Corvus Capital Inc. 2007 Report & Accounts
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Interim Results for the six month period ended 31 March 2008.
Commoditrade Trading Statement
Trading update
The Board of Commoditrade is pleased to announce that the Company’s trading team continues to trade profitably. Despite the general financial market conditions, the base metals market has maintained good levels of liquidity and volatility with both financial and primary users participating in the market. In addition, supply issues and other factors have all contributed to large price movements and volatility and these current conditions provide good opportunities for the trading team, which has also recently been expanded with the appointment of a senior nickel trader.
The Company has no debt and, as at the date of this announcement its cash balances are in excess of £19 million after making significant one-off payments to key members of the trading team as consideration for them to enter into new contracts which tie them in to the Company for a minimum 3 year period. The Board considers it vital that the Company retains its talented trading team, and is pleased to have secured the services of its key personnel on long-term contracts. The Board looks to the future with confidence.
Termination of bid discussions
The Company announced on 7 December 2006 that it had entered into discussions with a number of interested parties which might or might not lead to an offer for the Company. The Board has now concluded that these discussions are not likely to lead to an offer which is in the best interests of all shareholders in the Company, and accordingly discussions have been terminated in order to focus on growing the business and generating enhanced shareholder value.
Share buyback
The Board considers that the recent turmoil in financial markets and its knock-on effect on the Company’s share price provides an attractive opportunity for the Company to purchase its own shares. Accordingly the Board has decided to exercise its authority to buy back its own shares on an opportunistic basis subject to market conditions.
Commenting, Graham Butt, Chief Executive Officer of Commoditrade said:
“The recent fall in the Commoditrade share price has prompted us to initiate a share buyback programme, in order to allocate our resources in the most efficient manner for the benefit of shareholders. We remain confident of the growth opportunities available to the Company, notwithstanding the current volatility in financial markets. We continue to be totally focussed on creating value for shareholders and growing the business, and we have a very strong balance sheet which gives us considerable flexibility and the buyback will not materially alter any of the current investment plans that the management team has for Commoditrade.”
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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...