Don't pay just to have an ISA. Find out more
(CLE.L) Climate Exchange PLC Buy/Sell
Add to portfolio Set Alert Level 2 Desktop Trader
Summary
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Date/Time | Headline | Source |
|---|---|---|
| 12-03-10 | AFX UK Focus |
|
|
---------------------------------------------------------------
Reuters messaging rm://paul.sandle.reuters.com@reuters.net
-------------------------------------------------------
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
-----------------------------------------------------
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
Keywords: MARKETS UK STOCKSNEWS/
Keywords: MARKETS EUROPE STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More |
||
| 12-03-10 | AFX UK Focus |
|
|
---------------------------------------------------------------
Reuters messaging rm://paul.sandle.reuters.com@reuters.net
-------------------------------------------------------
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
-----------------------------------------------------
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net Keywords: MARKETS UK STOCKSNEWS/ COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More |
||
| 12-03-10 | RNS |
|
This news article is displayed preformatted as it may contain results tables
RNS Number : 4780I
Climate Exchange PLC
12 March 2010
Press release
For immediate release
12 March 2010
Climate Exchange plc
Preliminary results for the year ended 31 December 2009
Climate Exchange plc (the "Group" or the "Company"), the world's leading exchange for trading emissions and environmental products, announces its preliminary results for the year ended 31 December 2009.
Financial Highlights for the year ended 31 December 2009
· Pro-forma pre-tax profit of £6.8 million (2008: £2.8 million) up 2.4 x
· Revenues from core businesses up 48% to £33.6 million (2008: £22.7 million)
· Core business operating profit of £11.5 million (2008: £6.3 million)
· Cash balances including short term investments £19.2 million at 31 December 2009 compared with £12.4 million at 31 December 2008 and no external borrowings
· Audited IFRS profit before tax £2.2 million (2008: loss of £2.5 million)
· First audited IFRS profit after tax £0.7 million (2008: loss of £2.0 million)
Operational Highlights
· European Climate Exchange (ECX) annual volume increased 82% to 5.1 billion tonnes
· ECX open interest finished the year at 5.4 million tonnes, more than 53% above the previous year
· ECX membership increased to 102 members, despite high levels of consolidation throughout the markets (2008 : 95)
· Chicago Climate Futures Exchange (CCFE) average daily volume increased by 183% to 5,406 contracts in 2009 from 1,907 contracts in 2008
Richard Sandor, Chairman of Climate Exchange plc, said: "Some political momentum is returning with China and India announcing post Copenhagen reduction targets in the last few days. Overall these results are exciting and we have maintained our position as the leading emissions trading exchange".
Neil Eckert, Chief Executive of Climate Exchange plc, said: "We are delighted with these results when put in perspective with the economic and political backdrop. ECX had a wonderful year and with the continuing EU discussion of an anticipated 30% cut by 2020 and particularly the move to 100% auctioning in 2011, shows significant long term growth potential."
--ENDS--
There will be a live audio cast today of our Preliminary Results for the year to 31 December 2009 at 2.00 p.m. GMT/9.00 a.m. EST. Event title 'Climate Exchange plc Preliminary Results Presentation'
To attend the audio cast, please go to our website at www.climateexchange.com and follow instructions at 'Events & Presentations' or direct by going to:
http://www.investorcalendar.com/IC/CEPage.asp?ID=156116
To dial into the conference call please use one of the following numbers
UK Access Number + 44 (0)20 7906 8535
UK Toll Free Number 0808 238 7385
US Access Number + 1 703 865 2820
US Toll Free Number 1 866 978 9967
Contacts
Climate Exchange plc
Neil Eckert, CEO 0207 382 7801
Matthew Whittell, CFO 0207 382 7802
Helene Crook, Investor Relations 0207 382 7807
Haggie Financial
Peter Rigby/Alexandra Parry 0207 417 8989
Fox-Pitt, Kelton Limited
Jonny Franklin-Adams/Simon Law 0207 065 2000
J.P.Morgan Cazenove
Alex Yule-Smith 0207 588 2828
Notes to Editors:
About Climate Exchange plc
Climate Exchange plc is a holding company whose subsidiaries are principally engaged in owning, operating and developing exchanges to facilitate trading in environmental financial instruments including emissions reduction credits in both voluntary and mandatory markets. Its three main businesses are the European Climate Exchange (ECX) which operates the leading derivatives exchange focused on compliance certificates for the mandatory European Emissions Trading Scheme, Chicago Climate Exchange (CCX) which operates a voluntary but contractually binding cap and trade system for greenhouse gas emissions in the U.S., and the Chicago Climate Futures Exchange (CCFE) the leading U.S. regulated environmental products exchange whose contracts include mandatory U.S. emissions such as SO2, NOx and RGGI CO2.
www.climateexchange.com
About European Climate Exchange
The European Climate Exchange (ECX) manages product development and marketing of Carbon Financial Instruments (CFI) futures and options contracts on CO2 EU allowances (EUAs) traded under the EU Emissions Trading Scheme (EU ETS) and Certified Emission Reductions (CERs) issued under the Kyoto Protocol.
ECX CFI contracts are listed and traded on the ICE Futures electronic platform, offering a central marketplace for emissions trading in Europe with standard contracts and clearing guarantees. ECX/ ICE Futures is the most liquid, exchange for carbon emissions trading. More than 100 businesses have signed up for membership to trade ECX products. In addition, several thousand ICE clients can access the market via banks and brokers.
www.ecx.eu
About Chicago Climate Exchange and Chicago Climate Futures Exchange
Chicago Climate Exchange (CCX) is a financial services business whose objectives are to apply financial innovation and incentives to advance social, environmental and economic goals. CCX is the world's first and North America's only contractually binding rules-based greenhouse gas emissions allowance trading system, as well as the world's only global system for emissions trading based on all six greenhouse gases. CCX members are leaders in greenhouse gas management and represent all sectors of the global economy, as well as public sector innovators. Independent third party verification is provided by FINRA. For a full list of CCX members, daily prices and other Exchange information please see the CCX website.
The Chicago Climate Futures Exchange (CCFE), a wholly owned subsidiary of CCX, is a CFTC designated contract market which offers standardized and cleared futures contracts on emission allowances and other environmental products. Clearing services are provided by The Clearing Corporation. Market surveillance services are provided by the National Futures Association, the industry wide, self-regulatory organization for the U.S. futures industry.
www.chicagoclimateexchange.com
www.ccfe.com
EXECUTIVE CHAIRMAN'S STATEMENT
I am pleased to report that your Company continued to prosper despite a challenging macroeconomic environment in 2009 and a lack of progress in U.S. emissions legislation. The year began with a global credit crunch still wreaking havoc in financial markets and ended with stalled climate legislation in the United States as well as a failure to reach significant agreement in Copenhagen. Nevertheless, two of the three exchanges we operate showed significant growth in 2009.
European Climate Exchange (ECX) grew strongly in 2009 with an 82% volume increase over 2008. The successful launch of post-2012 contracts suggests strong interest in the European Union Emissions Trading Scheme (EU-ETS) beyond the Kyoto timeframe. ECX has continued both to develop and build liquidity and market share in innovative new products, such as the 2013 futures for Phase III of the EU ETS and the "T+1" spot market instrument.
