TIDMADS
RNS Number : 1998D
Alexander David Securities Grp PLC
14 May 2012
ALEXANDER DAVID SECURITIES GROUP PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2011
FINANCIAL HIGHLIGHTS
-- Turnover down 8% at GBP2.356m (2010: GBP2.552m) in difficult market conditions
-- Costs down 29% at GBP2.531m after an overhead reduction plan (2010: GBP3.584m)
BUSINESS HIGHLIGHTS
-- Average commission rates up 22% at 1.1% (2010: 0.9%)
-- Corporate finance pipeline at year end strong with a number of new assignments
-- Private clients increase by 300 in first quarter 2012 post
the purchase of Bridge Hall's client list
CHAIRMAN'S STATEMENT
Review of the year
The past year at Alexander David Securities Group plc (the
"Company" or the "Group") has been a period of significant
contrasts. Trading was very strong at the beginning of the year,
but much quieter thereafter. Turnover has decreased to GBP2.356m
from GBP2.552m in 2010. In 2011 turnover has benefited by
GBP478,000 from stock and warrants received as fees (2010:
GBP32,000). Turnover in our first year of operation in 2007 was
GBP359,000 and we are delighted by the continuing growth in our
revenues and gross profits.
Despite growing revenues the environment in which we operate
continues to be very challenging. The Group has significantly
reduced its loss which was GBP493,000 (2010: loss of GBP970,000)
and showed a net outflow of cash from operations of GBP469,000
(2010: outflow of GBP941,000). As a result, during 2011 and the
first quarter of 2012 the Directors have taken additional
annualised costs of GBP420k out of the business. This included
reducing staff costs and moving to smaller premises. The Board
continues to monitor costs and look at ways to operate at a lower
fixed cost level. The positive effect of these steps has ensured
that in the first three months of 2012 we are operating profitably
from our new cost base. The GBP316,000 loss shown in Investment
Income is represented by the reduction in acquisition date value of
the stocks and warrants received for Corporate Finance work and is
offset by GBP478,000 taken to revenue (being the actual acquisition
date valuation).
Whilst the year under review has been mixed we are pleased with
the development of the business. The equities side of the business
has had a great deal of success in raising equity capital for
smaller companies, made up of both our own clients and those of
other firms who have approached us for assistance in raising
capital. Throughout the year we raised a total of GBP13m in 40 fund
raisings. The performance of the investments which we have made has
also been very successful. In addition our corporate clients have
in general performed well.
We continue to look at prospects for acquisitions of people and
businesses as it remains in the Group's interests to increase its
scale, and post the year end we acquired the business of Bridge
Hall Stockbrokers.
The divisional performance of the business is as follows:
Private Clients
Turnover from our private client operations decreased 26% to
GBP1,267,000 (2010: GBP1,718,000). This segment of the business
involves the provision of advisory services in CFD and equity
trading. As at 31 December 2011 the Group had 896 private clients
(31 December 2010: 1,069); funds under management's supervision
(for advisory clients) were GBP22m (2010: GBP34m). In the year we
were hit by a number of bad debts amounting to GBP121,000 and these
have been fully written off in the year.
Corporate Finance and Corporate Broking
Turnover in corporate finance operations increased by 32% to
GBP1,078,000 (2010: GBP814,000).
Our number of retained corporate broking clients was 13 as at 31
December 2011 (2010: 17). Over 2/3rds of our corporate clients
raised capital in the year and we continued to see a steady growth
in the quality and prospects of corporate finance mandates and
corporate broking roles we have taken on.
As a part of the fees which are received by corporate finance
the Group has warrants valued at GBP96,000 (2010; GBP242,000).
These are available for sale by the Group and are a source of
capital which is available to the Group should it require funding.
The Directors do not include these sums as a part of its future
cash inflows in their cashflow forecasts as these cannot be
predicted and are dependent on both commercial and market price
considerations.
Commodity Trading
The Company continued to explore commodity related activities
during the financial year. To date these have not led to any
additional activities. The board continues to review this activity
as it believes it could make a contribution in the year ahead.
