19/04/2014 21:50:28 Free Membership Login

Half Yearly Report

Date : 09/30/2011 @ 2:00AM
Source : UK Regulatory (RNS & others)
Stock : Mercer Resources (MCR)
Quote : 0.825  0.0 (0.00%) @ 2:42AM
Mercer Resources share price Chart

Half Yearly Report

TIDMADS

RNS Number : 1867P

Alexander David Securities Grp PLC

30 September 2011

ALEXANDER DAVID SECURITIES GROUP PLC

(the "Company")

HALF YEARLY REPORT

HIGHLIGHTS

-- Group revenue of GBP1,509,070 (2010: GBP1,450,119) up 4.1%

-- Corporate revenue GBP622,398 (2010: GBP440,976) up 41%

-- Operating profit GBP92,000 (2010: GBP(193,000)); maiden operating profit

-- Investment write down GBP175,000 (2010: GBP97,000)

-- Loss before tax of GBP85,122 (2010: GBP294,119) reduced by 71%

Chairman's Statement

I am pleased to present the half yearly report for the six months to 30 June 2011. In our trading statement issued on 29 July we indicated that we had seen a strong start to 2011.

Sales continued well with the Company trading at or marginally ahead of where it was last year. The cost savings we made, which on an annualised basis amount to some GBP600,000, have helped to reduce the loss before tax to GBP85,122 (2010: GBP294,119).

Turnover in corporate finance has been particularly strong with revenues up 41%, albeit GBP269,000 of the fees recognized in this number were received in the form of options or warrants.

The Company has benefitted from the cost savings which were made at the year end and the benefit of these are being shown in these results. The headcount was reduced by 20% and, as a result, turnover per employee increased for the 6 months from GBP36,000 to GBP47,000.

In line with market practice we have revalued our stock portfolio. Prior to revaluation the Company made an operating profit of GBP92,000 (2010: GBP(193,000)). The directors believe this is a good performance against a market background which has seen a reduction of business globally and a 30% fall in the number of equity placings on the stock exchange this year. At the six month end the portfolio was valued at GBP320,000 (2010: GBP132,000).

In the July trading statement we notified the market that Alexander David Securities was expected to be profitable to July 2011. In addition, we raised GBP221,500 for additional working capital as we were concerned that the equity markets could be very volatile in the next five months. This prediction has been borne out in August and September and the Directors are pleased to have added additional capital to the Company to strengthen the balance sheet at this time.

Financial review

 
                                                                 Year ended 31 
                     6 Months ended 30   6 Months ended 30       December 2010 
           Revenue     June 2011 (GBP)     June 2010 (GBP)               (GBP) 
    Private Client             824,359             838,792           1,718,000 
 Corporate Finance             622,398             440,976             620,000 
   Institutional & 
         Corporate 
     Broking sales              62,313             155,766             194,000 
          Research                   0                   0              20,000 
    Gain/(loss) on 
       investments                   0              14,585                   0 
             TOTAL           1,509,070           1,450,119           2,552,000 
 

Administrative costs for the six month period were down approximately 20% on the same period last year.

Group total assets decreased to GBP1,424,000 (2010: GBP1,485,000).

Operational review

Alexander David has focused on reducing costs and maintaining revenues during 2011. In the first six months of the year it has achieved this goal. The Corporate Finance business has performed strongly in the first half. The Private Client business has added an additional 93 accounts in the first half of the year and broadly maintained its revenue contribution despite the more difficult trading conditions.

The Institutional and Corporate Broking team has also performed satisfactorily, participating in nine secondary placings in the six months to 30 June, although it has reduced revenue for the period to date.

The Group has significantly reduced the losses from June 2010, the major reason being substantial reduction in non-fee earning staff and a reduction in administrative expenses.

Outlook

Despite the challenging climate the Board continues to see a robust pipeline of corporate activities which are being actively worked on. The UK and global equities market volumes are down on previous years and as a result the broking business has been quieter in August and September but the Board is confident that it will continue to contribute to the ongoing growth of the business.

The Board remains positive about the prospects for the rest of the year.

