14th Jul 2009 07:00
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For Immediate Release |
14 July 2009 |
Arden Partners plc
("Arden" or the "Group")
Interim results for the six months ended 30 April 2009
Arden Partners plc (AIM: ARDN.L), the institutional stockbroking company, today announces its unaudited interim results for the six month period ended 30 April 2009.
Highlights
Revenue £4.6m (2008: £6.7m) while the FTSE All Share Index was down by 29.8%
Underlying* profit before tax £0.1m (2008: profit £1.6m)
Loss before tax £0.3m (2008: profit before tax £1.3m)
Underlying* basic loss per share 0.04p (2008: earnings per share 4.4p)
Basic loss per share 0.3p (2008: earnings per share 3.3p)
No interim dividend (2008: 2.2p)
Cash balances £7.5m (2008: £8.2m)
(* underlying profits are profits before share based payments of £345k (2008: £275k))
Commenting on the interim results CEO Jonathan Keeling said:
"The second half has started well and the Board anticipates a positive outcome for the full year. Commission income has picked up since April, leading to a strong May and June. The corporate finance pipeline is better than it has been for some time and we have this week completed a £7.8m fundraising for a corporate client."
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Arden Partners plc |
0207 398 1630 |
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Jonathan Keeling - Chief Executive Officer |
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Trevor Norris - Group Finance Director |
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Altium - NOMAD to Arden Partners plc |
0207 484 4040 |
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Phil Adams |
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Sam Fuller |
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Buchanan Communications |
0207 466 5000 |
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Mark Edwards |
CHIEF EXECUTIVE'S STATEMENT
For the six months ended 30 April 2009
Introduction
Global markets during the period were challenging but performance has been creditable and has improved since the period end. We have won twelve new corporate clients, including two FTSE250 financial companies.
Arden remains strong in these difficult times and has hired some high-profile individuals who will contribute to our future growth. Andrew Heath, formerly Head of Sales at Numis, joined in June in the newly-created role of Head of Equities, while Huw Williams, formerly Head of Oil & Gas Research at Bear Stearns in London, joined in November.
Results and dividend
During the six months ended 30 April 2009, revenue was £4.6m (2008: £6.7m) with an underlying profit before tax and share-based payments of £0.1m (2008: £1.6m). The underlying basic loss per share before share-based payments was 0.04p (2008: earnings 4.4p). The loss before tax was £0.3m (2008: profit £1.3m).
Net assets were £10.3m (2008: £10.4m) while cash balances stood at £7.5m at the period end (2008: £8.2m).
There is no interim dividend (2008: 2.2p).
Equities Division
The period from November 2008 to April 2009 was one of the most difficult in memory, from a global equities standpoint. Both volume and value of trades were significantly down throughout global equity markets, with Arden's commissions reflecting this.
Corporate Finance Division
Income of £2.4m (2008: £2.5m) showed that our corporate finance unit was resilient in a tough environment for corporate finance. Our team raised £43m for quoted clients as well as acting on various advisory transactions and won twelve brokerships in the period.
Outlook
The second half has started well and the Board anticipates a positive outcome for the full year. Commission income has picked up since April, leading to a strong May and June. The corporate finance pipeline is better than it has been for some time, and we have this week completed a £7.8m fundraising for a corporate client.
Jonathan KeelingChief Executive 13 July 2009
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CONSOLIDATED INCOME STATEMENT For the six months ended 30 April 2009 |
Six months ended 30 April 2009 Unaudited |
Six months ended 30 April 2008 Unaudited |
Year ended 31 October 2008 Audited |
|
|
Note |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
2 |
4,599 |
6,657 |
11,431 |
|
Administrative expenses |
3 |
(4,925) |
(5,591) |
(10,541) |
|
(Loss)/profit from operations |
(326) |
1,066 |
890 |
|
|
Finance income |
48 |
271 |
509 |
|
|
(Loss)/profit before taxation |
(278) |
1,337 |
1,399 |
|
|
Income tax |
198 |
(518) |
(652) |
|
|
(Loss)/profit after taxation |
(80) |
819 |
747 |
|
|
|
||||
|
(Loss)/earnings per share |
||||
|
Basic |
4 |
(0.3p) |
3.3p |
3.0p |
|
Diluted |
4 |
(0.3p) |
3.2p |
2.7p |
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CONSOLIDATED BALANCE SHEET
At 30 April 2009
|
|
At
30 April 2009
Unaudited
|
At
30 April 2008
Unaudited
|
At
31 October 2008 Audited
|
|
|
|
£’000
|
£’000
|
£’000
|
|
Assets
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Plant, property and equipment
|
|
221
|
439
|
323
|
|
Deferred tax
|
|
407
|
-
|
88
|
|
Total non-current assets
|
|
628
|
439
|
411
|
|
Current assets
|
|
|
|
|
|
Financial assets - held for trading
|
|
1,259
|
880
|
215
|
|
Financial assets - available for sale
|
|
6
|
20
|
5
|
|
Trade and other receivables
|
|
24,870
|
8,904
|
3,146
|
|
Cash and cash equivalents
|
|
7,450
|
8,151
|
9,481
|
|
Total current assets
|
|
33,585
|
17,955
|
12,847
|
|
Total assets
|
|
34,213
|
18,394
|
13,258
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
