18th Sep 2006 07:02
Commoditrade Inc.18 September 2006 18 September 2006 Commoditrade Inc. ("Commoditrade" or "the Company") Interim results for the six months ended 30 June 2006 Commoditrade the AIM-listed commodities investment company announces itsunaudited interim results for the six months ended 30 June 2006. Commoditradejoined AIM in March 2005 with the primary objective of building, throughinvestment and acquisition, a group specialising in the commodities sector. Summary of Interim Results 6 months ended Period from 6 January 2005 30 June 2006 to 31 December 2005 Unaudited Unaudited £'000 £'000Gross revenue 8,869 -Net revenue 4,621 -Profit/(loss) for period before tax (*note) 4,474 (180)Profit/(loss) per ordinary share 2.22p (0.20p) *Note: The results for the half year represent overheads for the full six month period but income onlysince the 24th April following the acquisition of the Tambelan Interest. Current Trading - Outlook • The acquisition of the Tambelan Interest immediately transformed theCompany bringing with it a profitable income stream and the Board is delightedthat the first two months contribution from the LME Trading Team has exceededexpectations. • Since the Company's trading update announced on 13 July Commoditradehas continued to see a strong operating performance from the LME Trading Teamand in less than five months since completing the Acquisition, Commoditrade canreport that it has already exceeded the current broker estimate of pre-taxprofit of £9.1 million for the current year ending 31 December 2006. Acquisition of Tambelan Interest • On 25 April 2006 Commoditrade completed its first acquisition in thecommodities sector acquiring Tambelan Company Limited's interest ("TambelanInterest") in its contract with Sucden (UK) Limited ("Sucden"), a UK basedcommodities trading firm, in respect of metals trading by the Sucden's LMETrading Team ("LME Trading Team") on the London Metal Exchange ("LME"). • The LME Trading Team is the largest team trading on the LME, which hasgenerated a growth in gross profits over the last three years to £7.1 million inthe year ended 31 December 2005 • The initial aggregate consideration for the acquisition was £24.4million, satisfied by the payment of £14 million in cash and by the issue of83.4 million new ordinary shares of 0.1p each ("Ordinary Shares") at a price of12.5p each. A further 6 million deferred consideration shares may be issued onthe achievement of certain performance criteria. • The Company raised £18 million gross by way of a placing of144,000,000 new Ordinary Shares with institutional investors at a price of 12.5pence per share to satisfy the cash consideration in respect of the Acquisition,and to provide working capital for the enlarged group. • On completion of the Acquisition Christopher Adams who is the head LMEtrader of the LME Trading Team and Geoffrey Conway-Henderson who has over 35years' experience in the finance industry, dealing primarily in derivatives,interest rate swaps and options joined the Board of Commoditrade asnon-executive directors. Enquiries: John Bick t: +44 (0) 20 7451 9800 m: +44 (0)7917 649362 www.commoditrade.net Commoditrade Inc. ("Commoditrade" or "the Company") Interim Statement The Board is pleased to report the company's unaudited interim results for thesix months ended 30 June 2006 which includes the first two months contributionfrom the LME Trading Team since the completion by the Company of the acquisitionof the Tambelan Interest. Gross revenues for the period were £8.87 million and following direct costs of£4.25 million and administration expenses of £151,000 the operating profitachieved by Commoditrade was £4.47 million. Net profit for the period was £4.47million producing basic earnings per ordinary share of 2.22 pence (2005: 0.20pence). Acquisition of Tambelan Interest The Board was pleased to announce on 6 April 2006 that it had exercised itsoption to acquire the Tambelan Interest for an initial aggregate considerationof £24.4 million, which was satisfied as to the payment of £14 million in cashand by the issue of 83.4 million new Ordinary Shares at a price of 12.5p penceper share. In addition, 6 million deferred consideration shares may be issued onthe achievement of certain performance criteria. The Acquisition represented a substantial investment opportunity allowingCommoditrade to receive the benefit of 75 per cent of the revenue streamgenerated by the LME Trading Team. The LME Trading Team is well established andsuccessful, with an in-depth knowledge of the markets on which it is representedand has developed strong client and market relationships. This has resulted inthe achievement of strong growth in the level of profits achieved by the LMETrading Team over recent years. In order to satisfy the cash consideration in respect of the acquisition, and toprovide working capital for the enlarged group, 144,000,000 new Ordinary Shareswere placed with institutional investors at a price of 12.5 pence per shareraising £18 million gross (approximately £15.2 million net of