Final Results

For immediate release: 30 September 2013

DANIEL STEWART SECURITIES PLC

("Daniel Stewart" or "the Company")

FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2013

The Board of Daniel Stewart, the investment bank offering corporate advisory, institutional stockbroking and wealth management services, announces its audited final results for the year ended 31 March 2013.

FINANCIAL AND OPERATIONAL SUMMARY

· Group revenues of £4.8 million (2012: £8.8 million)

· Reported loss after tax and exceptional items of £3.1 million (2012: profit of £0.5 million)

· Loss per share of (0.62)p (2012: earnings per share 0.09p)

· Cash at year end of £1.18 million (2012: £1.07 million)

· 41 retained brokerships and 15 deals completed

· Assets under management ("AUM") increased by £50 million to in excess of £300 million

· Continued expansion of Far East operations

Commenting on today's announcement, Peter Shea, Group Chairman and Chief Executive, said:

"We are disappointed to have reported a loss for the year after two years of profits, although most of the decline in revenues is due to the reduction in value attributed to the 'marking to market' of unrealised financial assets held at the balance sheet date.

"Our corporate advisory and institutional stockbroking operations suffered due to the continued poor economic conditions, despite seeing signs of improvement during the first quarter of the reported period. These improvements failed to sustain themselves and we saw a significant reduction in private client business particularly during the quarter surrounding the Olympic Games.

Once again we are really pleased to report a rise in AUM in our Wealth Management Business, as well as improved volumes across our entire retail market product range. This area of business continues to be a key focus for us and since the period end we have launched a discretionary management product. We anticipate further growth in this division.

Our Far East development has been hampered by a delay in receiving approval for our licence application, although we are hopeful that this will be resolved in the near future. Despite this distribution channels have been improved and corporate client and transactional opportunities continue to increase for us in the region.

In summary, we take some small comfort that the recession does now seem to be behind us and we have also seen some tangible signs of improvement within our Corporate Finance and Capital Markets business during the first half of the current financial year. We have weathered an extended recession and we are optimistic for the future."

--ENDS--

Enquiries:

DANIEL STEWART SECURITIES PLC Tel: 020 7776 6550

Peter Shea

WESTHOUSE SECURITIES Tel: 020 7601 6000

Richard Johnson / Martin Davison

Tavistock Communications Tel: 020 7920 3150

John West / Teresa Towner

Notes to Editors:

About Daniel Stewart

Daniel Stewart Securities is an AIM-listed company providing a range of investment banking services to Small Cap publicly traded and non-publicly traded companies. The Group has two subsidiaries, Daniel Stewart and Company, the Group's principal operating subsidiary, which is authorised and regulated by the Financial Services Authority and is a member of the London Stock Exchange, and Daniel Stewart Capital, the Group's leasing and debt financing division.

The Company's Annual Report for the year ending 31 March 2013 will be published shortly and will be available at www.danielstewart.co.uk.

CHAIRMAN'S LETTER TO SHAREHOLDERS

Dear Shareholder

The year to March 2013 has proven to be very difficult, with market conditions deteriorating further during the second half of our financial year. Volumes across all of our businesses have fallen and this has adversely impacted our results.

Our Wealth Management business saw some increase in the assets under influence although volumes traded remained depressed. We have seen some improvement in the period to September 2013 and we firmly believe that the recent launch of our discretionary management service will provide positive results and add substantially to the Group's performance.

Our business in the Far East, in particular Hong Kong, has continued to develop although we are still awaiting final approval for our licence there, which we expect to receive soon. We have widened both our corporate and institutional client bases and have recently concluded trades with China Construction Bank, one of the largest banks in the world.

We have also been admitted as a member of Global Alliance Partners ("GAP"), an international amalgamation of brokers, advisers and fund managers from around the world who work together to complete international business. Our membership has already paid some dividends as we have seen increased trading coming from overseas members wishing to trade in the UK.

