TIDMCMM
RNS Number : 0923L
Commoditrade Inc.
30 April 2010
Commoditrade Inc.
("Commoditrade" or "the Group")
Final results for the year ended 31 December 2009
Commoditrade (ticker: CMM.L) is an international commodities trading and asset
management group. The following is a summary of its results for the year ended
31 December 2009.
Financial Summary
· Revenues improved in H2 with a significant reduction in overall
year-on-year loss
· Total Group revenues, including those of associated business of US$20.1
million (2008: US$31.1 million)US$20.1 million (2008: US$31.1 million)
· Loss for the year US$(14.7) million (2008: US$(40.9) million)
· Total of non cash items US$8.2 million (2008: US$43.6 million)
· As at 31 December 2009 the Group had no debt and its cash balances stood at
US$1.3 million (2008: US$8.3 million)
Operations
· Continued challenging market conditions in base metals markets during the
year.
· Group maintained a tight control on risk during 2009.
· Revenues negatively impacted by continued price volatility and tight
liquidity but LME floor client brokerage revenues remained strong.
Group Restructuring
Commoditrade completed a substantial programme of restructuring during the year
as follows:
· Renegotiation of base metals trading revenue share agreement with Sucden
Financial Limited enables Commoditrade to substantially reduce its fixed costs
on an ongoing basis.
· Establishment of energy desk which commenced initial trading late 2009.
· Build out of London based trading and risk platforms, adoption of new
technical and support partners including GL Sungard and opening of new London
office.
· Rebranding of the Group's principal operating companies to the new name of
'Mentum'.
Current trading and outlook
As a result of the significant changes made during the last year, Commoditrade
is in a much stronger position to grow revenues in 2010. We expect that the
Group will now continue to accrue the benefits of a reduced cost base and a
broader range of revenue streams to augment the core LME trading revenues. We
are also pleased to report that the trading performance of the LME floor in the
first quarter of 2010 has improved as trading conditions in base metals have
returned to more normal levels compared to the same period last year. We look
forward to reporting further progress during the year as Commoditrade returns to
profitable growth.
+------------------------------------------+----------------------+
| Enquiries: | www.commoditrade.net |
| | |
+------------------------------------------+----------------------+
| Commoditrade Inc, David Phipps, Chief | tel: +44(0)20 7074 |
| Executive | 2200 |
| | |
+------------------------------------------+----------------------+
| Strand Hanson, James Harris / Angela | tel: +44(0)20 7409 |
| Peace | 3494 |
| | |
+------------------------------------------+----------------------+
| Liberum Capital, Chris Bowman / Ellen | tel: +44(0)20 3100 |
| Francis | 2000 |
| | |
+------------------------------------------+----------------------+
| Hansard Communications, John Bick / | tel: +44(0) 20 7245 |
| Justine James | 1100 |
| | tel: +44(0) 7872 |
| | 061007 |
+------------------------------------------+----------------------+
Operating review
The challenging conditions in base metals markets in the later part of 2008
continued longer than had been anticipated into 2009. Liquidity in the forward
base metals market in which we specialise suffered in particular. Difficult
global economic conditions resulted in a significant downturn in market
activity, exacerbated by a tightening of liquidity and flat price volatility.
The combined impact of these issues materially and detrimentally impacted upon
our base metals trading in the first half of the year. As part of the Group's
restructuring process we increased our focus on the LME floor client brokerage
business and fee based income. Our core base metals brokerage revenues remained
strong and at marginally higher levels than the previous year.
During the year as a whole, base metal flat price volatility remained the
predominant feature across all markets and therefore a strict policy of risk
control and monitoring was maintained throughout the period.
Results
Summary
· Total Group revenues of US$20.1 million (2008: US$31.1 million)
· Loss for the year US$(14.7) million (2008: US$(40.9) million)
· Total of non cash items US$8.2 million (2008: US$43.6 million)
· As at 31 December 2009 the Group had no debt and its cash balances stood
at US$1.3 million
The net deficit from associated business after deducting the amortisation of
intangible asset was US$(5.3) million (2008: US$(10.0) million). Revenues from
other trading activities were US$0.8 million (2008: US$0.8 million). The net
cash outflow from operating activities was US$(3.2) million (2008: inflow of
US$6.9 million).
Administrative expenses of US$6.9 million (2008: US$6.1 million) incorporate the
costs of Mentum LLP (formerly AMCO Commodities LLP) following the purchase of
that entity in February 2009.
