+----------+----------+
| | | | | | | | |
+---------+--------+---------+---------+------------+-------------+----------+----------+
| | | | | | | | |
+---------+--------+---------+---------+------------+-------------+----------+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 June 2008
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | Share | Share | Shares | Capital | Translation | Profit | Total |
| | capital | premium | to be | redemption | reserve | and | equity |
| | | account | issued | reserve | | loss | |
| | | | | | | account | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | (restated) | (restated) | (restated) | (restated) | (restated) | (restated) | (restated) |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Balance | | | | | | | |
| at 1 | 615 | 66,496 | - | 81 | - | (8,873) | 58,319 |
| January | | | | | | | |
| 2008 | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Dividends | - | - | - | - | - | (9,826) | (9,826) |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Share-based | | | | | | | |
| payments | - | - | - | - | - | 14,183 | 14,183 |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Shares | (11) | - | - | 11 | - | - | - |
| cancelled | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Issue | | | | | | | |
| of | 25 | | | | | (2,042) | (2,017) |
| share | | | | | | | |
| capital | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Transactions | | | | | | | |
| with owners | 629 | 66,496 | - | 92 | - | (6,558) | 60,659 |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Loss | - | - | - | - | - | (23,557) | (23,557) |
| for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Available | | | | | | | |
| for sale | | | | | | | |
| financial | | | | | | | |
| assets | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| - | - | - | - | - | - | (516) | (516) |
| current | | | | | | | |
| year | | | | | | | |
| losses | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Total | | | | | | | |
| comprehensive | | | | | | | |
| income for | | | | | | | |
| the period | - | - | - | - | - | (24,073) | (24,073) |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| Balance | | | | | | | |
| at 30 | 629 | 66,496 | - | 92 | - | (30,631) | 36,586 |
| June | | | | | | | |
| 2008 | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
| | | | | | | | |
+---------------+------------+------------+------------+------------+-------------+------------+------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2008
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| | Share | Share | Shares | Capital | Translation | Profit | Total |
| | capital | premium | to be | redemption | reserve | and | equity |
| | | account | issued | reserve | | loss | |
| | | | | | | account | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| | (restated) | (restated) | (restated) | (restated) | (restated) | (restated) | (restated) |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Balance | | | | | | | |
| at 1 | 615 | 66,496 | - | 81 | - | (8,873) | 58,319 |
| January | | | | | | | |
| 2008 | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Dividends | - | - | - | - | - | (9,826) | (9,826) |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Share-based | | | | | | | |
| payments | - | - | - | - | - | 22,369 | 22,369 |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Shares | (11) | - | - | 11 | - | - | - |
| cancelled | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Issue | | | | | | | |
| of | 25 | | | | | (2,042) | (2,017) |
| share | | - | - | - | - | | |
| capital | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Transactions | | | | | | | |
| with owners | 629 | 66,496 | | 92 | | 1,628 | 68,845 |
| | | | - | | - | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Loss | | | | | | | |
| for | - | - | - | - | - | (40,881) | (40,881) |
| the | | | | | | | |
| period | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| - | | | | | | | |
| current | - | - | - | - | - | (1,028) | (1,028) |
| year | | | | | | | |
| losses | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| - | | | | | | | |
| reclassification | - | | | | | 674 | 674 |
| to profit or | | | | | | | |
| loss | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Total | | | | | | | |
| comprehensive | | | | | | | |
| income for | | | | | | | |
| the period | - | - | - | - | - | (41,235) | (41,235) |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| Balance | | | | | | | |
| at 31 | 629 | 66,496 | - | 92 | - | (39,607) | 27,610 |
| December | | | | | | | |
| 2008 | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
| | | | | | | | |
+------------------+-----------------+--------------+------------+--------------------+-------------+----------------+--------------+
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2009
+----------------------------------------+------------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | Six months | six months | year ended |
| | ended | ended | |
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | US$'000 | (restated) | 2008 |
| | | US$'000 | (restated) |
| | | | US$'000 |
+----------------------------------------+------------+------------+------------+
| | | | |
+----------------------------------------+------------+------------+------------+
| | | | |
+----------------------------------------+------------+------------+------------+
