TIDMARDN
RNS Number : 4959U
Arden Partners plc
30 July 2015
Arden Partners plc
("Arden" or the "Group")
Interim results for the six months ended 30 April 2015
Arden Partners plc (AIM: ARDN.L), the institutional stockbroking
company, today announces its unaudited interim results for the six
month period ended 30 April 2015.
Highlights
-- Revenue GBP2.7m (2014: GBP3.5m)
-- Loss before tax GBP1.2m (2014: GBP0.5m)
-- Basic loss per share 4.9p (2014: 1.8p)
-- Costs control maintained
-- Appointment of Luke Johnson as a Non-Executive Director
-- No interim dividend proposed (2014: nil)
Commenting on the interim results CEO James Reed-Daunter
said:
".... after a most challenging first half, we are encouraged by
revenues booked to date in H2 and by current levels of trading,
particularly in the Corporate division ......"
Arden Partners plc 0207 614 5900
James Reed-Daunter - Chief Executive
Officer
Steve Wassell - Chief Operating
Officer
Altium - NOMAD to Arden Partners
plc 0207 484 4040
Sam Fuller
Melanie Szalkiewicz
CHIEF EXECUTIVE'S STATEMENT
Financial
At GBP1.3m, Equities division revenues were in line with the
corresponding period last year and include a decline in
mark-to-market book values of certain long term investments in H1
of GBP122k. The delivery of our corporate pipeline of transactions
however, proved extremely slow from the outset of the half year and
was further hampered by market uncertainty in the run up to the UK
general election.
This resulted in an overall loss before tax for the first half
of our financial year of GBP1.2m, against a loss in H1 2014 of
GBP0.5m.
Overheads and costs to the business remain tightly controlled
and although we have made a number of significant hires into the
firm, material progress has also been made in reducing certain of
our variable costs with the net effect that overall operational
expenses are in line with the previous year.
The Directors are not proposing to pay an interim dividend.
(2014: nil)
Outlook
We are encouraged by revenues booked to date in H2 and by the
current levels of trading, particularly in the Corporate division.
The mix and depth of mandated transactions on which we are now
focussed, is in part reflective of our recruitment activities over
the last 12 months and of the recent restructuring of our corporate
finance area.
Market conditions depending, we expect at this stage, to produce
a positive result in the second half.
James Reed-Daunter
Chief Executive
30 July 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 April 2015
Year
Six months Six months ended
ended ended 31 October
30 April 2015 30 April 2014 2014
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
--------------------------------------- ------ ---------------- ---------------- -------------
Revenue 2 2,725 3,487 7,955
Operating expenses 3 (3,963) (3,983) (7,936)
--------------------------------------- ------ ---------------- -------------
Operating expenses include:
Share based payments (56) (53) (77)
Other expenses (3,907) (3,930) (7,859)
--------------------------------------- ------ ---------------- ---------------- -------------
(Loss)/profit from operations (1,238) (496) 19
Finance income 34 24 61
Finance cost (1) (2) (5)
(Loss)/profit before tax (1,205) (474) 75
Income tax 240 107 40
--------------------------------------- ------ ---------------- ---------------- -------------
(Loss)/profit after tax attributable
to equity holders of the
parent (965) (367) 115
Other comprehensive income
for the period:
Items that may be reclassified
subsequently to profit or
loss:
Decrease in fair value on
available for sale financial
assets (4) (6) (12)
Total comprehensive income
for the period (969) (373) 103
======================================= ====== ================ ================ =============
(Loss)/earnings per share
Basic and diluted 4 (4.9)p (1.8)p 0.5p
======================================= ====== ================ ================ =============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 April 2015
At At At
30 April 2015 30 April 2014 31 October
Unaudited Unaudited 2014 Audited
GBP'000 GBP'000 GBP'000
----------------------------------- ---------------- ---------------- ---------------
Assets
Non-current assets
Plant, property and equipment 34 68 43
Deferred tax asset 86 127 86
------------------------------------ ---------------- ---------------- ---------------
Total non-current assets 120 195 129
------------------------------------ ---------------- ---------------- ---------------
Current assets
Financial assets designated
at fair value through profit
and loss 1,657 3,927 2,350
Available for sale financial
assets 510 473 467
Trade and other receivables 4,751 8,927 4,770
Stock borrowing collateral - - 102
Cash and cash equivalents 5,906 5,439 8,282
Corporation tax asset 248 - 8
------------------------------------ ---------------- ---------------- ---------------
Total current assets 13,072 18,766 15,979
------------------------------------ ---------------- ---------------- ---------------
Total assets 13,192 18,961 16,108
------------------------------------ ---------------- ---------------- ---------------
Current liabilities
Financial liabilities designated
at fair value through profit
and loss (90) (107) (75)
Trade and other payables (4,119) (6,949) (4,886)
Bank overdraft - (1,013) -
Corporation tax liability - (202) -
----------------------------------- ---------------- ---------------- ---------------
Total current liabilities (4,209) (8,271) (4,961)
------------------------------------ ---------------- ---------------- ---------------
Total liabilities (4,209) (8,271) (4,961)
==================================== ================ ================ ===============
Net assets 8,983 10,690 11,147
==================================== ================ ================ ===============
