TIDMARDN
RNS Number : 2342N
Arden Partners plc
28 January 2016
Arden Partners plc
("Arden" or the "Group")
Results for the year ended 31 October 2015
Arden Partners plc (AIM: ARDN), the institutional stockbroking
company, today announces results for the year ended 31 October
2015.
Financial highlights
-- Revenue GBP5.5 million (2014: GBP8.0 million)
-- (Loss)/profit before tax (GBP2.1) million (2014: GBP0.08 million)
-- Underlying (loss)/profit before tax* (GBP1.8) million (2014: GBP0.15million)
-- Basic (loss)/earnings per share (10.8p) (2014: 0.5p)
-- Capital adequacy ratio 392% (2014: 445%)
* Profit before tax as adjusted for the effect of share based payments and reorganisation costs
Operational highlights
-- Luke Johnson appointed to the Board, as a Non-Executive Director, April 2015
-- Funds raised for clients GBP44m
-- Retained corporate clients 42
Commenting on the results and Arden's outlook, Peter Moon,
Chairman, said:
"Although Arden has struggled to capitalise on its strong
institutional and corporate client base to increase market share in
these challenging times, the book of mandated business since the
year end has increased substantially and we are confident that work
in progress will be converted to profitable business as the year
progresses".
Arden Partners plc 020 7614 5900
James Reed-Daunter - Chief Executive Officer
Steve Wassell - Chief Operating Officer
Altium 020 7484 4040
Sam Fuller
Chairman's Statement
The trading environment continues to be extremely difficult.
Secular forces continue to reduce income from secondary trading
and therefore place a greater emphasis on primary and corporate
deals as drivers of profitability. We are continuing to position
ourselves to take on this changing landscape.
Arden has struggled to capitalise on its strong institutional
and corporate client base to increase market share in these
challenging times. Additionally, industry reorganisation and
restructuring has proceeded at a slower pace than we would have
expected which has resulted in sub-standard returns across the
sector.
Whilst this is not a time to be complacent, Arden's strong
balance sheet puts us in a good position to continue making
necessary changes to our model, thus allowing the firm to generate
shareholder returns in the long term.
The board and management are determined to make the changes
required to put Arden in a favourable position to take advantage of
future opportunities.
Since the year end the book of mandated business has increased
substantially and one high profile transaction has been completed.
We are confident that work in progress will be converted to
profitable business as the year progresses.
Given the calibre of the staff we have and their commitment to
achieving results I am sure that Arden has a long and successful
future ahead of it and thank everyone for their contributions in
the past year.
I will be stepping down as a director and Chairman of Arden at
the next AGM after five years on the board and Luke Johnson will
take on the role. It has been an enjoyable, testing but stimulating
period during which I have received strong support from the entire
team at Arden, I thank them warmly for that and wish them and the
company every good fortune in the future.
Peter Moon
Chairman
Chief Executive's Statement
After a slower than expected first half, as referred to in my
interim statement, the encouraging start to the second half failed
to maintain momentum which in turn has led to a disappointing
out-turn for the full year.
However, Arden continues to be managed tightly and we continue
to make the changes necessary to adapt to evolving market
conditions.
2015 has continued to see investment in personnel to further
strengthen our product offering and client service. The team is
focussed to maximise revenues in traditional areas, but also to add
other growth sectors to our portfolio.
Financial Review
Revenue in the year ended 31 October 2015 was GBP5.5m compared
to GBP8.0m in 2014. The underlying loss before taxation, which is
stated before charging share-based payments and reorganisation
costs, was GBP1.8m and compares to a profit before taxation in
2014, of GBP0.15m.
The basic loss per share was 10.8p compared to earnings per
share of 0.5p in 2014.
The Board has continued its programme of buying back the
Company's shares in order to enhance shareholder value, under the
authority granted by the Shareholders. During the year ended 31
October 2015, the Company purchased 2,425,019 ordinary shares for a
consideration of GBP1.1m. Of these purchases 2,330,130 shares were
cancelled and the total share capital reduced accordingly.
