Half Yearly Report

13 September 2010

Mentum Inc.

("Mentum" or "the Group")

Interim Results for the Six Months ended 30 June 2010

Mentum (AIM: MEN) the international commodities trading and asset management group announces its unaudited interim results for the six months ended 30 June 2010.

Summary

·; Operating profit/(loss) US$3.4 million (2009: US$ (6.7) million);

·; Loss for the period US$(4.0) million (2009: US$ (12.3) million);

·; No debt and cash at bank of US$1.9 million (year end 2009: US$ 1.3 million).

·; Revenues from LME floor trading of US$10.4 million, 22% higher than the equivalent period in 2009 (2009: US$8.5 million);

Commenting on the results, David Phipps, Chief Executive, said: "We are beginning to see the benefits of the restructuring and the focus on risk coming through, resulting in an improved performance in LME floor trading revenues. In addition, we have begun to see the benefits of our drive to reduce costs. We will continue to improve our cost base wherever possible, whilst ensuring a sufficient foundation from which to grow the business."

Interim Statement

Results

Operating profit for the period was US$3.4 million (2009: Loss US$6.7 million), reflecting greater stability in the revenues generated by the LME floor together with lower costs associated with the renegotiated agreement with Sucden Financial Limited and the completion of the amortisation of that agreement in 2009. The LME floor revenues at US$10.4 million were 22% higher than the same period in 2009.

Administrative expenses of US$3.4milllion compare to US$2.7 million to June 30th 2009 and US$4.2 million for the six months to December 31st 2009, reflecting an increase in staff and professional fees in the later part of 2009 associated with the group's restructuring. Both of these costs have been trimmed back in the first six months of 2010.

Non-cash charges associated with the issue of share options totalled US$2.6 million (2009: US$2.2 million). The net loss for the period after taking account of these charges was US$ (4.0) million (2009: US$ (12.3) million).

No dividend is proposed.

As at 30th June 2010 the Group had no debt and its cash balances stood at US$1.9 million compared to US$1.3 million at the year end.

Operating Review

LME Trading

During the first six months there has been a marked improvement in revenues, predominantly derived from the LME floor trading which have exceeded the average monthly revenues achieved during 2009 by eight percent. Over the same period, the net margin from LME floor trading improved substantially, primarily as a result of the significantly lower fixed operating cost now payable by Mentum in 2010 and the completion of the amortisation of the Tambelan deal.

The board is continuing to see significant administrative cost savings as a result of the restructuring of the group carried out in 2009. Similarly, non cash expense items are also substantially lower than in previous years.

Mentum LLP

The Group's asset management operation, Mentum LLP, launched its first new product at the end of the first quarter with the first phase of marketing of the products starting towards the end of Q2. Following initial responses to this marketing the board feel it is on track to grow assets under management in the latter part of the year. Mentum LLP currently operates through three asset managers trading client funds in base metals and energy derivatives.

Name Change

On 27 May Shareholders approved the proposed change of name of the Company to Mentum Inc, which came into effect on 18th August 2010.

Current trading and outlook

During the year we have continued to keep a focus on reducing costs within the business as demonstrated by the lower level in the last six months against the prior six month period. LME floor revenues have continued to perform more robustly and we continue to review the commercial environment for the fund management business as the year progresses following its first phase marketing launch.

Whilst the commodities trading environment remains challenging, we anticipate making further progress on reducing costs within the business during the second half of the year and will continue to focus on developing new revenue opportunities, providing a solid base for the development of the business.

David Phipps

Chief Executive

___ September 2010

1. General Information

The information for the period ended 30 June 2010 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the year ended 31 December 2009 have been extracted from the 2009 statutory financial statements. The auditors' report on those accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

The Company changed its name to Mentum Inc from Commoditrade Inc effective 18th August 2010.

2. Accounting Policies

Basis of preparation

The Company was incorporated as a Corporation in the Cayman Islands which does not prescribe the adoption of any particular accounting framework. The Board has resolved that the Group will follow International Financial Reporting Standards (IFRS) and apply the Companies Act 2006 when preparing its annual financial statements. 

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

The principal accounting policies of the Group remain unchanged from those set out in the Group's 2009 financial statements, except for the adoption of the following standards as of 1 January 2010:

·; IFRS 3 Business Combinations (Revised 2008)

·; IAS 27 Consolidated and Separate Financial Statements (Revised 2008)

·; Improvements to IFRSs 2009

Significant effects on the current period or prior periods arising from the first-time adoption of these new requirements are described below.