The total of non-cash charges for the year amounted to US$8.2 million consisting
of amortisation of intangible assets of US$7.1 million, written back costs
associated with the issue of share options of US$(1.8) million and impairment of
goodwill of US$2.9 million. The net loss before and after tax was US$14.7
million (2008: loss of US$40.9 million).
Reporting currency
The Group has changed its reporting currency to US dollars to more accurately
reflect the trading activities, which are almost exclusively in US dollars. The
half year results were prepared in accordance with that change.
Strategy and developments
On 20 February 2009, following approval by the FSA, the Group completed the
acquisition of the outstanding equity in the asset management business Mentum
LLP (formerly AMCO Commodities LLP). The business subsequently underwent a
restructuring in order to position it to deliver the first of its new products,
Managed Futures Accounts, during the first quarter of 2010.
The Group completed its programme to create a new operational and risk platform
which included the adoption of new technical and support partners including GL
Sungard, in line with its future strategy to introduce a range of new products
under its asset management operations. In addition, the Group opened a new
London office. In the latter part of Q3 2009 the first of the Groups new trading
desks commenced trading with seed capital provided from Group resources.
As part of the restructuring of the Group the principal operating companies
underwent a rebranding to the new name of Mentum and it is the intention that as
the final part of this process the Board will also be proposing a change of name
from Commoditrade Inc. to Mentum Inc. at the Company's next Annual General
Meeting.
In December 2009 the board was delighted to agree a renegotiation of the base
metals trading revenue share agreement with Sucden Financial Limited in relation
to the LME floor trading operations. As announced on 17 December 2009, the new
agreement enables Commoditrade to substantially reduce its fixed costs on an
ongoing basis and enables Sucden to participate in a 25% share of net revenues,
after the deduction of all costs.
The first of the Group's new products was launched under the Mentum brand at the
end of the first quarter of 2010 under Mentum LLP, the Group's asset management
company based in London. The company will create a suite of investment products
in the form of Managed Futures Accounts (MFA's) across multiple classes,
products and strategies. Initially our MFA's will focus on base metals and
energy futures and options. Our newly developed infrastructure will be key to
deliver the optimum transparency, control and risk management that investors
demand.
To allow for maximum flexibility for the investor, each portfolio manager
represents an individual investment product and an investor can view each
portfolio managers 'product' profile before deciding whether an individual or a
combination of multiple managers facilitates their requirements.
Current trading and outlook
2009 was a challenging trading year for the Group, although revenues in the
second half of the year improved and overall year-on-year losses were
significantly reduced. The management team completed a restructuring of the
operational infrastructure of the Group companies in order to position
Commoditrade to diversify and grow future revenue streams. As a result we now
have a state-of-the-art operational and risk platform which is fully scaleable
and enabled us to successfully launch a Managed Futures Account product
attracting new client funds, from the first quarter of 2010.
As a result of the significant changes made during the last year, Commoditrade
is in a much stronger position to grow revenues in 2010. We expect that the
Group will now continue to accrue the benefits of a reduced cost base and a
broader range of revenue streams to augment the core LME trading revenues. We
are also pleased to report that the trading performance of the LME floor in the
first quarter of 2010 has improved as trading conditions in base metals have
returned to more normal levels compared to the same period last year. We look
forward to reporting further progress during the year as Commoditrade returns to
profitable growth.
