28th Sep 2012 07:00
Mentum Inc.
("Mentum" or "the Group")
Interim Results for the Six Months ended 30 June 2012
Mentum (AIM: MEN) announces its interim results for the six months ended 30 June 2012.
Summary
·; Administrative costs held at US$0.2 million (June 2011: US$ 0.2 million);
·; Continued review of potential transactions;
·; Cash at bank of US$0.7 million (December 2011: US$ 1.5 million).
Commenting on the results, Graham Porter, Chairman, said: "The Board is continuing to review potential acquisition opportunities and will provide an update to shareholders as appropriate."
Enquiries: | www.mentum.net
|
Strand Hanson, James Harris / Angela Peace
| tel: +44(0)20 7409 3494 |
Gable Communications Limited, John Bick / Justine James
| tel: +44(0) 20 7193 7463
|
Results
Mentum has spent the period since the disposal of its underlying business actively reviewing potential acquisition opportunities and has expensed $268,000 in relation to such activities during the period. In addition, Mentum has incurred administrative expenses of US$215,000 compared to US$217,000 for the six month period to 30 June 2011.
The net loss for the period was US$ 0.48 million (June 2011: US$ 4.10 million, year to 31 December 2011: US$ 7.06 million), with the prior periods including the loss from discontinued operations.
No dividend is proposed.
As at 30 June 2012 the Group had no debt and its cash balances stood at US$0.7 million compared to US$1.5 million at the previous year end. The company is running with minimal overheads and the directors feel that this is sufficient to cover the company's requirements for the foreseeable future.
The Board is confident that it will identify a suitable acquisition target to put before shareholders and looks forward to reporting to shareholders on this matter in due course.
Graham Porter
Chief Executive
28 September 2012
MENTUM INC.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes | Unaudited Period ended 30 June 2012 | Unaudited Period ended 30 June 2011 | Audited Year ended 31 Dec 2011 | |||
US$'000 | US$'000 | US$'000 | ||||
Continuing operations | ||||||
Aborted transaction costs | (268) | - | (372) | |||
Administrative expenses | (215) | (217) | (427) | |||
Loss before and after tax | (483) | (217) | (799) | |||
Loss for the period from continuing operations | (483) | (217) | (799) | |||
Discontinued operations |
|
|
| |||
Loss for the period from discontinued operations | 6 | - | (3,882) | (6,259) | ||
Loss for the period | 4 | (483) | (4,099) | (7,058) | ||
Other comprehensive income | ||||||
Exchange differences on translating foreign operations | - | (258) | 184 | |||
Net gain/(loss) on available-for-sale financial assets | - | (37) | (106) | |||
Exchange differences recycled on disposal of subsidiary undertakings | - | - | (288) | |||
Net gain on available-for- sale financial assets recycled on disposal of subsidiary undertakings | - | - | (563) | |||
Other comprehensive income for the period, net of tax | ||||||
- | (295) | (773) | ||||
Total comprehensive loss for the period, attributable to owners of the company | (483) | (4,394) | (7,831) | |||
Loss per share | ||||||
Continuing operations | 4 | (0.14) | (0.06) | (0.23) | ||
Discontinued operations | - | (1.11) | (1.79) | |||
Basic and diluted (cents per share) | (0.14) | (1.17) | (2.02) | |||
All amounts included in other comprehensive income relate to discontinued operations. | ||||||
MENTUM INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited 30 June 2012 | Unaudited 30 June 2011 | Audited 31 December 2011 | ||||
Assets | Notes | US$'000 | US$'000 | US$'000 | ||
Non-current | ||||||
Other receivables | - | 2,000 | - | |||
- | 2,000 | - | ||||
Current | ||||||
Cash and cash equivalents | 723 | 1,277 | 1,495 | |||
Other financial assets | - | 3,458 | - | |||
Trade and other receivables | 15 | 1,188 | 57 | |||
Total current assets | 738 | 5,923 | 1,552 | |||
Total assets | 738 | 7,923 | 1,552 | |||
Liabilities | ||||||
Current | ||||||
Balance due to brokers | - | 718 | - | |||
Trade and other payables | 260 | 851 | 591 | |||
Provisions | - | 1,956 | - | |||
Total liabilities | 260 | 3,525 | 591 | |||
Equity | ||||||
Issued share capital | 5 | 629 | 629 | 629 | ||
Share premium | 6 | 66,496 | 66,496 | 66,496 | ||
Other reserves | 92 | (62) | 92 | |||
Retained earnings | (66,739) | (62,665) | (66,256) | |||
Equity attributable | ||||||
to owners of the company | 478 | 4,398 | 961 | |||