expenses). There are 11 category one members of the LME and the LME Trading Team is thelargest on the LME. It makes markets in base metals in the ring as well as viatelephone trading. It also trades on the LME's electronic trading platform. TheLME Trading Team generates income by acting as a market-maker, buying andselling the metals traded on the exchange and also dealing as principal tradertaking positions subject to pre-set "caps and collars". Metals traded by the LMETrading Team on the LME are copper, aluminium, nickel, zinc, lead and tin; withcopper, gold and silver also being traded on New York's Commodity Exchange Inc. Immediately following the Acquisition we were delighted to welcome ChristopherAdams and Geoffrey Conway-Henderson to the board who were appointed asnon-executive directors. Chris is the head LME trader of the LME Trading Teamand has spent the last 19 years in the commodities industry, having heldnumerous positions at commodity trading houses including Billiton EnthovenMetals Limited. As well as trading for 15 years, he has held managerialpositions for 10 years. Prior to rejoining the Brokerage, Chris held positionsat Credit Lyonnais Rouse and AIG International. Geoffrey David Conway-Hendersonhas over 35 years experience in the finance industry, having worked in the moneymarkets as a broker, dealing primarily in derivatives, interest rate swaps andoptions. From 1973 until 1987 he was Managing Director at Harlow Meyer & Co.Following this he left to become a director of Intercapital Brokers Limited, asubsidiary of Intercapital PLC (ICAP), one of the world's largest interdealerbrokers, until his retirement in October 2003. Geoffrey is currently a directorof Corvus. AMCO Acquisition Since the period end we are pleased to have completed our second acquisition On4 August 2006 Commoditrade acquired a 75 per cent interest in the net profitsof commodities investment management company, AMCO Commodities LLP ("AMCO") fora total consideration of £1.4 million which was satisfied as to £0.5 million incash and the issue of 5,000,000 new Ordinary Shares at a price of 17.75p pershare. AMCO, which was established in 2005 and is regulated by the FSA, manages theAMCO Commodities Fund Limited ("Fund") whose investment strategy is based on aresearch driven approach of seeking out fundamental trading opportunities acrossa range of base metals. Portfolio construction reflects a combination ofindividual discretionary trade ideas together with a disciplined approach tooverall portfolio construction and risk management. The Fund was launched in May2006 and plans to raise up to USD500 million in the next 3 years. AMCO seeks to identify potential trades from a range of opportunities including:seeking to take advantage of opportunities in the changes in the directionalprice of the underlying commodities; relative value trades in calendar spreads;location arbitrage; and changes in the volatility of the underlying futuresmarkets. Appointment of Strategic Adviser The Board has received a number of approaches expressing interest in thecommodities sector. With this in mind the Company announced in July theappointment of Jefferies International Limited as strategic adviser to theCompany. Jefferies International Limited is wholly owned by Jefferies &Company, Inc, the global investment bank and institutional securities firm,headquartered in New York. Current Trading and Outlook On 13 July 2006 the Company announced that it was seeing a strong operationalperformance from the LME trading team in its first two months of contribution tothe Company's revenues. This is demonstrated by the interim results reportedtoday. The Board is pleased to report that since this announcement was made theCompany has continued to see a strong operating performance from the LME TradingTeam and in less than five months since completing the Acquisition, Commoditradecan report that it has already exceeded the current broker estimate of pre-taxprofit of £9.1 million for the current year ending 31 December 2006. The Board is highly encouraged by the sustained interest it has seen in themarket for metals trading and futures contracts. High volumes and volatility intrading across all base metals traded on the LME have continued and in the yearto date market volumes in copper contracts have increased by 9 per cent,aluminium 20 per cent, zinc 25 per cent, nickel 40 per cent and lead by 25 percent. World economic conditions continue to provide solid support for robust metalprices and in the sustained interest for metals futures where both liquidity andvolatility contribute to the level of activity in the sector. In addition, theoverall demand for metals is expected to remain strong buoyed by strong consumerdemand led by the Asia markets, in particular Greater China, and from a growingappetite from the international financial community for metals futures as anasset class. Graham Butt Chairman 18 September 2006 www.commoditrade.net COMMODITRADE INC. INCOME STATEMENT For the six months ended 30 June 2006 6 months Period from ended 30 6 January