Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

Half Yearly Report

13th Aug 2009 09:41

RNS Number : 3813X

Crosby Asset Management Inc

13 August 2009

Crosby Asset Management Inc.

(the 'Company' or 'CAM' and together with its subsidiaries the 'Group')

Interim Results - Six months ended 30 June 2009

Summary Financials

Turnover 2009: US$2.1 million (2008: US$17.6 million, of which US$15.0 million was from continuing operations)

Loss Attributable to Shareholders 2009: US$8.6 million (2008: US$46.4 million, of which US$21.2 million was from continuing operations)

A modest, but noticeable, improvement in the operating environment was discernible

Shareholder Equity 2009: US$1.2 million (2008: US$18.8 million)

Loss Per Share (basic) 2009: US$0.04 (2008: US$0.19)

Assets Under Management 2009: US$0.6 billion (2008: US$2.2 billion)

Commentary

The Company continues to pursue its strategy to reduce costs and realise assets wherever possible and this is reflected in the interim figures, resulting in a loss attributable to shareholders of US$8.6 million (2008 US$46.4 million) from turnover of US$2.1 million (2008 US$17.6 million).

Business at Crosby Wealth Management (CWM) is showing modest signs of improvement. There have been no further developments with regard to the legal proceedings bought against CWM in respect of a trade execution error.

A liquidator has now been appointed to oversee the orderly closure of the Forsyth hedge fund of funds.

Due to the lack of critical mass within the Crosby Active Opportunities Fund ('CAOF') CAOF has continued to liquidate positions, where possible, in order to return cash to shareholders.

Orchard Petroleum, in which CAM has a five per cent. equity stake (rising to between nine per cent. and ten per cent. after the repayment of debt to preference shareholders), benefitted from stronger oil prices towards the end of the period under review. Total production also continued to increase modestly as a result of an increase in producing well count.

At the close of the period, CAM held US$7.9 million of cash and had minimal debt.

Consolidated Income Statement
		Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	2009	2008	2008
	Notes	US$'000	US$'000	US$'000
Continuing operations

Revenue	5	2,104	14,975	22,853
Cost of sales		(322)	(3,537)	(6,502)


Gross profit		1,782	11,438	16,351
(Loss)/Profit on financial assets at fair value through profit or loss	14	(1,964)	27	(2,219)
Other income	6	294	300	1,299

Administrative expenses
Restructuring expenses	7	(580)	(4,233)	(6,968)
Amortisation of intangible assets		-	(314)	(314)
Impairment of intangible assets		(10)	(8,979)	(8,930)
Write off of intangible assets		-	-	(468)
Other administrative expenses		(5,617)	(17,498)	(24,403)
		(6,207)	(31,024)	(41,083)

Distribution expenses		-	(3)	(46)
Impairment of available-for-sale investments		(1,458)	-	-
Other operating expenses		(1,512)	(1,115)	(6,508)


Loss from operations		(9,065)	(20,377)	(32,206)

Finance costs		(62)	(133)	(201)
Share of profits of associates		1	69	24
Share of profits/(losses) of jointly controlled entities		73	66	(10)


Loss before taxation	9	(9,053)	(20,375)	(32,393)

Taxation	10	24	(293)	127

Loss for the period from continuing operations		(9,029)	(20,668)	(32,266)


Discontinued operations

Loss for the period from discontinued operations		-	(25,207)	(25,207)

Loss for the period		(9,029)	(45,875)	(57,473)


Attributable to:
Equity holders of the Company
Loss for the period from continuing operations		(8,576)	(21,162)	(31,278)
Loss for the period from discontinued operations		-	(25,207)	(25,207)


		(8,576)	(46,369)	(56,485)

Minority interests
(Loss)/profit for the period from continuing operations		(453)	494	(988)
Loss for the period from discontinued operations		-	-	-

			494	(988)

Loss for the period		(9,029)	(45,875)	(57,473)


Dividend		-	-	-


Loss per share for loss attributable to equity holders of the Company during the period	11	US cents	US cents	US cents
- Basic		(3.52)	(19.05)	(23.20)
- Diluted		(3.52)	(19.05)	(23.20)

