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24 Dec 2013 07:00
24 December 2013
AIM: DAN.L
DANIEL STEWART SECURITIES PLC
("Daniel Stewart" or "the Company")
INTERIM RESULTS
FOR THE SIX MONTHS TO 30 SEPTEMBER 2013
The Board of Daniel Stewart, the investment bank offering corporate advisory, institutional stockbroking and wealth management services, announces its unaudited financial results for the six months to 30 September 2013.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
• | Corporate Revenues: £2.1 million (2012: £2.5 million). |
• | Trading realised and unrealised: (£74,000) (2012: £508,000). |
• | Net assets at period end: £2.8 million (£5.9 million at 30 September 2012). |
• | Cash and cash equivalents: £488,000 (£937,000 at 30 September 2012). |
• | Adjusted EPS: (0.20)p per share (2012: (0.20)p per share). |
• | £12 million raised for corporate clients during the period. |
• | 33 retained clients and 17 transactions completed. |
• | Number of Private Clients increased to over 800. |
Overall, we returned numbers similar to 30 September 2012 with the six months to September 2013 showing little progress in market and trading conditions for the business, despite speculation as to an improvement following a general recovery in economic conditions.
Our total overhead costs were reduced by approximately £1 million when compared to the half year to 30 September 2012, and we realised approximately £2.5 million during the 12 months to September 2013, from financial assets held, reducing our net asset position to £2.8 million at the half year.
During the period we completed 17 transactions, raising approximately £12 million in new equity for our clients.
Our private client business continued to show steady progress with client numbers rising to 800.
Our participation in the Global Alliance Partnership has assisted our international reach and we have developed relationships with a number of members. We have, as yet, only completed a small number of transactions but we are hopeful that this will increase over time.
Our focus on the Far East, in particular Hong Kong and China, has shown some promise principally through a number of local institutional investors who have opened accounts with us and, on whose behalf, we have completed some secondary business.
Since the end of the period under review we have seen some slight improvement in overall trading conditions. Both October and November were close to breakeven and December will return a small profit. While there can be no certainty that this trend will continue we take some comfort from the fact we have an order book which gives us a degree of visibility through January and February 2014,
Pleasingly, we have successfully launched our discretionary fund management business and, although still small, we think this will prove valuable in the coming years, as we continue to focus on expanding our wealth management offering.
We remain cautiously optimistic for the future and believe that our strategy of building our wealth management business and our international distribution is the right one to deliver shareholder returns over the longer term.
--ENDS--
Enquiries: | |
Daniel Stewart Securities plc Peter Shea | Tel: 020 7776 6550 |
Tavistock Communications John West Teresa Towner | Tel: 020 7920 3150 |
Westhouse Securities Richard Johnson Martin Davison
| Tel: 020 7601 6100 |
Notes to Editors:
About Daniel Stewart
Daniel Stewart Securities is an AIM-quoted company providing a range of investment banking services to Small and Mid Cap publicly traded and non-publicly traded companies. The Group has two trading subsidiaries, Daniel Stewart & Company plc, the Group's principal operating subsidiary, which is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange, and Daniel Stewart Leasing Limited, the Group's leasing and debt financing division.
A copy of this announcement is available at www.danielstewart.co.uk.