Chicago Climate Futures Exchange (CCFE) continued its growth in existing products and its innovation of new products. There are several opportunities for us to build attractive markets in the U.S. even if a Federal emissions cap and trade system is delayed. Our strategy included the launch of futures and options contracts based on the California Climate Action Registry (CCAR-CRT) and four renewable energy (REC) futures contracts in 2009. Other regional and state level efforts are gaining interest and participation through programmes such as the current Regional Greenhouse Gas Initiative, the pending Western Climate Initiative and the Midwest Greenhouse Gas Reduction Accord. In our Insurance Futures Exchange Services (IFEX) business we added two new contracts in 2009: Northeast (IFEX-NEW) and Eastern Seaboard (IFEX-ESW) tropical wind contracts. Most importantly, we maintained our market share and leadership position in all our primary markets.
2009 saw the membership emission baseline at Chicago Climate Exchange (CCX) grow, reaching 680 million metric tonnes and making it one-third the size of the EU ETS. However, CCX volumes continued to witness significant declines in 2009 due to the legislative uncertainty which continues today.
On the international front Copenhagen produced an accord among major emitting nations but failed to secure binding commitments. This year will see additional work to produce a successor treaty to the Kyoto Protocol with meetings throughout the year culminating in Mexico in December.
Public Policy Developments
In June of 2009 a comprehensive climate legislation bill was approved by the U.S. House of Representatives. The American Clean Energy and Security Act (ACES), co-sponsored by Congressmen Waxman and Markey, included a national greenhouse gas reduction and trading system with compliance required starting in 2012. In the Senate, progress continues on multiple fronts although the pace is slow. The Senate Environment and Public Works Committee voted in November to approve The Clean Energy Jobs and American Power Act, sponsored by Senators Kerry and Boxer which also incorporates a national cap and trade system . On a separate track, Senator Kerry is currently collaborating with Senators Lieberman and Graham to craft a bill with bipartisan support.
We continue to brief House and Senate staff on the successes that our members have realized through many years of hard work and hands on experience in emissions management. We remain concerned about the political environment for energy and climate legislation and the delays related to the focus on the health care debate.
Regulation
Emissions trading has become widely adopted as greenhouse gas management has moved from the confines of corporate environmental compliance departments into the heart of corporate financial planning. This development has been in response to both strategic need and public scrutiny. Environmental issues are increasingly understood to be part of necessary risk management as investors and analysts are paying closer attention to climate liability and customer expectations make it a critical part of a good business model.
Additionally on the regulatory front, the U.S. Environmental Protection Agency put forward in 2009 a proposed rule to regulate greenhouse gas emissions from businesses that emit 25,000 or more metric tonnes annually.
International Developments
Korea
In June we signed a memorandum of understanding with Korea Power Exchange, Korea Exchange and Korea Energy Management Corporation to collaborate in preparing for the establishment of emissions trading in Korea. Under the agreement we are exploring avenues of cooperation in the establishment of Korean emissions trading and matters relating to the infrastructure for emissions trading.
Australia
In May 2009, the Australian House of Representatives passed The Carbon Pollution Reduction Scheme Bill with the government remaining highly committed to enacting climate legislation. Envex, partly owned by CLE, continues to expand its product offerings with plans to launch a range of exchange traded environmental contracts which, subject to regulatory approvals, will be available for trading via the FEX derivatives platform in Australia.
China
In China, the Tianjin Climate Exchange has begun to implement pilot initiatives that can help pave the way for a strong market-based infrastructure that facilitates the environmental and policy goals of the People's Republic of China. We were delighted to report recently the first transaction in energy efficiency certificates for the City of Tianjin.
In September, we announced the creation of the China-U.S. Low Carbon Finance and Development Research Centre - a partnership between CCX, the People's Bank of China, and the China National Petroleum Corporation Assets Management. The centre, with offices in Chicago and Beijing, will conduct research on the financing of low carbon initiatives, including large-scale demonstrations of market-based methods, for addressing environmental challenges in China and improving energy efficiency.
Outlook for 2010
As climate change policy continues to develop, Climate Exchange plc's leadership position globally means that we are well positioned to capitalize on opportunities as they arise. While 2010 has begun with modest improvements in European volumes, the U.S. markets continue to lag compared to the first half of 2009. We remain cautious but believe several new initiatives are promising. Uncertain times can also provide good opportunities and your Company has demonstrated its ability to capitalize on new opportunities in the past.
Richard L. Sandor
Executive Chairman
12 March 2010
Operating and Financial Review
The Climate Exchange Group is organised into three core businesses, ECX, CCX and CCFE as well as a portfolio of new business opportunities under development. ECX operates in the largest and most developed of the world's environmental markets and once again, ECX has shown robust growth in 2009. Given the slow pace of political development in North America and the rest of the world, ECX continued to be the core driver of value and cash flow in 2009 and 2010 has started on a positive note. We have seen a substantial improvement in both screen based liquidity and in the trading volumes on our daily futures (spot) contract. The Spot Market was one of our principal competitive threats during 2009 and it is pleasing that during the first two months of 2010, these contract volumes continue to increase.
We expect to see recurring threats of competition from other exchanges such as Green Exchange, EEX and Bluenext and also Clearing platforms such as LCH, however our market share is pleasing to date. On the upside, a major potential plus factor is the move to auctioning of EU ETS allowances in 2011. In our view this could have a very positive impact on volumes.
Our business has been heavily affected by the lack of political progress on climate change legislation in the U.S.. However, we still expect to see U.S. legislation in some shape that will provide us with market opportunities in due course. From an operational perspective, our job is to launch contracts that address all possible outcomes and to make sure that we retain market share. In this mission to date, we have been successful and continue to record growth in CCFE. Over time, we are convinced that there will be more clarity from a political perspective and that the market will attribute value to these efforts in our stock price. The U.S. market is a potential multiplier for the value of our company and we sincerely hope that our work and industry will be rewarded. In the absence of positive political developments, we will be paying acute attention to our cost base with a view to matching it to the potential revenue and growth potential of our market.
CCX volumes continue to dwindle as the trading interests migrate on to CCFE. Interestingly we continue to recruit major new members to CCX. This would suggest that the customers have a diverse set of reasons for joining the exchange that are not limited by the prospects for U.S. legislation. We will continue to review this business in order both to identify and to move towards a higher value operating model for the future. This may include evaluating potential strategic partnerships in the consultancy and carbon reduction business.
In summary, we have strong belief in the potential of our U.S. business and will continue to drive our efforts to ensure that we are in a position to reap our rewards once the course of U.S. environmental markets become clear.
European Climate Exchange (ECX)
2009 was another year of strong growth for the European carbon markets, despite the disappointing lack of progress from the COP15 in Copenhagen. Average daily volumes on ECX exceeded 20 million tonnes of carbon (20,000 contracts) delivering a total of just over 5.1 billion tonnes for the year, an increase of over 80% compared to 2008. It is impressive to note that we are now trading more carbon per week than we did in the whole of 2005, our first year of operation.
In 2009, ECX continued its record of always having traded more in each month than had been traded in the same month in previous years - this record will be increasingly hard to maintain as we move into 2010. The table below sets out the month by month total volumes on ECX in each of the last 5 years.
