LONDON (Alliance News) - Arden Partners PLC on Thursday said it swung to a GBP2.1 million pretax loss in its financial year ended October 31, hit by an "extremely difficult" trading environment. The institutional stockbroker made a GBP75,000 pretax profit the prior year.
The loss came as revenue dropped by 31% to GBP5.5 million, while administrative expenses fell by 3.7% to GBP7.6 million.
"Secular forces continue to reduce income from secondary trading and therefore place a greater emphasis on primary and corporate deals as drivers of profitability. We are continuing to position ourselves to take on this changing landscape," Chairman Peter Moon said.
"Although Arden has struggled to capitalise on its strong institutional and corporate client base to increase market share in these challenging times, the book of mandated business since the year end has increased substantially and we are confident that work in progress will be converted to profitable business as the year progresses," Moon added.
The news came as Arden said Moon will shortly be stepping down as chairman, with Non-Executive Director Luke Johnson to succeed him.
"I look forward to helping Arden manage the challenges of a changing industry. Arden remains cash rich, with an enviable client list, and we plan to play an active role in the inevitable consolidation among London's stock broking sector," Johnson said.
Cash on Arden's balance sheet fell to GBP5.4 million from GBP8.3 million over the course of the financial year.
Shares in Arden were up 1.9% at 26.50 pence on Thursday just before midday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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