For further information please see www.ad-securities.com or contact:

 
Michael Hicks, Chairman         Alexander David Securities 
 David Scott, Chief Executive    Group plc                     020 7448 9800 
James Caithie 
 Nominated Adviser              Cairn Financial Advisers LLP   020 7148 7900 
Bill Sharp                      Alexander David Securities 
 Broker                          Limited                       020 7448 9800 
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the Six Months to 30 June 2011

 
                                    6 Months 
                                      to 30                         Year ended 
                                      June             6 Months    31 December 
                                      2011           to 30 June           2010 
                                    unaudited    2010 unaudited        audited 
                                    GBP'000             GBP'000        GBP'000 
 
 Revenue                             1,509                1,450          2,552 
 
 Cost of Sales                       (347)                (311)          (551) 
                                  -----------  ----------------  ------------- 
 
 Gross Profit                        1,162                1,139          2,001 
 
 Administrative expenses            (1,072)             (1,332)        (2,887) 
 Exceptional Item                      -               -                 (146) 
 
 Operating profit/(loss)               90                 (193)        (1,032) 
 
 Investment (write down)/ income     (175)                 (97)             70 
 Finance costs                         -                    (4)            (8) 
 
 Loss before taxation                 (85)                (294)          (970) 
 
 Taxation                              -                      -              - 
 
 Loss after taxation                  (85)                (294)          (970) 
 
 Other comprehensive income            -                      -              - 
                                  -----------  ----------------  ------------- 
 
 Total comprehensive income           (85)                (294)          (970) 
                                  -----------  ----------------  ------------- 
 
 Basic and diluted loss per 
  share from continuing and 
  total operations                  (0.01)p             (0.06)p        (0.19)p 
 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2011

 
                                   As at 30      As at 30           As at 
                                   June 2011    June 2010     31 December 
                                   unaudited    unaudited    2010 audited 
                                   GBP'000        GBP'000         GBP'000 
 Assets 
 Non-current assets 
 Property, plant and equipment        5                14               9 
 Intangible assets                   485              485             485 
                                 -----------  -----------  -------------- 
                                     490              499             494 
                                 -----------  -----------  -------------- 
 Current assets 
  Listed Securities                  322              132             297 
 Trade and other receivables         578              540             381 
 Cash and cash equivalents            34              314             306 
                                 -----------  ----------- 
 Total current assets                934              986             984 
 
 Total assets                       1,424           1,485           1,478 
                                 -----------  -----------  -------------- 
 
 Equity and liabilities 
 Equity 
 Share capital                      2,772           2,639           2,772 
 Share premium                      1,351           1,120           1,351 
 Merger reserve                     3,278        3,278          3,278 
  Preference Shares                  1,724        1,724         1,724 
 Reverse acquisition reserve       (5,036)        (5,036)         (5,036) 
 Accumulated losses                (3,470)        (2,717)         (3,385) 
                                 -----------  -----------  -------------- 
                                     619            1,008             704 
                                 -----------  -----------  -------------- 
 Non-Current liabilities 
 Subordinated loan notes             139              130             137 
 
 Current liabilities 
 Trade and other payables            666              347             637 
                                 -----------  -----------  -------------- 
 Total liabilities                   805              477             774 
                                 -----------  -----------  -------------- 
 Total equity and liabilities       1,424           1,485           1,478 
                                 -----------  -----------  -------------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the Six Months to 30 June 2011

 
                              Share     Share   Rev.Acq    Merger   Preference     Accumulated 
                            capital   premium   Reserve   Reserve       Shares          losses               Total 
                            GBP'000   GBP'000             GBP'000      GBP'000         GBP'000             GBP'000 
 Balance at 1 January 
  2010                        2,639     1,120   (5,036)     3,278                      (2,423)   (422) 
 
 
 Conversion of 
  subordinated debt to 
  preference shares               -                   -         -        1,724                               1,724 
 
 Loss for the period              -         -         -         -            -           (294)               (294) 
 
 Balance at 30 June 2010 
  (unaudited)                 2,639     1,120   (5,036)     3,278        1,724         (2,717)               1,008 
                           --------  --------  --------  --------  -----------  --------------  ------------------ 
 
 Issue of Share Capital         133       231         -         -            -               -                 364 
 
 Credit for share based 
  payment                         -         -         -         -            -               8                   8 
 
 Loss for the period              -         -         -         -            -           (676)               (676) 
 
 Balance 31 December 2010 
  (audited)                   2,772     1,351   (5,036)     3,278        1,724         (3,385)                 704 
                           --------  --------  --------  --------  -----------  --------------  ------------------ 
 
 
 
 Loss for the period           -            -         -         -            -       (85)                     (85) 
 
 Balance at 30 June 2011 
  (unaudited)                 2,772     1,351   (5,036)     3,278        1,724         (3,470)                 619 
                           ========  ========  ========  ========  ===========  ==============  ================== 
 
 

