Mercia Asset Regulatory News (MERC)

1 May 2008 07:01

Merchant Securities PLC01 May 2008 1 May 2008 Merchant Securities plc ("Merchant Securities" or the "Company") Trading update The Board of Merchant Securities, the financial services company specialising inprivate client and institutional stockbroking, corporate finance services andprivate equity, announces a trading update for the year ended 31March 2008. As stated at the time of the Company's interim announcement in December 2007,the Company continues to make progress in developing its core activities and instrengthening the infrastructure of its business. In this regard, the Companyhas achieved the following strategic developments in the second half of itsfinancial year: • Merchant Securities Group Limited, ("MSGL") its stockbroking subsidiary, became a member of the London Stock Exchange in February 2008; • A new, upgraded private client investment management system and a transfer of the settlement and clearing functions to Pershing in February 2008; • Its management team has been strengthened by the appointment of a new Chief Financial Officer and a new Compliance Officer; • In October 2007, it completed the acquisition of John East & Partners, a corporate finance adviser, nominated adviser and corporate broker, which made a positive contribution to the group, post acquisition, in the year ended 31 March 2008; • It has recruited a senior institutional research and sales team which is due to join MSGL within the next two months. As a result of these developments, a number of costs have been incurred. Inaddition, market conditions have deteriorated since the announcement of theCompany's interim results and a number of the larger private equity transactionsin progress at that time have not been completed as originally anticipated.Consequently, the Company expects that it will have incurred a loss aftertaxation in the region of £600,000, after taking account of non-recurring itemsof approximately £400,000, in the financial year ended 31 March 2008. The board continues to pursue its strategy of building a diversified financialservices group and some non-recurring reorganisation costs are an inevitableconsequence. The board remains confident that the successful implementation ofits strategy will see significant benefits accruing to the Company in the mediumterm. The Company expects to announce it results for the year ended 31 March 2008 inthe second half of July 2008. ENDS For further information please contact: Anthony Fabrizi Chief Executive 020 7375 9060 Merchant Securities Roland Cross Director 020 7726 6111 Broadgate Richard Day Director 020 7398 1600 Arden Partners plc This information is provided by RNS The company news service from the London Stock Exchange