| Operating activities | | | |
+----------------------------------------+------------+------------+------------+
| Loss after tax | (12,340) | (23,557) | (40,881) |
+----------------------------------------+------------+------------+------------+
| Permanent diminution of available for | - | - | 2,238 |
| sale asset | | | |
+----------------------------------------+------------+------------+------------+
| Amortisation of intangible asset in | 7,070 | 10,606 | 21,211 |
| associate | | | |
+----------------------------------------+------------+------------+------------+
| Depreciation of property plant and | 52 | - | - |
| equipment | | | |
+----------------------------------------+------------+------------+------------+
| Share based payment | 2,249 | 14,183 | 22,369 |
+----------------------------------------+------------+------------+------------+
| Change in trade and other receivables | 3,990 | 5,847 | 2,008 |
+----------------------------------------+------------+------------+------------+
| Change in trade and other payables | 3,386 | (121) | (85) |
+----------------------------------------+------------+------------+------------+
| Foreign exchange | (50) | (7) | - |
+----------------------------------------+------------+------------+------------+
| Net cash inflow from operating | 4,357 | 6,951 | 6,860 |
| activities | | | |
+----------------------------------------+------------+------------+------------+
| | | | |
+----------------------------------------+------------+------------+------------+
| Investing activities | | | |
+----------------------------------------+------------+------------+------------+
| Purchase of other receivable | - | (3,970) | - |
+----------------------------------------+------------+------------+------------+
| Sale of available for sale financial | - | - | 1,090 |
| assets | | | |
+----------------------------------------+------------+------------+------------+
| Purchase of available for sale | (300) | - | - |
| financial assets | | | |
+----------------------------------------+------------+------------+------------+
| Purchase of business | (3,059) | - | - |
+----------------------------------------+------------+------------+------------+
| Purchase of property plant and | (1,079) | - | - |
| equipment | | | |
+----------------------------------------+------------+------------+------------+
| Revaluation of available for sale | - | - | 604 |
| asset | | | |
+----------------------------------------+------------+------------+------------+
| Net cash (outflow)/ inflow from | (4,438) | (3,970) | 1,694 |
| investing activities | | | |
+----------------------------------------+------------+------------+------------+
| | | | |
+----------------------------------------+------------+------------+------------+
| Financing activities | | | |
+----------------------------------------+------------+------------+------------+
| Purchase of own shares | - | (7,616) | (7,616) |
+----------------------------------------+------------+------------+------------+
| Issue of shares | - | 25 | 25 |
+----------------------------------------+------------+------------+------------+
| Dividends paid | - | (9,826) | (9,826) |
+----------------------------------------+------------+------------+------------+
| Net cash outflow from financing | - | (17,417) | (17,417) |
| activities | | | |
+----------------------------------------+------------+------------+------------+
| | | | |
+----------------------------------------+------------+------------+------------+
| | | | |
+----------------------------------------+------------+------------+------------+
| Net decrease in cash and cash | (81) | (14,435) | (8,863) |
| equivalents | | | |
+----------------------------------------+------------+------------+------------+
| Cash acquired on acquisition of | 341 | - | - |
| business | | | |
+----------------------------------------+------------+------------+------------+
| Cash and cash equivalents at beginning | 8,274 | 17,137 | 17,137 |
| of period | | | |
+----------------------------------------+------------+------------+------------+
| Cash and cash equivalents at end of | 8,534 | 2,702 | 8,274 |
| period | | | |
+----------------------------------------+------------+------------+------------+
1 GENERAL INFORMATION
The information for the period ended 30 June 2009 does not constitute statutory
accounts as defined in the Companies Act 2006. The figures for the year ended 31
December 2008 have been extracted from the 2008 statutory financial statements.
The auditors' report on those accounts was unqualified.
2 ACCOUNTING POLICIES
Basis of preparation
The Company was incorporated as a Corporation in the Cayman Islands which does
not prescribe the adoption of any particular accounting framework. The Board has
resolved that the Group will follow International Financial Reporting Standards
(IFRS).
The Company's shares are listed on the AIM market of the London Stock Exchange.
The principal accounting policies of the Group remain unchanged from those set
out in the Group's 2008 financial statements except for the adoption of IAS 1
Presentation of Financial Statements (Revised 2007), IFRS 8 Operating Segments
and a change in the presentational currency of the company in accordance with
IAS 21 The Effects of Changes in Foreign Exchange Rates.