CONSOLIDATED CASH FLOW STATEMENT

for the Six Months to 30 June 2011

 
                                                                    Year ended 
                                     6 Months          6 Months    31 December 
                                   to 30 June        to 30 June           2010 
                                         2011    2010 unaudited        audited 
                                      GBP'000           GBP'000        GBP'000 
 
 Loss before taxation                    (85)             (294)          (970) 
 
 Options & Warrants received in 
  lieu of fees                          (269)              (38)           (32) 
 Loss/(profit) on principal 
  trading                                (15)                 3             10 
 Share based payments                       -                 -              8 
 Investment income                          -                 -           (14) 
 Finance costs                              -                 6              8 
 Depreciation                               4                 6             11 
      Decrease/(increase) in 
       receivables                      (195)             (236)           (78) 
      Changes in value of 
       assets at fair value               244                95           (56) 
      Increase/(decrease) in 
       payables                            29             (118)            172 
                                 ------------  ----------------  ------------- 
      Cash outflow from 
       operations                       (287)             (576)          (941) 
                                 ------------  ----------------  ------------- 
 Interest paid                         -                    (6) 
 Net cash outflow from 
  operating activities                  (287)             (582)          (941) 
                                 ------------  ----------------  ------------- 
 
 
 
 
 Cash flow from investing 
 activities: 
      Purchase of assets at 
       fair value through 
       profit and loss                  (148)             (191)          (343) 
      Sale of assets at fair 
       value through profit and 
       loss                               163               219            344 
 Investment income                          -                 -             14 
                                 ------------  ---------------- 
 Net cash used in investing 
  activities                               15                28             15 
                                 ------------  ---------------- 
 
 Cash flow from financing 
 activities: 
 Issue of shares                            -                 -            364 
 Issue of shares expenses                   -                 - 
 Net cash from financing 
  activities                                -                 -            364 
                                 ------------  ----------------  ------------- 
 
 Net increase in cash and cash 
  equivalents                           (272)             (554)          (562) 
 
 Cash and cash equivalents at 
  beginning of period                     306               868            868 
 
 Cash and cash equivalents at 
  end of period-                           34               314            306 
 
 
 

NOTES TO THE FINANCIAL STATEMENTS

1. Basis of preparation and accounting policies

These condensed interim statements have been prepared in accordance with IAS34, 'Interim Financial Reporting', as adopted by the European Union on a basis consistent with International Financial Reporting Standards (IFRS). They do not contain all of the information required for full financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2010. These interim financial statements do not constitute statutory accounts within the meaning of the Companies Act.

The interim financial information is not audited. The interim financial information was approved by the Board of Directors on 21September 2011. The information for the year ended 31 December 2010 is extracted from the statutory financial statements for that year which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report was unqualified.

The accounting policies applied by the Group in these interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended and as at 31 December 2010

 
                              Six months         Six months         Year ended 
                              to 30 June         to 30 June        31 December 
       Earnings per                 2011               2010               2010 
  2.   share                   Unaudited          Unaudited            Audited 
                                 GBP'000            GBP'000            GBP'000 
  Loss for the 
   purpose of basic 
   and diluted loss 
   per share                        (85)              (294)              (970) 
                       -----------------  -----------------  ----------------- 
 
       Number of 
       shares: 
  Weighted average 
   number of shares 
   in issue during 
   the year                  631,794,869        499,067,599        508,158,508 
       Effect of 
       outstanding 
       options                         -                  -                  - 
                       -----------------  -----------------  ----------------- 
  Adjusted weighted 
   average number of 
   shares                    631,794,869        499,067,599        508,158,508 
                       -----------------  -----------------  ----------------- 
 
  Basic and diluted 
   loss per share 
   from continuing 
   and total 
   operations                    (0.01)p            (0.06)p            (0.19)p 
                       -----------------  -----------------  ----------------- 
 
 
 3.   Post baPost balance sheet events 
 

On 29 July 2011 the Company placed 110,750,000 new ordinary shares in the Company of 0.1 pence each ("New Ordinary Shares") at a price of 0.2 pence per New Ordinary Share raising GBP221,500. The placing proceeds will provide additional working capital to the Company to enable it to pursue its growth strategies. Certain of the Directors participated in the Placing, the result of which is that their participation is deemed to be a related party transaction pursuant to AIM Rule 13.

 
 4.   Post SeSegmental Reporting 
 

Business Segments

Adoption of IFRS, Operating Segments

The Group adopted "IFRS 8 - Operating Segments" with effect from I January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Directors. The Directors allocate resources to the segments to assess their performance.

Corporate Finance

This segment provides corporate finance and corporate broking services to small and mid cap companies.