ECX Aggregate Monthly Trading Volumes 2005-2009 (in contracts of 1000 tonnes CO2e)
Date 2005 2006 2007 2008 2009
January n/a 33,931 61,157 171,163 287,977
February n/a 26,638 62,836 139,873 447,135
March n/a 22,331 73,829 127,547 539,002
April 370 41,146 59,276 190,643 516,086
May 1,076 53,381 77,713 142,008 431,237
June 6,325 22,553 91,381 295,021 463,749
July 11,090 29,602 126,058 346,302 470,914
August 5,633 27,270 103,119 208,050 283,400
September 17,934 38,212 99,461 264,863 434,478
October 19,877 51,534 107,743 412,352 436,155
November 19,080 65,375 98,405 322,456 438,974
December 12,248 40,951 77,343 189,743 373,151
Total 94,948 452,924 1,038,321 2,810,021 5,122,258
The table above also highlights the particularly high volumes achieved between February and June 2009. Some of this increase was linked to the transfer of trades from the bi-lateral OTC market to the more secure and convenient cleared environment during that credit constrained time. These months also coincided with the period when, due in part to VAT fraud, spot EU ETS volumes on other exchange markets briefly hit significant peaks of activity.
Lastly on volumes, it is worth noting that we saw a growing trend of trading activity taking place directly on the WebICE platform rather than through the broker market. This trend draws in new players to the markets who appreciate the transparency and efficiency of the system and we look forward to this trend continuing during 2010. The brokers continue to form a key sector of our market and it is impressive to see how the more dynamic brokers are reacting to a reduction in intermediated vanilla volumes by offering their services to transact large volume and multi-leg structured trades.
When considering the health of any derivatives market, open interest is as critical as the volumes. Open interest represents the aggregate size of risk positions open at any time, and again the growth on ECX during 2009 was impressive. Year end open interest grew to just under 550 million tonnes (549,000 contracts) up over 50% from the 356 million tonnes at the beginning of the year. The December expiry saw a record 150 million tonnes of EUAs and CERs go to delivery - a new record. The associated Registry systems handled this new peak without undue problems and all settlements were efficiently handled by our clearing partner, ICEClear Europe.
The high volumes achieved during 2009 were on the back of relatively benign pricing conditions. After the huge price shocks on the back of the recession in 2008, 2009 saw the market largely range bound between EUR10 and EUR15 per tonne. Whilst these prices may not be where policy makers originally expected them to be, market prices have behaved rationally for the soft demand conditions that existed during the year. It is heartening to note that the EU has resisted calls for any type of floor price in the market. We believe that this position must be maintained - the environmental policy objectives encapsulated by the EU-wide emissions cap are being achieved through the reduction of supply; the price must be left to the free-market forces if the cost reduction benefits that markets can provide to consumers and taxpayers are to be maximised.
ECX launched Daily Futures contracts early in 2009 and these have enjoyed considerable success. The products act as a proxy for spot trading (they are delivered the day after trading) but by structuring them as futures contracts they enjoy the protections of the regulated market. Unlike most comparable products traded in Europe, ECX Daily Futures are subject to full regulatory scrutiny and their inclusion under the London Terminal Markets Order ensures they cannot be involved in the much publicised VAT carousel fraud.
Screen based spread trading increased significantly during the year with tight pricing and large quantities available directly on the WebICE system. Additionally, the EUA/CER swap trading became an integral part of the tools available and saw particularly high activity levels just before the December expiry.
2010 has again started with strong growth - January saw volumes up 45% over 2009. However, for the full year our rate of growth may be lower than in previous years. This is not only because of the lack of wide-scale international agreement (which would have bolstered European trading) but also because of the unique circumstances that created particularly high volumes between February and June of 2009. However, our longer term view is that we have great growth prospects ahead. The three key drivers for this are:
· The ratio of futures volumes to market size is growing but remains relatively low when compared to better developed commodities markets. In simple terms, on a cap of some 2 billion tonnes, we saw derivatives trading of about 5 billion tonnes or 2.5 times the "crop". In mature markets one might expect a level of 10 or more times the crop and we would expect carbon to converge on levels seen in other commodity markets over the next few years;
· The introduction of auctioning in Europe from 2011 (for phase III of the ETS). This will introduce new risks for the industry groups covered by the ETS and they will almost certainly have much higher hedging requirements leading to higher volumes on our platform; and
· The extension of the ETS to new industry groups (e.g. airlines in 2012) will broaden the base of users and introduce new risks and opportunities.
ECX EUA Futures Contract and Open Interest
ECX EUA FUTURES CONTRACTS OPEN INTEREST
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 209,118 209,118 126,593 172,206 152,175
February 306,566 515,684 244,086 176,514 147,324
March 440,254 955,938 346,979 217,807 151,578
April 380,112 1,336,050 488,696 251,755 165,720
May 314,711 1,650,761 588,948 270,798 174,678
June 358,319 2,009,080 776,361 309,270 206,372
July 335,135 2,344,215 1,011,710 337,903 213,273
August 203,685 2,547,900 1,148,608 349,142 225,108
September 317,450 2,865,350 1,331,582 369,802, 228,913
October 314,960 3,180,310 1,656,524 390,839 251,802
November 325,490 3,505,800 1,864,763 391,732 258,760
December 272,085 3,777,885 1,991,276 266,474 154,758
ECX EUA Options Contract and Open Interest
ECX EUA OPTIONS CONTRACTS OPEN INTEREST
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 25,551 25,551 44,570 63,727 49,195
February 49,107 74,658 66,950 96,685 59,965
March 44,642 119,300 83,015 124,615 66,197
April 67,938 187,238 114,285 153,234 84,870
May 50,868 238,106 129,149 159,143 88,625
June 27,300 265,406 163,160 176,899 100,599
July 22,433 287,839 183,355 187,960 107,366
August 25,550 313,389 190,020 202,505 108,155
September 26,300 339,689 205,335 203,372 111,195
October 14,244 353,933 211,870 206,194 112,820
November 36,820 390,753 221,615 215,794 118,161
December 24,814 415,567 243,166 92,608, 45,856
ECX EUA Daily Futures
ECX EUA DAILY FUTURES CONTRACTS
Month 2009 cumulative 2009
January n/a n/a
February n/a n/a
March 787 787
April 2,629 3,416
May 2,464 5,880
June 7,614 13,494
July 8,421 21,915
August 4,029 25,944
September 9,024 34,968
October 12,098 47,066
November 7,081 54,147
December 6,353 60,500
* ECX EUA Daily Futures Contract was launched on 13 March 2009
ECX CER Futures Contract and Open Interest
ECX CER FUTURES CONTRACTS OPEN INTEREST
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 44,008 44,008 n/a 111,772 n/a
February 79,498 123,506 n/a 114,383 n/a
March 50,315 173,821 8,589 110,589 6,082
April 61,263 235,084 26,245 107,364 17,600
May 54,522 289,606 49,387 111,413 29,830
June 55,992 345,598 105,984 115,705 50,965
July 89,154 434,752 190,492 119,804 62,298
August 46,028 480,780 250,029 121,889 71,846
September 76,592 557,372 311,753 124,138 87,541
October 87,523 644,895 377,428 137,103 104,717
November 64,789 709,684 467,700 141,827 112,772
December 62,253 771,937 507,779 129,844 103,541
* ECX CER Futures Contract began trading on 14 March 2008
ECX CER Options Contract and Open Interest
ECX CER OPTIONS CONTRACTS OPEN INTEREST
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 9,300 9,300 n/a 60,200 n/a
February 11,964 21,264 n/a 62,873 n/a
March 2,815 24,079 n/a 65,142 n/a
April 3,669 27,748 n/a 67,446 n/a
May 8,322 36,070 3,750 68,041 3,750
June 14,400 50,470 20,750 75,104 20,600
July 15,450 65,920 27,000 85,404 26,850
August 4,000 69,920 31,950 89,304 31,750
September 4,910 74,830 36,800 91,764 33,600
October 6,300 81,130 52,000 92,789 44,800
November 3,400 84,530 66,200 92,189 57,950
December 6,600 91,130 67,800 58,491 51,350
* ECX CER Options Contract was launched on 16 May 2008
ECX CER Daily Futures
ECX CER DAILY FUTURES CONTRACTS
Month 2009 cumulative 2009
January n/a n/a
February n/a n/a
March 189 189,000
April 475 664,000
May 350 1,014,000
June 124 1,138
July 321 1,459
August 108 1,567
September 202 1,769
October 1,030 2,799
November 1,394 4,193
December 1,046 5,239
* ECX CER Daily Futures Contract was launched on 13 March 2009
Chicago Climate Exchange (CCX)
With the addition of energy companies Progress Energy and the Public Service Enterprise Group (PSEG), 2009 saw CCX's membership baseline grow to 680 million metric tonnes making it one-third the size of the EU ETS. Total membership declined 7% in 2009 due mostly to departures of smaller members in the participant member category.
