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(MERC.L) Merchant Securities PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 01-02-10 | RNS |
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RNS Number : 3955G Merchant Securities PLC 01 February 2010
News release 1 February 2010 Merchant Securities plc ("Company" or "the Group") Appointment of Head of Corporate Finance Merchant Securities plc, the financial services group specialising in institutional sales, research and trading, private client broking and investment management, corporate finance and corporate broking, announces that John East, after 23 years as executive chairman of John East & Partners Limited and, more recently, as head of corporate finance at Merchant John East Securities Limited ("MJES") will step down from this role on 31 March 2010. Simon Clements, who joined John East & Partners Limited in 2000 and was a director from 2004 until November 2009, will join the board of MJES, a wholly owned subsidiary of the Company, and become head of corporate finance at that time. John East will remain a director of the Company, deputy chief executive of MJES and chairman of the corporate finance division. Patrick Claridge, Chief Executive, Merchant Securities plc, says: "I would like to thank John for his invaluable contribution in growing the Group's corporate finance division and navigating the business throughout the last 23 years. "John's continued role within the Group and MJES ensures that we will benefit from his experience. In Simon we have an experienced individual who is capable of leading the corporate finance division through the next chapter of its growth." For further information please contact:
Merchant Securities plc
Arden Partners plc
Broadgate Mainland
Further information on Simon Clements: Simon Clements, aged 36, graduated from Hull University with a degree in Accounting in 1994 and qualified as a chartered accountant with Horwath Clark Whitehill in 1998, where he also worked in the corporate finance department. Since 2000 when he joined John East & Partners Limited, now MJES, he has been actively involved in and led a significant number of new issues, reverse takeovers, City Code transactions and acquisitions and disposals. He is a Qualified Executive for the purposes of the AIM Rules for Nominated Advisers and a Member of the Chartered Institute for Securities & Investment. This information is provided by RNS The company news service from the London Stock Exchange END
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| 08-12-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 7286D
Merchant Securities PLC
08 December 2009
Merchant Securities plc
Interim results for the six month period ended 30 September 2009
INTERIM REPORT TO SHAREHOLDERS
Merchant Securities plc (the "Group"), the financial services group specialising in institutional sales, research and trading, private client broking and investment management, corporate finance and corporate broking, announces its interim results for the six month period ended 30 September 2009.
Financial and operational highlights:
* Gross revenue £3.3 million (£2.4 million for corresponding period in 2008) up 37%
* Underlying profit before tax £289,471*, compared to a loss of £581,575** for the same period in 2008
* Profit before taxation £123,000, compared to a loss of £1.35 million for the same period in 2008
* Strong balance sheet with £2.2 million of net cash
* Advisory and discretionary funds under management increased 70% on corresponding period in 2008 to £152 million
* Trading subsidiaries integrated and rebranded as Merchant John East Securities Limited
* Acquisition of Cavendish Young Limited, an Independent Financial Adviser and fee based Wealth Management company.
(* underlying profits are before amortisation of intangible assets and discretionary profit share)
(** underlying losses are before goodwill impairment, revaluation of investments and non-recurring items)
Patrick Claridge, Chief Executive, Merchant Securities plc, says:
"The action taken last year to focus on the Group's core activities and manage the cost base has assisted in producing the positive results presented in the interim report. Conditions allowing, we are optimistic that we will build on the progress of the first half when we moved back into profit before tax and that the Group is now well placed to take advantage of growth opportunities in the future."
For further information please contact:
Merchant Securities plc 020 7375 9010
Patrick Claridge, Chief Executive
Arden Partners plc 020 7614 5917
Richard Day/Matthew Armitt
Broadgate Mainland 020 7726 6111
Roland Cross/Elizabeth Hannaway
Chairman's Statement
Introduction
I am pleased to announce a profitable result for the six month period ended 30 September 2009. This is a substantial turnaround from the outcome for the same period in 2009 and reflects the board's decision, taken last year, to focus on the Group's core activities and has been assisted by an improvement in some of the markets in which we operate.
The restructure and branding referred to in my last Chairman's statement have been completed. Operating as one company under the single brand name of Merchant John East Securities Limited, we are now in a strong position within the industry to offer a full range of financial services encompassing private client broking and investment management, institutional research and sales trading and corporate finance and broking.
Operational and financial review
Gross revenue increased 37% in the period under review to £3.27 million (£2.39 million 2008) with operating profit before amortisation, and provision for a profit sharing bonus pool, of £289,471 compared to a loss of £581,575 in the corresponding period in 2008. Net profit before taxation was £123,000, compared to a loss of £1.35 million for the corresponding period last year.
