26th Nov 2007 07:01
Commoditrade Inc.26 November 2007 26 November 2007 Commoditrade Inc. ("Commoditrade" or "the Company") Trading statement Bid discussions terminated Share buyback Trading update The Board of Commoditrade is pleased to announce that the Company's trading teamcontinues to trade profitably. Despite the general financial market conditions,the base metals market has maintained good levels of liquidity and volatilitywith both financial and primary users participating in the market. In addition,supply issues and other factors have all contributed to large price movementsand volatility and these current conditions provide good opportunities for thetrading team, which has also recently been expanded with the appointment of asenior nickel trader. The Company has no debt and, as at the date of this announcement its cashbalances are in excess of £19 million after making significant one-off paymentsto key members of the trading team as consideration for them to enter into newcontracts which tie them in to the Company for a minimum 3 year period. TheBoard considers it vital that the Company retains its talented trading team, andis pleased to have secured the services of its key personnel on long-termcontracts. The Board looks to the future with confidence. Termination of bid discussions The Company announced on 7 December 2006 that it had entered into discussionswith a number of interested parties which might or might not lead to an offerfor the Company. The Board has now concluded that these discussions are notlikely to lead to an offer which is in the best interests of all shareholders inthe Company, and accordingly discussions have been terminated in order to focuson growing the business and generating enhanced shareholder value. Share buyback The Board considers that the recent turmoil in financial markets and itsknock-on effect on the Company's share price provides an attractive opportunityfor the Company to purchase its own shares. Accordingly the Board has decidedto exercise its authority to buy back its own shares on an opportunistic basissubject to market conditions. Commenting, Graham Butt, Chief Executive Officer of Commoditrade said: "The recent fall in the Commoditrade share price has prompted us to initiate ashare buyback programme, in order to allocate our resources in the mostefficient manner for the benefit of shareholders. We remain confident of thegrowth opportunities available to the Company, notwithstanding the currentvolatility in financial markets. We continue to be totally focussed on creatingvalue for shareholders and growing the business, and we have a very strongbalance sheet which gives us considerable flexibility and the buyback will notmaterially alter any of the current investment plans that the management teamhas for Commoditrade." www.commoditrade.net Enquiries: Graham Butt, Chief ExecutiveCommoditrade tel: +44(0)870 389 6999 James Harris/Angela PeaceStrand Partners tel: +44(0)20 7409 3494 John Bick, Hansard Group tel: +44(0)7917 649362 ends This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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