LONDON (Alliance News) - Daniel Stewart Securities PLC Wednesday said it expects to report a narrower loss before tax and amortisation for its last financial year, but the AIM-listed institutional stockbroker and wealth manager lamented tough trading conditions even though it has won new clients of late.
In a statement, Daniel Stewart said it expects to report a loss before tax and amortisation of about GBP850,000 for the year that ended March 31, compared with a GBP1.5 million equivalent in the prior year. Revenue is expected to have fallen to about GBP3.9 million from GBP4.2 million.
Daniel Stewart had a tough year due to a shortfall in its regulatory capital position that meant its shares were suspended from trading for about five months until March 5, after it secured funding and published its annual report for the year ended March 31, 2014. It also gave up its status as an AIM nominated adviser in a move to cut costs.
"Although it is always disappointing to report a loss, albeit an improved position from the previous year, we now have our regulatory capital issues firmly behind us and a more focused overhead resulting in a business which is better structured to deliver meaningful capital market solutions to our clients," Peter Shea, chairman, said in a statement.
"Whilst general market trading conditions remain difficult, we have in the last seven weeks been appointed by six new clients and in the immediate months ahead, we are engaged on a number of fundraisings, including two initial public offerings. Additionally, our wealth management division has continued to grow," Shea addded.
Daniel Stewart shares were up 1.1% at 0.96 pence on Wednesday. The shares have almost tripled in value since they resumed trading on AIM in March, bolstered by the revelation that former Quindell PLC Chairman Robert Terry has bought a 7.4% stake in the business.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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