Total equity and liabilities | 738 | 7,923 | 1,552 | |||
MENTUM INC.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital | Share premium account | Capital redemption reserve | Translation reserve | Retained earnings | Total equity | ||
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||
Balance at 1 January 2011 (audited) | 629 | 66,496 | 92 | 104 | (58,529) | 8,792 | |
Transactions with owners | - | - | - | - | - | - | |
Loss for the period | - | - | - | - | (4,099) | (4,099) | |
Other comprehensive income for the period | - | - | - | (258) | (37) | (295) | |
Total comprehensive loss for the period | - | - | - | (258) | (4,136) | (4,394) | |
Balance at 30 June 2011 (unaudited) | 629 | 66,496 | 92 | (154) | (62,665) | 4,398 | |
Transactions with owners | - | - | - | - | - | - | |
Loss for the period | - | - | - | - | (2,959) | (2,959) | |
Other comprehensive income for the period | - | - | - | 442 | (69) | 373 | |
Exchange difference recycled on disposal of subsidiary undertakings | - | - | - | (288) | - | (288) | |
Gains on revaluation of available-for-sale asset recycled on disposal of subsidiary undertakings | - | - | - | - | (563) | (563) | |
Total comprehensive loss for the period | - | - | - | 154 | (3,591) | (3,437) | |
Balance at 31 December 2011 (audited) | 629 | 66,496 | 92 | - | (66,256) | 961 | |
Transactions with owners | - | - | - | - | - | - | |
Loss for the period | - | - | - | - | (483) | (483) | |
Other comprehensive income for the period | - | - | - | - | - | - | |
Total comprehensive loss for the period | - | - | - | - | (483) | (483) | |
Balance at 30 June 2012 (unaudited) | 629 | 66,496 | 92 | - | (66,739) | 478 |
MENTUM INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Period ended | Unaudited Period ended | Audited Year ended | ||||
30 June 2012 | 30 June 2011 | 31 December 2011 | ||||
US$'000 | US$'000 | US$'000 | ||||
Operating activities | ||||||
Continuing operations | ||||||
Loss after tax | (483) | (217) | (799) | |||
Decrease/(increase) in trade and other receivables | 42 | 6 | (51) | |||
(Decrease)/increase in trade and other payables | (331) | (6) | 430 | |||
Net cash (outflow)/inflow from operating activities from continuing operations | (772) | (217) | (420) | |||
Discontinued operations | ||||||
Net cash (outflow)/inflow from operating activities from discontinued operations | - | (236) | 423 | |||
Net cash (outflow)/inflow from operating activities | (772) | (453) | 3 | |||
Investing activities | ||||||
Cash disposed of with subsidiaries | - | - | (161) | |||
Discontinued operations | - | - | (77) | |||
Net cash outflow from investing activities | - | - | (238) | |||
Net (reduction) in cash and cash equivalents | (772) | (453) | (235) | |||
Cash and cash equivalents at beginning of period | 1,495 | 1,730 | 1,730 | |||
Cash and cash equivalents at end of period | 723 | 1,277 | 1,495 |
MENTUM INC.
1 general information
The information for the period ended 30 June 2012 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the year ended 31 December 2011 have been extracted from the 2011 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.
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 2011 financial statements.
2 segmental reporting
As the Group is currently seeking new investment opportunities, 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.
3 Tax
There is no tax charge or credit for any period.
The relationship between the expected tax expense at 28% and the tax expense/income actually recognised in the statement of comprehensive income can be reconciled as follows:
Unaudited | Unaudited | Audited | |||
six months ended | six months ended | year ended | |||
30 June 2012 | 30 June 2011 | 31 December 2011 | |||
US$'000 | US$'000 | US$'000 | |||
Loss for the period before taxation - continuing | (483) | (217) | (799) | ||
- discontinued | - | (3,882) | (6,259) | ||
(483) | (4,099) | (7,058) | |||
Tax rate | 26% | 28% | 26% | ||
Expected tax credit | (126) | (1,148) | (1,835) | ||
Loss not assessable for tax | 126 | 1,148 | 1,835 | ||
Actual tax expense | - | - | - |
4 LOSS per share
The calculation of the basic loss per share is based on the net loss for the period of US$483,000 (period ended 30 June 2011: loss US$4,099,000 and year ended 31 December 2011: loss US$7,058,000) divided by the weighted average number of shares in issue during the period of 349,268,114 (period ended 30 June 2011: 349,268,114 and year ended 31 December 2011: 349,268,114).
