6 October 2011 – trading update

A trading update has been released ahead of interim results for the six months ended 30 September, which are due out on 29 November.  Results for the current financial year are now expected to be significantly below expectations, due in part to a number of personnel departures within the sale & purchase team which will lead to a material reduction in trading for the full year for this part of the business.  As a result, a one-off write-down of goodwill capitalised in relation to the acquisition of ACM Shipping Services Limited in 2007 will be made.

In addition, whilst the dry cargo division continues to make good progress, growth has been slower than anticipated.  On a more positive note, the core tanker business remains on track and as a result, the company continues to generate strong cash flow from its operations and maintains a strong balance sheet.  This will allow the progressive dividend policy to be maintained and on that basis we rate the shares as a BUY despite what is a significant setback.