ZOL.L Regulatory News (ZOL)

12 May 2006 09:59

Crosby Capital Partners Inc12 May 2006 Crosby Capital Partners Trading Update Three Months to 31 March 2006 London, 12 May 2006 - Crosby Capital Partners Inc. ("Crosby"), a leadingindependent, deal-focused, Asia-oriented merchant banking and asset managementgroup, today announced its trading figures for the first quarter ended March 31,2006. Simon Fry, Chief Executive Officer of Crosby commented, "We are pleased to beable to report another positive quarter at Crosby. IB Daiwa, the Japanese-listednatural resources company, in which we hold a 24.08% stake, continues to buildvalue for shareholders at both the IB Daiwa and the Crosby level. By exercisingour remaining warrant position into IB Daiwa shares we have further endorsed ourcommitment to IB Daiwa and I look forward to seeing the positive developments atthis company flow through to Crosby for the benefit of our shareholders." FINANCIAL HIGHLIGHTS •Total Income of US$43.6 million (Q1 2005: US$8.1 million). •Operating Profit of US$35.1 million (Q1 2005: US$4.4 million). •Profit Attributable to Shareholders of US$37.3 million (Q1 2005: US$4.9 million). •Assets under management continued to grow to well beyond US$1 billion. BUSINESS HIGHLIGHTS •In March, Crosby exercised its remaining IB Daiwa warrants (the warrants were due to expire in July 2006). Crosby also divested a small number of its IB Daiwa shares to bring its total holding (through two wholly owned subsidiaries) to 102,425,000 shares or 24.08% of the company. • In January, IB Daiwa reported a gas discovery at the Kami well prospect. This new asset will begin to contribute to IB Daiwa's results during IB Daiwa's 2006 financial year. • In May IB Daiwa reported, as drilling progressed towards target depths of 17,000 and 19,000 feet, that testing at its Big Mouth Bayou prospect had revealed oil sands at approximately 7,100 feet and evidenced gas-bearing sands at 15,100 feet and 15,400 feet. Initial analysis indicates that these shallower oil and gas discoveries are potentially economically viable and they are being assessed further. Big Mouth Bayou's primary targets are two prospective reservoirs at a depth of approximately 17,000 feet and 19,000 feet and therefore no decision on when and how the existing discoveries will be bought into commercial production will be made until all the hydrocarbon-bearing sands have been evaluated. • Also in May, Darcy Petroleum acquired 100% working interests in two leases in the Gulf of Mexico off the coast of Louisiana, in the United States. These leases were formerly owned by ExxonMobil and BP. • Crosby's majority shareholder, Techpacific, announced on 8 March that it had sold a US$75 million convertible bond to Goldman Sachs International. The bond provides holders with a premium redemption in March 2011, or the ability, at their choice, to convert into newly issued shares of Techpacific at HK$0.7765 per share or existing shares of Crosby at £0.9975 per share. As of 31 March, US$5 million of the issue had been converted to Techpacific shares. Notice has been received for a further US$20 million to be converted into Techpacific shares as of the date of this release. The maximum amount by which Techpacific's stake in Crosby can now be reduced if all remaining bondholders elect to exchange for Crosby shares is 11.80% or 28,633,219 shares, leaving Techpacific with a majority stake of at least 69.44%. -more- Notes to Editors: Crosby Capital Partners (AIM: CSB) is a leading independent, deal-focused,Asia-oriented merchant banking and asset management group. Co-headquartered inHong Kong and London, Crosby's strategy is to focus on corporate situations thatare opaque and under-researched, and identify undervalued assets that are oftenhidden within complex or inefficient management, ownership and capitalstructures. In addition, Crosby has built an Asia-focused asset managementbusiness that provides it with a more consistent income stream to complement theless predictable, though significantly more substantial, income generated by thecore merchant banking activities. For more information please visitwww.crosby.com. Media and Investor Enquiries: Cara Kiewel Crosby Capital Partners +44 (0)20 7590 2808 cara.kiewel@crosby.com Summary Profit and Loss Account for Crosby Capital Partners Inc. Unaudited three Unaudited three months ended months ended 31 March 2005 US$000 31 March 2006 US$000 Turnover 1,768 1,498 Other revenue 41,784 6,629 Total income 43,552 8,127 Administrativeexpenses (6,834) (3,204) Distributionexpenses (24) (18) Otheroperatingexpenses (1,623) (464) Profit fromoperations 35,071 4,441 Share ofprofit ofjointlycontrolledentity 14 - Share ofprofits/(losses) ofassociates (56) 218 Profit beforetaxation 35,029 4,659 Taxation (26) - Profit aftertaxation 35,003 4,659 Minorityinterests 2,333 220 Profitattributableto shareholders 37,336 4,879 Earnings per share -basic 15.41 cents 2.07 cents -diluted 14.89 cents - ENDS This information is provided by RNS The company news service from the London Stock Exchange