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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Mercer Resources | LSE:MCR | London | Ordinary Share | GB00BBNBM331 | ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.65 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
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
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