31st Jul 2014 09:37
LONDON (Alliance News) - Arden Partners PLC Thursday said it swung to a loss on the back of lower revenues in a first half, hit by two separate transactions which impacted its fee revenue.
Arden's revenue fell to GBP3.5 million from GBP5.7 million a year earlier, pushing the group to a GBP0.5 million loss against a GBP1.0 million profit a year earlier.
On the back of the results, the firm scrapped its interim dividend, having paid out GBP1.25 pence per share last year.
The stockbroker attributed the loss to two separate corporate transactions over the period, one where its client pulled back at the point of delivery and one hit by the change in sentiment in the IPO market. The two issues resulted in a total loss in fees to Arden of GBP1 million.
In addition, long-term investments held by the firm saw a drop in mark-to-market book accounting values in the first half, impacting overall performance by another GBP0.3 million.
Arden said its balance sheet is still strong and said it increased its retained corporate client list to 46.
Arden Chief Executive James Reed-Daunter said the firm expects an improved performance in the second half, saying it is confident of a "satisfactory outcome" for the full year.
"After a frustrating first 6 months, I am pleased to report an encouraging start to the second half, with improved equity and corporate transaction revenues so far," Reed-Daunter said.
Shares in Arden were down 14% to 68.00 pence on Thursday, putting it among the top five fallers on AIM.
By Sam Unsted; [email protected]; @SamUAtAlliance
Related Shares:
ARDN.L