24th Oct 2007 07:00
Daniel Stewart Securities PLC24 October 2007 FOR IMMEDIATE RELEASE 24 OCTOBER 2007 DANIEL STEWART SECURITIES PLC (AIM) INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2007 The Board of Daniel Stewart Securities plc ("Daniel Stewart" or "the Company")is pleased to announce its financial results for the six months to 30 September2007. FINANCIAL HIGHLIGHTS: • Gross Profit up 15% to £5.3 million on same period last year; • Net Profit before tax and share based payments: £1.8 million; • Net Assets up by £1.6 million since March 31st to £9.3 million. and • Adjusted EPS (excluding share based payments): 0.75p OPERATIONAL HIGHLIGHTS: • £106 million raised for our corporate clients during the period (against £88 million for the first six months last year); • 40 retained Brokerships (vs. 37 at same time last year); and • 20 transactions completed in the period including 5 IPOs and Introductions, 12 Secondary Placings and 3 Corporate Finance transactions. Commenting on the results for the six months Peter Shea, Group Chief Executive,said, "The results for the period provide further evidence to support thesuccess of our strategic plan. We have improved the size and quality of ourequity capital markets business with the average market capitalisation of ourclients now being in excess of £30 million up from £24 million at the sameperiod last year, while continuing to assist those smaller companies that offerinvestors potentially higher returns. "This implementation has been responsible for the substantial turnaroundachieved in a very short period, and given that market conditions have beennegative within our sector for much of the year we regard this outcome as asterling performance". CURRENT TRADING: Peter Shea, Group Chief Executive, said "We have seen a solid start to thesecond half of the year. Demand from clients for our services has remainedstrong. We have won a number of new mandates including several IPO's proposedfor the 2nd half of the year as well as being appointed Nomad and Broker to 3new clients since the end of September bringing the total new client additionsfor the year so far to 13. We are confident that this trend will continue and welook forward to being able to reward our shareholders with a very positiveoutcome at year end." --ENDS-- Enquiries: DANIEL STEWART SECURITIES PLC Tel: 020 7776 6550Peter Shea BISHOPSGATE COMMUNICATIONS LIMITED Tel: 020 7562 3350Maxine BarnesSophie Davis BLUE OAR SECURITIES PLC Tel: 020 7448 4400William Vandyk Notes to Editors: About Daniel Stewart Daniel Stewart Securities is an AIM-listed company providing a range ofinvestment banking services to Small Cap publicly traded and non-publicly tradedcompanies. The Group has two subsidiaries, Daniel Stewart and Company, theGroup's principal operating subsidiary, which is authorised and regulated by theFinancial Services Authority and is a member of the London Stock Exchange, andDaniel Stewart Capital, the Group's leasing and debt financing division. Daniel Stewart Securities plc Consolidated profit and loss account For the six months ended 30 September 2007 Restated £ £ £ Six months ended Year ended Six months ended 30 September 2007 31 March 2007 30 September 2006 Revenue 5,448,874 7,547,344 5,255,056 Cost of sales (142,627) (986,715) (564,801) Gross profit 5,306,247 6,560,629 4,692,255 Risk Portfolio price movement (249,265) (4,031,865) (2,284,738) Contribution to fixed costs 5,056,982 2,528,764 2,405,517 Administration costs (3,455,134) (8,700,773) (3,546.562) Share based payments (525,119) 1,723,826 707,658 Result from operating activities 1,076,729 (4,448,031) (433,387) Interest 152,895 712,785 149,297 Exceptional - (1,632,472) - Profit / (loss) before taxation 1,229,624 (5,367,718) (280,090) Taxation (125,000) 350,000 - Net profit / (loss) for the period 1,104,624 (5,017,718) (280,090) Dividend - - - Retained profit / (loss) 1,104,624 (5,017,718) (280,090) Earnings per share - pence 0.51 (2.35) (0.12) Daniel Stewart Securities plc Consolidated balance sheet As at 30 September 2007 Restated £ £ £ 30 September 2007 31 March 2007 30 September 2006 Non current assets Property plant and equipment 349,256 363,592 370,384 Goodwill 1,731,532 1,731,532 1,731,532 Available for sale investments 389,364 389,364 389,364 Loans receivable 1,928,689 2,016,399 2,876,402 Deferred taxation 81,000 81,000 - 4,479,841 4,581,887 5,367,682 Current assets Financial assets 2,642,053 1,369,744 2,736,328 Trade and other receivables 3,122,039 3,223,383 4,983,684 Corporation tax 223,498 280,498 - Cash and cash equivalents 2,768,128 2,623,549 2,692,161 8,755,718 7,497,174 10,412,173 Total assets 13,235,559 12,079,061 15,779,855 Liabilities Trade and other payables 2,681,426 3,118,861 2,828,873 Non current liabilities 1,200,000 1,231,817 588,000 Total Liabilities 3,881,426 4,350.678 3,416,873 Net assets 9,354,133 7,728,383 12,362,982 Issued share capital 538,318 538,459 532,459 Profit and loss account (4,262,264) (5,366,888) (1,472,457) Share premium account 4,294,412 4,298,270 4,028,270 Other reserves 8,783,667 8,258,542 9,274,710 Equity shareholders funds 9,354,133 7,728,383 12,362,982 Daniel Stewart Securities plc Consolidated cash flow £ £ £For the six months ended 30 September 2007 Restated Six months ended Year ended Six months ended 30 September 2007 31 March 2007 30 September 2006 Operating activities Pre tax (loss) / profit from 1,076,729 (4,448,031) (433,387) consolidated companies Tax paid - (628,498) - Provision for impairment of fixed assets 85,160 166,137 135,677 Share based payments 525,119 (1,723,826) (707,658) 1,687,008 (6,634,218) (1,005,638) Movements in working capital Decrease / (increase) in receivables (469,252) 1,453,714 (633) (Decrease) / increase in payables (433,315) 1,053,224 (251,621) Decrease / (increase) in financial (1,272,309) 1,923,258 556,674 assets held for trading Operating cash flow (487,868) 2,204,022 (700,948) Investing activities Expenditure on tangible fixed assets (70,824) (135,219) (214,805) Acquisition of fixed asset investments - (52,308) (52,308) Cash flow from investing activities (70,824) (187,527) (267,113) Financing activities Loans (made to) / recovered from third 550,376 324,207 (934,214) parties Loans received - 1,015,188 148,749 Loan written off - (1,623,466) Issue of share capital - 968,625 194,510 Net interest receivable 152,895 712,785 149,297 Cash flow from financing activities 703,271 (890,215) (441,658) Cash and cash equivalents at start of 2,623,549 4,124,883 4,101,880 period Cash and cash equivalents at end of 2,768,128 2,623,549 2,692,161 period (Decrease) / increase in cash and cash 144,579 (1,501,334) (1,409,719) equivalents The un-audited financial information as reported above does not constitute fullstatutory financial statements within the meaning of section 240 of theCompanies Act 1985. 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