Post Close Trading Update & Issue of Equity (3179L)
July 29 2011 - 2:00AM
UK Regulatory
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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