Following a robust 2008, CCX trading volumes declined 36% in 2009 to 45.2 million metric tonnes as uncertainty surrounding the potential for U.S. climate legislation in general and the treatment of early action credits in particular depressed prices and hampered trading activity.
In 2009 CCX registered 26.3 million metric tonnes CO2e, the second highest level of annual registrations since the start of the programme but 16 % below the 2008 level of 31.3 million metric tonnes. Twenty-six new offset providers and aggregators joined CCX last year and five new organisations were approved by CCX to provide verification services for CCX offset project types including: forestry, energy efficiency, renewable energy, landfill methane collection and destruction, coal-mine methane collection and destruction, and agriculture best management practices. Through its member committees, CCX established a new protocol for avoided emissions from organic waste disposal.
Current Trading
Uncertainty around cap and trade legislation and treatment of early action credits will continue to suppress prices of the generic CFI contract and hamper trading activity as a result.
Our current strategy to address the low price of CCX Carbon is to provide more transparency around an unbundled unit by allowing different types of project to trade separately of each other.
By allowing each carbon unit to trade on its own merits rather than contained in a homogenous bundle should allow for more trading activity in order to take account of the different opinions that exist on what legislation will be going forward. This should result in more trading activity based on speculation on what will be included in legislation.
CCX CFI Contracts
CCX CFI CONTRACTS
Month 2009 cumulative 2009 cumulative 2008
January 33,494 33,494 13,428
February 77,413 110,907 114,140
March 64,193 175,100 199,632
April 10,907 186,007 272,652
May 50,315 236,322 384,710
June 25,703 262,025 470,258
July 52,496 314,521 518,164
August 12,268 326,789 554,326
September 35,597 362,386 616,310
October 27,220 389,606 649,323
November 47,696 437,302 688,175
December 14,739 452,041 708,305
Chicago Climate Futures Exchange (CCFE)
CCFE continued to make important market advancements in 2009 solidifying its position as the leading environmental derivatives exchange in the U.S. with 99% of the current open interest in U.S. mandatory emissions markets. Overall trading volumes totaled 1,373,029 contracts, a 183% increase over 2008 volumes. Core products SFI and NFI traded 566,514 contracts, a healthy 40% increase despite continued uncertainty around the Clean Air Interstate Rule (CAIR). CCFE saw a significant increase in trading in its carbon complex, with 797,633 contracts registering a volume increase of 1060% from 2008 with particular growth in the RGGI market. Total CCFE open interest at the end of the year reached 100,458 contracts, up 64% from the end of 2008.
Since its launch in August 2008 through to December 2009, the Regional Greenhouse Gas Initiative (RGGI) has auctioned 171,592,906 allowances. CCFE remains the leading market for exchange traded RGGI futures and options with close to 99% of the open interest market share.
CCFE volumes were assisted by the development of a market maker programme designed to enhance liquidity with notable success. As a consequence, revenues per contract fell from $5.95 to $3.91. This programme terminates at end the of 2010.
In April, CCFE successfully launched the first futures contracts based on Renewable Energy Certificates (RECs) - a market that has grown significantly and today has open interest of 3,690 contracts as of the end of February. CCFE currently offers compliance REC contracts for New Jersey, Connecticut and Massachusetts as well as a voluntary REC contract.
CCFE also launched a new California Climate Action Registry-Climate Reserve Tonnes (CCAR-CRT) futures contract in February and added vintage-specific products in July.
CCFE prospects for 2010 are dependent on cap and trade legislation being passed, the resolution of CAIR legal challenges and implementation renewable energy legislation. Despite these obstacles we are seeing a base growth level, but expect significant growth to occur once these issues are resolved.
CCFE SFI & NFI Futures & Options Contracts Volume and Open Interest
SFI & NFI Futures & Options Open Interest
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 38,903 38,903 52,397 35,893 47,634
February 35,334 74,237 92,710 40,648 59,968
March 49,914 124,151 146,520 46,939 64,856
April 76,895 201,046 191,947 75,587 76,027
May 53,982 255,028 238,313 96,819 82,916
June 37,860 292,888 272,107 90,537 70,461
July 45,204 338,092 305,944 78,915 68,594
August 44,118 382,210 318,347 74,093 65,696
September 65,084 447,294 339,637 74,381 61,294
October 42,314 489,608 363,739 80,276 63,291
November 30,654 520,262 376,098 87,009 63,540
December 46,252 566,514 404,164 41,980 33,344
CCFE Carbon Complex Futures & Options Contracts Volume and Open Interest
Carbon Complex Futures & Options Open Interest
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 12,331 12,331 820 20,502 2,148
February 21,520 33,851 2,763 30,679 2,836
March 40,484 74,335 4,704 36,734 3,357
April 51,064 125,399 6,772 38,188 4,183
May 55,627 181,026 10,537 43,396 5,029
June 137,898 318,924 16,101 43,284 6,836
July 85,103 404,027 22,577 43,909 8,917
August 109,930 513,957 31,128 48,045 11,697
September 139,880 653,837 40,373 56,247 15,317
October 67,016 720,853 49,117 55,713 17,510
November 25,043 745,896 57,111 62,392 21,226
December 51,737 797,633 68,741 50,558 19,454
CCFE Other Products Volume and Open Interest
Other Futures & Options Open Interest
Month 2009 cumulative 2009 cumulative 2008 2009 2008
January 365 365 2,133 8,280 2,988
February 25 390 2,457 8,280 3,126
March 1,126 1,516 2,855 9,256 3,187
April 4,360 5,876 3,004 8,584 3,150
May 115 5,991 3,839 6,545 3,299
June 265 6,256 3,857 6,517 3,297
July 580 6,836 4,597 7,017 3,369
August 102 6,938 5,658 7,019 4,381
September 110 7,048 6,085 7,126 4,485
October 772 7,820 6,238 7,469 4,572
November 850 8,670 7,335 8,008 5,562
December 212 8,882 11,415 7,920 8,552
Membership as at year end
2009 2008 2007 2006 2005
ECX membership 102 95 80 71 54
CCX membership 436 470 401 238 131
CCFE Trading Privileges 398 385* 247 154 58
CCFE Trading Privileges remaining 27 ** 140 11 96 192
*This number includes 125 trading privileges that were awarded to Trading Privilege Holders (TPHs) who purchased the first 250 TPs (one half of a TP for each of the first 250 TPs sold). As part of the expansion of the TPH Program, an additional 150 TPs were authorized.