The adoption of IAS 1 (Revised 2007) does not affect the financial position or
profits of the Group, but gives rise to additional disclosures. The measurement
and recognition of the Group's assets, liabilities, income and expenses is
unchanged, however, some items that were recognised directly in equity are now
recognised in other comprehensive income, for example gains/losses on available
for sale financial assets. IAS 1 (Revised 2007) affects the presentation of
owner changes in equity and introduces a 'Statement of comprehensive income'.
The adoption of IFRS 8 has not changed the segments that are disclosed in the
interim financial statements.
The presentational currency of the Group has been changed from Sterling to US
dollars as the principal functional currency of the Group is US dollars. As a
consequence all comparative numbers are restated.
The accounting policies have been applied consistently throughout the Group for
the purposes of preparation of these condensed consolidated interim financial
statements.
Critical judgments and key sources of estimation uncertainty
The key sources of estimation uncertainty the Directors have made in preparing
this interim report are as follows:
* the fair value of the available for sale financial assets;
* the assumptions used to calculate the fair value of share options; and
* the assumptions regarding the fair value of assets acquired on the acquisition
of AMCO Management Services Limited, in particular the existence of no
intangible assets.
The Directors consider that the critical judgments in applying the accounting
policies, as detailed above, in preparing this interim report are as follows:
* the accounting for the Tambalan Interest as an associated business on the basis
the Group has significant influence, but not control;
* the existence of the intangible asset in the associated business;
* the inclusion in the income statement of an analysis of the net income from the
associated business as the Directors consider this is essential to understand
the financial information of the Group and
* the categorisation of certain financial assets as available for sale.
3 SEGMENTAL REPORTING
(a) By business segment (primary segment):
As defined under IFRS 8, the only material business segment the Group has is
that of an investment group specialising in investments in the commodities
trading sector.
(b) By geographical segment (secondary segment):
Under the definitions contained in IFRS 8, the only material geographic segment
that the Group operates in is currently Europe.
4 TAX
There is no tax charge for any period. The Group does not operate in the United
Kingdom and there is no tax arising on its operations. The relationship between
the expected tax expense at 28% and 30% and the tax expense/income actually
recognised in the income statement can be reconciled as follows:
+----------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | six | six | year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 June | 30 June | December |
| | 2009 | 2008 | 2008 |
| | US$'000 | (restated) | (restated) |
| | | US$'000 | US$'000 |
+----------+-----------+------------+------------+
| | | | |
+----------+-----------+------------+------------+
| (Loss) | (12,340) | (23,557) | (40,881) |
| for | | | |
| the | | | |
| period | | | |
| before | | | |
| taxation | | | |
+----------+-----------+------------+------------+
| | | | |
+----------+-----------+------------+------------+
| Tax | 28% | 30% | 30% |
| rate | | | |
+----------+-----------+------------+------------+
| | | | |
+----------+-----------+------------+------------+
| Expected | (3,455) | (7,067) | (12,264) |
| tax | | | |
| credit | | | |
+----------+-----------+------------+------------+
| Losses | 3,455 | 7,067 | 12,264 |
| not | | | |
| subject | | | |
| to tax | | | |
+----------+-----------+------------+------------+
| Actual | - | - | - |
| tax | | | |
| credit | | | |
| | | | |
+----------+-----------+------------+------------+
5 LOSS PER SHARE
The calculation of the basic loss per share is based on the net loss for the
period of US$12,340,000 (period ended 30 June 2008: US$23,557,000; year ended 31
December 2008: US$40,881,000) divided by the weighted average number of shares
in issue during the period of 349,268,114 (period ended 30 June 2008 :
373,439,054; year ended 31 December 2008 : 344,465,505). The share options are
anti-dilutive for all periods.
