Final Results

For immediate release: 27 September 2012

AIM: DAN.L

DANIEL STEWART SECURITIES PLC

("Daniel Stewart" or "the Company")

FINAL RESULTS

FOR THE YEAR ENDED 31 MARCH 2012

The Board of Daniel Stewart, the investment bank offering both corporate advisory and institutional stockbroking services, announces its final results for the year ended 31 March 2012.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

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

"We are very pleased to have returned a profit during these most difficult times. We have been focussed on the delivery of a quality service to our clients throughout and this has provided us with a positive result.

"Daniel Stewart is in good shape despite the prevailing economic malaise. We have adapted and changed our business, adding new distribution channels, developing overseas partners and establishing our own presence in Asia. We have launched innovative products and maintained our position as a leading adviser to UK small and mid cap corporates and investors.

"Additionally we have made significant developments in our wealth management business and have seen a dramatic rise in our Assets under Management, as well as improving volumes across our entire retail market product range.

"The economic environment has shown little improvement as far as small and mid caps are concerned and business generation remains challenging. However, we expect that in the near term at least, much of our corporate work will be generated from overseas, providing us with a decent pipeline of opportunities.

"We have paid particular attention to the Far East with a number of potential IPOs emanating from the region. We have also, as previously reported, made an application to the regulatory authorities in Hong Kong for a full broking licence and anticipate approval during the course of this calendar year."

--ENDS--

Notes to Editors:

About Daniel Stewart

Daniel Stewart Securities is an AIM-quoted company providing a range of investment banking services to Small and Mid Cap publicly traded and non-publicly traded companies. The Group has two trading subsidiaries, Daniel Stewart & Company plc, 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 Leasing Limited, the Group's leasing and debt financing division.

The annual report will be published shortly and it will be available at www.danielstewart.co.uk.

CHAIRMAN'S LETTER TO THE SHAREHOLDERS

Dear Shareholder,

I am pleased to present our results for the year ended 31 March 2012.

Overview

As has already been widely commented upon by many of our peer group and more widely in the media, we have experienced the most challenging market and economic conditions for a generation. Nowhere has the effect of this been more keenly felt than in the UK small and mid cap markets, where corporate activity, general liquidity and fundraising opportunities have all presented challenges. This has led to a period of consolidation as firms re-align their revenues and costs and we will continue to monitor these developments with close interest, in order to take advantage of opportunities should they arise.

Pleasingly, against the tough market backdrop, revenue for the period increased slightly to £8.8m from £8.4m in the previous year; producing a profit after tax of £0.5m (2011: £1.0m). Profits were impacted by a number of factors including poor market conditions, costs associated with our international development, and our staff retention plan. As a result of all these factors, we continue to keep a close eye on our own costs. This will be done, however, without compromising our ability to look after our most valuable asset: our clients.

The business continues to be cash positive and liquidity remains strong. Cash at year end was £1.1m (2010: £2.4m). We are well positioned to take advantage of any short or longer term up-turn in market conditions, should they arise, with a strong operational platform and a well incentivised, talented and motivated team.

Business Development

I have been convinced for some time, as global economic uncertainty, exasperated by the Eurozone crisis, has shown no real signs of abating, that professional services firms such as ours must innovate and adapt.

With this in mind we have worked hard to expand both our geographic footprint and the range of services and products we can offer our corporate, institutional and private clients.

In the US, we have continued to pioneer the way for UK corporates to list on the OTCQX and together with our partner firms advised a number of companies, notably Lonhro Plc, in this regard. Our US partners are experiencing a mixed time and although we remain committed to seeking opportunities for UK corporate on OTCQX, I believe our overseas focus is more likely to be in Far Eastern markets, at least in the short term.

In this regard we have continued to develop our relationships and distribution channels principally via Hong Kong and Singapore. Pleasingly we won a number of mandates to act for mainland Chinese businesses and successfully listed a number on AiM. There remains an element of scepticism among traditional UK small cap institutional investors towards Chinese companies; but we are particularly pleased with the progress that, for instance, Naibu Global International Co. PLC, the branded sportswear manufacturer and supplier has made. We remain very excited about the opportunities we are seeing in China and we are confident that by persevering we will win the support of institutional investors. I remain very encouraged by the pipeline of Chinese businesses and the opportunities these afford the wider Group and our partner network.