Unaudited Period ended | Unaudited Period ended | Audited Year ended | |||
30 June 2012 | 30 June 2011 | 31 December 2011 | |||
US$'000 | US$'000 | US$'000 | |||
(Loss) attributable to the owners of the company | |||||
Continuing operations | (483) | (217) | (799) | ||
Discontinued operations | - | (3,882) | (6,259) | ||
(483) | (4,099) | (7,058) | |||
Weighted average number of shares for calculating basic loss per share | 349,268,114 | 349,268,114 | 349,268,114 | ||
Basic and diluted loss per share (US cents) | |||||
Continuing operations | (0.14) | (0.06) | (0.23) | ||
Discontinued operations | - | (1.11) | (1.79) | ||
(0.14) | (1.17) | (2.02) |
5 share capital
The share capital of the Group is denominated in GBP. Following a change in reporting currency in 2009, the share capital was translated into US$ at the historic rate.
Unaudited | Unaudited | Audited | |||
30 June 2012 | 30 June 2011 | 31 December 2011 | |||
US$'000 | US$'000 | US$'000 | |||
Authorised | |||||
1,000,000,000 ordinary shares of 0.1p | 1,875 | 1,875 | 1,875 | ||
Allotted, issued and fully paid | |||||
349,268,114 ordinary shares of 0.1p | 629 | 629 | 629 |
6 DISCONTINUED LOSS & LOSS ON DISPOSAL
Loss on discontinued operations
Prior to disposal of Mentum's LME trading activities and related subsidiaries on 15 December 2011, the discontinued operations generated a loss analysed as follows:
Unaudited Period ended | Unaudited Period ended | Audited Year ended | |||
30 June 2012 | 30 June 2012 | 31 December 2011 | |||
US$'000 | US$'000 | US$'000 | |||
Net surplus from associated business | - | 60 | 1,242 | ||
Gains on derivative financial instruments | - | 724 | 6,266 | ||
Operating income | - | 784 | 7,508 | ||
Administrative expenses | - | (4,003) | (4,929) | ||
Direct trading costs | - | (663) | (3,133) | ||
Profit/(loss) before and after tax | - | (3,882) | (554) | ||
Loss on disposal of discontinued operations | - | - | (5,705) | ||
- | (3,882) | (6,259) |
Loss on disposal
On 15 December 2011, the Group disposed of its entire interest in Mentum Investments Limited and Mentum Partners Limited including its subsidiary Mentum LLP along with certain assets of the parent Company to Corvus Commodities Limited. In addition, the Group novated it's contract with Sucden (UK) Limited which was referred to as the Tambelan Agreement. Mentum Inc entered into the Tambelan Agreement in 2006 having acquired the Tambelan Interest, a net profit sharing agreement between Sucden (UK) Limited and Tambelan Group Limited pertaining to a London Metal Exchange Floor Trading team. The net assets of the subsidiaries at the date of disposal together with the other assets disposed of were as follows:
Audited year ended | ||
31 December 2011 | ||
US$000 | ||
Net assets of subsidiaries disposed of: | ||
Trade and other receivables | (128,275) | |
Cash and cash equivalents | (161) | |
Other payables | 125,150 | |
Obligations under property lease | 1,646 | |
Obligations under other finance leases | 88 | |
Total net assets disposed of with subsidiaries: | (1,552) | |
Other assets disposed of: | ||
LME Holdings shares | (2,727) | |
LME trading balances | (1,271) | |
Sucden deposit (net of US$46,000 due from Corvus) | (954) | |
(4,952) | ||
Recycling of exchange reserves on disposal | 288 | |
Recycling of gain on revaluation of available-for-sale asset | 563 | |
Total consideration | - | |
Disposal costs | (52) | |
Loss on disposal | (5,705) | |
Related Shares:
FOR.L