Institutional Equities

The institutional equities team raises money for corporate clients and provides execution services to institutional and high net worth clients.

Private Clients

The Private Client team provides advice regarding cash equity and derivative products and execution services to private and high net worth clients.

Segmental Analysis

 
                                              Private 
    6 Months to   Corporate   Institutional    Client 
    30 Jun 2011    Finance        Sales        Sales     Unallocated     Total 
---------------  ----------  --------------  ---------  ------------  ---------- 
                   GBP'000       GBP'000      GBP'000      GBP'000      GBP'000 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
             UK      563           48           824           0          1,435 
---------------  ----------  --------------  ---------  ------------  ---------- 
       Overseas      60            14            0                        74 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
  Total Revenue      623           62           824           0          1,509 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
 
 
                                              Private 
    6 Months to   Corporate   Institutional    Client 
    30 Jun 2010    Finance        Sales        Sales     Unallocated     Total 
---------------  ----------  --------------  ---------  ------------  ---------- 
                   GBP'000       GBP'000      GBP'000      GBP'000      GBP'000 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
             UK      325           111          758          14          1,208 
---------------  ----------  --------------  ---------  ------------  ---------- 
       Overseas      116           45            81                       242 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
  Total Revenue      441           156          839          14          1,450 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
 
 
                                              Private 
   12 Months to   Corporate   Institutional    Client 
    31 Dec 2010    Finance        Sales        Sales     Unallocated     Total 
---------------  ----------  --------------  ---------  ------------  ---------- 
                   GBP'000       GBP'000      GBP'000      GBP'000      GBP'000 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
             UK      298           175         1,546         20          2,039 
---------------  ----------  --------------  ---------  ------------  ---------- 
       Overseas      322           19           172                       513 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
  Total Revenue      620           194         1,718         20          2,552 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
 

Revenue Analysis

 
                                              Private 
    6 Months to   Corporate   Institutional    Client 
    30 Jun 2011    Finance        Sales        Sales     Unallocated     Total 
---------------  ----------  --------------  ---------  ------------  ---------- 
                   GBP'000       GBP'000      GBP'000      GBP'000      GBP'000 
---------------  ----------  --------------  ---------  ------------  ---------- 
           Fees      399           62           706           -          1,167 
---------------  ----------  --------------  ---------  ------------  ---------- 
    Commissions      119            -           118           -           237 
---------------  ----------  --------------  ---------  ------------  ---------- 
     Securities      105            -            -            -           105 
---------------  ----------  --------------  ---------  ------------  ---------- 
  Total Revenue      623           62           824           -          1,509 
---------------  ----------  --------------  ---------  ------------  ---------- 
  Cost of sales     (29)          (11)         (306)          -          (347) 
---------------  ----------  --------------  ---------  ------------  ---------- 
   Gross profit      594           51           518                      1,162 
---------------  ----------  --------------  ---------  ------------  ---------- 
 Admin Expenses     (286)         (125)        (621)        (40)         1,072 
---------------  ----------  --------------  ---------  ------------  ---------- 
      Operating 
  Profit/(loss)      308          (74)         (103)        (40)          90 
---------------  ----------  --------------  ---------  ------------  ---------- 
     Investment 
         income     (175)                                     -          (175) 
---------------  ----------  --------------  ---------  ------------  ---------- 
  Finance costs 
---------------  ----------  --------------  ---------  ------------  ---------- 
  (Loss) Profit 
   for the Year      133          (74)         (103)        (40)         (85) 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
 
 
                                              Private 
    6 Months to   Corporate   Institutional    Client 
    30 Jun 2010    Finance        Sales        Sales     Unallocated     Total 
---------------  ----------  --------------  ---------  ------------  ---------- 
                   GBP'000       GBP'000      GBP'000      GBP'000      GBP'000 
---------------  ----------  --------------  ---------  ------------  ---------- 
           Fees      441                                     14           455 
---------------  ----------  --------------  ---------  ------------  ---------- 
    Commissions                    156          621                       777 
---------------  ----------  --------------  ---------  ------------  ---------- 
     Securities                                 218                       218 
---------------  ----------  --------------  ---------  ------------  ---------- 
  Total Revenue      441           156          839          14          1,450 
---------------  ----------  --------------  ---------  ------------  ---------- 
  Cost of sales     (11)          (15)         (283)         (2)         (311) 
---------------  ----------  --------------  ---------  ------------  ---------- 
   Gross profit      430           141          556          12          1,139 
---------------  ----------  --------------  ---------  ------------  ---------- 
 Admin Expenses     (516)         (286)        (476)        (54)        (1,332) 
---------------  ----------  --------------  ---------  ------------  ---------- 
 Operating loss     (86)          (145)          80         (42)         (193) 
---------------  ----------  --------------  ---------  ------------  ---------- 
     Investment 
         income                                             (97)         (97) 
---------------  ----------  --------------  ---------  ------------  ---------- 
  Finance costs                                              (4)          (4) 
---------------  ----------  --------------  ---------  ------------  ---------- 
  (Loss) Profit 
   for the Year     (86)          (145)          80         (143)        (294) 
---------------  ----------  --------------  ---------  ------------  ---------- 
 