At the financial year end the Company held 455,976 ordinary
shares of 10 pence each in Treasury. The total cost of these shares
was GBP0.3m.
Outlook
Although market conditions continue to be challenging, with
volatile global markets and commodity concerns in 2016, continuing
the trends of the latter months of 2015, Arden has already booked a
number of transactions in its new financial year and is working to
complete further mandates from its healthy pipeline of corporate
business.
With a strong balance sheet and a strong Board we continue to
work hard to deliver shareholder value for the longer term.
Finally, I would like to take this opportunity to thank our
staff for their commitment through a challenging period.
James Reed-Daunter
Chief Executive Officer
Consolidated Statement of Comprehensive Income
For the year ended 31 October 2015
2015 2014
Note GBP'000 GBP'000
-------------------------------- ------ --------- ---------
Revenue 2 5,486 7,955
Administrative expenses (7,646) (7,936)
-------------------------------- ------
(Loss)/profit from operations (2,160) 19
Finance income 65 61
Finance expense (2) (5)
-------------------------------- ------
(Loss)/profit before taxation (2,097) 75
Income tax credit - 40
-------------------------------- ------ --------- ---------
(Loss)/profit after taxation (2,097) 115
Other comprehensive income
for the year:
Items that will or may be
reclassified subsequently
to profit or loss:
Decrease in fair value of
available for sale financial
assets (7) (12)
Deferred tax taken to equity 6 -
-------------------------------- ------ --------- ---------
Total comprehensive income
for the year attributable
to equity shareholders (2,098) 103
================================ ====== ========= =========
(Loss)/earnings per share
Basic 3 (10.8p) 0.5p
================================ ====== ========= =========
Diluted 3 (10.8p) 0.5p
================================ ====== ========= =========
Consolidated Statement of Financial Position
At 31 October 2015
2015 2015 2014 2014
Note GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------- --------- --------- --------- ---------
Assets
Non-current assets
Property, plant and
equipment 25 43
Deferred tax asset 84 86
Total non-current
assets 109 129
---------------------------------------- --------- --------- --------- ---------
Current assets
Assets held at fair
value 1,703 2,350
Available for sale
financial assets 507 467
Trade and other receivables 2,138 4,770
Stock borrowing collateral 120 102
Cash and cash equivalents 5,372 8,282
Corporation tax asset 16 8
---------------------------------------- --------- --------- --------- ---------
Total current assets 9,856 15,979
---------------------------------------- --------- --------- --------- ---------
Total assets 9,965 16,108
---------------------------------------- --------- --------- --------- ---------
Current liabilities
Financial liabilities
held at fair value (92) (75)
Trade and other payables (1,979) (4,886)
Total current liabilities (2,071) (4,961)
---------------------------------------- --------- --------- --------- ---------
Total liabilities (2,071) (4,961)
---------------------------------------- --------- --------- --------- ---------
Net assets 7,894 11,147
======================================== ========= ========= ========= =========
Shareholders' equity
Called up share capital 2,063 2,296
Capital redemption
reserve 700 467
(MORE TO FOLLOW) Dow Jones Newswires
January 28, 2016 02:01 ET (07:01 GMT)
Share premium account 2,933 2,933
Employee Benefit Trust
reserve (849) (849)
Available for sale
reserve (6) (33)
Retained earnings 3,348 6,597
----------------------------- ------- --------
Total equity before
deduction of own shares 8,189 11,411
Own shares (295) (264)
----------------------------- ------- --------
Total equity 7,894 11,147
============================= ======= ========
Consolidated Statement of Cash Flows
For the year ended 31 October 2015
2015 2014
GBP'000 GBP'000
---------------------------------------- --------- ----------
Operating activities before
taxation
(Loss)/profit before tax (2,097) 75
Adjustments for:
Fair value adjustments of
derivative financial assets 287 538
Depreciation of fixtures,
fittings and computer equipment 25 82
Net interest receivable (63) (57)
Share based payments 111 77
----------------------------------------- --------- ----------
Operating cash flow before
changes in working capital (1,737) 715
Decrease in operating assets 2,976 18,673
