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24 Dec 2012 07:00
For immediate release: 24 December 2012
AIM: DAN.L
DANIEL STEWART SECURITIES PLC
("Daniel Stewart" or "the Company")
INTERIM RESULTS
FOR THE SIX MONTHS TO 30 SEPTEMBER 2012
The Board of Daniel Stewart, the investment bank offering both corporate advisory and institutional stockbroking services, announces its unaudited financial results for the six months to 30 September 2012.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
• | Revenues: £3.1 million (2011: £3.6 million) |
• | Net assets: £5.9 million (£5.5 million at 30 September 2011) |
• | Cash: £937,000 (£905,000 at 30 September 2011) |
• | Adjusted EPS: (0.20)p per share (2011: 0.11p per share) |
• | £18 million raised for corporate clients during the period |
• | 46 retained brokerships and 11 transactions completed |
• | Increased client numbers and AUM in private client business |
The small cap broking environment in the UK remains challenging and this is reflected in our performance during the six months to September 2012. The difficult trading conditions were compounded over the summer months by the extra jubilee bank holidays and particularly the Olympics.
This is illustrated by the fact that the first three months of this financial year were profitable, whereas we saw a substantial reduction in business across all sectors in the second three months of the period, which we primarily attribute to an 'unusual summer'. Overall we are naturally disappointed to announce a loss for the first half, but have worked hard to ensure a recovery of our business and have taken steps to ensure a return to profitability.
We continue to invest in the development of our international business, with a particular focus on Asia. We now have established both corporate and institutional clients in the region and are confident that this will lead to increased revenues and activity in due course.
Our Private Client business has once again performed well, increasing both client numbers and overall assets under management.
Despite the overall poor performance during the first six months, I am pleased to report that we have seen a distinct improvement during the third quarter with several notable achievements. These include advising on the sale of Sportingbet to William Hill and GVC and the continued growth of our client Quindell in which we hold a substantial warrant position with a current value of approximately £500,000. Our pipeline of potential transactions from the Asia has also significantly improved.
As a result of all these factors and the continued hard work of our employees, the Directors remain more optimistic about the outlook for the full year and positive about medium term prospects for the Group.
--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.
Statement of Comprehensive Income for the six months ended 30 September 2012 | |||
30 September 2012 | 31 March 2012 | 30 September 2011 | |
Corporate Finance revenue | 2,557,135 | 6,012,834 | 3,081,182 |
Share trading account | 508,438 | 2,804,167 | 500,033 |
3,065,573 | 8,817,001 | 3,581,215 | |
Cost of sales | (100,682) | (165,405) | (165,506) |
Contribution to fixed costs | 2,964,891 | 8,651,596 | 3,415,709 |
Administrative costs | (3,532,212) | (7,842,572) | (3,561,109) |
Retention payments | (437,190) | (363,945) | (360,753) |
Operating (loss) / profit | (1,004,511) | 445,079 | (506,153) |
Net interest receivable | 6,080 | 33,391 | 1,601 |
(998,431) | 478,470 | (507,754) | |
Exceptional Items | - | - | - |
Profit/ (loss) before tax | (998,431) | 478,470 | (507,754) |
Taxation | - | - | - |
Profit / (loss) for the period | (998,431) | 478,470 | (507,754) |
Earnings per share - pence | (0.20)p | 0.09p | (0.11)p |
Consolidated Statement of Financial Position as at 30 September 2012 | |||
30 September 2012 | 31 March 2012 | 30 September 2011 | |
Non current assets | |||
Goodwill | 1,731,532 | 1,731,532 | 1,731,532 |
Intangible asset | 960,406 | 960,406 | 960,406 |
Financial assets at fair value through profit or loss | 549,092 | 549,094 | 613,405 |
Property, plant and equipment | 111,986 | 144,771 | 207,235 |
Loans receivable | - | 167,372 | 80,886 |
3,353,016 | 3,553,175 | 3,593,464 | |
Current assets | |||
Financial assets | 2,903,635 | 1,934,731 | 1,013,770 |
Trade and other receivables | 2,012,760 | 2,195,718 | 1,653,912 |
Cash and Cash equivalents | 937,979 | 1,065,170 | 905,194 |
5,854,374 | 5,195,619 | 3,527,876 | |
Total assets | 9,207,390 | 8,748,794 | 7,166,340 |
Liabilities | |||
Trade and other payables | 3,270,433 | 1,799,781 | 1,493,973 |
Corporation tax | - | ||
3,270,433 | 1,653,858 | 1,493,973 | |
Non current liabilities | 3,483 | 17,106 | 80,767 |
Total liabilities | 3,273,916 | 1,816,887 | 1,574,740 |
Net assets | 5,933,474 | 6,931,907 | 5,591,600 |
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 | (12,450,291) | (11,451,858) | (12,735,450) |
Other reserves | 7,763,667 | 7,763,667 | 7,769,301 |
Equity shareholders funds | 5,933,474 | 6,931,907 | 5,591,600 |
Consolidated Statement of Cash Flows for the period 30 September 2012 | |||
30 September 2012 | 31 March 2012 | 30 September 2011 | |
Operating activities | |||
Operating (loss) / profit | (1,004,511) | 445,079 | (506,153) |
Provision for impairment of fixed assets | 32,785 | 113,179 | 49,887 |
(971,726) | 558,258 | (456,266) | |
Movements in working capital | |||
Decrease / (increase) in receivables | 182,958 | (647,439) | (396,421) |
Increase / (decrease) in payables | 1,470,652 | 125,962 | (143,465) |
(Increase) in financial assets | (968,904) | (1522,599) | (515,899) |
684,706 | (2,044,076) | (1,056,785) | |
Operating cash flow | (287,020) | (1,485,818) | (1,512,051) |
Investing activities | |||
Expenditure on tangible fixed assets | - | (21,811) | (20,986) |
Interest receivable | 6,080 | 46,948 | - |
Cash flow from investing activities | 6,080 | (25,137) | (20,986) |
Financing | |||
Loans to third parties | 167,372 | (102,866) | (65,428) |
Loans received | (13,623) | 43,700 | 22,806 |
Interest payable | - | (13,557) | 1,611 |
Cash flow from financing activities | 153,749 | 45,609 | (41,011) |
Cash and cash equivalents at 1 April 2012 | 1,065,170 | 2,480,242 | 2,480,242 |
Cash and cash equivalents at 30 September 2012 | 937,979 | 1,065,170 | 905,194 |
(Decrease) / Increase in cash and cash equivalents | (127,191) | (1,415,072) | (1,575,048) |
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