Preliminary Results - Year Ended 31 October 2013

Arden Partners plc

("Arden" or the "Group")

Preliminary results for the year ended 31 October 2013

Arden Partners plc (AIM: ARDN), the institutional stockbroking company, today announces preliminary results for the year ended 31 October 2013.

Financial highlights

· Revenue £10.1 million (2012: £9.8 million)

· Profit before tax £1.3 million (2012: £0.2 million)

· Underlying profit before tax* £1.4million (2012: £1.0million)

· Basic earnings per share 4.7p (2012: 0.6p)

· Proposed final dividend per share of 1.75p (2012: Nil)

* Profit before tax as adjusted for the effect of share based payments and reorganisation costs

Operational highlights

· Total funds raised for clients £283m

· Eleven corporate transactions during the year.

· Corporate client list extended from 36 to 37

Commenting on the results and Arden's outlook, Peter Moon, Chairman, said:

"…… Arden has produced an improved performance for the year and it is especially pleasing that the Board is able to recommend a final dividend. We remain focused on a clear strategy to develop our corporate client base and the services we provide and to grow revenues, whilst maintaining tight control of overheads ……….."

Arden Partners plc 020 7614 5900

James Reed-Daunter - Chief Executive Officer

Steve Wassell - Chief Operating Officer

Altium 020 7484 4040

Phil Adams / Sam Fuller

Chairman's Statement

It gives me great pleasure to present this year's statement as Chairman of Arden Partners plc.

Equity markets globally have shown an improvement since the early part of 2013, with increased volumes in UK markets offsetting, to some extent, the continuing erosion of institutional commissions. Arden has produced an improved performance and the Board is broadly satisfied with Arden's overall result for the year. We have a strong balance sheet and have - before purchases of our own shares - generated cash and improved profitability.

Our balance sheet strength has allowed the Board to continue the policy of buying-back our own shares and over the last 3 years some £2.6m has been spent on share purchases. These buy-backs and subsequent cancellation of shares in treasury have led to a 17% reduction in total share capital.

In line with the Board's stated policy to reward shareholders where circumstances allow, a final dividend of 1.75pence per share is recommended (interim dividend 1.25 pence per share), which if approved will result in a total dividend for the full year of 3.0 pence per share (2012: 0.65 pence per share).

Current market conditions represent a significant opportunity for the group to grow and we are currently recruiting into a number of core areas of the business, in support of our strategy to develop our corporate client base.

Trading since the year end has been satisfactory and we have an encouraging pipeline of potential new business.

Finally, I would like to thank all of our staff, clients and shareholders for their continuing support.

Peter Moon

Chairman

Chief Executive's Statement

The Group has made a profit for the year and continues progress towards delivering its strategy.

We have achieved growth in revenues against a backdrop of industry change which is pleasing, and together with tight control of overheads has led to a healthy level of Group profitability. The Group has a robust platform to strongly grow revenues going forward, whilst maintaining control of costs.

The Company has continued to make purchases of its own shares into Treasury throughout the year, as well as into the current year. Our balance sheet strength, with a capital adequacy ratio of 283% at the year end, is significant to our ability to attract new corporate clients and increase the breadth of our offering.

Given the Board's improved level of confidence in the market outlook, we are pleased to recommend a final dividend, having already paid an interim dividend in August 2013.

Trading in the first two months of the year has been satisfactory. The pipeline of corporate transactions is strong but as ever delivery remains dependent on market conditions.

Financial review

Revenues during the year ended 31 October 2013 were £10.1m compared to £9.8m in 2012. Administrative expenses for the year totalled £8.8m (2012: £9.6m including restructuring costs of £0.6m) Underlying profit before tax was £1.4m (2012: £1.0m) after allowing for restructuring costs and share-based payments. Profit before tax was £1.3m (2012: £0.2m).

After adjusting for the effect of restructuring costs and share based payments, underlying basic earnings per share were 5.1p compared to 3.4p in 2012. Basic earnings per share were 4.7p (2012: 0.6p).

In April 2013 the Company cancelled 2,301,529 shares held in treasury, representing approximately 9% of the total share capital of the company. During November 2013 the Company purchased, in aggregate, 661,087 ordinary shares to be held for the time being in Treasury, for consideration of £0.3m.