** In November 2009, CCFE announced that it was limiting the number of TPs to 425. Therefore, 100 of the additional 150 TPs that were authorized in April 2009 will not be sold.
Insurance Futures Exchange (IFEX)
Another part of the CCFE offering is IFEX. We remain convinced that this business operates in a substantial market, and one in which we can succeed. In particular, the concept of clearing is a potent new sales weapon in the world of insurance. We continue to attract new members and have new accounts opened. The absence of any major hurricanes in the U.S. during 2009 clearly dampened our trading volumes but in spite of this the IFEX user base increased roughly 250% from 2008 to 2009 with a total of over 70 users at the year end.
IFEX added two new contracts to its U.S. Wind Suite, the Eastern Seaboard Wind contract (Georgia to Maine) and the Northeast Wind contract (Virginia to Maine). With these additions, the IFEX market now offers users the ability to hedge regionally against U.S.Catastrophic Wind damage along the hurricane prone Atlantic Basin.
Throughout 2009 IFEX has maintained its position as the market leader and the only provider of a screen based Catastrophe Insurance Contract.
International Developments
In China, the Tianjin Climate Exchange (TCX) has begun to implement pilot initiatives intended to pave the way for a market-based infrastructure that facilitates the environmental and policy goals of the People's Republic of China. On 9 February 2010, TCX completed a pilot transaction of domestic carbon credits derived from energy efficiency improvement. The transaction involved three Tianjin-based heating utilities that had outperformed targets mandated by the Tianjin provincial government selling their surplus credits to two buyers, Citigroup and OAO Gazprom, the largest natural gas company in the world.
In September, we announced the creation of the China-U.S. Low Carbon Finance and Development Research Centre - a partnership between CCX, the People's Bank of China, and the China National Petroleum Corporation Assets Management. The centre, with offices in Chicago and Beijing, will conduct research on the financing of low carbon initiatives, including large-scale demonstrations of market-based methods, for addressing environmental challenges in China and improving energy efficiency.
In India, we continue to monitor the policy developments at the national level and evaluate opportunities with local partners to establish the India Climate Exchange.
In June, we signed a memorandum of understanding with Korea Power Exchange, Korea Exchange and Korea Energy Management Corporation to collaborate in preparing for the establishment of emissions trading in Korea. Under the agreement we are exploring avenues of cooperation in the establishment of Korean emissions trading.
In May 2009, the Australian House of Representatives passed The Carbon Pollution Reduction Scheme Bill with the government remaining highly committed to enacting climate legislation. Envex, partly owned by CLE, continues to expand its product offerings with plans to launch a range of exchange traded environmental contracts which, subject to regulatory approvals, will be available for trading via the FEX derivatives platform in Australia.
The Montr? Climate Exchange is a joint venture between the Montr? Exchange and the Chicago Climate Exchange. The Canadian government continues to contemplate the most appropriate approach and mechanism by which to address its environmental needs.
Relationships
The growth in volumes traded through our platforms is a direct reflection of the growing
importance of emissions trading. We are extremely grateful to our members, users, suppliers and
staff all of whom have contributed significantly to the past year. We look forward to continuing
our relationship during the coming year.
Financial summary
Financial Highlights for the year ended 31 December 2009
· Pro-forma Group pre-tax profit of £6.8 million (2008: £2.8 million) up 2.4x
· Revenues from core businesses up 48% to £33.6 million (2008: £22.7 million)
· Core Business operating profit £11.5 million (2008: £6.3 million)
· Cash balances of £19.2 million at 31 December 2009 compared with £12.4 million at 31 December 2008
· Audited IFRS profit before tax £2.2 million (2008: loss of £2.5 million)
· First Audited IFRS profit after tax £0.7 million (2008: loss of £2.0 million)
The figures above and in the pro-forma financial summary table below are extracted from unaudited management accounts of the Group. For financial periods prior to 2007, these have been prepared on a pro-forma basis assuming that the Group consolidated 100% of the businesses of both CCX and ECX for the relevant periods. The audited consolidated financial statements of the Group for 2009 and for the 2008 comparative year contained in this document have been prepared in accordance with International Financial Reporting Standards.
The Climate Exchange group of companies comprises three core businesses, ECX, CCX and CCFE as well as a number of geographic investments, new product-based businesses and the ultimate holding company, Climate Exchange plc. The financial performance of these businesses are summarised below.
European Climate Exchange
The ECX business is very largely driven by trading volumes and revenues which almost doubled from £10.8m to £21.4m and have a compound annual growth rate (CAGR) over the five years to 31 December 2009 of 190%. The revenues for the ECX business arise from our revenue sharing agreement with ICE Futures who are entitled to a percentage of the net transaction revenues arising from trading ECX contracts as well as a pro-rata share of the operating expenses of ICE Futures and which, including related expenses, came to 37% of revenues in both 2008 and 2009. ECX trading revenues arise from transaction fees which are either EUR4 or EUR5 per contract (depending on the membership status of the counterparties) and which averaged EUR4.71 in 2009 (2008: EUR4.84). While small in comparison with trading revenues, it is encouraging to see a 36% increase in membership revenues. As fees per member were held unchanged this is a direct reflection of the growing number of our members.
ECX expenses increased by 76% from £5.9m to £10.4m chiefly as a result of increased revenue share and related expenses which accounts for £7.9 million of this amount (2008: £4.0 million). Expenses other than this volume-related variable item expenses grew by 32%. Other expenses include professional fees and the costs of marketing ECX products.
ECX operating profit increased to £11.4m from £5.2m.
Chicago Climate Exchange
The CCX business is focussed on the development, maintenance and marketing of the world's first voluntary but contractually binding cap and trade system for greenhouse gas emissions. Its revenues arise in the main from three sources:
· trading fees from transactions between members of CCX in Carbon Financial Instruments (CFIs);
· membership fees paid both by new members and annually by continuing members; and
· the fees paid for verified offset registration by qualifying emissions reduction projects and CCX trading revenues fell 31% from £3.5m to £2.4m, CCX membership fell 17% from £3.2m to £2.6m and other revenues fell 11%.
A high proportion of the operating expenses of our two U.S. businesses are shared and allocated between the businesses on a formula basis. In 2009, the allocation methodology was retained so as to be consistent with the presentation for prior years although this is under review as our U.S. businesses evolve. CCX expenses increased by 8% from £7.2m to £7.8m, however in U.S. dollar terms this represents an 8% fall in expenses, as our reporting currency declined by some 15% from 2008 to 2009 using average exchange rates for the periods. A 63% increase in IT costs was partially offset by an 11% reduction in personnel costs. CCX fell from an operating profit of £1.9m to an operating loss of £0.6m.
