Daniel Stewart Securities Plc Regulatory News (DAN)

29 Dec 2009 16:30



29 DECEMBER 2009

DANIEL STEWART SECURITIES PLC

(AIM: DAN)

INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2009

The Board of Daniel Stewart Securities plc ("Daniel Stewart" or "the Company") is pleased to announce its financial results for the six months to 30 September 2009.

FINANCIAL HIGHLIGHTS: 

Revenues: £1.9 million as against £2.6 million for the same period last year

Net loss before tax and share based payments: £699,000 (H1 2008: £1.2 million)

Net assets: £4.1 million (£3.8 million at year end 31 March 2009)

Cash: £890,000 (£1.1 million as at year end 31 March 2009)

Adjusted EPS: (0.23)p per share (H1 2008: (0.48)p per share)

OPERATIONAL HIGHLIGHTS:

£27.1 million raised for our corporate clients during the period (H1 2009: £15 million)

51 retained brokerships (H1 2009: 46)

16 transactions completed (H1 2009: 12)

Commenting on the results for the six months Peter Shea, Group Chief Executive, said: 

"The prolonged period of recession has resulted in continued pressure on our business however we are confident that as a result of early action in reducing our cost base we will be a beneficiary as the economy recovers. We are pleased that we have seen a recovery in our business on a like for like comparison with last year, however we are far from complacent and continue to be focussed upon improvement." 

CURRENT TRADING:

Peter Shea, Group Chief Executive, said:

"During the second half we have seen an uplift in underlying business activity with some improvement in all areas. We are now engaged in a range of transactions, a number of which we expect to complete during the current financial year. We have successfully recruited both a Mining analyst and an Oil and Gas analyst which will assist our structured plan of sector specialisation. We have seen early success from these appointments by the winning of the Prosperity Mining account. We have also launched our Private Client business, which has met with some early success. 

"We are pleased to announce that the Company has signed a two-year unsecured credit facility in the amount of £1 million providing additional working capital. The facility can be drawn at any time during the period. This facility has been provided primarily by FCI A.G., a Swiss Trust Company, which currently manages assets in excess of $800 million. We believe that this non-dilutive approach to working capital finance will enable us to enhance value for our shareholders. 

"Further to our announcement dated 10 September 2009, Daniel Stewart and Prime Group have now completed satisfactory due diligence on each other. We continue to discuss the nature of our working relationship and anticipate that this will now take the form of a similar co-operation agreement to the one we have in place with our US partner, Madison Williams (formerly SMH Capital). We have jointly decided however that this will not now be in the form of an equity interest as originally envisaged.

"Prime Group has indicated that it would be interested in establishing jointly with Daniel Stewart an Asset Management business and possibly the establishment of a Private Banking operation and we will work in cooperation to examine how best to advance matters.

"We continue to be actively engaged in discussions with a number of parties about ways in which we can profitably grow our core equities business and possibly add to this with complementary disciplines such as asset management."

--ENDS--

Enquiries:

DANIEL STEWART SECURITIES PLC  Tel: 020 7776 6550

Peter Shea, Group Chief Executive

BISHOPSGATE COMMUNICATIONS LIMITED Tel: 020 7562 3350

Maxine Barnes

Nick Rome

Siobhra Murphy

danielstewart@bishopsgatecommunications.com 

ARBUTHNOT SECURITIES  Tel: 020 7012 2000Nick Tulloch

Ed Groome

The Company's Interim results will shortly be available on the Company's website at: www.danielstewart.co.uk

The un-audited financial information as reported above does not constitute full statutory financial statements within the meaning of section 240 of the Companies Act 1985.