Interim Results - Six Months Ended 30 April 2014

Arden Partners plc

("Arden" or the "Group")

Interim results for the six months ended 30 April 2014

Arden Partners plc (AIM: ARDN.L), the institutional stockbroking company, today announces its unaudited interim results for the six month period ended 30 April 2014.

Highlights

· Revenue £3.5m (2013: £5.7m)

· (Loss)/Profit before tax (£0.5m) (2013: Profit £1.0m)

· Basic (Loss)/Earnings per share (1.8p) (2013: Earnings 3.5p)

· Costs control maintained

· Number of retained corporate clients increased to 46

Commenting on the interim results CEO James Reed-Daunter said:

"After a frustrating first 6 months, I am pleased to report an encouraging start to the second half, with improved equity and corporate transaction revenues so far"

CHIEF EXECUTIVE'S STATEMENT

Financial review

The first half saw specific issues with 2 corporate transactions, one where the client pulled back from the transaction at the point of delivery, after Arden had completed the work, costing c£0.5m and the other was hit by the change in IPO market sentiment which resulted in lost fees of a further £0.5m.

Certain long term investments also saw a decline in mark to market book accounting values during the first half and whilst these are non-cash items, they did impact the overall performance by c£0.3m.

Revenue was down as a result of the above, against a strong comparative period - particularly in the equities division - in 2013, and has led us therefore to report a loss of £0.5m in the first six months of our financial year, against a profit in H1 2013 of £1.0m.

During the half year we have proactively recruited into key areas of the business and have made a number of significant hires, into both senior and entry level roles, the result of which will be to enhance our corporate offering and improve still further the service level we provide to all clients.

The balance sheet remains strong and we are pleased to report that the retained corporate client list has risen to 46.

The Directors are not proposing to pay an interim dividend. (2013: 1.25p)

Outlook

The second half pipeline is strong, with delivery, as ever, dependent on market conditions, and the executive team is confident of a satisfactory outcome for the full year.

James Reed-Daunter

Chief Executive

31 July 2014

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the period ended 30 April 2014

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 April 2014

CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 April 2014

Cash and cash equivalents included in the Statement of Cash Flows compromise the following amounts in the Statement of Financial Position:

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

For the period ended 30 April 2014

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 2014.

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 2013.

The financial information in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006.

The Annual Report and Financial Statements for 2013 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2013 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) (Loss)/Earnings per share

The basic loss per share of 1.8p (2013: 3.5p earnings) is calculated on a loss after tax of £367,000 (2013: profit £735,000) and 20,660,405 (2013: 21,185,340) being the weighted average number of ordinary shares in issue during the period less shares held in Treasury and by the Arden Partners Employee Benefit Trust.

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 1,245,801 would be to decrease the loss per share. In the prior period diluted earnings per share takes account of the weighted average number of outstanding share options being 860,806

The underlying basic loss per share of 1.7p (2013: 3.6p earnings) for the six months ended 30 April 2014 is calculated on a loss after tax of £314,000 (2013: profit £765,000) being the loss after tax, adjusted for the current tax impact of IFRS 2 costs of £53,000 (2013: £30,000).

5) Dividends

The Directors have not proposed an interim dividend (2013: 1.25 pence per share).

INDEPENDENT REVIEW REPORT TO ARDEN PARTNERS PLC

Introduction

We have been engaged by the company to review the interim set of financial statements in the half-yearly financial report for the six months ended 30 April 2014 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 company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the company a conclusion on the interim 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 company 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 interim set of financial statements in the half-yearly financial report for the six months ended 30 April 2014 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

31 July 2014

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

CORPORATE INFORMATION