Commoditrade strengthens board

17/11/2006 Robert Tyerman

Commodities investment group Commoditrade has appointed London Metal Exchange manager Andrew Dobie to be a non-executive director.

AIM-quoted Commoditrade Inc, backed by financier Andrew Regan's ambitious Corvus Capital group, has recruited Dobie, 42, an LME trader since 1995, in a boardroom reshuffle which sees chairman Graham Butt becoming chief executive and director Chris Adams becoming non-executive chairman. Analysts expect full-year pre-tax profits of between £12 million and £13.5 million from Commoditrade, which in April bought a majority stake in the LME profits of international commodity trader Sucden, and made £4.5 million pre-tax at the half year stage.

Commoditrade, which specialises in base metals, is thought to be in line for revenues of £20 to £23 million, and is understood to be considering possible new moves, perhaps involving investment activities and/or acquisitions. Recommended as a speculation at 18.5p by Growth Company Investor in April, the shares now trade at 30p, valuing the company at £113 million.

Partial profit-taking might be prudent, though it is worth holding a chunk for potential future profits.