Chicago Climate Futures Exchange
CCFE is an exchange business model, earning revenues chiefly from transaction volumes and, during its early years, membership revenues arising from the sale of Trading Privileges (TPHs) which are limited in number. In 2009, trading revenues grew 124% from £1.5m to £3.4m, a compound annual growth rate (CAGR) over the three years to 31 December 2009 of 108%. CCFE membership revenues rose 18% from £1.0m to £1.2m over the period, although this is largely a function of exchange rate changes.
CCFE expenses increased by 18% from £3.3m to £3.9m and, as for CCX, given the exchange rate change this amounts to almost no change in expenses in local currency terms. The business made an operating profit of £0.7m, compared with an operating loss of £0.8m in 2008.
Research and Development Activities
In addition to the core businesses, the Group is engaged in a range of investment opportunities, including both new product development and geographic expansion internationally. These investment activities typically incur costs in excess of revenues during their start-up phase and the net cost of all such activities is shown as a Research and Development overhead in the table. During 2009, R&D expense increased by 35% from £1.5m to £2.0m and included the costs associated with our investment in China and other international businesses as well as those of the IFEX business. The IFEX business generated a small revenue, and for this reason, Group revenues are marginally greater than the aggregate core business revenues.
Net Corporate Overhead
The aggregate costs of the parent company Climate Exchange plc are also set out in the table as a Net Corporate Overhead. The expense of certain services provided by Climate Exchange plc are recharged to operating businesses. The net corporate overhead, at £2.7m is 22% greater than the level of £2.2m in 2008. For the Group as a whole, pre-tax profit excluding the non-cash expenses rose 145% to £6.8m from £2.8m.
Our group cash position is 55% higher at £19.2m compared to £12.4m at 31 December 2008.
We are particularly delighted to report our first ever post-tax profit on an IFRS basis. Profit for the year is £0.7m (2008: loss of £2.0m) and this arises after the deduction of the deemed expense of our share based payments of £4.6m (2008: £5.3m). This amount is lower as a consequence of vesting criteria for a substantial number of options not being met in the 2009 performance year. Our expected tax payable including deferred tax is £1.5m which is 69% of IFRS pre-tax profits but 22% of the pro-forma pre-tax result (i.e. excluding share-based payments).
Pro forma financial analysis
In order to set out a comparable summary of the operating performance of the Group's core businesses, the following table of key financial data has been prepared assuming that the Group consolidated 100% of the businesses of both CCX and ECX for the full financial periods to 31 December 2009. These figures have not been audited and do not form part of the audited financial statements of the Group. In particular, they do not include the non-cash accounting costs of share based payments, being the staff share options and certain similar transactions with external third parties.
Pro forma financial analysis
2009 2008 2007 2006 2005
£'000 £'000 £'000 £'000 £'000
Core Business Revenues
ECX
Trading Fees 21,411 10,814 3,558 1,479 302
Membership Fees 221 162 187 148 40
Other 166 131 - 83 1
21,798 11,107 3,745 1,710 343
CCX
Trading Fees 2,384 3,467 1,120 396 62
Membership Fees 2,647 3,175 2,828 258 174
Other 2,153 2,418 1,789 460 102
Management fee Transfer from ECX - - 735 687 683
7,184 9,060 6,472 1,801 1,021
CCFE
Trading Fees 3,366 1,501 776 60 1
Membership Fees 1,219 1,030 3,310 979 94
Other - - - - -
4,585 2,531 4,086 1,039 95
Total Core Business Revenues 33,567 22,698 13,568 3,863 776
(excluding management fee)
Core Business Operating Expenses
ECX
Personnel 1,754 1,122 982 1,036 1,151
Revenue Share and IT 7,972 4,045 1,291 736 414
Other 693 758 501 791 1,161
Management fee Transfer to CCX - - 735 687 683
10,419 5,925 3,509 3,250 3,409
CCX
Personnel 2,714 3,041 2,091 1,448 1,529
IT 1,650 1,012 537 658 738
Other 3,398 3,123 3,052 1,538 1,257
7,762 7,176 5,680 3,644 3,524
CCFE
Personnel 1,132 1,014 697 474 336
IT 1,793 1,696 601 442 381
Other 1,010 612 450 389 356
3,935 3,322 1,748 1,305 1,073
Total Core Business Operating 22,116 16,423 10,202 7,512 7,323
Expenses (excluding management
fee)
Core Business Operating Profit
ECX 11,379 5,182 236 (1,540) (3,066)
CCX (578) 1,884 792 (1,843) (2,503)
CCFE 650 (791) 2,338 (266) (978)
Total Core Business Operating 11,451 6,275 3,366 (3,649) (6,547)
Profit
R&D overhead (2,040) (1,514) (710) (986) (59)
Net Corporate Overhead (2,738) (2,240) (2,317) (922) (301)
Net Group Interest 91 236 510 585 395
Group pre-tax result 6,764 2,757 849 (4,972) (6,512)
Cash and cash equivalents 19,212 12,404 13,739 13,569 13,174
including short term investments
at year end
Neil Eckert Matthew Whittell
Chief Executive Officer Chief Financial Officer
12 March 2010 12 March 2010
Climate Exchange plc
Consolidated Income Statement
For the year ended 31 December 2009
2009 2008
Note £'000 £'000
2 Revenue 33,607 22,779
Expenses
3 Personnel costs:
- equity-settled share based (1,728) (3,955)
payment expense
- other personnel costs (7,572) (6,675)
4 Other expenses:
- other expenses (19,362) (13,583)
- equity-settled share based (2,883) (1,346)
transaction cost
Total expenses (31,545) (25,559)
Profit/(loss) from operating 2,062 (2,780)
activities
Interest income on bank balances 91 236
Profit/(loss) before taxation 2,153 (2,544)
6 Taxation (1,483) 581
Profit/(loss) for the year 670 (1,963)
14 Basic earnings/(loss) per ordinary 1.42 (4.26)
share (pence)
14 Diluted earnings/(loss) per 1.31 (4.26)
ordinary share (pence)
The Directors consider that all results derive from the continuing activities.
