ARGO Group Limited Interim Results for the six -6-
August 19 2011 - 6:04AM
UK Regulatory
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Six months Six months
ended ended
30 June 2011 30 June 2010
US$'000 US$'000
Profit on ordinary activities before
taxation 1,170 1,209
Interest income (29) (30)
Amortisation of intangible assets 341 323
Depreciation 21 52
Unrealised gains on investments (159) (53)
Net foreign exchange (loss)/gain 6 (77)
Increase/(decrease) in payables 469 (1,540)
(Increase)/decrease in receivables (1,379) 537
Income taxes paid (7) (12)
========================================== ================ ================
Net cash inflow from operating activities 433 409
========================================== ================ ================
12. RELATED PARTY TRANSACTIONS
74% of revenue derives from funds in which two of the Company's
directors, Andreas Rialas and Kyriakos Rialas, have an influence
through the provision of investment advisory services.
Michael Kloter, the non-executive chairman, is also partner in a
legal firm which supplies services to the Group. This firm charged
US$11,426 (six months ended 30 June 2010: US$5,192) for services
rendered to the Group in the period.
During the period the group has advanced USD 575,000 (EUR
400,000) to Argo Real Estate Opportunities Fund Limited ("AREOF")
(to whom it provides investment management services) in order to
assist with its operational cash requirements.
The group has also provided AREOF with a notice of deferral, in
relation to the above amount and amounts due from the provision of
investment management services, under which it will not demand
payment of such amounts until the group judges that AREOF is in a
position to pay the outstanding liability. These amounts at 30 June
2011 are the above USD 575,000 advance and investment management
services fees accrued or receivable of USD 1,198,000 (EUR 833,333),
totalling USD 1,773,000 (EUR 1,233,000).
13. CLAIM RELATING TO LAWSUIT AGAINST FORMER GROUP COMPANY
Argo Group Limited ("Argo") had been named as an additional
defendant in a lawsuit filed against Absolute Capital Management
Holdings Limited (now named ACMH Limited ("ACMH")) and others. The
suit had been filed in the United States District Court for the
District of Colorado, by an investor in several of ACMH's
investment funds. This litigation arose after the demerger of Argo
from ACMH. The plaintiff, The Cascade Fund LLP ("Cascade"), had
made a number of claims against ACMH and had been seeking to
include Argo assets as part of the ACMH asset pool available to it
by way of compensation.
In April 2010 the Colorado court dismissed Cascade's action
against ACMH for failure to state a claim, following which Cascade
filed a second amended complaint. On 31 March 2011 the court
dismissed Cascade's second amended complaint and dismissed
Cascade's claim against Argo and ACMH in its entirety.
Argo is pleased to report that Cascade did not appeal the order
of the Colorado court issued on 31 March 2011 thus concluding the
matter.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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