David Phipps
Chief Executive
30 April 2010
Consolidated Statement of Comprehensive Income
+-------------------------------------+-------+-+----------+--+----------+
| | Notes | | 2009 | | 2008 |
+-------------------------------------+-------+-+----------+--+----------+
| | | | US$'000 | | US$'000 |
+-------------------------------------+-------+-+----------+--+----------+
| Continuing operations | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Net deficit from associated | | | (5,270) | | (10,010) |
| business | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Gains on derivative financial | | | 825 | | 820 |
| instruments | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Operating loss | | | (4,445) | | (9,190) |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Administrative expenses | | | (6,917) | | (6,055) |
+-------------------------------------+-------+-+----------+--+----------+
| Share based payments written | | | 1,815 | | (22,369) |
| back/(charged) | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Permanent diminution of | | | - | | (2,238) |
| available-for-sale assets | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Impairment of goodwill | | | (2,925) | | - |
+-------------------------------------+-------+-+----------+--+----------+
| Sign-on bonus costs | | | - | | (1,020) |
+-------------------------------------+-------+-+----------+--+----------+
| Direct trading costs | | | (1,447) | | - |
+-------------------------------------+-------+-+----------+--+----------+
| Finance costs | | | (743) | | (314) |
+-------------------------------------+-------+-+----------+--+----------+
| Finance income | | | 2 | | 305 |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Loss before tax | | | (14,660) | | (40,881) |
+-------------------------------------+-------+-+----------+--+----------+
| Income tax expense | 3 | | - | | - |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Loss for the year | | | (14,660) | | (40,881) |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Other comprehensive income | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Exchange differences on translating | | | (35) | | - |
| foreign operations | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Net gain/(loss) on | | | 328 | | (354) |
| available-for-sale financial assets | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Other comprehensive income for the | | | 293 | | (354) |
| year, net of tax | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
| Total comprehensive loss for the | | | (14,367) | | (41,235) |
| year, attributable to owners of the | | | | | |
| company | | | | | |
+-------------------------------------+-------+-+----------+--+----------+
+-------------------------------------+------+-+--------------+--+--------------+
| | | | | | |
+-------------------------------------+------+-+--------------+--+--------------+
| Loss per share | 4 | | | | |
+-------------------------------------+------+-+--------------+--+--------------+
| | | | | | |
+-------------------------------------+------+-+--------------+--+--------------+
| Basic and diluted (cents per | | | (4.2) | | (11.9) |
| share) | | | | | |
+-------------------------------------+------+-+--------------+--+--------------+
| | | | | | |
+-------------------------------------+------+-+--------------+--+--------------+
| | | | | | |
+-------------------------------------+------+-+--------------+--+--------------+
Consolidated Statement of Changes in Equity
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | Share | Share | Capital | Translation | Retained | Total |
| | capital | premium | redemption | reserve | earnings | equity |
| | | account | reserve | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Balance | 615 | 66,496 | 81 | - | (8,873) | 58,319 |
| at 1 | | | | | | |
| January | | | | | | |
| 2008 | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Payment | - | - | - | - | (9,826) | (9,826) |
| of | | | | | | |
| dividends | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Recognition | - | - | - | - | 22,369 | 22,369 |
| of | | | | | | |
| share-based | | | | | | |
| payments | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Cancellation | (11) | - | 11 | - | - | - |
| of shares | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Issue | 25 | - | - | - | (2,042) | (2,017) |
| of | | | | | | |
| share | | | | | | |
| capital | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Transactions | 14 | | 11 | | 10,501 | 10,526 |
| with owners | | - | | - | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Loss | - | - | - | - | (40,881) | (40,881) |
| for | | | | | | |
| the | | | | | | |
| year | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Other | | | | | | |
| comprehensive | - | - | - | - | (354) | (354) |
| income | | | | | | |
| for the year | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Total | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| for | - | - | - | - | (41,235) | (41,235) |
| the | | | | | | |
| year | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Balance | 629 | 66,496 | 92 | - | (39,607) | 27,610 |
| at 31 | | | | | | |
| December | | | | | | |
| 2008 | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Recognition | - | - | - | - | (1,815) | (1,815) |
| of | | | | | | |
| share-based | | | | | | |
| payments | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Transactions | - | - | - | - | (1,815) | (1,815) |
| with owners | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Loss | - | - | - | - | (14,660) | (14,660) |
| for | | | | | | |
| the | | | | | | |
| year | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Other | - | - | - | (35) | 328 | |
| comprehensive | | | | | | 293 |
| income | | | | | | |
| for the year | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Total | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| for | - | - | - | (35) | (14,332) | (14,367) |
| the | | | | | | |
| year | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
| Balance | 629 | 66,496 | 92 | (35) | (55,754) | 11,428 |
| at 31 | | | | | | |
| December | | | | | | |
| 2009 | | | | | | |
+---------------+---------+---------+---------------------+-------------+-------------+----------+
Consolidated Statement of Financial Position
+--------------+--------+----------+----------+---------+
| | | 31 | 31 | 1 |
| | | December | December | January |
| | | 2009 | 2008 | 2008 |
| | | | | |
+--------------+--------+----------+----------+---------+
| | | US$'000 | US$'000 | US$'000 |
+--------------+--------+----------+----------+---------+
| Assets | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Non-current | | | | |
+--------------+--------+----------+----------+---------+
| Property, | | 534 | - | - |
| plant and | | | | |
| equipment | | | | |
+--------------+--------+----------+----------+---------+
| Investment | | - | 7,070 | 28,282 |
| in | | | | |
| associated | | | | |
| business | | | | |