SEGMENTAL REPORTING
A segmental analysis of turnover is set out below:
Revenue Analysis Corporate Institutional Private Central Total
Finance Sales Client costs
Sales
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fees 570 - - 10 580
Trading 509 - - - 509
Commissions - - 1,091 - 1,091
Securities - - 176 - 176
Total revenue 1,079 - 1,267 10 2,356
Cost of sales 69 - 468 - 537
Gross Profit 1,010 - 799 10 1,819
Admin expense 772 - 1,092 130 1,994
Exceptional expense - - - - -
Investment income (366) - 50 - (316)
Finance expense - - - (2) (2)
(Loss) for the
Year (128) - (243) (122) (493)
The reportable segment results for the year ended 31 December
2010 are as follows:
Revenue Analysis Corporate Institutional Private Central Total
Finance Sales Client costs
Sales
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Fees 605 - - 20 625
Trading 15 - - - 15
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 expense (950) (562) (1,188) (187) (2,887)
Exceptional expense (52) (30) (64) - (146)
Investment income 88 - - (18) 70
Finance expense - - - (8) (8)
(Loss)/Profit for
the Year (349) (443) 15 (193) (970)
Capital raisings
In July 2011 the Company raised GBP221,000 in a placing of new
ordinary shares. The proceeds of this placing were put to the
working capital.
Post Balance Sheet Events
On 9 February 2012 the Company agreed to acquire the business of
Bridge Hall Stockbrokers for a total consideration of GBP30,000. It
is expected that this transaction will significantly increase the
Company's client base. BHSL is now in liquidation and is no longer
trading, and is no longer authorised to offer clients any
service.
On 13 February 2012, the Company placed GBP350,000 preference
shares which qualified for FSA tier one capital. The placing
proceeds will provide additional working capital. In addition, the
Company issued to the same subscribers, in proportion to their
subscriptions, warrants to subscribe for GBP350,000 of shares in
the Company at an exercise price of 0.16p per share. The
subscribers are entitled to receive a fee of 1% per calendar month
to the value of the warrant at the exercise price. The fee is
payable so long as the warrants are not exercised, for a period of
10 years from the date of issue. The warrants are over 218,750,000
new ordinary 0.1p shares in the Company.
Current Trading
Trading in the first quarter of 2012 has been in line with our
internal forecasts. Turnover was GBP603,568 compared with
GBP811,000 in Q1 2011. Cashflow forecasts prepared by the Directors
indicate that the Group will be able to operate within its
resources for the coming year assuming levels of income and
expenditure remain consistent with current levels of activity. As
ever, while the private client and the corporate retainer income is
reasonably predictable, the Directors continue to make certain
assumptions as to the timing of corporate revenues and placing
income, which is by its nature difficult to predict.
The business continues to have a strong pipeline of corporate
revenues with specific mandates; however shareholders need to be
aware that the market climate can be difficult and income may arise
earlier or later than expected and may not occur at all. The
Directors are confident, though, as the corporate revenue pipeline
is strong and new transactions are coming to the Company as it has
been developing its brand over the past five years.
Whilst the Directors recognise there are challenging times ahead
both politically and economically they view the future with
confidence.
Employees
Thanks are due to all management and staff for their dedication
and commitment, without which the progress that has been made would
not have been possible.