Consolidated Statement of Comprehensive Income
		Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	Note	2009	2008	2008
		US$'000	US$'000	US$'000

Loss for the period		(9,029)	(45,875)	(57,473)
Other comprehensive income:
Exchange differences on translating foreign operations		(14)	152	48
Available-for-sale investments Deficit on revaluation Reclassification to profit or loss: Provision for impairment Upon disposal	9	(805) 1,458 436	(301) - -	(1,398) - 155
Share of other comprehensive income of associates		(27)	(56)	(188)
Share of other comprehensive income of jointly controlled entities		16	-	(5)

Other comprehensive income for the period, net of tax		1,064	(205)	(1,388)


Total comprehensive income for the period, net of tax		(7,965)	(46,080)	(58,861)

Attributable to:
Equity holders of the Company		(7,512)	(46,574)	(57,873)
Minority interests		(453)	494	(988)


		(7,965)	(46,080)	(58,861)

Consolidated Statement of Financial Position

		Unaudited 30 June	Unaudited 30 June	Audited 31 December
		2009	2008	2008
	Notes	US$'000	US$'000	US$'000

ASSETS

Non-current assets
Property, plant and equipment		181	2,208	387
Interests in associates		488	325	153
Interests in jointly controlled entities		557	72	307
Available-for-sale investments	12	387	5,222	1,625
Note receivable		497	-	485
Intangible assets		21	489	21
		2,131	8,316	2,978

Current assets
Amounts due from parent and related companies	17	52	114	214
Trade and other receivables	13	2,344	7,648	3,424
Tax recoverable		120	75	82
Financial assets at fair value through profit or loss	14	381	183	2,696
Cash and cash equivalents		7,871	15,171	15,526
		10,768	23,191	21,942

Assets classified as discontinued operations		-	11,360	-

Total assets		12,899	42,867	24,920

LIABILITIES

Current liabilities
Amounts due to parent and related companies	17	(1)	(908)	-
Trade and other payables	15	(9,732)	(10,129)	(11,930)
Deferred income		(30)	(79)	(34)
Provision for taxation		-	(2,717)	(2,261)
Current portion of obligations under finance leases		(277)	(361)	(298)
		(10,040)	(14,194)	(14,523)

Non-current liabilities
Loan payable		(53)	(50)	(52)
Other payable		-	(838)	-
Obligations under finance leases		(390)	(822)	(513)
		(443)	(1,710)	(565)

Liabilities directly associated with assets classified as discontinued operations		-	(5,067)	-

Total liabilities		(10,483)	(20,971)	(15,088)

EQUITY

Share capital	16	2,435	2,435	2,435
Reserves		(1,229)	16,346	5,749
Equity attributable to equity holders of the Company		1,206	18,781	8,184

Minority interests		1,210	3,115	1,648

Total equity		2,416	21,896	9,832

Total equity and liabilities		12,899	42,867	24,920

Consolidated Statement of Changes in Equity

Equity attributable to equity holders of the Company

capital

premium

Capital

reserve

Employee

share-based compensation

reserve

Foreign

exchange

reserve

Investment revaluation

reserve

Profit and loss account

Total

Minority interests

Total

equity

US$'000

At 1 January 2009

2,435

6,344

23,455

3,597

(1,088)

(26,579)

8,184

1,648

9,832

Employee share-based compensation

534

549

Lapse of share options

(190)

190

Transactions with owners

344

190

534

549

Loss for the period

(8,576)

(453)

(9,029)

Other comprehensive income:

Exchange difference on translating foreign exchange operations

(14)

Available-for-sale investments

Deficit on revaluation

(805)

Reclassification to profit or loss:

Provision for impairment

Upon disposal

1,458

436

1,458

436

1,458

436

Share of other comprehensive income of associates

(27)

Share of other comprehensive income of jointly controlled entities

Total comprehensive income for the period

(25)

1,089

(8,576)

(7,512)

(453)

(7,965)

At 30 June 2009

2,435

6,344

23,455

3,941

(5)

(34,965)

