Corporate finance performance boosts Ambrian

29th Jun 2011 14:18

Natural resources investment bank Ambrian Capital has seen robust trading across its operating segments this year, especially in the energy business, but things have not gone so well for its investment portfolio.Group profit for the six months ending 30 June 2011, before share option charges and tax, is expected to be in the region of £0.9m, the company said. "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," Amrbian's chairman, Lawrence Banks, said at the company's annual general meeting on Wednesday. Ambrian Capital said its client-focused corporate finance and equities division continued to build on its strong market leading position in the natural resources sector, breaking even for the five months ended 31 May.However, the valuations of the principal holdings in both the investment portfolio and in those held within corporate finance and equities fell, in line with the recent weakness in resource equity prices, the company said. The losses incurred on the investment portfolio to date, all of which are unrealised, amount to about £600,000. "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," Ambrian said.Shares of the AIM-listed company were trading up 7.5% at 25p in London. AR