The (loss)/earnings per share adjusted to exclude the impact of amortisation of
intangible assets within the associate and the share options charge is as
follows:
+---------------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | six | six | year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 June | 30 June | December |
| | 2009 | 2008 | 2008 |
| | US$'000 | (restated) | (restated) |
| | | US$'000 | US$'000 |
+---------------+-----------+------------+------------+
| | | | |
+---------------+-----------+------------+------------+
| Net | (12,340) | (23,557) | (40,881) |
| loss | | | |
| for | | | |
| the | | | |
| period | | | |
+---------------+-----------+------------+------------+
| Amortisation | 7,070 | 10,606 | 21,211 |
| of | | | |
| intangible | | | |
| asset within | | | |
| associate | | | |
+---------------+-----------+------------+------------+
| Share | 2,249 | 14,183 | 22,369 |
| options | | | |
| charge | | | |
+---------------+-----------+------------+------------+
| | | | |
+---------------+-----------+------------+------------+
| Adjusted | (3,021) | 1,232 | 2,699 |
| net | | | |
| (loss)/profit | | | |
| for the | | | |
| period | | | |
+---------------+-----------+------------+------------+
Based on the adjusted net (loss)/profit for the period and the basic and fully
diluted weighted average number of shares in issue, the basic and fully diluted
adjusted (loss)/earnings per share is as follows:
+---------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | six | six | year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 June | 30 June | December |
| | 2009 | 2008 | 2008 |
| | Cents | (restated) | (restated) |
| | | Cents | Cents |
+---------+-----------+------------+------------+
| | | | |
+---------+-----------+------------+------------+
| | | | |
+---------+-----------+------------+------------+
| Basic | (0.86) | 0.33 | 0.78 |
+---------+-----------+------------+------------+
| Diluted | (0.86) | 0.33 | 0.71 |
+---------+-----------+------------+------------+
The share options for the period ended 30 June 2009 are anti-dilutive. The
diluted adjusted earnings per share is based on a weighted average number of
shares - issued on fully diluted basis of 376,931,735 for the period ended 30
June 2008 and 381,288,186 for the year ended 31 December 2008.
6 INVESTMENT IN ASSOCIATED BUSINESS
+----------------+-----------+------------+------------+
| |
+----------------+
| | Unaudited | Unaudited | Audited |
| | six | six | year |
| | months | months | ended |
| | ended | ended | 31 |
| | 30 June | 30 June | December |
| | 2009 | 2008 | 2008 |
| | US$'000 | (restated) | (restated) |
| | | US$'000 | US$'000 |
+----------------+-----------+------------+------------+
| | | | |
+----------------+-----------+------------+------------+
| | | | |
+----------------+-----------+------------+------------+
| | | | |
+----------------+-----------+------------+------------+
| (Loss)/profit | (712) | 4,387 | 11,201 |
| for the | | | |
| period | | | |
+----------------+-----------+------------+------------+
| Transferred | - | - | |
| to | | | |
| prepayments | | | |
| and accrued | | | |
| income | | | |
+----------------+-----------+------------+------------+
| Amortisation | (7,070) | (10,606) | (21,211) |
+----------------+-----------+------------+------------+
| | (7,782) | (6,219) | (10,010) |
+----------------+-----------+------------+------------+
| Decrease | 4,045 | 5,551 | 2,770 |
| in | | | |
| amounts | | | |
| included | | | |
| in trade | | | |
| and | | | |
| other | | | |
| receivables | | | |
+----------------+-----------+------------+------------+
| Bonuses | - | (772) | (772) |
| beyond | | | |
| contractual | | | |
| amounts | | | |
| treated as | | | |
| administrative | | | |
| expenses | | | |
+----------------+-----------+------------+------------+
| Cash | (3,333) | (9,165) | (13,199) |
| received | | | |
| from | | | |
| associate | | | |
+----------------+-----------+------------+------------+
| Net | (7,070) | (10,605) | (21,211) |
| movement | | | |
+----------------+-----------+------------+------------+
| Net | 7,070 | 28,281 | 28,281 |
| book | | | |
| value | | | |
| brought | | | |
| forward | | | |
+----------------+-----------+------------+------------+
| Net | - | 17,676 | 7,070 |
| book | | | |
| value | | | |
| carried | | | |
| forward | | | |
+----------------+-----------+------------+------------+
7 AVAILABLE FOR SALE FINANCIAL ASSETS
+-------------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | | (restated) | 2008 |
| | | | (restated) |
+-------------+-----------+------------+------------+
| | US$'000 | US$'000 | US$'000 |
+-------------+-----------+------------+------------+
| | | | |
+-------------+-----------+------------+------------+
| Interest | | 1,612 | - |
| in | | | |
| profits | | | |
| of AMCO | | | |