The revised standard (IFRS 3R) introduced major changes to the accounting requirements for business combinations. It retains the major features of the purchase method of accounting, now referred to as the acquisition method. The most significant changes are as follows:

Acquisition-related costs of the combination are recorded as an expense in the income statement. Previously, these costs would have been accounted for as part of the cost of the acquisition.

The assets acquired and liabilities assumed are generally measured at their acquisition-date fair values unless IFRS 3R provides an exception and provides specific measurement rules.

Any contingent consideration is measured at fair value at the acquisition date. If the contingent consideration arrangement gives rise to a financial liability, any subsequent changes are generally recognised in profit or loss. Previously, contingent consideration was recognised at the acquisition date only if its payment was probable.

The Group has not had any business combinations in the current period and therefore, the adoption of IFRS 3R has not had an impact in the current period financial statements.

The adoption of IFRS 3R required that the revised IAS 27 (IAS 27R) is adopted at the same time. IAS 27R introduced changes to the accounting requirements for transactions with non-controlling (formerly called 'minority') interests and the loss of control of a subsidiary. Similar to IFRS 3R, the adoption of IAS 27R is applied prospectively. The Group did not have transactions with non-controlling interests in the current period and did not dispose of any of its equity interests in its subsidiaries. Therefore, the adoption of IAS 27R did not have an impact in the current period financial statements.

The Improvements to IFRSs 2009 ('2009 Improvements') made several minor amendments to IFRSs. These amendments have had no impact in the current period financial statements.

2. Accounting Policies (continued)

Critical judgments and key sources of estimation uncertainty

The key sources of estimation uncertainty the Directors have made in preparing this interim report are as follows:

§ the fair value of the available for sale financial assets; and

§ the assumptions used to calculate the fair value of share options, including the number of share options expected to vest.

The Directors consider that the critical judgments in applying the accounting policies, as detailed above, in preparing this interim report are as follows:

§ the accounting for the Tambelan Interest as an associated business on the basis the Group has significant influence, but not control; and

§ the categorisation of certain financial assets as available for sale.

3. 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.

4. Tax

There is no tax charge for any period. In 2009, the acquisition of Mentum Partners Limited and Mentum LLP meant that a proportion of the Group's operation is now taxable in the UK. 

The relationship between the expected tax expense at 28% and the tax expense/income actually recognised in the income statement can be reconciled as follows:

5. Loss per share

The calculation of the basic (loss)/earnings per share is based on the net loss for the period of US$3,988,000 (period ended 30 June 2009: loss US$12,340,000 and year ended 31 December 2009: loss US$14,660,000) divided by the weighted average number of shares in issue during the period of 349,268,114 (period ended 30 June 2009: 349,268,114 and year ended 31 December 2009: 349,268,114). 

The share options are anti-dilutive for all periods, therefore no diluted loss per share figure is presented.

6. Share Capital

The share capital of the Group is denominated in GBP. Following a change in reporting currency for the year ended 31 December 2009, the share capital was translated into US$ at the historic rate.

7. Share Options

The Group has adopted an employee Share Option Scheme (the "Employee Share Option Scheme") in order to incentivise key management and staff. The fair value of options granted during the year ended 31 December 2009 was determined using the Black-Scholes valuation model. Significant inputs into the calculations were as follows:

§ 400% volatility based on expected share price (ascertained by reference to historic share prices of both the Group and comparable listed companies);

§ share price of 5.1p per share at date of grant of options;

§ exercise price of 5p per share;

§ a risk free interest rate of 5.5%;

§ no dividend yield; and

§ estimated option lives of 18 months.

Amounts disclosed below have been translated into USD from GBP using the rate prevailing at the date that the options were granted.

At 30 June 2010, the Group had the following options outstanding:

A share based payment expense of US$2,586,000 has been recognised in the consolidated statement of comprehensive income for the period ended 30 June 2010 (period ended 30 June 2009: US$2,249,000 and year ended 31 December 2009 write back of: US$1,815,000).

8. Events After the Reporting Date

There were no material events after the reporting date which necessitate revision or adjustment of the figures in these interim results.