1,206

1,210

2,416

Consolidated Statement of Changes in Equity

Equity attributable to equity holders of the Company

capital

premium

Capital

reserve

Employee

share-based compensation

reserve

Foreign

exchange

reserve

Investment revaluation

reserve

Profit and loss account

Total

Minority interests

Total

equity

US$'000

At 1 January 2008

2,433

6,236

23,455

2,927

165

155

28,834

64,205

8,269

72,474

Issue of new shares upon

exercise of share options

108

(26)

Employee share-based compensation

1,066

1,076

Lapse of share options

(299)

299

Dividend paid to minority shareholders

(5,658)

Transactions with owners

108

741

299

1,150

(5,648)

(4,498)

(Loss)/Profit for the period

(46,369)

494

(45,875)

Other comprehensive income:

Exchange difference on translating foreign exchange operations

152

Available-for-sale investments

Deficit on revaluation

(301)

Share of other comprehensive income of associates

(56)

Total comprehensive income for the period

(301)

(46,369)

(46,574)

494

(46,080)

At 30 June 2008

2,435

6,344

23,455

3,668

261

(146)

(17,236)

18,781

3,115

21,896

Condensed Consolidated Cash Flow Statement


	Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

Net cash (outflow)/inflow from operating activities
- Continuing operations	(7,603)	2,444	2,093
- Discontinued operations	-	918	(500)
	(7,603)	3,362	1,593

Net cash inflow/(outflow) from investing activities
- Continuing operations	81	(3,347)	(2,011)
- Discontinued operations	-	(776)	(7)
	81	(4,123)	(2,018)

Net cash outflow from financing activities
- Continuing operations	(144)	(4,390)	(4,830)
- Discontinued operations	-	-	-
	(144)	(4,390)	(4,830)


Net decrease in cash and cash equivalents	(7,666)	(5,151)	(5,255)

Cash and cash equivalents as at start of period	15,526	20,766	20,766

Effect of exchange rate fluctuations	11	(11)	15

Cash and cash equivalents as at end of period	7,871	15,604	15,526

Analyzed into:
- Continuing operations	7,871	15,171	15,526
- Discontinued operations	-	433	-

Total	7,871	15,604	15,526

Notes to the interim financial information

1. Basis of preparation

The Company acts as the holding company of the Group. The Group is principally engaged in the businesses of merchant banking and asset management. The address of the Company's registered office is Cricket Square, Hutchins Drive, P. O. Box 2681, Grand Cayman, KY1 -1111, Cayman Islands. The Company's shares are listed on the AIM of the London Stock Exchange.

The Company was incorporated in the Cayman Islands, which does not prescribe the adoption of any particular accounting framework. The Board has therefore adopted International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. The interim financial information complies with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the AIM of the London Stock Exchange.

The interim financial information has been prepared on the historical cost basis except for certain financial instruments which are measured at fair value.

It should be noted that accounting estimates and assumptions are used in preparation of the interim financial information. Although these estimates are based on management's best knowledge and judgement of current events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the interim financial information, are set out in Note 3 to the interim financial information.

The Directors note the losses that the Group has made for the period ended 30 June 2009. The Directors have prepared cash flow forecasts through to 30 June 2010 which exclude the impact of the cash flows of Crosby Wealth Management which held cash of US$6.0 million out of the Group's total cash of US$7.9 million at 30 June 2009. Crosby Wealth Management has been excluded from the forecasts as it is only 56.14% owned by the Group. The forecasts take account of the current cost structure of the Group and a conservative estimate of the proceeds of the sale of certain assets of the Group and the income to be generated from the Asset Management business. These forecasts indicate adequate working capital prior to taking account of a facility of US$4 million from Crosby Capital Limited, its parent company. For this reason, they continue to adopt the going concern basis in preparing the consolidated financial information.

The interim financial information contained in this report does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The full accounts for the year ended 31 December 2008 received an unqualified report from the auditors and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985.

The interim financial information is unaudited but has been reviewed by the Company's Audit Committee.

2. Principal accounting policies

The interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting". These condensed interim financial information should be read in conjunction with the annual financial statements of the Group for the year ended 31 December 2008 (the "2008 Annual Report"), which have been prepared in accordance with International Financial Reporting Standards.