Decrease in operating liabilities (2,892) (14,111)
Purchase of available for (513) -
sale investments
Proceeds from disposal of 466 -
available for sale investments
Cash generated from operations (1,700) 5,277
Income taxes paid - (286)
----------------------------------------- --------- ----------
Net cash flows from operating
activities (1,700) 4,991
----------------------------------------- --------- ----------
Investing activities
Purchases of property, plant
and equipment (7) (33)
Net interest received 63 57
----------------------------------------- --------- ----------
Net cash flows from investing
activities 56 24
----------------------------------------- --------- ----------
Financing activities
Proceeds from the sale of
own shares 10 222
Purchase of own shares (1,136) (322)
Dividends paid to equity shareholders (140) (366)
----------------------------------------- --------- ----------
Net cash flows from financing
activities (1,266) (466)
----------------------------------------- --------- ----------
(Decrease)/increase in cash
and cash equivalents (2,910) 4,549
Cash and cash equivalents
at the beginning of the year 8,282 3,733
----------------------------------------- --------- ----------
Cash and cash equivalents
at the end of the year 5,372 8,282
========================================= ========= ==========
Consolidated Statement of Changes in Equity
For the year ended 31 October 2015
Capital Employee Available
Share Redemption Own Benefit for
Share Premium Reserve shares Trust sale Retained
capital account Reserve Reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Balance
at
1 November
2013 2,296 2,933 467 - (1,046) (21) 6,804 11,433
Profit for
year - - - - - - 115 115
Revaluation
of available
for sale
financial
assets - - - - - (12) - (12)
---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Total
comprehensive
income for
the year - - - - - (12) 115 103
Contributions
by and
distributions
to owners
Purchase
of own shares - - - (322) - - - (322)
Sale of
own shares - - - 58 - - - 58
Share based
payments - - - - - - 77 77
Sale of
shares by
Employee
Benefit
Trust to
satisfy
employee
share schemes - - - - 197 - (33) 164
Dividends
paid to
equity
shareholders - - - - - - (366) (366)
Balance
at
31 October
2014 2,296 2,933 467 (264) (849) (33) 6,597 11,147
Profit for
year - - - - - - (2,097) (2,097)
Deferred
tax taken
to equity - - - - - - 6 6
Revaluation
of available
for sale
financial
assets - - - - - (7) - (7)
Transferred
to retained
earnings
on disposal
of available
for sale
assets - - - - - 34 (34) -
Total
comprehensive
income for
the year - - - - - 27 (2,125) (2,098)
Contributions
by and
distributions
to owners
Purchase
of own shares - - - (1,136) - - - (1,136)
Sale of
own shares - - - 10 - - - 10
Own shares
cancelled (233) - 233 1,095 - - (1,095) -
Share based
payments - - - - - - 111 111
Dividends
paid to
equity
shareholders - - - - - - (140) (140)
Balance
at
31 October
2015 2,063 2,933 700 (295) (849) (6) 3,348 7,894
================ ========== ========== ============= ========== ========== ============= =========== =========
Notes
1. The capital redemption reserve represents the nominal value
of shares that have been cancelled that were previously held as Own
Shares.
2. Own Shares represents shares purchased to be held as treasury shares at historical cost.
3. The Employee Benefit Trust reserve represents shares held in
the parent Company by the Arden Partners Employee Benefit Trust
which is consolidated in the Group's financial statements.
In the prior year 343,168 ordinary shares were issued from the
employee benefit trust to satisfy employee share options.
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 2015 or the year ended 31 October 2014 under the meaning of
s434 Companies Act 2006, but is derived from those accounts.
Statutory accounts for the years ended 31 October 2015 and 31
October 2014 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 2015 and 31
October 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.
Statutory accounts for the year ended 31 October 2014 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 October 2015, 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.
2015 2014
GBP'000 GBP'000
----------------------------- -------------- --------------
Equities Division 2,172 2,689
Corporate Finance Division 3,314 5,266
------------------------------
Total revenue 5,486 7,955
============================== ============== ==============
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