The accounts show a loss on ordinary activities of almost £3.5 million which Mr Kitching explained as "a disappointing result but some £2.6 million of this figure relates to an unrealised loss on the equity portion of our investments. Exceptionally weak performance of the world's stock markets has led to a temporary diminution of the Exchange's financial position. But the diminution, which has affected almost everyone else, has since 31 March been offset by growth of nearly £1 million in our portfolio, particularly equities."
The remainder of the loss relates, in part, to the reduction in the services offered by balticexchange.com. "Balticexchange.com has been a huge success as a vehicle to distribute our growing range of quality freight market data", said Mr Kitching, "but we have recognised that members found some of its other services, such as the facility to match ships and cargoes, less important and so we have decided to shelve those for the time being."
But looking to the future, Mr Kitching was confident that the Board had established a budget which would return the Exchange to break even. The Directors' confidence in the current position was reflected by their decision to maintain this year's dividend at £2 per share.
"We consider that the e-platform will have a key role to play in distributing our unique range of freight market information - which we plan to develop further - and we shall be promoting its use to our world-wide membership. We are also conscious of the potential which the platform offers in terms of an important role in the development of freight futures trading and possible support systems," explained the Chairman.
The provision of market information, including the daily fixture list, dry and wet indices and route rates - and the development of new indices and routes - publication of freight futures settlement prices and the development of mark-to-market pricing for derivatives are among features on which the Exchange will concentrate using the e-platform. Electronic communication will also be increasingly key in distributing information and communicating with the consultative group for the development of freight market information and freight futures trading.
The results were presented to members and shareholders at today's (Thursday) Annual General Meeting. At the conclusion of this meeting three Directors retired from the Board including Peter Kitching. Mr Kitching will be succeeded by Peter Kerr-Dineen, the current vice-chairman and joint chairman of shipbroking firm Howe Robinson who is supported by Anthony Cooke as vice-chairman.
Also retiring will be John M Lyras and John Tsatsas. The three new directors joining the Board will be Mike Robson (Marlin Shipping Ltd), Michael Brown (SSY) and Gregory Parissis (Levant Maritime).
In his statement to shareholders Mr Kitching thanked his colleagues for giving their time, expertise and commitment so readily, and paid tribute to the panel reporting companies who provided the daily freight market information.
