17th Dec 2009 10:15
17 December 2009
Commoditrade Inc.
("Commoditrade" or "the Company")
New Revenue Share Agreement
Commoditrade Inc. (AIM ticker: CMM), the commodities investment group, is pleased to announce that it has entered into new terms under its revenue share agreement ("Agreement") with Sucden Financial Ltd ("Sucden") in relation to the LME floor trading operations. The details of the agreement are:
A fixed annual fee of £7.5 million under the previous agreement has been reduced to £4.25 million per annum for the first year and £3.25 million per annum thereafter;
Following the deduction of all costs including the aforementioned fixed fee, Sucden is will also receive 25% of net revenue.
The agreement has been backdated and is effective from 1 September 2009, running on a 12 month rolling basis.
Commenting, David Phipps, Chief Executive of Commoditrade, said:
"The new revenue share agreement will immediately enhance our potential operating profitability. This new agreement allows Commoditrade to reduce its fixed costs and in return provides Sucden with a share of higher net revenues."
Michael Overlander, Chief Executive of Sucden Financial Limited, commented:
"Sucden Financial's LME operation is a key component of our business. I am therefore pleased that we have concluded our discussions with Commoditrade and look forward to further developing and strengthening our presence in the metals market."
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Enquiries: |
www.commoditrade.net |
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Commoditrade Inc, David Phipps, Chief Executive |
tel: +44(0)20 7245 1100 |
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Nomad - Strand Hanson James Harris/Angela Peace |
tel: +44(0)20 7409 3494 |
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Broker - Liberum Capital Chris Bowman/Ellen Francis |
tel: +44(0)20 3100 2000 |
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Media/IR enquiries for Commoditrade Hansard Group John Bick/Justine James |
tel: +44(0) 20 7245 1100 tel: +44(0) 7872 061007 |
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Media enquiries for Sucden Financial Limited Tariq Ahmad |
tel: +44(0) 20 3207 5280 |
Related Shares:
FOR.L