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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 2000
Nick Tulloch
Ed Groome
The Company's Interim results will shortly be available on the Company's website at: www.danielstewart.co.uk
Consolidated profit and loss account
For the six months ended 30 September 2009
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|
Six months ended 30 September 2009
|
Year ended 31 March 2009
|
Six months ended 30 September 2008
|
| |
|
|
|
|
Revenue
|
1,962,468
|
4,377,098
|
2,607,247
|
|
Cost of sales
|
(54,543)
|
(130,866)
|
(112,957)
|
|
|
|
|
|
|
Gross profit
|
1,907,920
|
4,246,232
|
2,494,290
|
|
Risk Portfolio price movement
|
(130,822)
|
(512,898)
|
(408,560)
|
|
Administration costs
|
(2,802,295)
|
(6,233,214)
|
(3,388,127)
|
|
|
|
|
|
|
Result from operating activities
|
(763,553)
|
(2,499,880)
|
(1,302,397)
|
|
Interest receivable
|
106,258
|
385,488
|
119,051
|
|
Interest payable
|
(42,085)
|
(136,621)
|
(21,726)
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|
|
|
|
|
|
Loss before taxation
|
(699,380)
|
(2,251,013)
|
(1,205,072)
|
|
Exceptional items
|
-
|
(396,036)
|
-
|
|
Taxation
|
-
|
(228,000)
|
-
|
|
|
|
|
|
|
Net loss for the period
|
(699,380)
|
(2,875,049)
|
(1,205,072)
|
|
|
|
|
|
|
Dividend
|
-
|
-
|
-
|
|
|
|
|
|
|
Retained loss
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(699,380)
|
(2,875,049)
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(1,205,072)
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|
|
|
|
|
|
Earnings per share - pence
|
(0.23)p
|
(1.23)p
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(0.48)p
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Consolidated balance sheet
As at 30 September 2009
|
|
30 September
2009
|
31 March
2009
|
30 September
2008
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|
|
|
|
|
|
Non current assets
|
|
|
|
|
Property plant and equipment
|
112,960
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181,015
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263,421
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|
Goodwill
|
1,731,532
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1,731,532
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1,731,532
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Available for sale investments
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210,064
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210,064
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389,364
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Loans receivable
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886,977
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1,106,200
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1,028,689
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|
Deferred taxation
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-
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-
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81,000
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|
|
|
|
|
|
|
2,941,533
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3,228,811
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3,494,006
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|
|
|
|
|
|
Current assets
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|
|
|
|
Financial assets
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310,225
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96,927
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207,295
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|
Trade and other receivables
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2,008,141
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2,508,372
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3,351,325
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|
Corporation tax
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-
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-
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-
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Cash and cash equivalents
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880,693
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1,161,181
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2,646,133
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|
|
|
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3,199,059
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3,766,480
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6,204,753
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|
|
|
|
|
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Total assets
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6,140,592
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6,995,291
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9,698,759
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|
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|
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Liabilities
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|
|
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Trade and other payables
|
1,623,410
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2,550,730
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3,863,797
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|
Corporation tax
|
79,000
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79,000
|
-
|
|
|
|
|
|
|
|
1,702,410
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2,629,730
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3,863,797
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|
|
|
|
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Non current liabilities
|
337,266
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536,266
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450,000
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|
|
|
|
|
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Total liabilities
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2,039,676
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3,165,996
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4,313,797
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|
|
|
|
|
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Net assets
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4,100,916
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3,829,295
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5,384,962
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|
|
|
|
|
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Issued share capital
|
778,406
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650,781
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588,279
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|
Profit and loss account
|
(10,943,362)
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(10,243,983)
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(8,527,068)
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Share premium account
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6,152,131
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5,308,756
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4,871,200
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Other reserves
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8,113,741
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8,113,741
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8,452,551
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|
|
|
|
|
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Equity shareholders funds
|
4,100,916
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3,829,295
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5,384,962
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Consolidated cash flow
For the six months ended 30 September 2009
| |
Six months ended 30 September2009
|
Year ended 31 March 2009
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Six months ended 30 September 2008
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|
|
|
|
|
|
Operating activities
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|
|
|
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Operating loss
|
(763,553)
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(2,499,880)
|
(1,302,397)
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| |
|
|
|
| Tax paid |
-
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(68,000)
|
-
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| Provision for impairment of fixed assets |
74,056
|
178,617
|
107,029
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| Exceptional items |
-
|
(396,036)
|
-
|
| Share based payments |
-
|
(141,775)
|
(243,972)
|
| |
(689,497)
|
(2,927,074)
|
(1,439,340)
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| |
|
|
|
| Movements in working capital |
|
|
|
| |
|
|
|
| (Increase) / decrease in receivables |
104,739
|
(161,634)
|
(521,153)
|
| (Increase) / decrease in financial assets held for trading |
(823,767)
|
(1,756,272)
|
(678,308)
|
| |
(689,497)
|
(2,927,074)
|
(1,439,340)
|
| |
|
|
|
| Movements in working capital |
|
|
|
| |
|
|
|
| (Increase) / decrease in receivables |
104,739
|
(161,634)
|
(521,153)
|
| Increase / (decrease) in payables |
(823,767)
|
(1,756,272)
|
(678,308)
|
| (Increase) / decrease in financial assets held for trading |
(213,298)
|
689,446
|
579,078
|
| |
|
|
|
| Operating cash flow |
(1,621,823)
|
(4,144,534)
|
(1,017,417)
|
| |
|
|
|
| Investing activities |
|
|
|
| |
|
|
|
| Expenditure on tangible fixed assets |
(6,001)
|
(25,618)
|
(50,106)
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| Fixed asset disposals |
-
|
-
|
-
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| Amounts written off investments |
-
|
179,300
|
-
|
| |
|
|
|
| Cash flow from investing activities |
(6,001)
|
(153,682)
|
(50,106)
|
| |
|
|
|
| Financing activities |
|
|
|
| |
|
|
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| Loans recovered from third parties |
614,715
|
802,927
|
496,287
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| Loans received |
(302,552)
|
300,866
|
(190,271)
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| Issue of share capital |
971,000
|
1,122,808
|
622,750
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| Net interest receivable |
64,173
|
248,867
|
97,325
|
| |
|
|
|
| Cash flow from financing activities |
1,347,336
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2,457,468
|
1,026,091
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| |
|
|
|
| Cash and cash equivalents at start of period |
1,161,181
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2,687,565
|
2,687,565
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| Cash and cash equivalents at end of period |
880,693
|
1,161,181
|
2,646,133
|
| |
|
|
|
| Increase / (decrease) in cash and cash equivalents |
(280,488)
|
(1,526,384)
|
(41,432)
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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.
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