(23,801)
|
(7,532)
|
(2,943)
|
|
Corporation tax liability
|
|
(93)
|
(495)
|
(197)
|
|
Total current liabilities
|
|
(23,894)
|
(8,027)
|
(3,140)
|
|
Total liabilities
|
|
(23,894)
|
(8,027)
|
(3,140)
|
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Net assets
|
|
10,319
|
10,367
|
10,118
|
|
Financed by:
|
|
|
|
|
|
Called up share capital
|
|
2,480
|
2,470
|
2,470
|
|
Share premium account
|
|
2,684
|
2,646
|
2,646
|
|
Employee Benefit Trust reserve
|
|
(336)
|
(200)
|
(200)
|
|
Available for sale reserve
|
|
(3)
|
-
|
(2)
|
|
Profit and loss account
|
|
5,494
|
5,451
|
5,204
|
|
Total equity
|
|
10,319
|
10,367
|
10,118
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Note: At 30 April 2009 the Company had a net CREST liability arising from the normal course of business of £0.2m which is made up of debtors of £22.1m and creditors of £22.3m. These gross amounts are contained within "Trade and other receivables" and "Trade and other payables" respectively.
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CONSOLIDATED CASH FLOW STATEMENT For the period ended 30 April 2009 |
Six months ended 30 April 2009 Unaudited |
Six months ended 30 April 2008 Unaudited |
Year ended 31 October 2008 Audited |
|
£'000 |
£'000 |
£'000 |
|
|
Operating activities before taxation |
|||
|
Net (loss)/profit from ordinary activities before tax |
(278) |
1,337 |
1,399 |
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Adjustments for: |
|||
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Fair value adjustments |
(26) |
(35) |
(38) |
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Depreciation |
123 |
141 |
278 |
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Profit on disposal of available for sale investments |
- |
- |
(218) |
|
Impairment of available for sale investments |
- |
- |
342 |
|
Net interest receivable |
(48) |
(271) |
(509) |
|
Share based payments |
345 |
275 |
584 |
|
Operating profit before changes in working capital |
116 |
1,447 |
1,838 |
|
(Increase)/decrease in trade and other receivables |
(21,736) |
817 |
6,564 |
|
(Increase)/decrease in financial assets |
(1,018) |
1,530 |
1,520 |
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Increase/(decrease) in trade and other payables |
20,859 |
(1,795) |
(6,079) |
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Purchases of available for sale investments |
(1) |
- |
(108) |
|
Proceeds from disposal of available for sale investments |
- |
- |
368 |
|
Cash generated from operations |
(1,780) |
1,999 |
4,103 |
|
Income taxes paid |
(201) |
(806) |
(1,277) |
|
Cash flows from operating activities |
(1,981) |
1,193 |
2,826 |
|
Investing activities |
|||
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Purchases of property, plant and equipment |
(21) |
(68) |
(89) |
|
Interest received |
59 |
252 |
499 |
|
Net cash from investing activities |
38 |
184 |
410 |
|
Financing activities |
|||
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Purchase of own shares |
(136) |
- |
- |
|
Issue of shares |
48 |
- |
- |
|
Dividends paid to equity shareholders |
- |
(1,081) |
(1,610) |
|
Net cash from financing activities |
(88) |
(1,081) |
(1,610) |
|
(Decrease)/increase in cash and cash equivalents |
(2,031) |
296 |
1,626 |
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Cash and cash equivalents at the beginning of the period |
9,481 |
7,855 |
7,855 |
|
Cash and cash equivalents at the end of the period |
7,450 |
8,151 |
9,481 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 April 2009
Unaudited Statement of changes in equity for the six months ended 30 April 2009
|
Share Capital |
Share Premium Account |
Employee BenefitTrust Reserve |
Available for sale reserve |
Retained earnings |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Balance at 31 October 2008 |
2,470 |
2,646 |
(200) |
(2) |
5,204 |
10,118 |
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Changes in equity for period |
||||||
|
Decrease in fair value of available for sale investments |
- |
- |
- |
(1) |
- |
(1) |
|
Tax taken to equity |
- |
- |
- |
- |
25 |
25 |
|
Net income recognised directly in equity |
- |
- |
- |
(1) |
25 |
24 |
|
Loss for the period |
- |
- |
- |
- |
(80) |
(80) |
|
Total recognised income and expense for the period |
- |
- |
- |
(1) |
(55) |
(56) |
|
Share based payments |
- |
- |
- |
- |
345 |
345 |
|
Issue of shares |
10 |
38 |
- |
- |
- |
48 |
|
Purchase of own shares |
- |
- |
(136) |
- |
- |
(136) |
|
Balance at 30 April 2009 |
2,480 |
2,684 |
(336) |
(3) |
5,494 |
10,319 |
Unaudited Statement of changes in equity for the six months ended 30 April 2008
|
Share Capital |
Share Premium Account |
Employee Benefit Trust Reserve |
Available for sale reserve |
Retained earnings |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Balance at 31 October 2007 |
2,470 |
2,646 |
(200) |
35 |
5,438 |
10,389 |
|
Changes in equity for period |
||||||
|
Decrease in fair value of available for sale investments |
- |
- |
- |
(51) |
- |
(51) |
|
Tax taken to equity |
- |
- |
- |
16 |
- |
16 |
|
Net income recognised directly in equity |
- |
- |
- |
(35) |
- |
(35) |
|
Profit for the period |
- |
- |
- |
- |
819 |
819 |
|
Total recognised income and expense for the period |
- |
- |
- |
(35) |
819 |
784 |
|
Dividends |
- |
- |
- |
- |
(1,081) |
(1,081) |
|
Share based payments |
- |
- |
- |
- |
275 |
275 |
|
Balance at 30 April 2008 |
2,470 |
2,646 |
(200) |
- |
5,451 |
10,367 |
Notes to the Condensed Financial Statements
1.) Basis of preparation
As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.