The principal accounting policies and methods of computation adopted to prepare the interim financial information are consistent with those detailed in the 2008 annual report published by the Company on 19 March 2009, except for the adoption of IAS 1 Presentation of Financial Statements (Revised 2007) and IFRS 8 Operating Segments.

The adoption of IAS 1 (Revised 2007) does not affect the financial position or profits of the Group, but gives rise to additional disclosures. The measurement and recognition of the Group's assets, liabilities, income and expenses is unchanged, however some items that were recognised directly in equity are now recognised in other comprehensive income, for example revaluation of available-for-sale investments. IAS 1 (Revised 2007) affects the presentation of owner changes in equity and introduces a "Statement of comprehensive income". In accordance with the new standard the entity does not present a "Statement of recognised income and expenses", as was presented in the 2008 consolidated financial statements. Further, a "Statement of changes in equity" is presented.

The adoption of IFRS 8 has changed the segments that are disclosed in the interim financial statements. In the previous annual and interim financial statrements, segments were identified by reference to the dominant source and nature of the Group's risks and returns. Under IFRS 8 the accounting policy for identifying segments is now based on the internal management reporting information that is regularly reviewed by the chief operating decision maker. Following the adoption of IFRS 8 which requires retrospective application, the comparative segment information for the same period in the prior year is restated to conform with the new requirements.

3. Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(i) Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting period are discussed below:

Fair values of financial instruments

Financial instruments such as available-for-sale investments and financial assets at fair value through profit or loss are initially measured at fair value. Certain financial instruments are remeasured at fair value at subsequent reporting dates. The best evidence of fair value is quoted prices in an active market. Where quoted prices are not available for a particular financial instrument, the Group uses the market values determined by the internal or external valuation techniques to estimate the fair value. The use of methodologies, models and assumptions in pricing and valuing these financial assets requires varying degrees of judgement by management, which may result in different fair values and results. The assumptions with regard to the fair value of available-for-sale investments and financial assets at fair value through profit or loss are detailed in Notes 12 and 14 to the interim financial information respectively, are those that have the most significant risk of causing a material adjustment to the carrying amounts of assets within the next accounting period.

Valuations of share options granted

The fair value of share options granted was calculated using the Binomial option pricing model which requires the input of highly subjective assumptions, including the volatility of share price. Because changes in subjective input assumptions can materially affect the fair value estimate, in the opinion of Directors of the Company, the existing model will not always necessarily provide a reliable single measure of the fair value of the share options.

Impairment of assets

The Group conducts impairment reviews of assets when events or changes in circumstances indicate that their carrying amounts may not be recoverable annually in accordance with the relevant accounting standards. An impairment loss is recognised when the carrying amount of an asset is lower than the greater of its net selling price or the value in use. In determining the value in use, management assesses the present value of the estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Estimates and judgments are applied in determining these future cash flows and the discount rate.

Impairment of trade and other receivables

Management determines impairment of receivables on a regular basis. A considerable amount of judgement is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each debtor. If the financial conditions of debtors of the Group were to deteriorate, resulting in an impairment of their ability to make payments, additional impairment may be required.

Provision for onerous contracts

Management estimates provision for the onerous property contracts to reflect the unavoidable costs of meeting the obligations under the contract. The Group uses a number of assumptions in assessing the present value of the estimated future cash flows expected to meet the obligations under the contract and from the possible sub-letting or asignment of contract. Estimates and judgements are applied in determining these future cash flows and the discount rate. Details of the key assumptions in respect of the provision for the onerous contract are disclosed in Note 7 to the interim financial information.

Provision for claims

Management estimates, based on all available evidence and advice from their solicitors, the likelihood of setting claims made against the Group and the potential cost of those claims. The Group fully provides the estimated cost where settlement is likely.

Current taxation and deferred taxation

The Group is subject to income taxes in various jurisdictions. Significant judgement is required in determining the amount of the provision for taxation and the timing of payment of the related taxation. Where the final tax outcome is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the periods in which such determination are made.

