23rd Dec 2014 15:36
DANIEL STEWART SECURITIES PLC ("Daniel Stewart" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2014
The Board of Daniel Stewart, the investment bank offering corporate advisory, institutional stockbroking and wealth management services, announces its unaudited interim results for the period ended 30 September 2014.
The Company's ordinary shares will remain suspended until such time as it publishes its Annual Report for the year ended 31 March 2014, which it expects to do during January 2015.
A copy of this announcement is available at www.danielstewart.co.uk.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
• Corporate Revenues: £2.4 million (2013: £2.1 million).
• Trading realised and unrealised: £90,000 (2013: £74,000).
• Net assets at period end: £1.8 million (£1.6 million at 31st March 2014).
• Cash and cash equivalents: £501,000 (£228,000 at 31st March 2014).
• Adjusted EPS: 0.0006p per share (2013: (0.20)p per share).
• £14.2 million raised for corporate clients during the period.
• 33 retained clients and 14 transactions completed.
We are pleased to report a continuing small improvement in our business with revenues rising slightly along with a further reduction in our cost base. Combined, this resulted in a substantial turnaround from the position as at September 2013 and we are able to declare a small profit for the period.
Our total overhead costs were reduced by £500,000 when compared to the half year to 30 September 2013, and we realised approximately £2 million in the period to September 2014, from financial assets held, reducing our net asset position to £2.2 million at the half year.
During the period we completed 14 transactions, raising approximately £14.2 million in new equity for our clients.
Since the end of the period under review we have seen some slight improvement in overall trading conditions. Both October and November were close to breakeven and December will return a small profit. While there can be no certainty that this trend will continue we take some comfort from the fact we have an order book which gives us a degree of visibility through January and February 2015.
We remain cautiously optimistic for the future.
Peter Shea, Chairman
Unaudited Consolidated Statement of Comprehensive Income
Six months ended 30 September 2014
Six months ended | Year ended | Six months ended | ||||
Continuing operations | 30 September 2014 | 31 March 2014 | 30 September 2013 | |||
£ | £ | £ | ||||
Revenue - Corporate finance activities | 2,287,327 | 4,303,310 | 2,106,629 | |||
Revenue - Share trading | 90,439 | (63,642) | (74,137) |
| ||
2,377,766 | 4,239,668 | 2,032,492 |
| |||
Cost of sales | (1,328,546) | (2,952,760) | (1,411,613) |
| ||
Gross profit | 1,049,220 | 1,286,908 | 620,879 |
| ||
Administrative costs | (923,032) | (2,676,009) | (1,414,788) |
| ||
Impairment of Goodwill | (87,500) | (924,918) | (178,262) |
| ||
Operating profit / (loss) | 38,688 | (2,314,019) | (972,171) |
| ||
Net finance costs | (7,410) | (19,520) | (9,868) |
| ||
Profit/(Loss) before taxation | 31,278 | (2,333,539) | (982,039) |
| ||
Taxation | - | - | - |
| ||
Profit/(Loss) and total comprehensive expense for the year | 31,278 | (2,333,539) | (982,039) |
| ||
Earnings per share |
|
| ||||
Basic and diluted | 0.006p | (0.45)p | (0.20)p |
| ||
Unaudited Consolidated Statement of Financial Position
As at 30 September 2014
Restated | |||
30 September 2014 | 31 March 2014 | 30 September 2013 | |
£ | £ | ||
Non current assets | |||
Goodwill | 1,322,955 | 1,410,535 | 2,157,151 |
Financial assets at fair value through profit or loss | - | - | 270,229 |
Property, plant and equipment | 71,461 | 74,555 | 93,281 |
Loans receivable | 400,548 | 400,548 | 400,548 |
1,794,964 | 1,885,638 | 2,921,209 | |
Current assets | |||
Financial assets at fair value through profit or loss | 1,997 | 320,647 | 128,465 |
Trade and other receivables | 1,497,888 | 1,374,113 | 1,909,724 |
Cash and cash equivalents | 501,339 | 227,553 | 322,536 |
2,001,224 | 1,922,313 | 2,360,725 | |
Total assets | 3,796,188 | 3,807,951 | 5,281,934 |
Current liabilities | |||
Trade and other payables | (2,120,506) | (2,163,547) | (2,905,491) |
Corporation tax | - | - | - |
(2,120,506) | (2,163,547) | (2,905,491) | |
Net assets | 1,675,682 | 1,644,404 | 2,376,443 |
Equity Capital and reserves attributable to equity shareholders : | |||
Share capital | 1,299,756 | 1,299,756 | 1,274,756 |
Share premium | 9,570,342 | 9,570,342 | 9,345,342 |
Accumulated losses | (18,567,946) | (18,599,224) | (17,617,185) |
Capital redemption reserve | 49,998 | 49,998 | 49,998 |
Capital reserve | 11,166,914 | 11,166,914 | 11,166,914 |
Share compensation reserve | 403,135 | 403,135 | 403,135 |
Employee benefit trust reserve | (2,246,517) | (2,246,517) | (2,246,517) |
1,675,682 | 1,644,404 | 2,376,443 | |
Unaudited Consolidated Statement of Cash Flows
Restated | |||
Six months to 30 September 2014 | Year ended 31 March 2014 | Six months to 30 September 2013 | |
Operating activities | £
| £ | £ |
Operating (loss) / profit | 38,688 | (2,314,019) | (3,070,568) |
Provision for depreciation of non-current assets | 11,940 | 31,086
| 82,857 |
Profit from disposal of non-current assets | - | - | (735) |
Provision for impairment of goodwill | 87,500 | 924,918 - | 356,525 |
138,128 | (1,358,015) | (2,631,921) | |
Movement in working capital | |||
Decrease / increase in receivables | (141,387) | 497,921
| (112,629) |
(Decrease) / increase in payables | (43,041) | (284,864)
| 699,727 |
Decrease in financial assets | 318,650 | 503,440
| 1,659,739 |
134,222 | 716,497
| 2,246,837 | |
Operating cash flow | 272,350 | (641,518) | (385,084) |
Investing activities | |||
Expenditure on tangible non-current assets | 8,846 | (6,442) | (64,994) |
Fixed asset disposals | - | 28,445 | |
Interest received | 1,874 | 2,400 | 19,268 |
Cash flow from investing activities | 10,720 | (4,042) | (17,281) |
Financing | |||
Equity | - | 250,000 | - |
Loans repaid | - | (38) | 166,825 |
Interest paid | (9,284) | (21,919) | (86,994) |
Cash flow from financing activities | (9,284) | 228,043 | 79,831 |
Cash and cash equivalents at 1 April 2014 | 227,553 | 645,070 | 645,070 |
Cash and cash equivalents at 30 September 2014 | 501,339 | 227,553 | 1,180,020 |
Increase/ (Decrease) in cash and cash equivalents | 273,786 | (417,517) | (322,535) |
Enquiries:
DANIEL STEWART SECURITIES PLC Tel: 020 7776 6550
Peter Shea
WESTHOUSE SECURITIES Tel: 020 7601 6100
Richard Johnson / Martin Davison
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 Conduct Authority and is a member of the London Stock Exchange, and Daniel Stewart Leasing Limited, the Group's leasing and debt financing division.
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