+-------------+-----------+------------+------------+
| AMCO | 300 | 1,090 | - |
| Commodities | | | |
| Fund | | | |
| Limited | | | |
+-------------+-----------+------------+------------+
| Interest | 3,027 | 3,732 | 2,668 |
| in LME | | | |
| Holdings | | | |
| Limited | | | |
+-------------+-----------+------------+------------+
| | 3,327 | 6,434 | 2,668 |
+-------------+-----------+------------+------------+
8 TRADE AND OTHER RECEIVABLES
+--------------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | | (restated) | 2008 |
| | | | (restated) |
+--------------+-----------+------------+------------+
| | US$'000 | US$'000 | US$'000 |
+--------------+-----------+------------+------------+
| | | | |
+--------------+-----------+------------+------------+
| Non-current | | | |
+--------------+-----------+------------+------------+
| Other | 2,000 | 6,000 | 2,000 |
| receivables | | | |
+--------------+-----------+------------+------------+
| | | | |
+--------------+-----------+------------+------------+
| Current | | | |
+--------------+-----------+------------+------------+
| Amounts | 2,110 | 3,374 | 6,155 |
| due | | | |
| from | | | |
| associated | | | |
| business | | | |
+--------------+-----------+------------+------------+
| Other | 1,797 | 547 | 1,243 |
| receivables | | | |
+--------------+-----------+------------+------------+
| Prepayments | 102 | 21 | 413 |
| and accrued | | | |
| income | | | |
+--------------+-----------+------------+------------+
| Trade | 4,009 | 3,942 | 7,811 |
| and | | | |
| other | | | |
| receivables, | | | |
| net | | | |
+--------------+-----------+------------+------------+
The non-current other receivable represents a deposit held by Sucden (UK)
Limited to support any losses which the trading team may incur. It is repayable
on termination of the agreement with Sucden (UK) Limited.
Amounts due from associated business and other receivables are usually due
within 120 days and do not bear any effective interest rate.
The fair value of these short term financial assets is not individually
determined as the carrying amount is a reasonable approximation of fair value.
9 TRADE AND OTHER PAYABLES
+-----------+-----------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | | (restated) | 2008 |
| | | | (restated) |
+-----------+-----------+------------+------------+
| | US$'000 | US$'000 | US$'000 |
+-----------+-----------+------------+------------+
| | | | |
+-----------+-----------+------------+------------+
| Trade | 809 | 141 | 46 |
| and | | | |
| other | | | |
| payables | | | |
+-----------+-----------+------------+------------+
| Other | 2,698 | - | 122 |
| creditors | | | |
+-----------+-----------+------------+------------+
| Accruals | 246 | 27 | 45 |
| and | | | |
| deferred | | | |
| income | | | |
+-----------+-----------+------------+------------+
| Trade | 3,753 | 168 | 213 |
| and | | | |
| other | | | |
| payables, | | | |
| net | | | |
+-----------+-----------+------------+------------+
The fair value of trade and other payables has not been disclosed as, due to
their short duration, management considers the carrying amounts recognised in
the balance sheet to be a reasonable approximation of their fair value.
10 SHARE CAPITAL
+------------------------------------------+------------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | 30 June | 30 June | 31 |
| | 2009 | 2008 | December |
| | | (restated) | 2008 |
| | | | (restated) |
+------------------------------------------+------------+------------+------------+
| | US$'000 | US$'000 | US$'000 |
+------------------------------------------+------------+------------+------------+
| Authorised | | | |
+------------------------------------------+------------+------------+------------+
| 1,000,000,000 ordinary shares of 0.1p | 1,000 | 1,000 | 1,000 |
+------------------------------------------+------------+------------+------------+
| | | | |
+------------------------------------------+------------+------------+------------+
| Allotted, issued and fully paid | | | |
+------------------------------------------+------------+------------+------------+
| 349,268,114 (30 June 2008: 349,268,114; | 629 | 629 | 629 |
| 31 December 2008: 349,268,114) ordinary | | | |
| shares of 0.1p | | | |
+------------------------------------------+------------+------------+------------+
Warrants
On 8 March 2005 a warrant was issued to Strand Partners Limited, the Company's
Nominated Advisor, in connection with their role in the admission of the Company
to the AIM market. The warrant entitles Strand Partners Limited to subscribe, at
a price of 10p per share, for such number of ordinary shares as are equivalent
(on a fully diluted basis) to one per cent. of the issued ordinary share capital
of the Company at that time. The issued warrant may be exercised at any time
during the period from 8 March 2005 to 8 March 2010.