M Hicks
Chairman
For further information:
Alexander David Securities Group plc tel: +44(0)20 7448 9800
David Scott, Chief executive
Angus Rose, Finance Director
Cairn Financial Advisers tel: +44(0)20 7148 7900
James Caithie
Alexander David Securities Limited tel: +44(0)20 7448 9800
Bill Sharp
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2011
2011 2010
GBP'000 GBP'000
Revenue 2,356 2,552
Cost of sales (537) (551)
Gross profit 1,819 2,001
Administrative expenses (1,994) (2,887)
Exceptional item - administrative
expenses - (146)
Operating profit/(loss) (175) (1,032)
Investment income (316) 70
Finance costs (2) (8)
Loss before taxation (493) (970)
Taxation - -
Loss and total comprehensive income
for the year (493) (970)
============ ============
Basic and diluted loss per share
from continuing and total operations (0.07)p (0.19)p
============ ============
STATEMENT OF FINANCIAL POSITION
As at 31 December 2011
31 December 31 December
2011 2010
GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 3 9
Goodwill 485 485
Total non-current assets 488 494
Current assets
Listed securities available for
sale 211 297
Trade and other receivables 340 381
Cash and cash equivalents 57 306
Total current assets 608 984
TOTAL ASSETS 1,096 1,478
============ ==============
EQUITY AND LIABILITIES
Equity
Capital and reserves attributable
to equity holders of the Company
Ordinary share capital 2,882 2,772
Share premium 1,462 1,351
Merger reserve 3,278 3,278
Reverse Acquisition reserve (5,036) (5,036)
Preference shares 1,724 1,724
Accumulated losses (3,871) (3,385)
Total equity 439 704
Liabilities
Non-current liabilities
Subordinated loan notes 140 137
Current liabilities
Trade and other payables 517 637
Total Liabilities 657 774
TOTAL EQUITY AND LIABILITIES 1,096 1,478
============ ==============
The financial statements were approved by the Board of Directors
and authorised for issue on 25 April 2012, and signed on its behalf
by:
M Hicks D Scott
Chairman Director
Company registered number 03861966 (Registered in England and
Wales)
STATEMENT OF CASH FLOWS
For the year ended 31 December 2011
2011 2010
GBP'000 GBP'000
Cash flows from operating activities
(Loss) before taxation (493) (970)
Adjustments for:
Investment income - (14)
Finance costs 2 8
(Loss) on principal trading 87 10
Options and warrants received in lieu
of fees - (32)
Changes in value of assets at fair value
through profit or loss - (56)
Depreciation and amortisation 6 11
Share based payments 8 8
Decrease/(increase) in trade and other
receivables 41 (78)
(Decrease)/increase in trade and other
payables (120) 172
Cash used in operations (469) (941)
Interest paid -
NET CASH USED IN OPERATING ACTIVITIES (469) (941)
Cash flows from investing activities
Purchase of property, plant and equipment - -
Purchase of available for sale financial
assets (68) (343)
Proceeds of available for sale financial
assets 67 344
Investment Income 14
NET CASH GENERATED FROM INVESTING ACTIVITIES (1) 15
Cash flows from financing activities
Proceeds from issue of equity shares 221 364
Expense of share issue -
NET CASH GENERATED FROM FINANCING ACTIVITIES 221 364
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (249) (562)
Cash and cash equivalents at beginning
of year 306 868
CASH AND CASH EQUIVALENTS AT END OF YEAR 57 306
======== ========
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
The preliminary results incorporate the results of Alexander
David Securities and all its subsidiary undertakings (together, the
"Group") for the year ended 31 December 2011.
Financial information in this announcement does not comprise
statutory accounts for the purpose of section 435 of the Companies
Act 2006 and have been extracted from the consolidated accounts for
the period to 31 December 2011, as approved by the Directors on 25
April 2012. The statutory accounts for the year to 31 December 2010
have been filed with the Registrar of Companies and those for the
year to 31 December 2011 will be filed following the Group's annual
general meeting. The auditors' report on the 2010 accounts was
unqualified and no qualification is proposed for the accounts ended
31 December 2011.
Whilst the information in this announcement has been prepared in
accordance with recognition and measurement criteria of IFRSs, this
announcement in itself does not give sufficient information to
comply with IFRSs.
AVAILABILITY OF ANNUAL REPORT AND FINANCIAL STATEMENTS
Copies of the Company's full Annual Report and Financial
Statements will be posted to shareholders in due course and, once
posted, will be made available for download from the Company's
website at www.ad-securities.com.
The Annual Report and Financial statements will also be made
available for inspection during normal business hours on any
weekday at the Company's city office 45 Moorfields, London EC2Y
9AE. Alexander David Securities Group Plc is registered in England
and Wales with registered number 03861966.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BKDDQNBKDAPD
Mercer Resources (LSE:MCR)
Historical Stock Chart
From Jul 2024 to Aug 2024
Mercer Resources (LSE:MCR)
Historical Stock Chart
From Aug 2023 to Aug 2024
