BALTIC EXCHANGE MAKES STEADY PROGRESS IN REDUCING OPERATING LOSSES
The Baltic Exchange has reported that its loss on ordinary operating in the year to March 2005 has reduced to £424,000 (2004: £749,000).
Peter Kerr-Dineen, Chairman, said:
'This has been achieved by rigorous cost control, and good marketing which has broadened our revenue base. It is gratifying that our key operational indicators of membership numbers, website usage, quote vendor subscriptions and the use of our club facilities are all positive.'
He added:
'We are currently on course to reach our aim of operational breakeven during the current financial year.'
Last year the Baltic outlined its strategy for reaching this goal whilst retaining its accumulated capital, which could then generate a more realistic income stream for its shareholders.
In recent years, stock market fluctuations and other exceptional items have significantly affected the Baltic's profit and loss account. This year, write backs of earlier provisions, and exceptional income from property activities have resulted in a profit on ordinary activities after taxation of pounds £1,528,360 (2004: £1,145,990).
Directors are recommending a final dividend of £7 per share, which, together with the interim dividend of £2.50 makes a total of £9.50 for the year. This equates to a total payment of £513,000 (2004: £162,000), which represents a yield of approximately 2 per cent on shareholders' funds of £25 million.
In a final comment Peter Kerr-Dineen said:
'The Board's strategy of striking this equitable balance between the interests of members and shareholders has won very broad support, laying to rest many of the tensions which surfaced a few years ago. As a result, the Baltic is better positioned than ever before, fully justifying the confidence placed in it by its members and users alike.'
ENDS
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