Statement of Comprehensive Income for the six months ended 30 September 2013 | |||||
30 September 2013 | 31 March 2013 | 30 September 2012 | |||
Corporate Finance revenue | 2,106,629 | 5,198,772 | 2,557,135 | ||
Share trading account | (74,137) | (377,303) | 508,438 | ||
2,032,492 | 4,821,469 | 3,065,573 | |||
Cost of sales | (1,411,613) | (4,228,311) | (100,682) | ||
Contribution to fixed costs | 620,879 | 593,158 | 2,964,891 | ||
Administrative costs | (1,312,705) | (2,992,784) | (3,532,212) | ||
Impairment of goodwill | (178,262) | (356,525) | - | ||
Retention payments | (102,083) | (314,416) | (437,190) | ||
Operating (loss) / profit | (972,172) | (3,070,568) | (1,004,511) | ||
Net interest receivable | (9,867) | (67,726) | 6,080 | ||
(982,039) | 478,470 | (507,754) | |||
Exceptional Items | - | - | - | ||
(Loss) / profitbefore tax | (982,039) | (3,138,294) | (998,431) | ||
Taxation | - | - | - | ||
(Loss) / profit for the period | (982,039) | (3,138,294) | (998,431) | ||
Earnings per share - pence | (0.20)p | 0.09p | (0.20)p | ||
Consolidated Statement of Financial Position as at 30 September 2013 | ||||||
30 September 2013 | 31 March 2013 | 30 September 2012 | ||||
Non current assets | ||||||
Goodwill | 2,157,151 | 2,335,413 | 2,691,938 | |||
Financial assets at fair value through profit or loss | 270,229 | 283,889 | 549,092 | |||
Property, plant and equipment | 93,281 | 99,199 | 111,986 | |||
Loans receivable | - | 548 | - | |||
2,520,661 | 2,719,049 | 3,353,016 | ||||
Current assets | ||||||
Financial assets | 128,465 | 540,198 | 2,903,635 | |||
Trade and other receivables | 1,344,462 | 1,872,037 | 2,012,760 | |||
Cash and Cash equivalents | 487,798 | 1,178,943 | 937,979 | |||
1,960,725 | 3,591,178 | 5,854,374 | ||||
Total assets | 4,481,386 | 6,310,227 | 9,207,390 | |||
Liabilities | ||||||
Trade and other payables | (1,669,812) | (2,516,614) | (3,270,433) | |||
Corporation tax | - | - | - | |||
(1,669,812) | (2,516,614) | (3,270,433) | ||||
Non current liabilities | - | - | (3,483) | |||
Total liabilities | (1,669,812) | (2,516,614) | (3,273,916) | |||
Net assets | 2,811,574 | 3,793,613 | 5,933,474 | |||
Equity | ||||||
Capital and reserves attributable to equity shareholders | ||||||
Share capital | 1,274,756 | 1,274,756 | 1,274,756 | |||
Share premium | 9,345,342 | 9,345,342 | 9,345,342 | |||
Retained earnings | (15,572,191) | (14,590,152) | (12,450,291) | |||
Other reserves | 7,763,667 | 7,763,667 | 7,763,667 | |||
Equity shareholders funds | 2,811,574 | 3,793,613 | 5,933,474 | |||
Consolidated Statement of Cash Flows for the period 30 September 2013 | |||||
30 September 2013 | 31 March 2013 | 30 September 2012 | |||
Operating activities | |||||
Operating (loss) / profit | (972,172) | (3,070,568) | (1,004,511) | ||
Provision for impairment of fixed assets | 11,176 | 82,857 | 32,785 | ||
Profit from disposal of fixed assets | - | (735) | - | ||
Provision for impairment of goodwill | 178,262 | 356,525 | - | ||
(782,734) | (2,631,921) | (971,726) | |||
Movements in working capital | |||||
Decrease / (increase) in receivables | 528,123 | 323,681 | 182,958 | ||
Increase / (decrease) in payables | (846,802) | 699,727 | 1,470,652 | ||
Decreasse / (increase) in financial assets | 425,393 | 1,659,739 | (968,904) | ||
106,714 | 2,683,147 | 684,706 | |||
Operating cash flow | (676,020) | 51,226 | (287,020) | ||
Investing activities | |||||
Expenditure on tangible fixed assets | (5,258) | (64,997) | |||
Fixed asset disposals | 28,445 | ||||
Interest receivable | 1,383 | 19,268 | 6,080 | ||
Cash flow from investing activities | (3,875) | (17,284) | 6,080 | ||
Financing | |||||
Loans to third parties | - | 166,825 | 167,372 | ||
Loans received | - | - | (13,623) | ||
Interest payable | (11,250) | (86,994) | - | ||
Cash flow from financing activities | (11,250) | 79,831 | 153,749 | ||
Cash and cash equivalents at 1 April 2013 | 1,178,943 | 1,065,170 | 1,065,170 | ||
Cash and cash equivalents at 30 September 2013 | 487,798 | 1,178,943 | 937,979 | ||
(Decrease) / increase in cash and cash equivalents | (691,145) | 113,773 | (127,191) | ||
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