2nd Jul 2007 07:01
Arden Partners plc02 July 2007 For Immediate Release 2 July 2007 Arden Partners plc ("Arden" or the "Company") Interim results for the six months ended 30 April 2007 Arden Partners plc (AIM: ARDN.L), the institutional stockbroking company, todayannounces its unaudited interim results for the six month period ended 30 April2007. Highlights • Turnover increased by 12% to £8.4 million (2006: £7.5 million) • Underlying profit before tax* increased by 11% to £3.0 million (2006: £2.7 million) • Profit before tax increased from £2.65m to £2.66m • Underlying** basic earnings per share increased by 7% to 8.7p (2006: 8.1p) • Basic earnings per share 7.3p (2006: 8.1p) • Interim dividend declared in respect of the six month period ended 30 April 2007 of 2.2p • Advised on 11 transactions with a total value of over £216 million * Profit before tax as adjusted to remove the effect of share based payments (FRS 20) and exceptional costs. ** Earnings as adjusted for the after-tax effect of share based payments (FRS20) and exceptional costs. Commenting on this, Sir David Rowe-Ham, Chairman of Arden, said: "We are very pleased with the progress Arden has continued to make since ourlast results. The business has continued to develop in line with our growthstrategy and, with a good start to the second half in both primary and secondaryincome together with an encouraging pipeline, the Board is confident ofdelivering another successful year." Arden Partners plc 0207 398 1630Tony Bartlett - Chief Executive OfficerJonathan Keeling - Executive DirectorTrevor Norris - Group Finance Director Altium - NOMAD to Arden Partners plc 0207 484 4040Garry LevinMarc Milmo Buchanan Communications 0207 466 5000Mark EdwardsNick Melson Chief Executive's Statement I am delighted to report another good set of results for Arden Partners. Ourperformance remains strong with an increase in turnover of 12% and an increasein underlying profit before tax and exceptionals of 11% over the correspondingperiod last year. In the first half the Company has managed to continue theprogress made since its IPO on AIM last year and I am pleased with thecontributions made by each of our business streams. Results and dividend During the six months ended 30 April 2007, turnover has increased by 12% to£8.4m (2006: £7.5m) and underlying profit before tax (before exceptional costs)rose by 11% to £3.0m (2006: £2.7m). Underlying basic earnings per share (beforeexceptional costs) were 8.7p (2006: 8.1p). During the period, the company incurred exceptional costs of £318,000 inrelation to professional fees incurred in relation to a potential acquisitionwhich was terminated as terms could not be agreed. Net assets have increased to £9.2m (2006: £4.6m) including cash balances of£5.3m. The Board has declared an interim dividend of 2.2p (2006: 1.75p). The dividendwill be payable on 4 October 2007 to all shareholders on the register at 14September 2007. Equities division Income from research, sales and trading has continued to grow with turnoverimproving by 9% from £3.2m to £3.5m. We are also continuing to see incrementalgrowth resulting from "unbundling". This is testament to the quality of oursales and execution capability and the excellence of our research product. We will continue to invest in electronic trading systems which should allow thebusiness to gain additional market share. Corporate finance division The corporate finance team has had another busy six months focussed mainly onsecondary placings. In total, the team has worked on eleven transactions with atotal value of some £216m, generating fees totalling £4.4m (2006: £3.6m). Ofthese, two were primary fundraisings, six were secondary and the remainderrelated to M&A activities. The Board believes that the split of activitiesunderlines the quality of the corporate base and the objective remains to winnew corporate clients. An encouraging pipeline shows a good spread of transactions due to be completedin the second six months. One significant fundraising, a secondary placing of£21m for Hardy Oil & Gas, has already been completed. Staff Our staff contribute greatly to the success of the business and we are gratefulfor their hard work ethic. In an environment where remuneration packages have continued to rise, therecruitment of staff has remained challenging. Despite this, the business hasattracted a number of quality individuals and will continue to do so. TheCompany is proposing to implement a new Long Term Incentive Plan to assist inthe recruitment process and documentation setting out the full details of theplan will be sent to shareholders. We will continue to reward our staff on a performance basis focussed strongly ondelivering shareholder value. Outlook The business has continued to develop in line with its growth strategy and, witha good start to the second half in both primary and secondary income togetherwith an encouraging pipeline, the Board is confident of delivering anothersuccessful year. Tony Bartlett Chief Executive 2 July 2007 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the six months ended 30 April 2007 Six months Six months Year ended ended ended 31 October 2006 30 April 2007 30 April 2006 Audited Unaudited Audited (restated) Note £'000 £'000 £'000 Turnover 2 8,434 7,530 14,274Administrative expenses 3 (5,951) (4,937) (10,392)--------------------- -------- ---------- ---------- ----------Operating profit 2,483 2,593 3,882Interest receivable andsimilar income 184 95 206Interest payable andsimilar charges (6) (37) (38)--------------------- -------- ---------- ---------- ----------Profit on ordinaryactivities before taxation 2,661 2,651 4,050Taxation on profit onordinary activities (850) (800) (1,489)--------------------- -------- ---------- ---------- ----------Profit on ordinaryactivities 1,811 1,851 2,561after taxation ======== ========== ========== =============================== Earnings per share Basic 4 7.3p 8.1p 11.0pDiluted 4 7.0p 8.1p 10.5p===================== ======== ========== ========== ========== Note - All results are in respect of continuing activities CONSOLIDATED BALANCE SHEET At 30 April 2007 At At At 30 April 2007 30 April 2006 31 October 2006 Unaudited Audited Audited (restated) Note £'000 £'000 £'000Fixed assetsTangible assets 443 300 388 Current assetsLong market makingpositions and similarinvestments 3,655 2,365 1,800----------------------- ------ ---------- ---------- ----------Market debtors 11,075 4,550 6,094Pledged assets 882 - -Other debtors 2,080 1,293 1,075----------------------- ------ ---------- ---------- ----------Debtors 14,037 5,843 7,169Cash at bank and in hand 5,289 4,793 8,260----------------------- ------ ---------- ---------- ---------- 22,981 13,001 17,229Creditors: amountsfalling due within oneyear (14,252) (8,670) (9,828)----------------------- ------ ---------- ---------- ----------Net current assets 8,729 4,331 7,401----------------------- ------ ---------- ---------- ----------Total assets less currentliabilities 9,172 4,631 7,789----------------------- ------ ---------- ---------- ---------- Capital and reservesCalled up share capital 2,470 1,365 2,470Share premium account 2,646 20 2,646Employee Benefit Trust Reserve (200) (200) (200)Capital Redemption Reserve - 900 -Profit and loss account 4,256 2,546 2,873----------------------- ------ ---------- ---------- ----------Shareholders' funds 6 9,172 4,631 7,789======================= ====== ========== ========== ========== CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30 April 2007 Note Six months Six months Year ended ended ended 31 October 2006 30 April 2007 30 April 2006 Audited Unaudited Audited (restated) £'000 £'000 £'000 Cash flows from operatingactivities 7 (1,532) 699 4,218Exceptional cash flow (318) - (613)----------------------- ------ ---------- ---------- ----------Net cash flow fromoperating activities (1,850) 699 3,605Returns on investmentsand servicing of finance 157 (280) (176)Taxation (676) - (1,800)Capital expenditure andfinancial investment (157) (141) (315)Dividends paid (equity) (445) - (400)----------------------- ------ ---------- ---------- ----------Cash flow before use ofliquid resources and financing (2,971) 278 914Management of liquid resources 160 (16) 1,026Financing - (1,100) 1,731----------------------- ------ ---------- ---------- ----------(Decrease)/Increase in cash (2,811) (838) 3,671======================= ====== ========== ========== ========== Notes to the Interim Statements 1) Accounting Policies The consolidated interim financial statements have been prepared in accordancewith the accounting policies within the annual report for the year ended 31October 2006, except that the Group has adopted the following policy in respectof stock loans: • The Group enters stock borrowing arrangements with certain institutions which are entered into on a collateralised basis with cash advanced as collateral. Under such arrangements a security is purchased with a commitment to return it at a future date at an agreed price. The securities purchased are not recognised on the balance sheet and the transaction is treated as a secured loan made for the purchase price. Where cash has been used to effect the purchase, the purchase is recorded as a pledged asset on the balance sheet. Financial Comparatives The financial information set out in this interim report does not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. The comparatives for the full year ended 31 October 2006 are not the Company'sfull statutory accounts for that year. A copy of the statutory accounts for thatyear has been delivered to the Registrar of Companies. The auditors' report onthose accounts was unqualified and did not contain a statement under section 237(2)-(3) of the Companies Act 1985. 2) Turnover Six months Six months Year ended ended ended 31 October 2006 30 April 2007 30 April 2006 Audited Unaudited Audited (restated) £'000 £'000 £'000Commission and market making 3,523 3,235 6,082Corporate finance and retainers 4,911 4,295 8,192------------------------ ---------- ---------- ----------Total turnover 8,434 7,530 14,274======================== ========== ========== ========== 3) Administrative expenses Six months Six months Year ended ended ended 31 October 2006 30 April 2007 30 April 2006 Audited Unaudited Audited (restated) £'000 £'000 £'000Staff costs 3,662 3,184 6,485Overheads 1,971 1,753 3,294------------------------ ---------- ---------- ----------Staff and overhead costs 5,633 4,937 9,779Exceptional items 318 - 613------------------------ ---------- ---------- ----------Total administrative costs 5,951 4,937 10,392======================== ========== ========== ========== Note: staff costs include a charge of £17,000 (Interim 2006: £Nil, Final 2006:£17,000) for share based payments (FRS 20). 