The fair value of the warrants granted was determined using the Black-Schöles
valuation model and US$20,000 of share based expense has been included in the
share premium account as a cost of the admission to AIM which gave rise to a
share based payment reserve. No liabilities were recognised due to share based
payment transactions.
11 SHARE OPTIONS
The Group has adopted an employee Share Option Scheme (the "Employee Share
Option Scheme") in order to incentivise key management and staff. The fair value
of options granted was determined using the Black- Schöles valuation model.
Significant inputs into the calculations were as follows:
* 400% volatility based on expected share price (ascertained by reference to
historic share prices of both the Company and comparable listed companies)
* a risk free interest rate of 5.25%
At 30 June 2009, the Group had the following options outstanding:
+------------------+--------------------------+--------+---------+------------+------------+
| Date of original | Dates exercisable | Grant | Market | At 30 | Fair value |
| grant | | price | price | June | at 30 |
| | | | at | 2009 | June |
| | | | date | Number | 2009 |
| | | | of | | |
| | | | issue | | |
+------------------+--------------------------+--------+---------+------------+------------+
| 1 May 2008 | After 30 April 2010 | 0.1p | 54.0p | 35,000,000 | 53.992p |
| | subject to any take over | | | | |
| | of the Company | | | | |
+------------------+--------------------------+--------+---------+------------+------------+
During the period no share options were exercised.
A share based payment expense of US$2,249,000 has been recognised in the
statement of comprehensive income for the period ended 30 June 2009 (period
ended 30 June 2008 : US$14,183,000; year ended 31 December 2008 :
US$22,369,000).
12 Reporting Currency
Historically the Group has reported in Sterling. The board changed this to US
dollars for accounting period commencing on or after 1 January 2009. The
majority of commodity trading is effected and the Group's result and revenue is
generated in US dollars. Changing the reporting currency to US dollars more
closely reflects the trading activities of the Group.
13 ACQUISITIONS
On 20 February 2009 Commoditrade Inc acquired the entire share capital of AMCO
Management Services Limited, a business regulated by the Financial Services
Authority based in the United Kingdom. The principal activity of AMCO Management
Services Limited is asset management.
The book values under IFRS and the provisional fair values of the assets and
liabilities acquired as at the date of acquisition were as follows:
+---------------+-------------+-------------+--------------+
| | Book | Fair | Fair |
| | value | value | value |
| | before | adjustments | to |
| | acquisition | | Commoditrade |
| | under IFRS | | Inc. |
+---------------+-------------+-------------+--------------+
| | US$'000 | US$'000 | US$'000 |
+---------------+-------------+-------------+--------------+
| Non | | | |
| current | | | |
| assets | | | |
+---------------+-------------+-------------+--------------+
| Property, | 13 | - | 13 |
| plant and | | | |
| equipment | | | |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Current | | | |
| assets | | | |
+---------------+-------------+-------------+--------------+
| Trade | 188 | - | 188 |
| and | | | |
| other | | | |
| receivables | | | |
+---------------+-------------+-------------+--------------+
| Cash | 341 | - | 341 |
+---------------+-------------+-------------+--------------+
| Total | 542 | - | 542 |
| assets | | | |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Current | | | |
| liabilities | | | |
+---------------+-------------+-------------+--------------+
| Trade | (154) | - | (154) |
| and | | | |
| other | | | |
| payables | | | |
+---------------+-------------+-------------+--------------+
| Total | (154) | - | (154) |
| liabilities | | | |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Net | 388 | - | 388 |
| assets | | | |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Goodwill | 2,671 | - | 2,671 |
| arising | | | |
| on | | | |
| acquisition | | | |
+---------------+-------------+-------------+--------------+
| Consideration | 3,059 | - | 3,059 |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
| Consideration | | | |
+---------------+-------------+-------------+--------------+
| Cash | | | 2,880 |
+---------------+-------------+-------------+--------------+
| Costs | | | 179 |
| associated | | | |
| with the | | | |
| acquisition | | | |
| settled in | | | |
| cash | | | |
+---------------+-------------+-------------+--------------+
| | | | 3,059 |
+---------------+-------------+-------------+--------------+
| | | | |
+---------------+-------------+-------------+--------------+
The directors consider that no separate identifiable intangible assets arise on
acquisition. The goodwill is not amortised but reviewed for impairment annually.
Chris Adams, a director of the Company, is also a director of AMCO Management
Services Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DXLFLKKBZBBV
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