27th Jan 2010 07:00
27 January 2010
Commoditrade Inc
("Commoditrade"or the "Group")
Pre-Close Trading Update
Commoditrade (AIM: CMM) announces a trading update following the completion of the financial year ended 31 December 2009.
During the year Commoditrade completed a substantial programme of restructuring involving the entire Group, which included the following:
Renegotiation of base metals trading revenue share agreement with Sucden Financial Limited.
Establishment of energy desk which commenced initial trading late in 2009.
Build-out of London-based trading platforms and adoption of new technical and support partners including GL Sungard and opening of new London office.
Acquisition of remaining equity in AMCO Fund Management LLP.
Rebranding of the Group's principal operating companies to the new name of 'Mentum Group'. As the final part of this process the Board will also be proposing a change of name from Commodtrade Inc. to Mentum Group at the Company's next Annual General Meeting.
On 24 September 2009 Commoditrade announced its interim results (reported in US$ for the first time) which included a loss for the six months ended 30 June 2009 of US$12.3 million (after including non-cash items totalling US$9.3 million) and reported on the challenging trading conditions experienced in the base metals market from which the Group derives the majority of its revenues.
Although the second half results show a clear improvement on the first half, the expectation is that the Group will report a loss for the year (inclusive of amortisation, share option and goodwill write off costs). At the year end the Group remained cash positive with no borrowings.
The Company anticipates announcing the final results for the year ended 31 December 2009 in April 2010.
Commenting on outlook, David Phipps, Chief Executive, said:
"Following the extensive reorganisation of the Group last year we are now in a stronger position to build our revenue streams. We have a more favourable revenue share agreement in relation to our core base metals revenues, which now have a reduced fixed cost component. Across the Group we will continue to focus on strict cost control and the Board is confident that the Group is well positioned to capitalise on more stable trading conditions in 2010. In addition, we expect to launch new products to broaden the Groups revenue streams as we progress through the year."
-ends-
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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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Strand Hanson, James Harris / Angela Peace |
tel: +44(0)20 7409 3494 |
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Liberum Capital, Chris Bowman / Ellen Francis |
tel: +44(0)20 3100 2000 |
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Hansard Communications, John Bick / Justine James |
tel: +44(0) 20 7245 1100 tel: +44(0) 7872 061007 |
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