+--------------+--------+----------+----------+---------+
| Other | | 2,000 | 2,000 | 2,030 |
| receivables | | | | |
+--------------+--------+----------+----------+---------+
| | | 2,534 | 9,070 | 30,312 |
+--------------+--------+----------+----------+---------+
| Current | | | | |
+--------------+--------+----------+----------+---------+
| Cash | | 1,278 | 8,274 | 17,137 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+--------------+--------+----------+----------+---------+
| Balance | | 5,340 | 28 | - |
| due | | | | |
| from | | | | |
| brokers | | | | |
+--------------+--------+----------+----------+---------+
| Other | | 3,831 | 3,742 | 6,951 |
| financial | | | | |
| assets | | | | |
+--------------+--------+----------+----------+---------+
| Trade | | 3,722 | 6,709 | 9,790 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Total | | 14,171 | 18,753 | 33,878 |
| current | | | | |
| assets | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Total | | 16,705 | 27,823 | 64,190 |
| assets | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Liabilities | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Current | | | | |
+--------------+--------+----------+----------+---------+
| Trade | | 1,848 | 213 | 5,871 |
| and | | | | |
| other | | | | |
| payables | | | | |
+--------------+--------+----------+----------+---------+
| Other | | 3,429 | - | - |
| financial | | | | |
| liabilities | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Total | | 5,277 | 213 | 5,871 |
| liabilities | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Equity | | | | |
+--------------+--------+----------+----------+---------+
| Issued | | 629 | 629 | 615 |
| share | | | | |
| capital | | | | |
+--------------+--------+----------+----------+---------+
| Share | | 66,496 | 66,496 | 66,496 |
| premium | | | | |
+--------------+--------+----------+----------+---------+
| Other | | 57 | 92 | 81 |
| reserves | | | | |
+--------------+--------+----------+----------+---------+
| Retained | | (55,754) | (39,607) | (8,873) |
| earnings | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Equity | | | | |
| attributable | | | | |
+--------------+--------+----------+----------+---------+
| to | | 11,428 | 27,610 | 58,319 |
| owners | | | | |
| of the | | | | |
| company | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
| Total | | 16,705 | 27,823 | 64,190 |
| equity | | | | |
| and | | | | |
| liabilities | | | | |
+--------------+--------+----------+----------+---------+
| | | | | |
+--------------+--------+----------+----------+---------+
Consolidated Statement of Cashflows
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | US$'000 | US$'000 |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Operating activities | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| Loss after tax | | (14,660) | (40,881) |
+----------------------------------------------------------+----+------------+-----------+
| Permanent diminution of available for sale asset | | - | 2,238 |
+----------------------------------------------------------+----+------------+-----------+
| Amortisation of investment in associated business | | 7,070 | 21,211 |
+----------------------------------------------------------+----+------------+-----------+
| Impairment of goodwill | | 2,925 | - |
+----------------------------------------------------------+----+------------+-----------+
| Depreciation of fixed assets | | 125 | - |
+----------------------------------------------------------+----+------------+-----------+
| Share based payment (written back)/charged | | (1,815) | 22,369 |
+----------------------------------------------------------+----+------------+-----------+
| Decrease in trade and other receivables | | 3,174 | 3,110 |
+----------------------------------------------------------+----+------------+-----------+
| Increase/(decrease) in trade and other payables | | 1,232 | (85) |
+----------------------------------------------------------+----+------------+-----------+
| Increase/(decrease) in derivative financial instruments | | 4,133 | (1,074) |
+----------------------------------------------------------+----+------------+-----------+
| Increase in balance due from broker | | (5,312) | (28) |
+----------------------------------------------------------+----+------------+-----------+
| Foreign exchange | | (35) | - |
+----------------------------------------------------------+----+------------+-----------+
| | Net cash (outflow)/inflow from | | | (3,163) | 6,860 |
| | operating activities | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Investing activities | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Sale of available for sale financial | | | - | 1,090 |
| | assets | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Purchase of available for sale | | | (300) | - |
| | financial assets | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Purchase of subsidiary | | | (3,059) | - |
+----------+----------------------------------------+------+----+------------+-----------+
| | Purchase of fixed assets | | | (646) | - |
+----------+----------------------------------------+------+----+------------+-----------+
| | Loans made | | | (165) | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Revaluation of available for sale | | | - | 604 |
| | asset | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Net cash (outflow)/inflow from | | | (4,170) | 1,694 |
| | investing activities | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Financing activities | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Purchase of own shares | | | - | (7,616) |
+----------+----------------------------------------+------+----+------------+-----------+
| | Issue of shares | | | - | 25 |
+----------+----------------------------------------+------+----+------------+-----------+
| | Dividend paid | | | - | (9,826) |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Net cash outflow from financing | | | - | (17,417) |
| | activities | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Net reduction in cash and cash | | | (7,333) | (8,863) |
| | equivalents | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Cash acquired on acquisition | | | 337 | - |
+----------+----------------------------------------+------+----+------------+-----------+
| | Cash and cash equivalents at beginning | | | 8,274 | 17,137 |
| | of year | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | Cash and cash equivalents at end of | | | 1,278 | 8,274 |
| | year | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
| | | | | | |
+----------+----------------------------------------+------+----+------------+-----------+
1 Accounting policies
Basis of preparation
The Group was incorporated as a Corporation in the Cayman Islands which does not
prescribe the adoption of any particular accounting framework. The Board has
therefore adopted and complied with International Financial Reporting Standards
as adopted by the European Union (IFRS).
