Final Results

Strictly embargoed until 07.00: 30th August 2011

DAN.L

DANIEL STEWART SECURITIES PLC

("Daniel Stewart" or "the Company")

FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2011

The Board of Daniel Stewart, the investment bank offering corporate advisory and institutional stockbroking services, announces its final results for the year ended 31 March 2011.

Financial Highlights

Operational Highlights

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

"I am extremely pleased with our strong performance in what has continued to be challenging market conditions. The key to our progress is that we have been proactive and innovative in expanding our product and service range for corporate and private clients alike. We now advise many overseas businesses as well as domestic clients on a wide range of product offerings, including UK capital markets, Asian debt and capital markets, US OTCQX and international bonds.

"We have established a Wealth Management business that has grown quickly and now enjoys Assets under Management in excess of £125 million.

"We will continue to add to our product base, further improve our team, build our assets under management and develop our geographic reach with a particular focus on Asia. The results achieved at our year end reflect the substantial improvement in our business model and we anticipate that we will continue to improve upon this further during the current financial year."

--ENDS--

Enquiries:

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.

CHAIRMAN'S LETTER TO THE SHAREHOLDERS

Dear Shareholder

I am pleased to present our results for the year ended 31 March 2011, a year which saw your Company make significant operational and financial progress.

The poor market conditions continued throughout the year with some respite in our third and fourth quarters. They have continued to be difficult well into our 2011/2012 financial year.

Despite this, our international and product diversification strategy has paid dividends and we have seen substantial success in all of our overseas operations. In New York we have entered into new co-operation agreements with Merriman Capital and Hudson Securities (now part of Rodman Renshaw) and, acting jointly with them, and with the support of the OTC markets, we have successfully listed several companies on the OTCQX.

In Kuala Lumpur we have established ourselves as the broker of choice advising 7 companies on their London listing. Our profile has been firmly cemented in the region to the extent that we have been much featured in the local press and encouraged in our efforts by the Office of the Prime Minister of Malaysia.

In Dubai we have successfully engaged with a number of local brokers and those relationships have benefitted our Wealth Management division, boosting our assets under management by more than £50 million. We expect to add to this during the coming year.

We have also continued to strengthen our research team, adding renewables to our coverage. We now cover Healthcare, Tech and Telecoms, Natural Resources, Oil and Gas, Consumer Services, with speciality in Leisure and Gaming. We are particularly pleased that the quality of our research has been recognised by the presentation of a Reuters Starmine award to Mike Jeremy, our head of research, who was selected as the UK's No1 stock picker in his sector. We continue to believe that research is absolutely key to maintaining quality within many of the markets in which we work and we are committed to maintaining the high standards we have set ourselves.

As mentioned above, our retail and wealth management services have continued to grow through the year with AuM now exceeding £125 million. We are actively developing this business further and hope to establish operations in Hong Kong to service a burgeoning Chinese interest in due course. As is our usual practice, our aim, as always when we enter new markets is to de-risk by establishing partnerships and revenue sharing with local companies. Our product range continues to broaden and we have now added financial spread betting to our Contract for Differences online service. We are also now able to offer Sipp's at very attractive prices and we are seeing growing interest in this area.

During the year we completed 37 corporate transactions, which, given market conditions is an exemplary performance. We were able to provide in excess of £100 million in new capital for clients enabling many to complete long planned projects which have enhanced the value of their business. The breadth of our business now encompasses private placements as well as secondary and initial public offerings as well as public and private debt offerings. We have added personnel to both our corporate finance and our corporate broking teams.

Our administrative team successfully completed a difficult transition as we changed our settlement and back office provider and are to be congratulated on a smooth changeover with minimal client disruption. This change has enabled us to step up the pace of growth of our wealth management business.

Early in the year we accessed the equity markets for further capital and were delighted at the response from shareholders both old and new. The additional capital has strengthened our balance sheet and provided us with the capital for the ongoing development of our business.

Markets around the world have been volatile well into our new financial year however we are sure that we now have sufficient diversity of product, client and geography to sustain us and we remain confident as to the future of the business.

Our shareholders have been patient with us for several years through a difficult and turbulent period and we hope that the steps we have taken to first protect the business then to improve it will result in them receiving some reward from capital improvement in the near future.

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

Economic conditions throughout the period have been very poor with continued worldwide recession. The capital markets for small and mid cap companies have been difficult continuously and few transactions have been completed.

Results of Operations

Revenue for the twelve months was £8.5 million up from £3.6 million for the previous year, an increase of 236 per cent. Our gross profit performance improved by 225 per cent on the previous year, returning £8.1 million versus £3.6 million for 2010. At the operating level, after share based payments exceptional items and interest we returned a profit of £1.0 million compared to a loss of £2.9 million for 2010.

Staffing levels were 53 during the year up from 41 in 2010. Administrative costs rose by 12.5 per cent from £6.4million in 2010 to £7.2 million. The profit was, after a write-off in our lease portfolio of £0.35 million. The charge for share based payments being related to awards from previous years.

Equity Capital Markets

At year-end 31 March 2011 our retained AIM and other public market client base consisted of 60 companies. We completed 37 transactions and acted on the admission of £107.0 million in new capital on both primary and secondary issues.

Liquidity and Capital Resources

Net Assets rose from £3.4 million in 2010 to £6.4 million. Our working capital improved substantially from £0.6 million in 2010 to £3.0million. Operating cash flow improved by £2.0 million, and our cash position at year end had improved to £2.4 million primarily as a result of our equity offering which raised £2.5 million. Of note is that the business was cash neutral for the year.

Corporate Finance

Our corporate finance team acted on 24 transactions during the year.

Equity Research

Our Equity research team continues to provide an outstanding service to our clients. Mike Jeremy, our Head of Research was recently recognised with a Starmine award as the No 1 stock picker in his sector. We intend to work hard to maintain this service and improve it at every opportunity.

Employees

As at 31 March 2011 we employed 53 members of staff, in 4 offices compared to 41 at the end of 2010.

Outlook

Despite the poor conditions we remain optimistic for the future we have a reasonable pipeline of business and completed £34 million of transactions in the first quarter of the New Year. We have seen growing interest in our ability to provide debt financing and anticipate seeing growth in this area.

Peter Shea

Group Chief Executive

The results for the year ended 31 March 2011 were approved by the Board on 29th August 2011 and accounts for the year ended 31 March 2011 will be sent to shareholders in due course.

Statement of Comprehensive Income

Year ended 31 March 2011

Earnings per share

Consolidated Statement of Financial Position

As at 31 March 2011

Consolidated statement of changes in equity

For the year ended 31 March 2011

Consolidated cash flow statement

For the period ended 31 March 2011

Notes to the financial statements - (extract)

Year ended 31 March 2011

1. Accounting policies

General information

Daniel Stewart Securities Plc is a Company incorporated in the United Kingdom under the Companies Act 2006. Daniel Stewart Securities Plc 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.