Climate Exchange plc
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2009
2009 2008
£'000 £'000
Profit/(loss) for the year 670 (1,963)
Other comprehensive income
Foreign currency translation differences (7,115) 19,284
Total comprehensive income for the year (6,445) 17,321
Climate Exchange plc
Consolidated Balance Sheet
As at 31 December 2009
2009 2008
Note Assets £'000 £'000
Non-current assets
8 Intangible assets 58,168 64,454
9 Investments 972 1,908
10 Property, plant and 295 443
equipment
6 Deferred tax assets 3,955 4,933
Total non-current 63,390 71,738
assets
Current assets
Cash and cash 19,212 12,404
equivalents
11 Trade and other 3,803 3,322
receivables
Total current assets 23,015 15,726
TOTAL ASSETS 86,405 87,464
Current liabilities
12 Trade and other 3,818 3,886
payables
6 Income tax 838 -
liabilities
Total liabilities 4,656 3,886
Equity
13 Share capital 476 471
13 Share premium - 71,617
Reserves 81,273 11,490
Total equity 81,749 83,578
TOTAL EQUITY AND 86,405 87,464
LIABILITIES
Climate Exchange plc
Consolidated Statement of Changes in Equity For the year ended 31 December 2009
Share capital Share premium Shares to be issued Foreign exchange reserve Retained earnings Total
reserve
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2009 471 71,617 - 14,641 (3,151) 83,578
Total comprehensive income
Profit for the year - - - - 670 670
Other comprehensive income
Foreign currency translation - - - (7,115) - (7,115)
differences
Total comprehensive income for - - - (7,115) 670 (6,445)
the year
Contributions by and
distributions to owners
Shares issued 5 - - - - 5
Share option expense - - - - 4,611 4,611
Cancellation of share premium - (71,617) - - 71,617 -
Total transactions with owners 5 (71,617) - - 76,228 4,616
Balance at 31 December 2009 476 - - 7,526 73,747 81,749
Balance at 1 January 2008 448 67,192 4,440 (4,643) (6,489) 60,948
Total comprehensive income
Loss for the year - - - - (1,963) (1,963)
Other comprehensive income
Foreign currency translation - - - 19,284 - 19,284
differences
Total comprehensive income for - - - 19,284 (1,963) 17,321
the year
Contributions by and
distributions to owners
Shares issued 8 - - - - 8
Contingent consideration 15 4,425 (4,440) - - -
Share option expense - - - - 5,301 5,301
Total transactions with owners 23 4,425 (4,440) - 5,301 5,309
Balance at 31 December 2008 471 71,617 - 14,641 (3,151) 83,578
Climate Exchange plc
Consolidated Statement of Cash flows
For the year ended 31 December 2009
2009 2008
£'000 £'000
Cash flows from operating
activities
Profit/ (loss) before taxation 2,153 (2,544)
Depreciation 188 140
Goodwill impairment loss - 99
Equity - settled share based 4,611 5,301
payment expense
Operating cash flows before 6,952 2,996
movements in working capital
Changes in operating assets
and liabilities
Decrease/(increase) in trade 512 (657)
and other receivables
Increase/(decrease) in trade 194 (4,264)
and other payables
7,658 (1,925)
Taxation paid (7) (114)
Net cash inflow/(outflow) from 7,651 (2,039)
operating activities
Cash flows from investing
activities
Investment in associate - (1,908)
Proceeds from sale of - 1,044
investment securities
Purchase of property, plant (60) (100)
and equipment
Cash of subsidiary acquired - 33
Cash outflow from investing (60) (931)
activities
Cash flow from financing
activities
Proceeds from issue of shares 5 -
Cash generated from financing 5 -
activities
Increase/(decrease) in cash 7,596 (2,970)
and cash equivalents
Cash and cash equivalents at 12,404 12,695
beginning of year
Foreign exchange movement on (788) 2,679
cash and cash equivalents
Cash and cash equivalents at 19,212 12,404
end of the year
Climate Exchange plc
Notes to the financial statements
For the year ended 31 December 2009
1 Operations
The Company was incorporated on 13 August 2003 in the Isle of Man as a public limited company. The Company's ordinary shares are listed on the Alternative Investment Market of the London Stock Exchange ("AIM").
The consolidated financial statements comprise the results of the Company and its subsidiaries (together referred to as the "Group").
The Group is principally engaged in owning, operating, and developing exchanges to facilitate trading in environmental financial instruments including emissions reductions credits in both voluntary and mandatory markets. The three core businesses are the European Climate Exchange (ECX) which operates an exchange that focuses on compliance certificates for mandatory European Emissions Trading Scheme (EU ETS), the Chicago Climate Futures Exchange (CCFE), a regulated exchange in the U.S. with a growing portfolio of environmental futures contracts and the Chicago Climate Exchange (CCX) which operates the world's first voluntary, but contractually binding cap and trade system for greenhouse gas emissions reductions.
As at 31 December 2009 the Group had 67 employees. (2008:64)
2 Revenue
2009 2008
£'000 £'000
Membership fee income 4,088 4,366
Transaction fee income 27,203 15,772
Registration fee income 1,923 2,329
Grant income 120 2
Other 273 310
33,607 22,779
Membership fee income includes sale of Trading Privileges by CCFE, which are limited in number.
3 Personnel expenses
2009 2008
£'000 £'000
Wages and salaries 4,540 3,733
Directors' fees and emoluments 1,799 1,760
Compulsory social security contributions 570 532
Contributions to defined contributions plans 663 650
Equity-settled share-based payment expenses 1,728 3,955
9,300 10,630
Climate Exchange plc
Notes to the financial statements (continued)
For the year ended 31 December 2009
4 Other expenses
2009 2008
£'000 £'000
Auditors' fees 123 123
Administration fees 180 154
Depreciation 188 140
Marketing fees 728 531
Occupancy fees 670 537
Directors' insurance costs 52 37
Travel expenses 1,229 1,167
Professional fees 2,663 2,759
Information technology costs 3,606 2,842
Revenue share and related expenses 7,897 3,953
Other expenses 911 375
Goodwill impairment loss - 99
Research and development costs 1,115 866
Equity-settled share based transaction cost 2,883 1,346
22,245 14,929
5 Directors' fees and emoluments
Directors' fees and emoluments amount to £1,798,756 (2008: £1,759,760) and are comprised as follows:
2009 2008
£'000 £'000
N. D. Eckert 575 525
R.L. Sandor 794 810
M.J. Whittell 250 250
P.P. Scales 5 5
K. Gierstner 40 40
L. Magnus 55 50
C. Brookins 45 45
B Williamson 35 35
1,799 1,760
All the above amounts are Directors' fees except for emoluments and performance bonus payments for executive Directors. The emoluments of £325,000 (2008: £325,000) are payable to N. D. Eckert and £175,000 (2008: £175,000) payable to M. J. Whittell. The performance bonus payments of £250,000 (2008: £200,000) are payable to N.D. Eckert, £75,000 (2008: £75,000) payable to M. J. Whittell and $243,815 (2008: US$500,000) payable to Dr R. L. Sandor.
Total fees and emoluments paid by CCX to Dr R. L. Sandor in 2009 were $1,000,000 (2008: $1,000,000).
Climate Exchange plc
Notes to the financial statements (continued)
For the year ended 31 December 2009
P. P. Scales receives £5,000 whilst K. Gierstner, L. Magnus, C. Brookins and B. Williamson each receive £35,000 per annum. Members of the committees of the Board receive £5,000 per committee per member, and the Chairman of each Committee receives an additional £5,000 per Committee.
6 Taxation
Consolidated Income Statement
2009 2008
£'000 £'000
Current income tax expense (845) (114)
Deferred tax (charge)/credit (638) 695
(1,483) 581
Consolidated balance sheet
Deferred tax asset 3,955 4,933
Income tax liability 838 -
The current year tax expense principally relates to the tax charge on profit in European Climate Exchange Limited and the deferred tax charge relates to the utillisation of tax losses of certain Group companies.
The deferred tax asset in the balance sheet relates to deferred tax which has been provided for in respect of tax losses of certain Group companies.
7 Dividends proposed
As at 31 December 2009 no dividend had been declared or proposed for (2008: £nil).