Equity:
Called up share capital 2,063 2,296 2,296
Share premium account 2,933 2,933 2,933
Capital redemption reserve 700 467 467
Available for sale reserve (3) (27) (33)
Retained earnings 4,418 6,139 6,597
------------------------------------ ---------------- ---------------- ---------------
Total equity before deduction
of own shares 10,111 11,808 12,260
Employee Benefit Trust reserve (849) (849) (849)
Own shares (279) (269) (264)
------------------------------------ ---------------- ---------------- ---------------
Total equity 8,983 10,690 11,147
==================================== ================ ================ ===============
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 30 April 2015
Six months Six months Year ended
ended ended 31 October
30 April 2015 30 April 2014 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------------- ---------------- ---------------- -------------
Operating activities before tax
(Loss)/profit from ordinary activities
before tax (1,205) (474) 75
Adjustments for:
Fair value adjustments of derivative
financial assets 286 319 538
Depreciation of fixtures, fittings
and computer equipment 14 49 82
Net interest receivable (33) (22) (57)
Share based payments 56 53 77
--------------------------------------------- ---------------- ---------------- -------------
Operating cash flow before changes
in working capital (882) (75) 715
Decrease in operating assets 527 13,260 18,673
Increase in operating liabilities (751) (12,018) (14,111)
Purchase of available for sale asset (513) - -
Proceeds from disposal of available 466 - -
for sale asset
Cash generated from operations (1,153) 1,167 5,277
Income taxes paid - - (286)
--------------------------------------------- ---------------- ---------------- -------------
Net cash flows from operating activities (1,153) 1,167 4,991
--------------------------------------------- ---------------- ---------------- -------------
Investing activities
Purchases of property, plant and equipment (5) (25) (33)
Net interest received 33 22 57
--------------------------------------------- ---------------- ---------------- -------------
Net cash from investing activities 28 (3) 24
--------------------------------------------- ---------------- ---------------- -------------
Financing activities
Proceeds from the sale of own shares 10 217 222
Purchase of own shares (1,120) (322) (322)
Dividends paid to shareholders (141) (366) (366)
Net cash flows from financing activities (1,251) (471) (466)
(Decrease)/increase in cash and cash
equivalents (2,376) 693 4,549
Net cash and cash equivalents at the
beginning of the period 8,282 3,733 3,733
Net cash and cash equivalents at the
end of the period 5,906 4,426 8,282
============================================= ================ ================ =============
Cash and cash equivalents included in the Statement of Cash
Flows compromise the following amounts in the Statement of
Financial Position:
31 October
30 April 2015 30 April 2014 2014
GBP'000 GBP'000 GBP'000
--------------------------------------- --------------- --------------- ------------
Cash on hand and balances with banks 5,906 5,439 8,282
Bank overdraft - (1,013) -
--------------------------------------- --------------- --------------- ------------
Net cash and cash equivalents 5,906 4,426 8,282
--------------------------------------- --------------- --------------- ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 April 2015
Employee
Share Capital Benefit Available
Share Premium Redemption Own Trust for sale Retained
capital account Reserve shares Reserve Reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Balance at
31 October
2013 2,296 2,933 467 - (1,046) (21) 6,804 11,433
Loss for
period - - - - - - (367) (367)
Revaluation
of available
for sale
assets - - - - - (6) - (6)
Total
comprehensive
income for
the year - - - - - (6) (367) (373)
Contributions
by and
distributions
to owners
Deferred tax
taken to
equity - - - - - - 48 48
Purchase of
own shares - - - (322) - - - (322)
Sale of own
shares - - - 53 - - - 53
Sale of shares
by Employee
Benefit Trust
to satisfy
employee
share
schemes - - - - 197 - (33) 164
Share based
payments - - - - - - 53 53
Dividends paid
to equity
shareholders - - - - - - (366) (366)
Balance at
30 April 2014 2,296 2,933 467 (269) (849) (27) 6,139 10,690
Profit for
period - - - - - - 482 482
Revaluation
of available
for sale
financial
assets - - - - - (6) - (6)
---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Total
comprehensive
income for
the year - - - - - (6) 482 476
Contributions
by and
distributions
to owners
Deferred tax
taken from
equity - - - - - - (48) (48)
Sale of own
shares - - - 5 - - - 5
Share based
payments - - - - - - 24 24
Balance at
31 October
2014 2,296 2,933 467 (264) (849) (33) 6,597 11,147
Loss for
period - - - - - - (965) (965)
Revaluation
of available
for sale
assets - - - - - (4) - (4)
Transferred
to retained
earnings on
disposal of
available for
sale assets - - - - - 34 (34) -
---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Total
comprehensive
loss for the
year - - - - - 30 (999) (969)
Contributions
by and
distributions
to owners
Purchase of
own shares - - - (1,120) - - - (1,120)
Sale of own
shares - - - 10 - - - 10
Own shares
cancelled (233) - 233 1,095 - - (1,095) -
Share based
payments - - - - - - 56 56
Dividends paid
to equity
shareholders - - - - - - (141) (141)
---------------- ---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Balance at
30 April 2015 2,063 2,933 700 (279) (849) (3) 4,418 8,983
================ ========== ========== ============= ========== ========== ============= =========== =========
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1) Basis of preparation
As permitted under AIM listing rules, 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 2015.