Cash balances remain strong at £2.2 million net of a small overdraft resulting from the acquisition of Cavendish Young.
Equity markets were strong in the period under review, and provided a favourable environment for our institutional sales trading and research activities. All performed well and added to their client bases. In particular we have continued to increase the number of institutional clients subscribing to the daily research product, Mercantalyst, the insightful and highly regarded technical review of trends in the market.
Our private client business, too, together with our contracts for difference activities, enjoyed the more favourable market conditions. We launched a further three managed funds in the period, taking our total to seven. We also acquired Cavendish Young Limited, an independent wealth management company, which has allowed us to increase the range of services we offer to private clients. A combination of these factors enabled us to increase funds under group management by £46 million and the private client base by 2,500 clients.
Although there has been a pick up in the level of activity in the large end of the corporate market, this has not been true of AIM where we operate predominately. Business conditions have remained difficult for raising money for smaller companies. In June this year, however, our corporate finance division advised and acted for Toluna plc on its acquisition of the ISS division of Greenfield Online, Inc. a subsidiary of Microsoft Corporation, Inc. This transaction was named the AIM Transaction of the Year at the recent 2009 AIM Awards and we are pleased to have played our part in its execution.
Strategic development
We have now successfully completed the integration of the Merchant Securities' and John East & Partners' businesses. These are now trading under the single name of Merchant John East Securities Limited. We have no doubt that significant synergies will flow from this, particularly when we are able to move both businesses into the same office, which we expect to take place in the middle of next year.
As stated above Cavendish Young, the wealth management advisory business, has recently been acquired. This has now been relocated to our head office in Bevis Marks, London and is expected to produce significant benefits for our existing private client business.
We continue to look for further acquisitions of groups of individuals and businesses which will help us to build our core activities.
Outlook
With the restructuring now completed and the Group positioned with the one Merchant John East Securities brand, we expect to make further progress in the second half. We look to continue to build our institutional and private client businesses, while there are signs of more activity in our corporate finance area.
The strength of the Group now allows us to seek to continue to grow by acquisition as well as organically and it is the board's intention to do so should the right opportunities arise.
All the activities of the Group are seeing signs of improvement. General conditions allowing, we are optimistic that we will continue with the progress made in the first half of the year.
John Green
Chairman
8 December 2009
About Merchant Securities plc
Merchant Securities plc provides a range of financial service products and advice to high net worth private clients, institutions and smaller businesses. The Company is the parent company of Merchant John East Securities Limited, which is authorised and regulated by the Financial Services Authority and provides a range of services, including advisory and discretionary wealth management for high net worth private clients, research, sales and sales trading for institutional investors, and corporate finance and corporate broking services, including raising capital, for smaller public and private companies. In September 2009, it acquired Cavendish Young Limited, an Independent Financial Adviser and fee based Wealth Management company.
MERCHANT SECURITIES PLC
Interim unaudited accounts for the six month period ended 30 September 2009
CONSOLIDATED INCOME STATEMENT
Six months to 30 September 2009 Six months to 30 Year ended 31
Unaudited September 2008 March 2009
£000 Unaudited Audited
£000 £000
Revenue 3,266 2,381 5,425
Cost of sales (605) (426) (829)
Gross Profit 2,661 1,955 4,596
Other income - 4 40
General administrative expenses (2,396) (2,626) (5,266)
Impairment of goodwill - - (2,624)
Impairment of intangible assets - - (647)
Amortisation of intangible assets (84) (60) (120)
Revaluation of assets held for sale - (422) (382)
Profit/(loss) on disposal of trading 19 - (15)
investments
Non-recurring items - (287) (287)
Profit share accrual (82) - -
Operating profit/(loss) 118 (1,436) (4,705)
Investment revenues*1 5 86 147
Interest payable*1 - - (18)
Profit/(loss) before taxation 123 (1,350) (4,576)
Taxation - 9 108
Profit/(loss) attributable to equity 123 (1,341) (4,468)
holders
*1 September 2008 restated. Interest received and interest paid have been netted at September 2008 for comparability purposes.