8 Intangible assets
2009 2008
£'000 £'000
Cost
Balance at 1 January 64,454 47,439
Arising on acquisition of Climate Spot Markets Limited - 99
Revaluation to foreign currency (6,286) 17,015
Impairment loss on Climate Spot Markets Limited - (99)
Balance at 31 December 58,168 64,454
The goodwill relates to the acquisition of Chicago Climate Exchange, Inc in 2003 and 2006. It is denominated in US$ and retranslated at each period-end.
Climate Exchange plc
Notes to the financial statements (continued)
For the year ended 31 December 2009
9 Investments
2009 2008
£'000 £'000
Investment in associate 972 1,908
10 Property, plant and equipment
Equipment Fixtures and fixings Total
£'000 £'000 £'000
Cost
Balance at 1 January 2008 196 372 568
Foreign exchange translation 102 (5) 97
Additions 68 32 100
On acquisition of subsidiary 41 - 41
Balance at 1 January 2009 407 399 806
Foreign exchange translation (32) (12) (44)
Additions 59 1 60
Balance at 31 December 2009 434 388 822
Deprecation and impairment losses
Balance at 1 January 2008 127 44 171
Foreign exchange translation 36 1 37
Deprecation for the year 34 106 140
On acquisition of subsidiary 15 - 15
Balance at 1 January 2009 212 151 363
Foreign exchange translation (19) (5) (24)
Deprecation for the year 73 115 188
Balance at 31 December 2009 266 261 527
Carrying amounts
At 1 January 2008 69 328 397
At 31 December 2008 195 248 443
At 1 January 2009 195 248 443
At 31 December 2009 168 127 295
Climate Exchange plc
Notes to the financial statements (continued)
For the year ended 31 December 2009
11 Trade and other receivables
2009 2008
£'000 £'000
Trade receivables 3,361 2,125
Other receivables 442 1,197
3,803 3,322
12 Trade and other payables
2009 2008
£'000 £'000
Trade payables 454 619
Non-trade payables and accrued expenses 3,364 3,267
3,818 3,886
13 Share capital and premium
Number of shares Share capital Share premium
£'000 £'000
Called up, allotted and fully
paid
Ordinary shares of 1p each
Balance at 1 January 2008 44,856,810 448 67,192
Share issue proceeds 740,189 8 -
Second contingent 1,515,152 15 4,425
consideration
Balance at 1 January 2009 47,112,151 471 71,617
Shares issued 450,745 5 -
Cancellation of share premium - - (71,617)
Balance at 31 December 2009 47,562,896 476 -
Authorised share capital consists of 67.5 million (2008: 67.5 million) ordinary shares of 1p each with a total nominal value of £675,000 (2008: £675,000)
On 24 July 2009, the Chancery Division of the High Court of Justice of the Isle of Man approved a reclassification of an amount standing to credit of share premium account to distributable reserves.
The shares issued during 2009 relate to 299,960 shares issued on exercise of employee share options, 142,452 shares issued to Deutsche Bank in connection with the launch of IFEX business and 8,333 shares were issued to green Fund Partners LLC in connection with the CCFE Market Maker Programme. 333,324 warrants to acquire shares in the Company were issued under the agreements for the provision of services performed during 2009. Up to 333,333 further warrants may be issued for such services during 2010.
Climate Exchange plc
Notes to the financial statements (continued)
For the year ended 31 December 2009
14 Basic and diluted earnings per share
The basic earnings per share is calculated by dividing the profit for the year attributable to ordinary shareholders of £670,026 (2008: £1,962,539 loss) by weighted average number of shares outstanding during the year being 47,250,879 (2008: 46,024,611).
The calculation of diluted earnings per share at 31 December 2009 was based on the profit attributable to ordinary shareholders of £670,026 and weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares of 50,970,675, calculated as follows:
2009
Profit attributable to ordinary shareholders (diluted)
Profit for the period attributable to ordinary shareholders £670,026
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares (basic) 47,250,879
Effect of share options in issue 3,719,796
Weighted average number of ordinary shares (diluted) 50,970,675
The average market value of the Company's shares for purposes of calculating the dilutive effect of share options was based on quoted market prices for the period that the options were outstanding .
There is no difference between basic and diluted loss per share for the year ended 31 December 2008.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAEDFFSNEEAF
More |
||
| 12-03-10 | RNS |
|
|
RNS Number : 4781I Climate Exchange PLC 12 March 2010 For immediate release 12 March 2010 Climate Exchange plc (the "Company") Change of Broker Climate Exchange plc is pleased to announce that, as a result of the acquisition by J.P. Morgan of the shares in J.P. Morgan Cazenove Limited it did not already own, J.P. Morgan Securities Ltd. (which conducts its UK investment banking business as J.P. Morgan Cazenove) has been appointed as Joint Broker to the Company with immediate effect, replacing J.P. Morgan Cazenove Limited. For further information please contact:
Contacts
Climate Exchange plc
Haggie Financial
Fox-Pitt, Kelton Limited
J.P.Morgan Cazenove
END This information is provided by RNS The company news service from the London Stock Exchange END
MSCDBGDXLGBBGGB More |
||
| Date/Time | Subject | Author | ||
|---|---|---|---|---|
| Mon 00:37 | ||||
|
| ||||
|
| ||||
|
Revenues surge at Climate Exchange
Emissions exchange operator Climate Exchange saw 2009 revenues and pre-tax profits surge in 2009, though the numbers came in a little below expectations. Revenues in 2009 grew strongly to £33.61m from £22.78m in 2008, but were below expectations of £34.32m. The company swung back into the black, with a pre-tax profit of £2.15m, compared to a loss of £2.54m the year before, but analysts had been expecting a profit of £2.59m. The company preferred to highlight pro-forma pre-tax profit, however, which soared to £6.8m from £2.8m the year before. The pro-forma figures assume that the group has consolidated 100% of the businesses of the Chicago Climate Exchange (CCX) and the European Climate Exchange (ECX) for the reporting periods. With political momentum on the green agenda yet to build up steam in North America the European business continued to be the main engine of growth in the business, with revenues virtually doubling to £21.4m from £10.8m. ‘As climate change policy continues to develop, Climate Exchange plc's leadership position globally means that we are well positioned to capitalize on opportunities as they arise. While 2010 has begun with modest improvements in European volumes, the US markets continue to lag compared to the first half of 2009,’ said Richard Sandor, executive chairman of the group. The company has not declared any dividends for 2009. |
||||
| 11-03-10 | ||||
|
| ||||
|
| ||||
|
First up day for a while...now we need another one tomorrow and with some decent volume...here's hoping!
|
||||
| 22-02-10 | ||||
|
| ||||
|
| ||||
|
You are probably right. With a bit more political direction, there is obviously room a real bubble in anything green. Just waiting for that!
Another small fall today.... |
||||
| 21-02-10 |
1
|
|||
|
| ||||
|
| ||||
|
It looks like some Investment Trusts sold out (BRNE no longer has it is their top 10 holdings which it has done for several years now). Cap and trade appears to have lost a lot of momentum and the method was challenged in Copenhagen. I think that the key determining factor will be political direction taken in the US (and that will have to take into consideration competivitness against competition e.g. China, India). The 2000p price seemed to be a bubble so I wouldn't expect the prices to regain that level any time soon. I have this on my watch list after being a holder for 2 years and then sold. I would only consider going back in if there is political direction. All are my own opinions!
|
||||
The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
Discussion Board Terms & Conditions FSA Market Abuse Fact Sheet
More...