The financial information presented in this report has been prepared using accounting policies that will be used in the preparation of the financial statements for the year ending 31 October 2009.
These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board as endorsed for use in the European Union, and these principles are disclosed in the Financial Statements for the year ended 31 October 2008.
The financial information in this interim report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The comparative financial information for the year ended 31 October 2008 does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The statutory accounts of Arden Partners plc for the year ended 31 October 2008 have been reported on by the Company's auditors and have been delivered to the Registrar of Companies. The auditor's report was unqualified, did not include a reference to matters which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under Section 237(2) or 272(3) of the Companies Act 1985.
2) Revenue
|
Six months ended 30 April 2009 Unaudited |
Six months ended 30 April 2008 Unaudited |
Year ended 31 October 2008 Audited |
||
|
£'000 |
£'000 |
£'000 |
||
|
Equities Division |
2,227 |
4,138 |
6,547 |
|
|
Corporate Finance division |
2,372 |
2,519 |
4,884 |
|
|
Total revenue |
4,599 |
6,657 |
11,431 |
|
3) Administrative expenses
|
Six months ended 30 April 2009 Unaudited |
Six months ended 30 April 2008 Unaudited |
Year ended 31 October 2008Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
Staff costs |
2,422 |
2,980 |
5,245 |
|
Overheads |
2,074 |
1,873 |
4,005 |
|
Staff and overhead costs |
4,496 |
4,853 |
9,250 |
|
Mark to market movements |
(39) |
322 |
429 |
|
Share based payments |
345 |
275 |
584 |
|
Depreciation |
123 |
141 |
278 |
|
Total administrative costs |
4,925 |
5,591 |
10,541 |
4) Earnings per share
The basic loss per share of 0.3p (2008: 3.3p earnings) is calculated on a loss after tax of £80,000 (2008: profit £819,000) and 24,702,424 (2008: 24,701,872) being the weighted average number of ordinary shares in issue during the period.
The diluted loss per share of 0.3p (2008: 3.2p earnings) takes account of the weighted average number of outstanding share options being 1,073,939 (2008: 1,245,685).
The underlying basic loss per share of 0.04p (2008: 4.4p earnings) for the six months ended 30 April 2009 is calculated on a loss after tax of £10,000 (2008: profit £1,094,000) being the loss after tax, adjusted for the post tax impact of IFRS 2 costs of £70,000 (2008: £275,000).
5) Dividends
|
Six months ended 30 April 2009 Unaudited |
Six months ended 30 April 2008 Unaudited |
Year ended 31 October 2008 Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
Final dividend year ended 31 October 2007 |
- |
1,081 |
1,081 |
|
Interim dividend year ended 31 October 2008 |
- |
- |
529 |
|
Distribution to equity shareholders |
- |
1,081 |
1,610 |
The Board has not declared an interim dividend (2008: 2.2p).
INDEPENDENT REVIEW REPORT TO ARDEN PARTNERS PLC
Introduction
We have been engaged by the Group to review the condensed set of financial statements in the interim financial report for the six months ended 30 April 2009 which comprises the consolidated income statement, the consolidated statement of changes in equity, the consolidated balance sheet, the consolidated cash flow statement and the related notes.
We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the interim report be presented and prepared in a form consistent with that which will be adopted in the Group's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the Group a conclusion on the condensed set of financial statements in the interim financial report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the Group in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 30 April 2009 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.
BDO Stoy Hayward LLP
Chartered Accountants and Registered AuditorsLondon
13 July 2009
Related Shares:
ARDN.L