June 2005 to 31 2006 December 2005 Note Unaudited UnauditedContinuing operations £'000 £'000 Gross revenue 8,869 -Direct costs (4,248) -Net revenue 4,621 - Administrative expenses (151) (180) Operating profit/(loss) 4,470 (180) Finance income 5 4 - Profit/(loss) for the period before taxation 4,474 (180) Tax income 7 - - Net profit/(loss) for the period 4,474 (180) Profit/(loss) per ordinary share- Basic 8 2.22p (0.20p)- Diluted 8 2.18p (0.20p) COMMODITRADE INC. STATEMENT OF CHANGES IN EQUITY Six months ended 30 June 2006 Share based Profit and Share Share Shares to payment loss capital premium be issued reserve account Total £'000 £'000 £'000 £'000 £'000 £'000 At 6 January 2005 - - - - - -Issue of new shares 103 524 - - - 627Cost of issue of new shares - (165) - - - (165)Net loss for the period - - - - (180) (180)Share based payment - (20) - 20 - -At 31 December 2005 103 339 - 20 (180) 282 Issue of new shares 268 33,241 1,200 - - 34,709Cost of issue of new shares - (1,010) - - - (1,010)Net profit for the period - - - - 4,474 4,474At 30 June 2006 371 32,570 1,200 20 4,294 38,455 COMMODITRADE INC. BALANCE SHEET At 30 June 2006 At 30 June At 31 December 2006 2005 Unaudited Unaudited Note £'000 £'000 Assets Non-current assetsAvailable for sale financial assets 9 33,125 - CurrentTrade and other receivables 10 5,518 1,087Cash and cash equivalents 216 179Total current assets 5,734 1,266 Total assets 38,859 1,266 LiabilitiesCurrentTrade and other payables 11 404 984Total liabilities 404 984 EquityShare capital 13 371 103Share premium 32,570 339Shares to be issued 1,200 -Share based payment reserve 20 20Profit and loss account 4,294 (180)Total equity 38,455 282 Total equity and liabilities 38,859 1,266 COMMODITRADE INC. CASH FLOW STATEMENT For the six months ended 30 June 2006 6 months Period from ended 30 6 January June 2005 to 31 2006 December 2005 Unaudited UnauditedContinuing operations £'000 £'000 Operating activitiesOperating profit 4,470 (180)Interest received 4 -Change in trade and other receivables (4,431) (1087)Change in trade and other payables (580) 984Net cash outflow from operating activities (537) (283) Investing activities Purchase of available for sale financial assets (16,425) - Financing activities Issue of shares 18,009 607 Share issue costs (1,010) (145) Net cash inflow from financing activities 16,999 462 Net increase in cash and cash equivalents 37 179 Cash and cash equivalents at beginning of 179 -period Cash and cash equivalents at end of period 216 179 COMMODITRADE INC. Notes to the interim report For the six months ended June 2006 1 GENERAL INFORMATION The information for the period ended 30 June 2006 does not constitute statutoryaccounts as defined in Section 240 of the Companies Act 1985. The figures forthe period ended 31 December 2005 have been extracted from the 2005 statutoryfinancial statements prepared under UK GAAP and adjusted where necessary inorder to comply with International Financial Reporting Standards (IFRS) as shownin note 3. The auditors' report on those accounts was unqualified and did notcontain a statement under section 237(2) of the Companies Act 1985. 2 ACCOUNTING POLICIES Basis of preparation The Company was incorporated as a Corporation in the Cayman Islands which doesnot prescribe the adoption of any particular accounting framework. The Boardhad previously resolved that the Company would follow UK Accounting Standardsand apply the Companies Act 1985 when preparing its annual financial statements. The Board have now resolved that Commoditrade Inc. will adopt IFRS for the firsttime in its financial statements for the year ending 31 December 2006. Thisinterim financial report has therefore been prepared under the historical costconvention and in accordance with International Accounting Standard 34 "InterimFinancial Reporting" and the requirements of International Financial ReportingStandard 1 "First Time Adoption of International Reporting Standards" relevantto interim reports. The transition to IFRS reporting has resulted in a number of changes in thereported financial statements, notes thereto and accounting principals comparedto the previous annual report. Note 3 provides further details on the transitionfrom UK GAAP to IFRS. The principal accounting policies of the Company are set out below. Taxation Current income tax assets and/or liabilities comprise those obligations to, orclaims from, fiscal authorities relating to the current or prior reportingperiod, that are unpaid at the balance sheet date. They are calculated accordingto the tax rates and tax laws applicable to the fiscal periods to which theyrelate, based on the taxable result for the year. All changes to current taxassets or liabilities are recognised as a component of tax expense in the incomestatement. Deferred income taxes are calculated using the liability method on temporarydifferences. This involves the comparison of the carrying amounts of assets andliabilities in the consolidated financial statements with their respective taxbases. In addition, tax losses available to