Deferred tax assets relating to certain tax losses will be recognised when management considers it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilised. Where the expectation is different from the original estimate, such difference will impact, where applicable and appropriate, the recognition of deferred tax assets and taxation in the periods in which such estimate is changed.

(ii) Critical judgements in applying the Group's accounting policies

Management in applying the accounting policies, considers that the most significant judgement they have had to make, on an ongoing basis, is the designation of financial assets at fair value through profit or loss which affect the amount recognised in the interim financial information.

4. Segment Information

In identifying its operating segments, management generally follows the Group's service lines, which represent the main services provided by the Group. Each of these operating segments is managed separately as each of these service lines requires different resources as well as marketing approaches.

The management assesses the performance of the operating segments based on a measure of operating profit. This measurement basis excludes the effects of non-recurring expenditure from the operating segments, such as restructuring costs, impairment or amortisation of intangible assets which is the result of an isolated, non-recurring event not directly related to the ongoing operations.

The revenues generated and losses incurred by each of the Group's business segments are summarised as follows:

	Merchant Banking			Direct Investment			Asset Management			Total
	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December
	2009	2008	2008	2009	2008	2008	2009	2008	2008	2009	2008	2008
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Continuing operations

Revenue from external customers	-	-	-	-	-	2,573	2,104	14,975	20,280	2,104	14,975	22,853

Inter-segment revenues	-	-	-	-	-	513	357	4,719	5,985	357	4,719	6,498

Total revenue	-	-	-	-	-	3,086	2,461	19,694	26,265	2,461	19,694	29,351

Segment loss from operations	-	-	-	(2,369)	-	419	(5,181)	(3,353)	(10,282)	(7,550)	(3,353)	(9,863)

	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December
	2009	2008	2008	2009	2008	2008	2009	2008	2008	2009	2008	2008
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000


Total assets	-	-	-	935	-	4,904	11,848	30,835	19,836	12,783	30,835	24,740

	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December
	2009	2008	2008	2009	2008	2008	2009	2008	2008	2009	2008	2008
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Discontinued operations

Revenue from external customers	-	2,612	2,612	-	-	-	-	-	-	-	2,612	2,612

Inter-segment revenues	-	-	-	-	-	-	-			-	-	-

Total revenue	-	2,612	2,612	-	-	-	-	-	-	-	2,612	2,612

Segment loss from discontinued operations	-	(25,207)	(25,207)	-	-	-	-	-	-	-	(25,207)	(25,207)

	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December
	2009	2008	2008	2009	2008	2008	2009	2008	2008	2009	2008	2008
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Total assets	-	11,360	-	-	-	-	-	-	-	-	11,360	-

										Total
										Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December
										2009	2008	2008
										US$'000	US$'000	US$'000

Segment loss from operations can be reconciled to consolidated loss from operations as follows:
Continuing operations

Segment loss from operations										(7,550)	(3,353)	(9,863)

Reconciling items:
Other income not allocated										36	91	126
Restructuring expenses										(580)	(4,233)	(6,968)
Amortisation of intangible assets										-	(314)	(314)
Impairment of intangible assets										(10)	(8,979)	(8,930)
Write off of intangible assets										-	-	(468)
Other expenses not allocated										(973)	(5,513)	(7,086)
Elimination of inter-segment revenue/ expenses										12	1,924	1,297

Loss from operations										(9,065)	(20,377)	(32,206)

Finance costs										(62)	(133)	(201)
Share of profits of associates										1	69	24
Share of profits/ (losses) of jointly controlled entities										73	66	(10)

Loss before taxation										(9,053)	(20,375)	(32,393)

	Total
	Unaudited 30 June	(Restated) Unaudited 30 June	(Restated) Audited 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

Segment total assets can be reconciled to consolidated total assets as follows:

Continuing operations

Segment total assets	12,783	30,835	24,740
Other assets not allocated	116	672	180

Total assets	12,899	31,507	24,920

	Merchant Banking			Direct Investment			Asset Management			Total
	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December	Unaudited six months ended 30 June	(Restated) Unaudited six months ended 30 June	(Restated) Audited year ended 31 December
	2009	2008	2008	2009	2008	2008	2009	2008	2008	2009	2008	2008
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000

