LONDON (Thomson Financial) - Small-cap stockbroker
Daniel Stewart Securities Plc said its full-year pretax loss has narrowed but tough trading conditions in the second half are likely to continue.
Daniel Stewart said it had a pretax loss for the period ending March 31 of 2.01 million pounds compared to a loss of 5.37 million pounds last year. On an underlying basis, the broker swung to a pretax profit of 2,888 pounds against a loss of 4.25 million pounds last year.
The credit crunch and market conditions have led to broking houses delaying IPOs and companies planning to come to market are rethinking the timing and pricing of new issues, said Daniel Stewart.
New issues on the AIM market are down by 55 percent so far this year, it added. Other UK broking firms are feeling the effects, with Collins Stewart Plc reporting an 82 percent drop in its first-half pretax profit Tuesday.
Revenue for the 12 months at Daniel Stewart rose by 11 percent to 8.4 million pounds, boosted by solid results in the first six months.
'The year, while difficult, reflects an improvement for us over 2007,' said Peter Dicks, chairman, in a statement.
Last year, the company suffered from the collapse of two internet gaming clients which cost it a total of 3 million pounds in lost transaction fees.
Daniel Stewart added that it is confident for the new financial year, despite seeing 'no immediate signs of improvement' in the current economic climate.
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