be carried forward as well as otherincome tax credits to the Company are assessed for recognition as deferred taxassets. Deferred tax liabilities are always provided for in full. Deferred tax assetsare recognised to the extent that it is probable that they will be able to beoffset against future taxable income. Deferred tax assets and liabilities arecalculated, without discounting, at tax rates that are expected to apply totheir respective period of realisation, provided they are enacted orsubstantively enacted at the balance sheet date. Most changes in deferred tax assets or liabilities are recognised as a componentof tax expense in the income statement. Only changes in deferred tax assets orliabilities that relate to a change in value of assets or liabilities that ischarged directly to equity are charged or credited directly to equity. Financial assets The Company's financial assets include available for sale financial assets, cashand trade and other receivables. All financial assets are recognised on their settlement date. All financialassets are initially recognised at fair value, plus transaction costs. Non-compounding interest and other cash flows resulting from holding financialassets are recognised in profit or loss when received, regardless of how therelated carrying amount of financial assets is measured. Trade and other receivables are provided against when objective evidence isreceived that the Company will not be able to collect all amounts due to it inaccordance with the original terms of the receivables. The amount of thewrite-down is determined as the difference between the asset's carrying amountand the present value of estimated future cash flows. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand. Equity Share capital is determined using the nominal value of shares that have beenissued. The share premium account represents premiums received on the initial issuing ofthe share capital. Any transaction costs associated with the issuing of sharesare deducted from share premium, net of any related income tax benefits. Retained earnings include all current and prior period results as disclosed inthe income statement. Share based payments All share-based payment arrangements are recognised in the financial statements.The Company does not currently operate equity-settled share-based remunerationplans for remuneration of its employees but has issued a share warrant. All services received in exchange for the grant of any share-based remunerationare measured at their fair values. These are indirectly determined by referenceto the fair value of the share options/warrants awarded. Their value isappraised at the grant date and excludes the impact of any non-market vestingconditions (for example, profitability and sales growth targets). Share-based payments are ultimately recognised as an expense in profit or lossor included as part of the cost of share issues with a corresponding credit tothe share based payment reserve, net of deferred tax where applicable. Ifvesting periods or other vesting conditions apply, the expense is allocated overthe vesting period, based on the best available estimate of the number of shareoptions/warrants expected to vest. Non-market vesting conditions are included inassumptions about the number of options that are expected to become exercisable.Estimates are subsequently revised, if there is any indication that the numberof share options/warrants expected to vest differs from previous estimates. Noadjustment is made to the expense or share issue cost recognised in priorperiods if fewer share options/warrants ultimately are exercised than originallyestimated. Upon exercise of share options/warrants, the proceeds received net of anydirectly attributable transaction costs up to the nominal value of the sharesissued are allocated to share capital with any excess being recorded as sharepremium. Financial liabilities The Company's financial liabilities include trade and other payables. Financial liabilities are recognised when the Company becomes a party to thecontractual agreements of the instrument. All interest related charges arerecognised as an expense in "finance cost" in the income statement. Trade payables are recognised initially at their nominal value and subsequentlymeasured at amortised cost less settlement payments. Dividend distributions to shareholders are included in 'other short termfinancial liabilities' when the dividends are approved by the shareholders'meeting. Other provisions, contingent liabilities and contingent assets Other provisions are recognised when present obligations will probably lead toan outflow of economic resources from the Company and they can be estimatedreliably. Timing or amount of the outflow may still be uncertain. A presentobligation arises from the presence of a legal or constructive commitment thathas resulted from past events, for example, legal disputes or onerous contracts. Provisions are measured at the estimated expenditure required to settle thepresent obligation, based on the most reliable evidence