GAP now has 144 offices in 28 countries worldwide and can execute trades in over 60 countries. Our partner firms have completed more than 1,000 corporate transactions in 55 countries valued in excess of US$30 billion and manage over US$6.5 billion of individual and institutional funds.

While the results for the year are disappointing we remain optimistic for the future. We have weathered an extended recession and hope that this is now behind us and that we can return to a period of prosperity.

Peter Shea

Chairman

Chief Executive's review

This review contains several subjective and forward looking statements which have been made by the Directors in good faith based upon the information available to them at the time. Any subjective or forward-looking statement should be considered by the user within the context of economic and business risk.

Business Environment

This was a difficult year as the recession continued to bite throughout the period, and we encountered significantly reduced IPO and secondary trading activity. Our results were further adversely affected during the Olympic Games when we saw a dramatic fall off in private client activity in particular. We again took steps to reduce our overhead to ensure that our business remained viable.

Equity Capital Markets

As at 31 March 2013, our retained AIM and other public market client base consisted of 41 companies (2012: 53). The number reduced as we saw some clients acquired and others delisted. We completed 15 transactions, down from 39 in 2012, and we acted on the admission of £27.0 million in new capital on both primary and secondary issues, as against £37.0 million in 2012.

Corporate Finance

We successfully completed a number of corporate finance transactions during the year, including the acquisition of Sportingbet by William Hill and GVC where we acted on behalf of GVC. Our corporate finance team acted on 15 transactions during the year.

Wealth Management

During the year our Wealth Management team successfully increased our Assets under influence to £300 million.

Results of Operations

Revenue was £4.6 million, down from £8.8 million in the previous year.

In our primary Corporate Finance and Capital Markets business, we saw a decline of approximately £0.8 million in revenues. However, with falling small cap values and reduced trading activity, our revenue from realised and unrealised share trading fell from a positive £2.8 million to a negative £0.6 million.

Our gross profit fell from £4.6 million to £0.1 million, again almost entirely due to shares held falling in value.

At the operating level, we reported a loss of £3.0 million compared to a profit of £0.5 million for 2012 although we reduced administrative costs by some 25% during the year for a saving of around £1.2 million. Staffing levels were 39 during the year, down from 46 in 2012.

After interest, depreciation, tax and amortisation, our loss was £2.4 million compared to a profit of £0.5 million in the previous year. No bonuses of cash or shares were accrued during the year.

Liquidity and Capital Resources

Net Assets fell from £6.9 million in 2012 to £4.4 million. Working capital remained positive at just under £1 million although reduced from 2012 (£3.0 million). Our year end cash was just over £1 million.

Employees

As at 31 March 2013 we employed 39 members of staff.

Outlook

The first quarter of the current financial year showed relatively little improvement, however I am pleased to say that for some of August and most of September we have benefitted from a small up turn.

In our Wealth Management business, we have since the year end introduced a discretionary management product and successfully secured our first clients. We now offer SIPPs and ISA products and anticipate that this part of our business will see further growth.

Our Corporate Finance and Capital Markets order book for the balance of calendar 2013 is reasonably strong and, should this extend through the balance of the fiscal year, we may see an improved position when we report next time.

Peter Shea

Group Chief Executive

Consolidated Statement of Comprehensive Income

Year ended 31 March 2013

Consolidated Statement of Financial Position

As at 31 March 2013

Company Statement of Financial Position

As at ended 31 March 2013

Consolidated Statement of Changes in Equity

Year ended 31 March 2013

Consolidated Statement of Cash Flows

Year ended 31 March 2013

Extract from Notes to the Financial Statements

General information

Daniel Stewart Securities Plc is a company incorporated in the United Kingdom and is the ultimate parent company of the group. The group's principal activities are the provision of financial advice to companies and trading in financial instruments.

These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the group operates.

Basis of accounting

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs as adopted and endorsed by the EU), IFRIC Interpretations and the Companies Act 2006 applicable to companies reporting under IFRS.