Other information

Continuing operations

Interest income	-	-	-	(11)	-	(24)	(17)	(222)	(378)	(28)	(222)	(402)
Depreciation	-	-	-	-	-	-	118	480	809	118	480	809
Impairment of available-for-sale investments	-	-	-	-	-	-	1,458	-	-	1,458	-	-
Impairment of trade and other receivables	-	-	-	-	-	-	-	1,221	769	-	1,221	769

Discontinued operations

Interest income	-	-	(375)	-	-	-	-	-	-	-	-	(375)
Depreciation	-	7	7	-	-	-	-	-	-	-	7	7

4. Segment Information (Cont'd)

Notes:

Discontinued operations:

Merchant Banking - provision of corporate finance and other advisory services and the changes in fair value of financial assets and liabilities through profit or loss arising from the Group's merchant banking activities.

Continuing operations:

i) Asset Management - provision of asset management and wealth management services

Direct Investment -the remaining investments held which arose from the discontinued Merchant Banking business and are now managed on a passive basis.

5. Revenue - continuing operations

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Fund management fee income	946	9,705	13,160
Wealth management services fee	1,158	5,270	7,120
Others	-	-	2,573


Total	2,104	14,975	22,853

6. Other income - continuing operations

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Bank interest income	5	218	333
Management and consultancy fee income	-	64	587
Other interest income	23	4	69
Foreign exchange gain, net	178	-	-
Others	88	14	310


Total	294	300	1,299

7. Restructuring expenses - continuing operations

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Write off/impairment of property, plant and equipment	-	1,904	3,153
Provision for onerous contract in respect of operating lease	580	1,364	973
Others	-	965	2,842


Total	580	4,233	6,968

The Group has reduced staff numbers as part of the restructuring of its Forsyth fund-of-funds business and relocated the remaining staff to its head office, leaving office premises rented under operating leases vacant and available to sub-let. At 30 June 2009, the Group had made further provision for the discounted net present value of the future property operating lease rental payments under the operating leases, in so far as they are expected to exceed future anticipated rentals if the premises is sub-let, in the amount of US$580,000 (31 December 2008: US$973,000 and 30 June 2008: US$1,364,000) as this represents an onerous contract.

8. Employee benefit expenses (including directors' remuneration) - continuing operations

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Fees	42	50	100
Salaries, allowances and benefits in kind	2,875	6,836	14,541
Commissions paid and payable	345	1,888	2,462
Bonus paid and payable	37	2,743	168
Share-based compensation	549	983	1,700
Pensions - defined contribution scheme	21	124	625
Social security costs	72	841	773


Total	3,941	13,465	20,369

9. Loss before taxation - continuing operations

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Loss before taxation is arrived at after charging/(crediting):
Auditors' remuneration:
Fee payable to the Company's auditors for the audit of the Company's financial statements	15	57	98
Fee payable to the Company's auditors for the other services:
- audit of the Company's subsidiaries pursuant to legislation	44	75	71
- taxation services	11	3	8
- regulatory assistance	3	23	28
- others	6	-	75
Amortisation of intangible assets	-	314	314
Depreciation - owned assets - assets under finance leases	118 -	465 20	663 146
Employee benefits expenses (including directors' remuneration (Note 8)	3,941	13,465	20,369
Foreign exchange (gain)/losses, net	(178)	(19)	17
Impairment of available-for-sale investments	1,458	-	-
Impairment of intangible assets	10	8,979	8,930
Impairment of trade and other receivables	-	1,221	769
Loss on disposal of available-for-sale investments	436	-	155
Operating lease charges in respect of rental premises	383	1,184	1,683
Write off of intangible assets	-	-	468

10. Taxation - continuing operations

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Current tax
- United Kingdom	(6)	-	35
- Overseas	(18)	293	(162)


Total	(24)	293	(127)

United Kingdom and overseas income tax for the period have been calculated at the rates prevailing in the relevant jurisdictions.

