AMBR29 Jun 2011 12:52
LONDON, 29 June 2011 - At the annual general meeting of Ambrian Capital plc, the natural resources investment bank, to be held today, Ambrian's Chairman, Lawrence Banks, will make the following statement.
"Ambrian has enjoyed strong trading across its operating businesses for the five months ended 31 May 2011.
The performance of Ambrian's physical commodities businesses has exceeded our expectations for the year to date. Our energy business has performed particularly well which is highly encouraging as this is a new business line for Ambrian. Our client-focused corporate finance and equities division continues to build on its strong market leading position in the natural resources sector, breaking even for the same period. Notably, it was recently ranked 2nd in the Metals & Mining sector in the UK small cap Extel 2011 Rankings for a third year running, also attaining a number 2 ranking in the New Energy & Clean Technology sector for the first time.
However, the valuations of our principal holdings in both the investment portfolio and in those held within corporate finance and equities have fallen, in line with the recent weakness in resource equity prices. This has impacted the Group's profit before tax for the five months to 31 May 2011. The losses incurred on the investment portfolio to date, all of which are unrealised, amount to about £600,000. Based on the current market value of the portfolios we expect Group profit for the six months ending 30 June 2011, before share option charges and tax, to be approximately £900,000.
The balance sheet remains strong with our capital fully deployed in our operating businesses. Upon completion of the sale of the LME futures broking business, as announced in April 2011, the capital thereby released will be deployed in the further growth of Ambrian's physical commodities activities. The sale remains conditional on obtaining regulatory approval.
We expect the physical commodities businesses to continue to perform solidly for the rest of the year. The performance of our corporate finance and equities business, which has a strong client base, is dependent on market conditions which continue to be difficult against a backdrop of macroeconomic and political uncertainty.
We have diversified our revenue base, strengthened our organisation and increased our financing capability which positions us to benefit from the long term growth in the natural resources market."