13th May 2010 09:54
CROSBY ASSET MANAGEMENT INC. ("CAM"or the "Group")
TRADING UPDATE - THREE MONTHS TO 31 MARCH 2010
13 May 2010
Revenue US$0.6million (Q1 2009: US$0.9million)
Loss attributable to owners US$0.4 million (Q1 2009:US$2.9 million)
Assets under management US$0.4 billion (Q1 2009: US$0.4 billion)
COMMENTARY
The Group has continued to pursue its strategy of significantly reducing its cost base, as evidenced by the reduced loss to shareholders incurred in the first quarter of 2010, despite a substantially reduced level of revenue (as compared with the same period in 2009).
CAM has now completed its withdrawal from, and closure of, the Forsyth businesses which has contributed to the fall in revenue versus the comparable Q1 2009 period.
The Crosby Wealth Management (CWM) business now accounts for the significant majority of the Group's assets under management and this business unit continues to make modest progress.
When announcing the 2009 annual results on 25 March 2010, the Group highlighted that Orchard Petroleum ("Orchard") was innegotiations with its key creditor (which is also the majority shareholder, Mercuria) (the "Creditor") regarding debt repayment, and as a result, its outlook was unclear. As CAM shareholders will be aware, CAM is a small minority shareholder in Orchard and the Group was therefore not able to influence those negotiations directly. Towards the end of the quarter ending 31 March 2010, the Creditor officially called an event of default and took over the underlying assets of Orchard that were held as collateral against the loan. Legal advice is currently being sought in relation to the Creditor's actions and the rights of the minority shareholders in Orchard. At this stage, we are not certain if any value can be recovered from the Group's investment in Orchard. CAM will provide further updates via RNS, as soon as there is further clarity with regard to this situation.
Trading Summary
|
|
|
Unaudited three months ended 31 March |
|
Unaudited three months ended 31 March |
|
|
|
2010 |
|
2009 |
|
|
|
US$'000 |
|
US$'000 |
|
|
|
|
|
|
|
Revenue |
|
558 |
|
902 |
|
Cost of sales |
|
(132) |
|
(90) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
426 |
|
812 |
|
|
|
|
|
|
|
Gain/(Loss) on financial assets at fair value through profit or loss |
|
9 |
|
(25) |
|
Other income |
|
209 |
|
192 |
|
Reveresal of restructuring expenses |
|
218 |
|
- |
|
Administrative expenses |
|
(1,254) |
|
(3,068) |
|
Other operating expenses |
|
(136) |
|
(1,044) |
|
|
|
|
|
|
|
Loss from operations |
|
(528) |
|
(3,133) |
|
|
|
|
|
|
|
Finance costs |
|
(25) |
|
(32) |
|
Share of profits of associates / jointly controlled entities |
|
25 |
|
8 |
|
|
|
|
|
|
|
Loss before taxation |
|
(528) |
|
(3,157) |
|
|
|
|
|
|
|
Taxation |
|
3 |
|
24 |
|
|
|
|
|
|
|
Loss for the period |
|
(525) |
|
(3,133) |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Owners of the Company |
|
(382) |
|
(2,901) |
|
Non-controlling interests |
|
(143) |
|
(232) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
(525) |
|
(3,133) |
|
|
|
|
|
|
|
Loss per share attributable to owners of the Company during the period |
|
US cents |
|
US cents |
|
|
|
|
|
|
|
- Basic |
|
(0.16) |
|
(1.19) |
|
|
|
|
|
|
|
- Diluted |
|
(0.16) |
|
(1.19) |
Enquiries:
Crosby Asset Management Inc.
Ilyas Khan +44 (0) 20 3291 2863
Strand Hanson Limited
Stuart Faulkner/James Spinney +44 (0) 20 7409 3494
Related Shares:
ZOL.L