2 Nov 2012 07:00
East West Resources plc
Strategy review and change in the executive management structure
East West Resourcesplc (the "Company" or the "Group"), the physical metals and energy trader, reports that it has, over the course of the past 12 months, rationalised its operating entities and divested itself of a number of non-core investments. With a view to continuing to improve the Group's future profitability prospects, the Board is mindful of optimising the overall cost base and management structure as the Group seeks to position its trading activities more strategically in order to capitalize on new business opportunities.
Of the two remaining operating subsidiaries, Ambrian Metals Limited ("AML") continues to be the Group's cornerstone revenue generator, whilst Ambrian Energy GmbH ("AEG") has experienced difficult market conditions during 2012, leading to a sharp drop in premiums and markedly lower traded volumes. Accordingly, the Company expects AEG to negatively affect the Group's financial results for the financial year ending 31 December 2012. The Board does not currently expect the biofuel markets to improve materially in the foreseeable future. Accordingly, the Company is reviewing various options designed to limit AEG's impact on the Group's future results and capital employed. Any solution the Company implements will seek to improve the Group's ability to allocate increased resources to AML.
As a result of the focus on physical commodity trading and investment activities, the Company intends to downsize corporate functions and Group overheads commensurate with the current activity levels. In line with this strategy, Robert Ashley, is to stand down as Chief Executive as of 2 November 2012. Mr Ashley has agreed to continue on the Board as a non-executive director of the Company. In addition, Roger Clegg will be appointed Chief Operating Officer of the Company as of 2 November 2012. Mr Clegg is currently Managing Director, Ambrian Asset Management. Group executive responsibilities will be managed by an Executive Committee led by the Chief Operating Officer. The Executive Committee is responsible for implementing the Company's strategy, overseeing the business and setting financial and non-financial performance targets. The Executive Committee comprises Mr Clegg, John Coles (the Finance Director) and the Managing Director of AML, Mark Homer.
Commenting on the restructuring and Mr Ashley's departure the Chairman, Mr Nathan Steinberg, said:
"Robert has done an admirable job in managing the business through a difficult transition period over the last 18 months. During that time, marginal operations have been rationalised, the strategy has been focused and the Company is now positioned to leverage off the solid performance of its metal trading division to expand the Company's future footprint".
For further information please contact:
East West Resourcesplc
Roger Clegg, COO +44 (0)20 7634 4785
Cenkos Securities plc
Jon Fitzpatrick +44 (0)20 7397 8900
Neil McDonald +44 (0)131 220 6939
Notes to Editors:
EWR is primarily active in the physical trading of base metals (mostly copper) and biofuel. It sources and supplies a variety of commodities to end users all over the world. Supported by its offices in London, Hamburg and Shanghai and a network of agents in North and South America, Asia and the Middle East, EWR provides producers and consumers with its marketing insight whilst emphasizing the financing and risk management aspect of its trading activities. EWR also holds and manages a number of equity investments. EWR is quoted on the AIM section of the London Stock Exchange under the ticker symbol EWR.
Further information on East West Resources plc is available on the Company's website: www.ewrplc.com