The Group has significant unrelieved tax losses, the utilisation of which is uncertain and consequently no deferred tax asset has been recognised. (30 June 2008 and 31 December 2008: US$Nil).

11. Loss per share

(a) Basic

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Loss attributable to equity holders of the Company	(8,576)	(46,369)	(56,485)

Number of shares

Weighted average number of shares for calculating basic loss per share

243,475,000

243,389,286

243,432,377

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US cent	US cent	US cent

Basic loss per share	(3.52)	(19.05)	(23.20)

(b) Diluted

No diluted loss per share is shown for the six month ended 30 June 2009 (30 June 2008 and 31 December 2008: US$Nil), as the outstanding share options are anti-dilutive.

12. Available-for-sale investments - continuing operations

	Unaudited 30 June	Unaudited 30 June	Audited 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

Fair value, unlisted investments	387	5,222	1,625

The movement in available-for-sale investments is as follows:

	Unaudited 30 June	Unaudited 30 June	Audited 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

At 1 January	1,625	5,523	5,523
Disposals	(433)	-	(2,500)
Change in fair value recognised directly in equity	(805)	(301)	(1,398)


At 30 June / 31 December	387	5,222	1,625

The investments included above represent investments that offer the Group the opportunities for return through dividend income and fair value gains. The fair values of the investments are based on Group's share of the underlying net assets of the fund which are valued at fair value.

13. Trade and other receivables - continuing operations

	Unaudited 30 June	Unaudited 30 June	Audited 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

Trade receivables -gross	938	3,790	816
Less: impairment losses	-	(176)	-

Trade receivables - net	938	3,614	816

Other receivables - gross	935	763	2,415
Less: impairment losses	(611)	-	(1,375)

Other receivables - net	324	763	1,040

Deposits and prepayments	1,082	3,271	1,568


Total	2,344	7,648	3,424

At 30 June 2009, the ageing analysis of trade receivables based on invoice date and net of impairment losses, is as follows:

	Unaudited 30 June	Unaudited 30 June	Audited 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

0 - 30 days	326	2,787	178
31 - 60 days	179	538	127
61 - 90 days	61	289	454
Over 90 days	372	-	57

Total	938	3,614	816

The Group allows a credit period ranging from 15 to 45 days to its asset management clients. The credit period for asset management contracts can be extended in special circumstances.

None of the above trade receivables net of impairment losses is past due as at 30 June 2009. The trade receivables related to a large number of customers for whom there was no recent history of default.

14. Financial assets at fair value through profit or loss

	Unaudited 30 June 2009	Unaudited 30 June 2008	Audited 31 December 2008
	US$'000	US$'000	US$'000
Held for trading
Listed securities:
- Equity securities - Australia	-	19	5
- Equity securities - Japan	342	3,795	801
- Equity securities - USA	24	-	-
- Equity securities - United Kingdom	6	183	6

Fair value of listed securities	372	3,997	812

Unlisted securities:
- Equity securities - Australia	9	35	9
- Equity securities - British Virgin Islands	-	3,072	1,875

Fair value of unlisted securities	9	3,107	1,884

Total	381	7,104	2,696

Analyzed into:
- Continuing operations	381	183	2,696
- Discontinued operations	-	6,921	-


Total	381	7,104	2,696

The movement in financial assets at fair value through profit or loss is as follows:-

	Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

At 1 January	2,696	43,638	43,638
Additions	152	165	247
Disposals	(503)	(16,112)	(18,356)
Dividend received	-	(1)	(1)
(Loss)/Gain on financial assets at fair value through profit or loss Continuing operations - Discontinued operations	(1,964) -	27 (20,613)	(2,219) (20,613)
At 30 June/ 31 December	381	7,104	2,696

Particulars and valuation basis of principal financial assets held at fair value through profit or loss are as follows:-

Name	No. of shares / Percentage of interest held by the Company indirectly						Fair value			Valuation basis
	Unaudited 30 June 2009		Unaudited 30 June 2008		Audited 31 December 2008		Unaudited 30 June 2009	Unaudited 30 June 2008	Audited 31 December 2008
	Holding	%	Holding	%	Holding	%	US$'000	US$'000	US$'000