 
 
                                               Private 
   12 Months to   Corporate   Institutional    Client 
    31 Dec 2010    Finance        Sales         Sales     Research    Total 
---------------  ----------  --------------  ----------  ---------  -------- 
                   GBP'000       GBP'000       GBP'000    GBP'000    GBP'000 
---------------  ----------  --------------  ----------  ---------  -------- 
           Fees      620                                     20        640 
---------------  ----------  --------------  ----------  ---------  -------- 
    Commissions                    194          1,298                 1,492 
---------------  ----------  --------------  ----------  ---------  -------- 
     Securities                                  420                   420 
---------------  ----------  --------------  ----------  ---------  -------- 
  Total Revenue      620           194          1,718        20       2,552 
---------------  ----------  --------------  ----------  ---------  -------- 
  Cost of sales     (55)          (45)          (451)                 (551) 
---------------  ----------  --------------  ----------  ---------  -------- 
   Gross profit      565           149          1,267        20       2,001 
---------------  ----------  --------------  ----------  ---------  -------- 
 Admin Expenses     (950)         (562)        (1,188)     (187)     (2,887) 
---------------  ----------  --------------  ----------  ---------  -------- 
    Exceptional 
       Expenses     (52)          (30)          (64)                  (146) 
---------------  ----------  --------------  ----------  ---------  -------- 
     Investment 
         income      88                                     (18)       70 
---------------  ----------  --------------  ----------  ---------  -------- 
  Finance costs                                             (8)        (8) 
---------------  ----------  --------------  ----------  ---------  -------- 
  (Loss) Profit 
   for the Year     (349)         (443)          15        (193)      (970) 
---------------  ----------  --------------  ----------  ---------  -------- 
 
 

The accounting policies of the reportable segments are the same as the group accounting policies. Segment profit represents the profit earned by each segment after allocating an appropriate proportion of overheads and support function expenses to each revenue centre.

The directors do not consider the Group's operations to be subject to significant seasonal fluctuation.

 
 5.   Post Related Party transactions 
 

Ultimate controlling party

The Directors do not consider there to be a single ultimate controlling party.

 
  Management 
   Key management are those persons having authority and responsibility 
   for planning, controlling and directing the activities of the 
   Company. In the opinion of the Board, the Company's key management 
   are the Directors of the Company. Information regarding their 
   compensation is given below in aggregate for each of the categories 
   specified in IAS 24 Related Party Disclosures: 
                                      6 months        6 months      Year 
                                         to 30           to 30      Ended 
                                          June            June      31 Dec 
                                          2011            2010       2010 
 
                                       GBP'000         GBP'000       GBP'000 
 Short-term 
 employee benefits                         155             148           311 
                                           155             148           311 
                                ==============  ==============  ============ 
 

Included in Directors' emoluments is an amount of GBP15,000 invoiced to the Company by a company controlled by Mr M Hicks.

During the period to 30 June 2011 the Group received income from share trading conducted through Jarvis Investment Management plc. Jarvis Investment Management PLC is the trading subsidiary of Jarvis Securities plc. The chief executive of Jarvis Securities plc, Andrew Grant, is a director and a shareholder of Alexander David Securities Group plc. The total income derived from trading through Jarvis Investment Management PLC was GBP590,115. Transactions are undertaken on a normal commercial basis. At the period end there was a balance of GBP23,029 due from Jarvis Investment Management plc.

6. Directors' Responsibility Statement

The interim report is the responsibility of, and has been, approved by the Directors. The Directors are responsible for preparing the interim financial statements in accordance with the AIM Rules for Companies.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR GMGZLGLLGMZM

Mercer Resources (LSE:MCR)
Historical Stock Chart

1 Year : From Apr 2013 to Apr 2014

Click Here for more Mercer Resources Charts.

Mercer Resources (LSE:MCR)
Intraday Stock Chart

Today : Saturday 19 April 2014

Click Here for more Mercer Resources Charts.


NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 140419 21:50