4) Earnings per share Basic earnings per share is calculated on profit after tax of £1,811,000 (2006:£1,851,000) and 24,701,872 (2006 restated: 22,850,020) being the weightedaverage number of ordinary shares in issue during the period. Diluted earnings per share takes account of the weighted average number ofoutstanding share options being 1,077,998 (2006: Nil) where the exercise pricewas less than the average price of the shares during the period. Underlying basic earnings per share of 8.7p (2006: 8.1p) and the underlyingdiluted earnings per share of 8.3p (2006: 8.1p) for the six months ended 30April 2007 is calculated on profit after tax of £2,146,000 (2006: £1,851,000)being the profit after tax, adjusted for the post tax impact of exceptionalcosts of £318,000 (2006; £Nil) and FRS 20 costs of £17,000 (2006: £Nil). 5) Dividends Six months Six months Year ended ended ended 31 October 2006 30 April 2007 30 April 2006 Audited Unaudited Audited (restated) £'000 £'000 £'000Final dividend year ended 31October 2006 445 - -Interim dividend year ended 31October 2006 - - 400------------------------- ---------- ----------- ----------Distribution to equity shareholders 445 - 400========================= ========== =========== ========== The Board has declared an interim dividend of 2.2p (2006: 1.75p). The dividendwill be payable on 4 October 2007 to all shareholders on the register at 14September 2007. 6) Reconciliation of movement in shareholders' funds Employee Benefit Profit Share Share Trust and loss Capital Premium Reserve account Total £'000 £'000 £'000 £'000 £'000Attributable toequity holders at 31 October 2006 2,470 2,646 (200) 2,873 7,789Profit after tax - - - 1,811 1,811Share basedpayments - - - 17 17Dividends paid - - - (445) (445)==================== ======== ======== ======== ======== ========Attributable toequity holders at 30 April 2007 2,470 2,646 (200) 4,256 9,172==================== ======== ======== ======== ======== ======== 7) Reconciliation of operating profit to net cash flow from operating activities Six months Six months Year ended ended ended 31 October 2006 30 April 2007 30 April 2006 Audited Unaudited Audited (restated) £'000 £'000 £'000Operating profit 2,483 2,593 3,882Exceptional costs 318 - 613----------------------- ---------- ---------- ---------- 2,801 2,593 4,495Depreciation of tangible fixedassets 101 60 145Movement in long market makingpositions and similar investments (1,855) (1,617) (1,052)Movement in debtors (6,847) 510 (801)Movement in creditors 4,251 (847) 1,414Share based payments 17 - 17----------------------- ---------- ---------- ----------Cash flows from operating activities (1,532) 699 4,218======================= ========== ========== ========== Independent Review Report Introduction We have been instructed by the company to review the financial information forthe six months ended 30 April 2007 which comprises the Consolidated Profit andLoss Account, the Consolidated Balance Sheet, the Consolidated Cash FlowStatement and the related notes. We have read the other information contained inthe interim report and considered whether it contains any apparent misstatementsor material inconsistencies with the financial information. Our report has been prepared in accordance with the terms of our engagement toassist the company in meeting the requirements of rules of the London StockExchange for companies trading securities on the Alternative Investment Marketor and for no other purpose. No person is entitled to rely on this report unlesssuch a person is a person entitled to rely upon this report by virtue of and forthe purpose of our terms of engagement or has been expressly authorised to do soby our prior written consent. Save as above, we do not accept responsibility forthis report to any other person or for any other purpose and we hereby expresslydisclaim any and all such liability. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AlternativeInvestment Market which require that the half-yearly report be presented andprepared in a form consistent with that which will be adopted in the company'sannual accounts having regard to the accounting standards applicable to suchannual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and basedthereon, assessing whether the accounting policies and presentation have beenconsistently applied unless otherwise disclosed. A review excludes auditprocedures such as tests of controls and verification of assets, liabilities andtransactions. It is substantially less in scope than an audit performed inaccordance with International Standards on Auditing (UK and Ireland) andtherefore provides a lower level of assurance than an audit. Accordingly we donot express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 April 2007. BDO STOY HAYWARD LLPChartered Accountants Birmingham29 June 2007 Corporate Information Directors Sir David Rowe-Ham - Chairman Tony Bartlett - Chief Executive Officer Jonathan Keeling - Executive Director Trevor Norris - Group Finance Director Philip Dayer - Non Executive Director Grahame Whateley - Non Executive Director Company Secretary and Registered Office Trevor Norris Arden House Highfield Road Edgbaston Birmingham B15 3JU Direct line : 0121 423 8990 Fax : 0121 423 8991 Company Number 4427253 Company Web Address www.arden-partners.co.uk Financial Advisor and Broker Altium Securities Limited 30 St James's Square London SW1Y 4AL Financial PR Buchanan Communications 45 Moorfields London EC2Y 9AE Registrar Capita IRG Plc The Registry 34 Beckenham Road Beckenham Kent BR3 4TU Lawyers Eversheds LLP 115 Colmore Row Birmingham B3 3AL Auditors BDO Stoy Hayward LLP 125 Colmore Row Birmingham B3 3SD Bankers RBS 8th Floor 280 Bishopsgate London EC2M 4RB This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ARDN.L