1st May 2015 08:39
LONDON (Alliance News) - Shares in Daniel Stewart Securities PLC were suspended again Friday after it failed to find a new nominated adviser in time to continue trading, although the stockbroker and wealth manager said it expects to appoint a new adviser and therefore have the suspension lifted sometime next week.
In a statement, Daniel Stewart said it is in "final discussions" with a new NOMAD.
The latest share suspension comes after a difficult time for the business. Last October it said it had identified a shortfall in its regulatory capital under European rules, and went into discussions with a number of parties in order to strength its balance sheet. Its shares were suspended that month and remained so until March when it publishing restated 2014 accounts.
In December, a slew of AIM-listed companies were forced to find new Nominated Advisers when Daniel Stewart decided to stop acting as a nominated adviser.
Daniel Stewart Securities got GBP1.5 million of new funding in late January as it was effectively rescued by Epsilon Investments PTE Ltd, a company registered in Singapore and controlled by Zainab Binte Mohamed Omar. Episilon will end up with a stake of nearly 30% in the stockbroker once a GBP775,000 callable bond is converted, a move that will take place once it gets controller status from UK regulators.
Late last month, former Quindell PLC Chairman Robert Terry emerged as a major shareholder at Daniel Stewart, taking a 7.4% stake in his first big deal since he left the business he founded.
In mid-April, Daniel Stewart said it expects to report a narrower loss before tax and amortisation for its last financial year, but also lamented tough trading conditions even though it has won new clients of late.
Two days later, Daniel Stewart's NOMAD Westhouse Securities resigned with effect from the beginning of May. It said at that time it was in talks with an alternative adviser, but had to complete a deal by the end of April if it wanted to continue trading as under AIM rules, no company's shares can trade without a NOMAD in place.
It wasn't clear why Westhouse Securities resigned as Daniel Stewart's NOMAD.
Daniel Stewart shares ended down 1.5% at 1.23 pence on Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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