The Group's shares are listed on the AIM market of the London Stock Exchange.
The principal accounting policies of the Group are detailed in the Group's 2009
annual report and consolidated financial statements.
2 segmental reporting
IFRS 8 requires an entity to report financial and descriptive information about
its reportable segments. Reportable segments are operating segments or
aggregations of operating segments that meet specified criteria. Operating
segments are components of an entity about which separate financial information
is available that is evaluated regularly by the chief operating decision maker
in deciding how to allocate resources and in assessing performance. Generally,
financial information is required to be reported on the same basis as is used
internally for evaluating operating segment performance and deciding how to
allocate resources to operating segments.
The chief operating decision maker of the Group is the Chief Executive Officer
(CEO). Financial information used internally by the CEO for evaluating
performance and deciding how to allocate resources does not identify separable
geographical or operating segments but rather presents information for the Group
as a whole. For this reason, the Group reports financial information in its
financial statements on the basis of the Group as a whole and does not report by
operating or geographic segment.
3 tax
There is no tax charge for the year (2008: US$nil). In 2008, the Group did not
operate in any taxable jurisdiction and there was no tax arising on its
operations. In 2009, the acquisition of Mentum Partners Limited and Mentum LLP
has meant that a proportion of the Group's operations are taxable in the UK.
The tax assessed for the period differs from the standard rate of corporation
tax in the UK as follows:
+-----------------------------------+----------+----------+-------+----------+-------+
| | | 2009 | 2009 | 2008 | 2008 |
+-----------------------------------+----------+----------+-------+----------+-------+
| | | US$'000 | % | US$'000 | % |
+-----------------------------------+----------+----------+-------+----------+-------+
| | | | | | |
+-----------------------------------+----------+----------+-------+----------+-------+
| Loss before taxation | ` | (14,660) | | (40,881) | |
+-----------------------------------+----------+----------+-------+----------+-------+
| | | | | | |
+-----------------------------------+----------+----------+-------+----------+-------+
| Loss multiplied by standard rate | | (4,105) | 28 | | 28 |
| of corporation tax in the UK | | | | (11,447) | |
+-----------------------------------+----------+----------+-------+----------+-------+
| | | | | | |
+-----------------------------------+----------+----------+-------+----------+-------+
| Effect of: | | | | | |
+-----------------------------------+----------+----------+-------+----------+-------+
| Loss not assessable for tax | | 4,105 | (28) | 11,477 | (28) |
+-----------------------------------+----------+----------+-------+----------+-------+
| | | | | | |
+-----------------------------------+----------+----------+-------+----------+-------+
| Total tax charge for year | | - | | - | |
+-----------------------------------+----------+----------+-------+----------+-------+
Any tax losses available to carry forward in relation to the UK entities are not
significant to the Group.
4 (LOSS) per share
The calculation of the basic loss per share is based on the net loss for the
year of $14,660,000 (2008: loss $40,881,000) divided by the weighted average
number of shares in issue during the year of 349,268,114 (2008: 344,465,505).
This results in a loss per share of $0.042 (2008: $0.119).
The impact of the share options and warrant is anti-dilutive on the basic loss
per share in 2009 and 2008.
5 PUBLICATION
The financial information set out in this preliminary announcement does not
constitute statutory accounts.
The consolidated statement of financial
position at 31 December 2009 and the consolidated statement of comprehensive
income, consolidated statement of changes in equity, consolidated statement of
cash flows and enclosed notes for the year then ended have been extracted from
the Group's 2009 statutory financial statements upon which the auditors opinion
is unqualified.
The Annual Report for the year ended 31 December 2009 will be posted to
shareholders shortly.
The Annual General Meeting of the Group will be held at 30 Quai Gustave-Ador,
1207, Geneva 3, Switzerland on 27 May 2010 at 11:30a.m.
Copies of the report will be available on the company's website,
www.commoditrade.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ILMRTMBJTBFM
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