14th May 2009 09:54
CROSBY ASSET MANAGEMENT INC. ("CAM" or the "Group")
TRADING UPDATE - THREE MONTHS TO MARCH 31 2009
14 May 2009
Revenue US$0.9 million (Q1 2008: US$7.9 million)
Loss attributable to shareholders US$2.9 million (Q1 2008: US$26.2 million)
Assets under management US$400 million (Q1 2008: US$2,200 million)
COMMENTARY
Crosby Wealth Management ("CWM"), in which CAM has a 56.14% interest, modestly increased its assets under management over the quarter. However, margins remained subdued, primarily due to low trading volumes. There were no further significant developments in the legal proceedings, as set out in the announcement of 19 March 2009, brought by a client in Hong Kong concerning a trade execution error. The board of directors of CAM (the "Board") believes that there are some early signs that the second quarter may be stronger, as investor sentiment improves.
Apollo Multi-Asset Management LLP ("Apollo"), in which CAM has a 51% interest, has still not reached critical mass in terms of assets under management. CAM will continue actively to monitor its position in Apollo, as cost control remains of paramount importance in the current enviroment.
Crosby Active Opportunities Fund ("CAOF") had a year-to-date return, to 31 March 2009, of approximately 5.8% and from inception of -27.85% (excluding side pocket investments). However, given that the recurring fees from CAOF remain modest, the Board continues to monitor its activities closely and no decision has yet been made on its long term future.
Forsyth ("Forsyth") - CAM continued to work on closing the Forsyth fund of funds during the quarter as they had become uneconomical due to the level of investor redemptions in the later part of 2008. It is currently anticipated that a liquidator will be appointed for the Forsyth hedge fund of funds by June 2009. After liquidation of the hedge fund of funds, the only remaining Forsyth funds will be a managed balanced fund and a property fund.
Orchard Petroleum ("Orchard"), in which CAM has a 5% interest (rising to between 9% and 10%, after the repayment of debt to preference shareholders), has an inventory of 50 wells, of which 41 wells are producing and the remainder are at various stages of appraisal. The company has struggled to perform profitably due to the decrease in oil and gas prices during the course of the last year.
Simon Fry, CEO, commented, "We continue to reduce costs and realise assets wherever possible, with a view to positioning CAM as an attractive partner for a larger scale business, that will ultimately benefit all shareholders."
Trading Summary
|
Unaudited three months ended 31 March |
Unaudited three months ended 31 March |
|||
|
2009 |
2008 |
|||
|
US$'000 |
US$'000 |
|||
|
Revenue |
902 |
7,913 |
||
|
Cost of sales |
(90) |
(1,855) |
||
|
Gross profit |
812 |
6,058 |
||
|
Loss on financial assets at fair value through profit or loss |
(25) |
(20,914) |
||
|
Other income |
192 |
226 |
||
|
Administrative expenses |
(3,068) |
|
(10,554) |
|
|
Distribution expenses |
- |
(1) |
||
|
Other operating expenses |
(1,044) |
(752) |
||
|
Loss from operations |
(3,133) |
(25,937) |
||
|
Finance costs |
(32) |
(20) |
||
|
Share of profits of associates / jointly controlled entities |
8 |
49 |
||
|
Loss before taxation |
(3,157) |
(25,908) |
||
|
Taxation |
24 |
(76) |
||
|
Loss for the period |
(3,133) |
(25,984) |
||
|
Attributable to: |
||||
|
Equity holders of the Company |
(2,901) |
(26,180) |
||
|
Minority interests |
(232) |
196 |
||
|
Loss for the period |
(3,133) |
(25,984) |
||
|
Loss per share for loss attributable to the equity holders of the Company during the period |
US cents |
US cents |
||
|
- Basic |
(1.19) |
(10.76) |
||
|
- Diluted |
N/A |
N/A |
Enquiries:
Crosby Asset Management Inc.
Simon Fry +44 (0) 20 3291 2863
Strand Partners Limited
Stuart Faulkner/James Spinney +44 (0) 20 7409 3494
Related Shares:
ZOL.L