The financial statements have been prepared on the historical cost basis as modified by the valuation of certain financial instruments, as described below. The principal accounting policies adopted are set out below.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company (its subsidiaries) made up to 31 March each year. Control is achieved where the company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

No income statement is presented for the company as provided by the Companies Act 2006.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Going Concern

The group has been subject to delays in significant transactions in the normal course of business, significant reductions in both the expected and actually realised value of assets and the failure of debtors to continue trading. These factors have resulted in a both an adverse effect on these financial statements and deterioration of the cash-flow of the group since year-end, to which Senior management have reacted accordingly.

The group's activities, together with the factors likely to affect its future development and performance, the financial position of the group, its cash flows and liquidity position have been considered by the directors, taking account of the current market conditions which in the opinion of the directors demonstrate that the company shall continue to operate within its own resources.

The forecasts used for this exercise are based on various assumptions regarding expected levels of income and cost. Transaction based income is identified, with reasonable expectation, to the mandated or potential customer for up to six months ahead. Subsequent transaction revenue is projected based upon seasonal historic expectation. Retainer income is projected at the current mandated level with no growth in the year ended 31 March 2014. Income projections have been stress tested, taking into account the failure of specific identified transactions. One or more of these failures may have an impact on the Groups ability to continue as a going concern without recourse to additional finance. Senior management are monitoring progress of these significant transactions daily and are actively pursuing further transactions in addition to those projected in the forecast.

In September 2012 the Group restructured removing approximately £1 million per annum from its cost base. These benefits will be fully reflected in the year ended 31 March 2014 because of the contractual obligations of the Group. In order to achieve its forecasts, the Group needs to maintain the cost base at this level.

Given the above, the Group is expected to maintain acceptable cash levels.

As a result the directors believe that the group is placed to manage its business risks successfully, and that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they consider it appropriate to adopt the going concern basis in preparing the Annual Report and Accounts.

Report of the Independent Auditors'

Independent Auditors' report to the members of Daniel Stewart Securities Plc

We have audited the financial statements of Daniel Stewart Securities Plc for the year ended 31st March 2013 which comprise the Group and Parent Company Statement of Financial Position, the Group Statement of Comprehensive Income, the Group and Parent Company Statements of Cash Flow, the Group and Parent Company Statements of Changes in Equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006. This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page 10, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the group financial statements to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion:

· the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31st March 2013 and of the group's loss for the year then ended;

· the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;

· the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by in the European Union and as applied in accordance with the provisions of the Companies Act 2006;

· the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the group financial statements, Article 4 of the IAS regulation.

Separate opinion in relation to IFRSs as issued by the IASB

As explained in note 1 to the group financial statements, the group in addition to complying with its legal obligation to apply IFRS as adopted by the European Union, has also applied IFRSs as issued by the International Accounting Standards Board (IASB).

In our opinion the group financial statements comply with IFRSs as issued by the IASB.

Emphasis of matter - Going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1 to the financial statements concerning the group's ability to continue as a going concern. The company incurred a net loss of £3,138,294 during the year ended 31 March 2013 and subsequent to the year-end incurred further losses. The going concern status of the group is dependent on the group being able to substantially achieve management's forecast of income to be generated or the raising of funds in the immediate to short term.

These conditions, along with the other matters explained in note 1 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements

Matters on which we are required to report by exception

· We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

· adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us;

· or the parent company financial statements are not in agreement with the accounting records and returns;

· or certain disclosures of directors' remuneration specified by law are not made;

· or we have not received all the information and explanations we require for our audit.

Christopher Wright (Senior Statutory Auditor)

for and on behalf of Keelings Limited (Statutory Auditor)

Chartered Accountants and Registered Auditors

Broad House

The Broadway

Old Hatfield

Hertfordshire

AL9 5BG

30 September 2013

Notes: An audit does not provide assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular on whether any changes may have occurred to the financial statements since first published. These matters are the responsibility of the directors but no control procedures can provide absolute assurance in this area. Legislation in the United Kingdom governing the preparation and dissemination of financial statements differs from legislation in other jurisdictions.