Cash generation from operational activities was positive at £0.037m (2012: positive of £0.4m) but the impact of the shares acquired into Treasury and the Interim Dividend paid resulted in overall cash balances reducing by £1.15m.

Equities Division

Revenues fell from £6.4m in 2012 to £5.0m this year, generally reflecting the structural change in the industry with reduced commission rates.

Corporate Finance Division

Including retainer income, corporate revenues were up from £3.4m in 2012 to £5.1m this year.

During the year we were involved in 11 transactions compared to 15 in 2012. In aggregate we placed £283m for our corporate clients.

Finally, I would like to take this opportunity to thank our staff for the efforts they continually deliver and other stakeholders for their continued support.

James Reed-Daunter

Chief Executive Officer

Consolidated Statement of Comprehensive Income

For the year ended 31 October 2013

Consolidated Statement of Financial Position

At 31 October 2013

Consolidated Statement of Cash Flows

For the year ended 31 October 2013

Consolidated Statement of Changes in Equity

For the year ended 31 October 2013

Notes

1. The Employee Benefit Trust reserve represents shares held in the parent company by the Arden Partners Employee Benefit Trust which is consolidated in these financial statements in accordance with the accounting policy in note 1. During the year the Employee Benefit Trust purchased 1,174,030 shares at a price of £0.53 pence per share.

During the year 325,000 ordinary shares were issued from the employee benefit trust to satisfy employee share options (2012: Nil).

2. Own Shares represents shares purchased to be held as treasury shares at historical cost.

3. The capital redemption reserve represents the nominal value of shares that have been cancelled that were previously held as Treasury Shares.

NOTES

1) Basis of preparation

The financial information set out in this announcement has been prepared in accordance with the recognition and measurement principles of IFRS as endorsed for use in the European Union.

The financial information set out in this announcement does not constitute the Group's statutory accounts for the year ended 31 October 2013 or year ended 31 October 2012 under the meaning of s434 Companies Act 2006, but is derived from those accounts.

Statutory accounts for the years ended 31 October 2013 and 31 October 2012 have been reported on by the Independent Auditors. 

The Independent Auditors' Report on the Annual Report and Financial Statements for the years ended 31 October 2013 and 31 October 2012 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.

Statutory accounts for the year ended 31 October 2012 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 October 2013, prepared under IFRS, will be delivered to the Registrar in due course.

2) Revenue

Revenue is wholly attributable to the principal activity of the Group and arises solely within the United Kingdom.

Included within revenue of the Equities Division is a loss of £190,000 (2012: profit £486,000) relating to the fair value adjustment of derivatives held within trading investments that are fair valued through profit or loss.

The Directors are of the opinion that there are only two operating segments and while segment revenues are reviewed internally business resources are not allocated to segments for the purposes of deriving either profit or assets. In 2013, one of the Group's customers contributed 10% or more of the Group's revenue. The amount was £1,400,000 which is reflected in the Corporate Finance division revenue. In 2012 none of the Group's customers contributed 10% or more of the groups revenue.

3) Earnings per Share

In addition to the basic earnings per share, underlying earnings per share has been shown because the Directors consider that this gives a more meaningful indication of the underlying performance of the Group. Where applicable, all adjustments are stated after taking into consideration current tax treatment ignoring deferred tax.

The weighted average dilution for outstanding share options was 740,730 (2012: 951,788). The 1,823,868 (2012: 974,838) shares held by the Arden Partners Employee Benefit have been treated as cancelled and excluded from the denominator. 250,000 shares have been excluded from the diluted earnings per share calculations because as at 31 October 2013 these shares were anti dilutive.

In the prior year 1,512,928 shares held in treasury were treated as cancelled and excluded from the denominator.

4) Annual Report and Accounts

Copies of the 2013 Report and Accounts will be posted to shareholders in due course. Copies will also be available from the Company's registered office and from the Company's website.

5) Dividend

The final dividend, if approved, will be paid on 28th March 2014 to shareholders on the register at close of business on 28th February 2014, with an ex-dividend date of 26th February 2014.