As previously announced we have made an application to the regulatory authorities in Hong Kong for a full broking licence and anticipate approval for this during the course of this calendar year. We believe that having a permanent base in this region will be a significant step towards expanding our footprint in other parts of Asia.

As well as expanding our geographic reach and partner network, we have continued to examine opportunities to widen our product range. In this regard we are acting on a number of private fundraising mandates and have introduced a corporate bond product targeted at SMEs. Given the lack of traditional bank funding and development capital we have seen considerable interest from issuers and investors alike; the former looking for access to capital and the later to attractive yield opportunities.

Last but certainly not least, perhaps the most impressive performance during the course of the year was within our retail and wealth management business. This continues to grow apace and Assets under Management (AuM) have doubled, now exceeding £250 million. The division is now a substantial contributor to the firm's profitability and we are actively seeking ways to grow this both organically and by acquisition. In anticipation of the Retail Distribution Review changes we are pleased that the majority of our staff have passed the associated and appropriate examinations ensuring that we are compliant with current and proposed legislation.

Summary

Daniel Stewart is in good shape despite the prevailing economic malaise. We have adapted and changed our business, adding new distribution channels, developing overseas partners and establishing our own presence in Asia. We have launched innovative products and maintained our position as a leading adviser to UK small and mid cap corporates. Additionally we expanded our range of services to retail and private clients and doubled the size of our AuM.

We are delighted that we have been able to sustain our business in profit during these very difficult times and this is a testament to the dedication and effort of all our employees.

Peter Shea

Chairman

26 September 2012

BUSINESS & FINANCIAL REVIEW

Business Environment

Economic conditions throughout the period have continued to be very poor with worldwide recession, volatile and hostile market conditions and lingering uncertainty in the Eurozone. Capital markets for small and mid cap companies have effectively been closed to new issues with only a limited number of successful transactions being completed on AiM.

Results of Operations

Revenue for the twelve months was £8.8 million up from £8.4 million for the previous year. The increase was primarily attributable to the exercise and sale of options and warrants in the money. Our primary and secondary Capital Markets income deteriorated from £4.9 million to £3.4 million as we advised on only £37 million in new capital admissions, against £107 million in 2011.

Our gross profit performance improved by 18% on the previous year, returning £4.6million against £3.9 million for 2011. At the operating level we had a profit of £0.5 million compared to a profit of £1.0 million for 2011.

Staffing levels were 46 at the year end, down from 53 in 2011. Administrative costs rose by 36% from £3.0 million in 2011 to £4.1 million entirely as a result of retention payments of approximately £1.0 million. After taking into account interest, depreciation and amortisation our profit was £0.4 million, down from £1.0 million last year. No bonuses of cash or shares were accrued during the year.

Equity Capital Markets

At year end 31 March 2012 our retained AIM and other public market client base consisted of 53 companies (2011: 60). The number has reduced as we saw a number of clients acquired and in some cases businesses delisted. We completed 37 transactions and acted on the admission of £37.0 million in new capital on both primary and secondary issues. Despite the fall in primary and secondary commission our revenue numbers remained buoyant as we completed a number of non-funded transactions during the year.

Liquidity and Capital Resources

Net Assets rose from £6.4 million in 2011 to £6.9 million. Working capital remained positive and higher than last year, up to £3.4 million from £3.0 million in 2011. Operating cash flow slowed by £1.4 million, and our cash position at year end was £1.0 million.

Corporate Finance

Our corporate finance team acted on 37 transactions during the year.

Equity Research

Our Equity research team was enhanced during the year and we increased our coverage from 60 companies to over 100. In addition we broadened the geographies into which our research is now sent and as a result have opened a number of new accounts, particularly in the Far East.

Employees

As at 31 March 2012 we employed 46 members of staff, compared to 53 at 31 March 2011.

Outlook

Global recession has continued into 2012 and business conditions have been testing. We started our new financial year well but as a result of the Olympic Games being held in London during the Summer we saw a marked slowdown in our business volumes. We remain confident in our ability to sustain our business we have taken prudent action to ensure we keep our costs aligned with our revenue expectations.

Peter Shea

Group Chief Executive

26 September 2012

Consolidated Statement of Comprehensive Income

Year ended 31 March 2012

Consolidated Statement of Financial Position

Year ended 31 March 2012

Consolidated Statement of Changes in Equity

Year ended 31 March 2012

Consolidated Statement of Cash Flows

Year ended 31 March 2012

Extract from Notes to the Financial Statements

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.