IB Daiwa Corporation - Ordinary shares	6,536,000	2.81	25,150,000	5.89	12,054,000	2.82	342	3,795	801	Quoted market price at 30 June 2009 of ¥5 per share (30 June 2008: ¥16 per share and 31 December 2008: ¥6 per share), listed on JASDAQ Japan
ESK Limited
Ordinary shares	19,028,031	5.00	19,028,031	9.85	19,028,031	5.00	-	-	-	Full provision for impairment of the investment cost as at 30 June 2009 by reference to the value and stage of development of the major underlying oil and gas properties relative to the amount of debt and preference shares outstanding, as well as other related factors.
Preference shares	2,973,130	N/A	2,973,130	N/A	2,973,130	N/A	-	1,875	1,875

15. Trade and other payables - continuing operations

	Unaudited	Unaudited	Audited
	30 June	30 June	31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

Trade payables	477	1,043	630
Other payables	356	541	1,855
Accrued charges	8,899	8,545	9,445


Total	9,732	10,129	11,930

At 30 June 2009, the ageing analysis of trade payables is as follows:

	Unaudited	Unaudited	Audited
	30 June	30 June	31 December
	2009	2008	2008
	US$'000	US$'000	US$'000

0 - 30 days	50	1,041	630
Over 90 days	427	2	-


Total	477	1,043	630

Included in the Group's trade and other payables are provision for bonuses of US$2,117,000 (30 June 2008: US$3,552,000; 31 December 2008: US$3,413,000) to directors and staff, including provision for bonus deferred from prior year of US$2,080,000.

16. Share capital

	Number of ordinary shares	Value US$'000
Authorised (par value of US$0.01 each)	5,000,000,000	50,000


Issued and fully paid (par value of US$0.01 each)
At 30 June 2008 and 31 December 2008	243,475,000	2,435

At 30 June 2009	243,475,000	2,435

17. Material related party transactions

(a) During the period, the Group had the following material related party transactions:

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Corporate finance and other advisory fees from investee companies	-	-	208
Management services fee received from a subsidiary of an investee company	-	90	180
Management services fee received from a fellow subsidiary	112	-	-
Management services fee paid to fellow subsidiaries	(132)	(26)	(28)
Rental expenses, facilities and administrative costs charged to fellow subsidiaries	134	49	164
Rental expenses, facilities and administratibe costs charged by a fellow subsidiary	(103)	-	-
Loan to an investee company	-	1,219	-
Fees paid to a fellow subsidiary	-	(377)	(741)
Proceeds received from a fellow subsidiary in respect of disposal of financial assets at fair value through profit or loss	-	4,321	4,342
Proceeds paid to a fellow subsidiary in respect of acquisition of subsidiaries	-	(60)	(60)

(b) At the balance sheet date, the Group had the following amounts due from related parties. The amounts due from related parties are interest free, unsecured and have no fixed repayment terms.

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Amounts due from investee companies	-	1,020	-
Amounts due from fellow subsidiaries	52	16	214
Amount due from parent company	-	40	-


Total	52	1,076	214

Analyzed into:
- Continuing operations	52	114	214
- Discontinued operations	-	962	-

Total	52	1,076	214

	Unaudited six months ended 30 June 2009	Unaudited six months ended 30 June 2008	Audited year ended 31 December 2008
	US$'000	US$'000	US$'000

Amount due to an investee company	-	791	-
Amount due to a subsidiary of an investee company	-	91	-
Amounts due to fellow subsidiaries	-	377	-
Amount due to parent company	1	-	-


Total	1	1,259	-

Analyzed into:
- Continuing operations	1	908	-
- Discontinued operations	-	351	-

Total	1	1,259	-

18. Contingencies

Crosby Wealth Management (Hong Kong) Limited, a 56.14% subsidiary of Crosby Asset Management Inc., is defending against legal proceedings brought by a client in Hong Kong concerning a trade execution error. The consolidated financial statements include a provision in respect of the claim.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR GUUGWRUPBURW

Related Shares:

FTSE 100 Latest

Value8,275.66

Change0.00