Corvus Capital Inc. 2007 Report & Accounts
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Interim Results for the six month period ended 31 March 2008.
Commoditrade Half Year profits £10.4m
Commoditrade Inc.
(“Commoditrade” or “the Company”)
Interim results for the six months ended 30 June 2007
26 September 2007, Commoditrade Inc., (AIM: CMM), the AIM-listed commodities investment company, announces its interim results for the six months ended 30 June 2007. Commoditrade joined AIM in March 2005 with the primary objective of building, through investment and acquisition, a group specialising in the commodities sector.
Summary of Interim Results
Unaudited 6 months ended 30 June 2007
Gross revenue £15.2m (2006: £8.6m)
Net operating profit £10.4m (2006: £4.6m)
Commoditrade’s gross revenue for the six months ended 30 June 2007 was £15.2 million (after a deduction of clearing and administration fees, which are currently charged at 25% of total revenues generated by the trading team).
The Company’s performance was underpinned by continued high trading volumes and customer demand for its specialist brokerage services in base metals traded on the London Metals Exchange (”LME”).
Commoditrade’s net operating profit (after direct trading costs and trader bonuses) for the period was £10.4 million. After non-cash costs, being amortisation of £5.6 million and the issue of management share options of £1.4 million, and corporate overhead costs, the profit before tax for the period was £3.5 million.
The Company’s adjusted profit per ordinary share, before the deduction of non-cash items being amortisation and the share option issue, was 2.79 pence. The unadjusted basic profit per ordinary share for the period was 0.94 pence.
As at 30 June 2007 the Company had no debt and its cash balances stood at £9.6 million. An additional £8.2 million of cash, earned during the period, is due to be received from the Company’s clearer at the end of October 2007, giving an effective cash balance of £17.8 million.
Operational Review and Update
Commoditrade has secured the services of the key members of the trading team for a minimum period of three years.
Additionally, Commoditrade has renegotiated its contract with Sucden (UK) Limited, securing this agreement in future for a fixed net annual fee of £7.5m. This represents an effective reduction in the current fee arrangement, which is currently calculated as a percentage of revenues generated by the trading team. The new contract will be effective from 1 May 2008 and is expected to yield significant cost savings for Commoditrade going forward.
During the period, Commoditrade acquired sufficient shares in the LME to bring its total holdings to 25,000 B shares, which now entitles the Company to apply for a Category 1 membership of the LME.
Current Trading and Outlook
Commenting, Graham Butt, Chief Executive of Commoditrade, said:
“The business has delivered strong growth in profits and cash generation over the period and has continued to perform very strongly into the second half of the year. Trading activity has also increased markedly during the recent turbulent market conditions which has also benefitted the operational performance of the business in the second half.”
Andrew Regan’s Corvus Capital Inc owns 20 per cent of the issued ordinary shares in Commoditrade Inc.
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Commoditrade
In April 2006 Corvus supported a Placing of shares as part of a formative acquisition being made by AIM-listed Commoditrade Inc which was brought to AIM in 2005 to acquire and build assets and companies in the international commodities market.
Since the acquisition Commoditrade has doubled in vale and produced successive periods of growing revenues and profits. The Commoditrade management team is very experienced in the international base metals arena, and as a Catergory 1 member of the London Metals Exchange, which is the dominant exchange in base metals trading in the World, it operates one of the largest teams on the exchange. Read more...