Ambrian Capital Sees FY Breakeven On Corporate Finance, Equities Loss

6th Jul 2010 12:24

LONDON (Dow Jones)--Ambrian Capital PLC (AMBR.LN) a provider of corporate finance, stock broking and commodity trading services to institutional and corporate clients, said Tuesday its the profit generated by Commodities and Principal Investments were offset by a loss incurred by Corporate Finance & Equities (Ambrian Partners Limited) which is likely to lead to the Group reporting a breakeven result for the first half of the year. MAIN FACTS: -Commodities businesses performed well during the first half of the year, benefiting from continuing demand for physical metals from China, albeit at lower levels than the extraordinary volumes achieved in the first half of 2009. -Ambrian Principal Investments Limited, the Group's principal investment portfolio, is expected to show an excellent result for the first half with estimated net asset value per share growth of 37%. -The loss in Corporate Finance & Equities is a result of a combination of -(i) a decline in fee and commission income in the core natural resources franchise as many transactions did not complete due to weak equity market conditions in the second quarter, particularly in June and -(ii) an increase in personnel and recruitment costs associated with efforts to diversify the Corporate Finance & Equities business from its reliance on the AIM sector. -In light of the recent falls in equity markets, management is taking immediate action to reduce costs to ensure that the business is able to generate a positive return from its leading position in the natural resources sector. -Commodities now represent the majority of Ambrian's revenues and profits. -Intends to continue growing its business as a supplier of physical commodities -Announces the formation of Ambrian Energy, which will be focused on the supply of crude oil, condensates and other energy products, including biofuels. -These commodities will complement the group's growing presence as a supplier of physical metals. -Ambrian Energy will be led by Justus van der Spuy who was previously Chief Executive of Masefield, a specialized international energy trading company headquartered in Zug, Switzerland. Mr van der Spuy has over 20 years' experience in trading in the international oil markets, including a period with South Africa's Strategic Fuel Fund. -Shares at 1123 GMT down 0.3 pence, or 1.0%, at 24.5 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 06, 2010 07:24 ET (11:24 GMT)