Trading Statement

11 May 2007 09:37

Crosby Capital Partners Inc11 May 2007 CROSBY CAPITAL PARTNERS INC. ("CROSBY") TRADING UPDATE - THREE MONTHS TO MARCH 31 2007 11 May 2007 Loss attributable to shareholders US$20.8 million (Q1 2006 US$37.3 millionprofit) Asset Management revenue US$5.3 million (Q1 2006 US$1.8 million) Assets under management +30% HIGHLIGHTS Orchard Petroleum ("Orchard") -During the first quarter, the Merchant Bankingteam completed the US$130 million takeover of Orchard. Crosby owns anapproximately 23.75% stake in the profits from the transaction. Indago Petroleum ("Indago") - on March 14, Indago announced that, subject toshareholder approval, it would be disposing of a portfolio of oil and gas assetsand paying a special dividend of 60p per share. After close of the firstquarter, the special dividend resulted in a payment of US$17.4 million toCrosby. Fermiscan Holdings ("Fermiscan") - on February 16, the Dragon Fund Inc., a fundmanaged by Crosby Asset Management and owned by Techpacific Capital Limited,subscribed for 8.5 million new ordinary shares in Fermiscan at A$1.50 per share.On April 26 (after the close of the first quarter) Crosby announced that it hadsigned a memorandum of understanding covering the commercialisation ofFermiscan's test for breast cancer in the Japanese market. Crosby Active Opportunities Fund ("CAOF") - CAOF recorded a net return ofapproximately 16% for the first four months of the year and succeeded inattracting further subscriptions. Crosby Wealth Management ("CWM") - revenue and net profits at CWM weresignificantly ahead of budget and assets under management grew by 30%. Simon Fry (Chief Executive Officer) commented: 'Although the weak share price atIB Daiwa has again dominated the financial results, it is very pleasing to notethat in all other areas the business is performing strongly: Crosby WealthManagement has increased assets under management by over 30% and has recordedit's best quarter by far; the Merchant Banking Division has successfullycompleted the acquisition of Orchard Petroleum and has also signed an MOU withFermiscan giving Crosby the exclusive rights to roll out Fermiscan in Japan;Crosby's first hedge fund, the Active Opportunities Fund, has recorded a netreturn for the first four months to the end of April of approximately 16% andcontinues to attract new subscriptions; and Indago Petroleum has recently paid asubstantial cash dividend to Crosby. All in all, I believe the business atCrosby is in very good shape" Trading Summary Unaudited Unaudited three months ended three months ended 31 March 31 March 2007 2006 Note US$'000 US$'000 Turnover/Revenue 5,338 1,768(Loss)/Gain on financial assetsat fair value through profit orloss (9,591) 40,392Loss on financial liabilities atfair value through profit or loss (399) -Other income 164 1,392Administrative expenses (8,562) (6,834)Distribution expenses (5) (24)Other operating expenses (3,192) (1,623) ---------- ---------(Loss)/Profit from operations (16,247) 35,071 Share of losses of associates /jointly controlled entity (39) (42) ---------- ---------(Loss)/profit before taxation (16,286) 35,029 Taxation (38) (26) ---------- --------- (Loss)/profit after taxation (16,324) 35,003 Minority interests (4,479) 2,333 ---------- --------- (Loss)/profit attributable toequity holders of parent company (20,803) 37,336 ========== ========= ========== =========(Loss)/earnings per share (8.56) cents 15.41 cents - Basic ========== ========= - Diluted N/A 14.89 cents ========== ========= This information is provided by RNS The company news service from the London Stock Exchange