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Post Close Trading Update & Issue of Equity

Date : 07/29/2011 @ 2:00AM
Source : UK Regulatory (RNS & others)
Stock : Mercer Resources (MCR)
Quote : 0.825  0.0 (0.00%) @ 2:54AM
Mercer Resources share price Chart

Post Close Trading Update & Issue of Equity

TIDMADS

RNS Number : 3179L

Alexander David Securities Grp PLC

29 July 2011

ALEXANDER DAVID SECURITIES GROUP PLC

("Alexander David" or the "Company")

POST CLOSE TRADING UPDATE AND ISSUE OF EQUITY

Trading Update

Alexander David today issues a trading update ahead of announcing its half yearly report for the six months ended 30 June 2011 ("Half Yearly Report") on 30 September 2011.

Trading in the first six months started strongly with the Company benefiting from cost savings that were implemented at the end of December 2010. The Directors believe that the investment environment remains unsettled and, like much of the investment banking community, the Company has seen a slowdown in its markets as summer approached. Nevertheless, trading in June 2011 and to date in July 2011 has been good with the most recent management accounts showing the Company making a small profit for the year to date.

In the Half Yearly Report, the Board expects the Company to show a small loss for the period, significantly below that for the corresponding period last year. This loss is due to a number of factors including delays in completing corporate transactions, a significant increase in irrecoverable VAT (in part due to the increase in VAT this year) and higher FSA fees as part of our cost of regulation.

Alexander David continues to make good progress in what have been volatile market conditions. Looking forward, the Directors believe that the Company should continue to benefit from its client base in the equity markets and from its good pipeline of corporate transactions. However, the Directors are also aware that, with the uncertainty in the global markets, trading conditions in the UK could change rapidly. Accordingly, the Board believe that it is prudent to ensure that the Company remains well capitalised and has therefore raised GBP221,500 by way of a placing of new ordinary shares.

Placing

The Company has today 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. Further details relating to this are set out below.

The New Ordinary Shares will, when issued, rank pari passu with the existing Ordinary Shares. Application has been made for admission of the New Ordinary Shares to trading on AIM and this is expected to become effective on 3 August 2011.

Directors' Shareholdings

The following directors of the Company have, as part of the Placing, subscribed for New Ordinary Shares as set out below. Their holdings before and after the Placing are also set out below:

 
                                                          Holding      Holding 
                    Current    Current       Shares     following    following 
                    holding    holding   subscribed       placing      placing 
 Director              (no)        (%)          for          (no)          (%) 
 David Scott*   104,674,467       16.6   32,500,000   137,174,467         18.5 
               ------------  ---------  -----------  ------------  ----------- 
 Trevor Coote    91,399,650       14.5   10,000,000   101,399,650         13.7 
               ------------  ---------  -----------  ------------  ----------- 
 Tony Cowling    24,868,177        3.9   10,000,000    34,868,177          4.7 
               ------------  ---------  -----------  ------------  ----------- 
 Angus Rose*     10,000,000        1.6   32,500,000    42,500,000          5.7 
               ------------  ---------  -----------  ------------  ----------- 
 

*the amount subscribed for the shares is in excess of 5% of the market capitalisation of the Company and is therefore deemed to be a related party transaction ('the Transaction')

Related Party Transaction

The subscription by certain of the Directors, as noted above, is deemed to be a related party transaction pursuant to AIM Rule 13. The Directors independent of the Transaction consider, having consulted with Cairn Financial Advisers LLP, the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Total Voting Rights

Following issue of the Placing Shares, the Company will have 742,544,869 ordinary shares of 0.1 pence in issue.

As Alexander David does not hold any ordinary shares in Treasury, its total number of voting rights equals its capital. These figures may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Alexander David under the FSA's Disclosure and Transparency Rules at the relevant dates.

Enquiries:

 
Alexander David Securities Group      Tel: +44 (0) 207 448 9800 
 plc 
 Michael Hicks, Chairman 
 David Scott, Chief Executive 
 
Nominated Adviser                     Tel: +44 (0) 207 148 7900 
 Cairn Financial Advisers LLP 
James Caithie / Simon Sacerdoti 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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