Interim results

Arden Partners plc

("Arden" or the "Group")

Interim results for the six months ended 30 April 2011

Arden Partners plc (AIM: ARDN.L), the institutional stockbroking company, today announces its unaudited interim results for the six month period ended 30 April 2011.

Highlights

·; Revenue increased by 14% to £7.4m (2010: £6.5m)

·; Profit before tax £1.2m (2010: Loss before tax £0.2m)

·; Underlying* profit before tax £1.5m (2010: £0.4m)

·; Basic profit per share 3.7p (2010: Loss per share 1.7p)

·; Underlying basic profit per share** 4.8p (2010: 0.9p)

·; Strong Balance Sheet underpinned by liquid resources

(* underlying profits are profits before share based payments and reorganisation costs of £0.3m pre-tax (2010: £0.7m))

(** underlying basic profit per share is basic profit per share adjusted for the post-tax effect of share based payments and reorganisation costs of £0.2m (2010: £0.6m))

Commenting on the interim results CEO Jonathan Keeling said:

 "Trading results for May and June have been satisfactory, and Arden is engaged on a number of corporate finance mandates. I remain cautiously optimistic about continued improved results for 2010/2011 against a background of an encouraging pipeline of corporate transactions subject to timing and prevailing market conditions."

CHIEF EXECUTIVE'S STATEMENT

Financial review

I am delighted to report a significant increase in profits in the half year ended 30 April 2011. Set out in the table below is the profit before taxation illustrating the effects of share based payments which are added back in arriving at underlying profits before taxation:

The UK business performance was satisfactory against a difficult market background and there was a strong performance from our Indian franchise where we have established an important position.

We continue to have a strong balance sheet underpinned by liquid resources which will stand the business in good stead in these challenging times for our industry.

Consolidated net assets are £13.3m before deduction of treasury shares (2010: £12.3m). At 30 April 2011 the Company holds in Treasury 2,372,768 Arden Partners plc ordinary shares of 10 pence each at a total cost of £1.2m. The price paid for these shares ranged between 49 pence and 54.5 pence per ordinary share.

During the six months period ended 30 April 2011 Arden was involved in placing over £155m for clients and directors and since the period end we have raised a further £54m.

The Board do not propose the payment of an interim ordinary dividend (2010: Nil).

Outlook

Trading results for May and June have been satisfactory, and Arden is engaged on a number of corporate finance mandates. I remain cautiously optimistic about continued improved results for 2010/2011 against a background of an encouraging pipeline of corporate transactions subject to timing and prevailing market conditions.

The UK franchise is a key element of Arden's business model and we will continue to invest in this area and seek to innovate and develop. The Company will continue to develop its Indian franchise and other emerging market opportunities. 

On 14 June 2011 we announced the appointment of Lord Flight as Chairman. Howard had spent several months acting as Interim Chairman and I am delighted to be working with him, and the other Non-Executive Directors, in our strategy to deliver an increasingly profitable business.

As ever, company performance could not be delivered without the support and commitment of our staff and on behalf of the Board I would like to thank them all.

Jonathan Keeling

Chief Executive

5 July 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 April 2011

Unaudited Statement of changes in equity for the six months ended 30 April 2011

Unaudited Statement of changes in equity for the six months ended 30 April 2010

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 are expected to be applied in the preparation of the financial statements for the year ending 31 October 2011.

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 2010.

The financial information in this interim report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The Annual Report and Financial Statements for 2010 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2010 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

2) Revenue

3) Administrative expenses

4) Profit per share

The basic profit per share of 3.7p (2010: basic loss per share 1.7p) is calculated on a profit after tax of £866,000 (2010: loss after tax £425,000) and 23,143,927 (2010: 24,467,440) being the weighted average number of ordinary shares in issue during the period.

Diluted profit per share takes account of the weighted average number of outstanding share options being 1,557,827. In respect of the comparative for the six months ended 30 April 2010, no adjustment has been made to the diluted loss per share of 1.7p as the dilution effect of the weighted average number of outstanding share options of 3,266,576 would be to decrease the loss per share.

The underlying basic profit per share of 4.8p (2010: 0.9p) for the six months ended 30 April 2011 is calculated on a profit after tax of £1,114,000 (2010: £221,000) being the result after tax, adjusted for the post tax impact of IFRS 2 costs of £248,000 (2010: £646,000).

5) Dividends

The Board has not declared an interim dividend (2010: Nil).

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 half-yearly financial report for the six months ended 30 April 2011 which comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated statements of changes in equity and the related explanatory notes that have been reviewed.

We have read the other information contained in the half-yearly 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 AIM which require that the half-yearly 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 half-yearly 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 AIM 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 half-yearly financial report for the six months ended 30 April 2011 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.

BDO LLP

Chartered Accountants and Registered Auditors

London

United Kingdom

5 July 2011

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).