available at the balancesheet date, including the risks and uncertainties associated with the presentobligation. Any reimbursement expected to be received in the course ofsettlement of the present obligation is recognised, if virtually certain as aseparate asset, not exceeding the amount of the related provision. Where thereare a number of similar obligations, the likelihood that an outflow will berequired in settlement is determined by considering the class of obligations asa whole. In addition, long term provisions are discounted to their presentvalues, where time value of money is material. All provisions are reviewed at each balance sheet date and adjusted to reflectthe current best estimate. In those cases where the possible outflow of economic resource as a result ofpresent obligations is considered improbable or remote, or the amount to beprovided for cannot be measured reliably, no liability is recognised in thebalance sheet. Probable inflows of economic benefits to the Company that do not yet meet therecognition criteria of an asset are considered contingent assets. 3 TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS The transition from previous UK GAAP to IFRS has been made in accordance withIFRS 1, "First-time Adoption of International Financial Reporting Standards".The Company's financial statements for the six months ended 30 June 2006 and thecomparatives presented for the period ended 31 December 2005 comply with allpresentation recognition and measurement requirements of IFRS applicable foraccounting periods commencing on or after 1 January 2005. The following reconciliations and explanatory notes thereto describe the effectsof the transition for the financial period 2005. All explanations should be readin conjunction with the IFRS accounting policies of Commoditrade Inc.. TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (CONTINUED) Since Commoditrade Inc. was incorporated on 6 January 2005 that is thetransition date to IFRS. As that was the date of incorporation of the Companyno reconciliation of equity is required at that date. The re-measurement of balance sheet items as at 31 December 2005 may besummarised as follows:Reconciliation as at 31 December 2005 Effect of UK GAAP transition IFRS £'000 £'000 £'000 Share premium 359 (20) 339Share based payment reserve - 20 20Total adjustment to assets and equity 359 - 359 There is no difference between the profit and loss reported under UK GAAP forthe period ended 31 December 2005 and the profit and loss as reported underIFRS. The Company has modified its former balance sheet and income statement structureon transition to IFRS. The only change is to recognise the share based paymentin connection with the warrants issued to the Company's Nominated Advisor aspart of their fee for services provided in connection with the Admission of theCompany to the AIM market in March 2005. 4 SEGMENTAL REPORTING (a) By business segment (primary segment): As defined under International Accounting Standard 14 (IAS14), the only materialbusiness segment the Company has is that of an investment company specialisingin investments in the commodities trading sector. (b) By geographical segment (secondary segment): Under the definitions contained in IAS 14, the only material geographic segmentthat the Company operates in is currently Switzerland. 5 FINANCE INCOME 6 months ended 30 Period from June 6.1.2005 to 2006 31.12.2005 Unaudited UnauditedContinuing operations £'000 £'000 Interest on bank deposits 4 - 6 EMPLOYEES REMUNERATION Employee benefits expense Expense recognised for employee benefits is analysed below: 6 months ended 30 Period from June 6.1.2005 to 2006 31.12.2005 Unaudited UnauditedContinuing operations £'000 £'000 Directors fees 20 29 The average number of persons (including directors)employed by the Company during the period was: 3 3 7 TAX There is no tax charge/income for either period. The Company does not operatein the United Kingdom and there is no tax arising on its operations. Therelationship between the expected tax expense/income at 30% and the tax expense/income actually recognised in the income statement can be reconciled as follows: 6 months ended 30 Period from June 6.1.2005 to 2006 31.12.2005 Unaudited UnauditedContinuing operations £'000 £'000 Profit/(loss) for the period before taxation 4,474 (180) Tax rate 30% 30% Expected tax expense 1,342 (54)Income not subject to tax (1,342) -Losses not recognised as deferred tax asset - 54Actual tax income - - 8 PROFIT/(LOSS) PER SHARE The calculation of the basic profit/(loss) per share is based on the net profitfor the period of £4,474,000 (period ended 31 December 2005 : loss £180,000)divided by the weighted average number of shares in issue during the period of201,493,475 (period ended 31 December 2005 : 89,529,528). The diluted profit per share for the period ended 30 June 2006 is based on aweighted average number of shares in issue on a fully diluted basis of205,206,206. The impact of the warrants on the loss per share for the periodended 31 December 2005 is anti-dilutive. 