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 2014.
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 2014 have been
filed with the Registrar of Companies. The Independent Auditors'
Report on the Annual Report and Financial Statement for 2014 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
Year
Six months Six months ended
ended ended 31 October
30 April 2015 30 April 2014 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------- ---------------- ---------------- --------------
Equities division 1,309 1,315 2,689
Corporate Finance division 1,416 2,172 5,266
--------------------------- ----------------
Total revenue 2,725 3,487 7,955
=========================== ================ ================ ==============
3) Operating expenses
Six months Six months
ended ended Year ended
30 April 2015 30 April 2014 31 October
Unaudited Unaudited 2014 Audited
GBP'000 GBP'000 GBP'000
---------------------------------- ---------------- ---------------- ---------------
Staff costs including incentive
scheme 2,082 1,911 4,139
Other overheads 1,468 1,487 2,745
---------------------------------- ---------------- ---------------- ---------------
Staff and overhead costs 3,550 3,398 6,884
Share based payments 56 53 77
Depreciation 14 49 82
---------------------------------- ---------------- ---------------- ---------------
Total overhead costs 3,620 3,500 7,043
Variable overheads including
settlement costs 343 483 893
---------------------------------- ---------------- ---------------- ---------------
Total operating expenses 3,963 3,983 7,936
================================== ================ ================ ===============
4) (Loss)/earnings per share
The basic loss per share of 4.9p (2014: 1.8p) is calculated on a
loss after tax of GBP965,000 (2014: GBP367,000) and 19,858,823
(2014: 20,660,405) 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. For the year to 31
October 2014, the basic earnings per share of 0.5p is calculated on
a profit after tax of GBP115,000 and 20,818,253 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
4.6p as the dilution effect of the weighted average number of
outstanding share options of 965,937 would be to decrease the loss
per share. For the year to 31 October 2014, diluted earnings per
share takes account of the weighted average number of outstanding
share options being 1,132,883.
The underlying basic loss per share of 4.6p (2014: 1.5p) for the
six months ended 30 April 2015 is calculated on a loss after tax of
GBP909,000 (2014: GBP314,000) being the loss after tax, adjusted
for the current tax impact of IFRS 2 costs of GBP56,000 (2014:
GBP53,000). The underlying basic earnings per share of 0.5p for the
year to 31 October 2014 is calculated on a profit after tax of
GBP192,000 being the profit after tax, adjusted for the current tax
impact of IFRS 2 costs of GBP77,000.
5) Dividends
Year
Six months Six months ended
ended ended 31 October
30 April 2015 30 April 2014 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------- ---------------- ---------------- --------------
Final dividend year ended 31
October 2013 - 366 366
Final dividend year ended 31 141 - -
October 2014
Distribution to equity shareholders 141 366 366
====================================== ================ ================ ==============
The Directors have not proposed an interim dividend (2014:
Nil).
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 2015 which comprises the consolidated
statement of comprehensive income, the consolidated statement of
financial position, the consolidated statement of cash flows, the
consolidated statement 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 2015 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
30 July 2015
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
CORPORATE INFORMATION
Company Secretary & Registered Steve Wassell
Office Arden Partners plc
Arden House
17 Highfield Road
Edgbaston
Birmingham
B15 3DU
Direct line : 0121 423 8993
--------------------------------- -------------------------------------------------------
Directors Peter Moon Non Executive Chairman
Chairman of Remuneration
Committee
Chairman of Nominations
Committee
James Reed-Daunter Chief Executive Officer
Jonathan Keeling Executive Deputy Chairman
Steve Wassell Chief Operating Officer
Mark Ansell Non Executive Director
Chairman of Audit Committee
Luke Johnson Non Executive Director
--------------------------------- -------------------------------------------------------
Company Number 4427253
--------------------------------- -------------------------------------------------------
Company Web Address www.arden-partners.com
--------------------------------- -------------------------------------------------------
Nominated Advisor Altium Capital Limited
30 St James's Square
London
SW1Y 4AL
--------------------------------- -------------------------------------------------------
Registrar Capita IRG Plc
40 Dukes Place
London
EC3A 7NH
--------------------------------- -------------------------------------------------------
Lawyers Eversheds LLP
1 Wood Street
London
EC2V 7WS
--------------------------------- -------------------------------------------------------
Auditors BDO LLP
55 Baker Street
London
W1U 7EU
--------------------------------- -------------------------------------------------------
Bankers HSBC Bank plc
1(st) Floor
60 Queen Victoria Street
London
EC4N 4TR
--------------------------------- -------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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