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28 Apr 2009 07:00
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Β 28 AprilΒ 2009Β
Merchant Securities plc ("Merchant Securities"Β orΒ the "Company")
Trading update
Merchant Securities, the financial services group specialising in institutional and private client stockbroking,Β corporate finance, corporate broking and private equity, announces a trading update for the year ended 31 March 2009.
Despite the continuing difficult market conditions,Β the Company's trading in theΒ secondΒ half of the financial yearΒ ended 31 March 2009Β has seen the improvement predicted by the board at the time of the interim results.Β
The board, currently and subject to audit, expects to report a modest profit before tax, goodwill impairment, revaluation of investments and non-recurring items for the second six months of the year, following the loss, on the same basis, of Β£581,575 announced for the first half of the financial year. The board also expects revenue for the year to be similar to that generated in the year ended 31 March 2008, which was Β£5.3 million.
As at 31 March 2009, the Company hadΒ netΒ tangible assets of Β£2.9m,Β cash of Β£2.2 million and no debt.
The Company acquiredΒ John East & PartnersΒ Limited,Β ("John East & Partners") aΒ corporate finance adviser, nominated adviser and corporate broker,Β in October 2007. ItΒ isΒ now intended to merge its business with that of the Company's other operating subsidiary, Merchant Securities Group Limited, to create a single entity which will carry out all the activities currently conducted within the group. The name of the trading subsidiary will be Merchant John East Securities Limited and it is hoped to have completed the necessary restructuring by 30 September 2009.
John East & Partners was recentlyΒ shortlistedΒ forΒ the Growth Company Investor AIMΒ Adviser of the Year award forΒ the sixth time inΒ the lastΒ seven years and for the AIM Broker of the year award for the first time.Β Β
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Patrick Claridge, Chief Executive, MerchantΒ SecuritiesΒ plc, says:
"Although trading conditions remain difficult, the second half of the year ended 31 March 2009, saw the Company return to an operating profit. The decisive action taken by the board and focus on the core objectives of the business, combined with tough cost control, have helped to return the Company to the black."
The Company expects to announce itsΒ results for the year ended 31 March 2009Β by the end of July 2009.
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For further information please contact:
Patrick Claridge Chief Executive 020 7375 9010
Merchant Securities plc
Roland Cross Director 020 7726 6111
Broadgate
Richard Day Director 020 7398 1600
Arden Partners plc
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