9 AVAILABLE FOR SALE FINANCIAL ASSETS The available for sale financial asset represents the cost of acquiring theTambelan agreement including transaction expenses. In the opinion of thedirectors the fair value of this financial asset at 30 June 2006 is notmaterially different to its original cost given it was only acquired on 25 April2006 and therefore they consider it reasonable to continue to carry the asset atthis value as at 30 June 2006. 10 TRADE AND OTHER RECEIVABLES 30 June 31 December 2006 2005 £'000 £'000 unaudited unaudited Trade receivables 4,386 - Other debtors 1,121 - Prepayments and accrued income 11 1,087Trade and other receivables, net 5,518 1,087 Trade and other receivables are usually due within 30 - 60 days and do not bearany effective interest rate. The fair value of these short term financial assets is not individuallydetermined as the carrying amount is a reasonable approximation of fair value. 11 TRADE AND OTHER PAYABLES 30 June 31 December 2006 2005 £'000 £'000 unaudited unaudited Trade and other payables 290 152Other creditors 95 -Accruals and deferred income 19 832Trade and other payables, net 404 984 The fair value of trade and other payables has not been disclosed as, due totheir short duration, management considers the carrying amounts recognised inthe balance sheet to be a reasonable approximation of their fair value. 12 DEFERRED TAX ASSETS AND LIABILITIES There are no deferred taxes arising from temporary differences at 30 June 2006or 31 December 2005. 13 SHARE CAPITAL 30 June 31 December 2006 2005 £'000 £'000 unaudited unauditedAuthorised1,000,000,000 ordinary shares of 0.1p 1,000 1,000 Allotted, issued and fully paid371,273,114 (2005: 103,200,000) ordinary shares of 0.1p 371 103 Allotments during the period On 25 April 2006 144,000,000 new ordinary shares of 0.1p were issued at 12.5pper share by way of a placing. On the same day 124,037,114 new ordinary shareswere issued at 12.5p per share to satisfy part of the consideration for theacquisition of the Tambelan interest and to satisfy certain of the costs of theacquisition and share placing SHARE CAPITAL (CONTINUED) Warrants On 21 February 2005 a warrant was issued to Strand Partners Limited, theCompany's Nominated Advisor, in connection with their role in the admission ofthe Company to the AIM market. The warrant entitles Strand Partners Limited tosubscribe, at a price of 10p per share, for such number of ordinary shares asare equivalent (on a fully diluted basis) to one per cent. of the issuedordinary share capital of the Company at that time. The issued warrant may beexercised at any time during the period from 8 March 2005 to 8 March 2010. The fair value of warrants granted was determined using the Black-Scholesvaluation model. Significant inputs into the calculations were: • share price of 5p per share at date of grant of warrant • exercise price of 10p per warrant as detailed above • 50% volatility based on expected share price • a risk free interest rate of 5.0%. In total £20,000 of share based expense has been included in the share premiumaccount as a cost of the admission to AIM which gave rise to share based paymentreserve. No liabilities were recognised due to share based paymenttransactions. 14 RELATED PARTY TRANSACTIONS In the period ended 30 June 2006 CVS Management Limited, a subsidiary of CorvusCapital Inc., a shareholder in the Company, charged fees amounting to £207,611for accounting and administrative services to the Company (period ended 31December 2005 : £126,648). 15 RISK MANAGEMENT OBJECTIVES AND POLICIES The Company is exposed to a variety of financial risks which result from bothits operating and investing activities. The Company's risk management isclosely monitored by the board of directors, and focuses on actively securingthe Company's short to medium term cash flows by minimising the exposure tofinancial markets. Other than the trading of metals and metal futures on the LME, Commoditrade Inc.does not actively engage in the trading of financial assets for speculativepurposes nor does it write options. The most significant financial risks towhich the Company is exposed to are described below: Credit risk Generally, the maximum credit risk exposure of financial assets is the carryingamount of the financial assets as shown on the face of the balance sheet (or inthe detailed analysis provided in the notes to the financial statements).Credit risk, therefore, is only disclosed in circumstances where the maximumpotential loss differs significantly from the financial asset's carrying amount. The Company's trade and other receivables are actively monitored to avoidsignificant concentrations of credit risk. Cash flow risk The Company seeks to manage financial risks to ensure sufficient liquidity isavailable to meet foreseeable needs and to invest cash assets safely andprofitably. Short term flexibility is achieved by the raising of equity and theuse of current accounts. -------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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