Earnings per share
Basic 0.26p (3.61p) (10.63p)
Diluted 0.24p (3.61p) (10.63p)
The profit/(loss) for the period
attributable to equity holders of the
Company is as follows:
Profit before tax, goodwill impairment, 289 (582) (501)
revaluation of investments and
non-recurring items
Impairment of goodwill - - (2,624)
Impairment of intangible assets - - (647)
Amortisation of intangible assets (84) (60) (120)
Revaluation of investments held for sale - (421) (382)
Loss on disposal of investments held for - - (15)
sale
Non-recurring items - (287) (287)
Profit share accrual (82) - -
123 (1,350) (4,576)
Taxation - 9 108
Profit/(loss) attributable to equity 123 (1,341) (4,468)
holders
MERCHANT SECURITIES PLC
Interim unaudited accounts for the six month period ended 30 September 2009
CONSOLIDATED BALANCE SHEET
30 September 30 September 31 March
2009 2008 2009
Unaudited Unaudited Audited
£000 £000 £000
Non-current assets
Goodwill 2,757 5,128 2,554
Intangible assets 478 1,269 562
Property, plant and equipment 243 332 275
Trade and other receivables 150 150 150
3,628 6,879 3,541
Current assets
Trade and other receivables 1,522 877 1,027
Trading investments - - -
Cash and cash equivalents 2,191 2,270 2,153
3,713 3,147 3,180
Total assets 7,341 10,026 6,721
Current liabilities
Trade and other payables (1,052) (916) (727)
Current tax liabilities - - -
(1,052) (916) (727)
Non-current liabilities
Deferred consideration (176) - -
Deferred tax liabilities (16) (21) (16)
Total liabilities (1,244) (937) (743)
Total assets less liabilities 6,097 9,089 5,978
Equity
Share capital 3,272 3,272 3,272
Share premium account 11,705 11,705 11,705
Other reserves (3,845) (3,845) (3,845)
Share-based payment reserve 288 241 292
Revaluation reserve/(deficit) - 35 -
Retained earnings (5,323) (2,319) (5,446)
Equity attributable to equity holders 6,097 9,089 5,978
CONSOLIDATED CASH FLOW STATEMENT
Six months to 30 Six months to 30 September 2008 Year ended 31 March 2009
September 2009 Unaudited Audited
Unaudited £000 £000
£000
Cash flow from operating activities
Cash generated from operations 97 (1,081) (1,087)
Interest received 5 158 147
Interest paid - (72) (19)
Tax paid - (46) (92)
Net cash generated from / (used in) operating
activities 102 (1,041) (1,051)
Cash flows from investing activities
Acquisition of subsidiary business (60) - (50)
Purchase of property, plant and equipment (23) (4) (11)
Proceeds from disposal of available-for-sale
investments 19 - 25
Purchase of held-for-sale investments - - (75)
Net cash generated from investing activities
(64) (4) (111)
Cash flows from financing activities
Net proceeds from sale of shares - 1,522 1,522
Net cash generated from financing activities - 1,522 1,522
Net increase in cash and cash equivalents
38 477 360
Cash and cash equivalents at beginning of 2,153 1,793 1,793
period
Cash and cash equivalents at end of period 2,191 2,270 2,153
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Revaluation Share based payment Retained earnings Total
capital premium reserves reserve reserve Equity
£000 £000 £000 £000 £000 £000 £000
Equity as at 1 April 2007 1,942 7,408 (3,845) (41) 64 (242) 5,286
Revaluation of investments
available for sale at fair (64) (64)
value
Deferred tax credit 19 19
Profit for the 6 months ended
30 September 2007 53 53
Total recognised income and
expenses for the period (45) 53 8
Share based payments 33 33
Equity as at 30 September 2007
1,942 7,408 (3,845) (86) 97 (189) 5,327
Revaluation of investment at
fair value 133 133
Deferred tax credit (11) (11)
Loss for the 6 months ended 31
March 2008 (789) (789)
Total recognised income and
expenses for the period 122 (789) (667)
Issue of shares 1,173 2,932 4,105
Share based payments 55 55
Equity as at 31 March
2008 3,115 10,340 (3,845) 36 152 (978) 8,820
Revaluation of investment at
fair value -
Deferred tax credit -
Loss for the 6 months ended 30
September 2008 (1,341) (1,341)
Total recognised income and
expenses for the period (1,341) (1,341)
Issue of shares net of costs 157 1,365 1,522
Share based payments 89 89
Equity as at 30 September
2008 3,272 11,705 (3,845) 36 241 (2,319) 9,090
Revaluation reserve movement
(36) (36)
Share based payments 52 52
Loss for the 6 months ended
31 March 2009 (3,127) (3,127)
Equity as at 31 March 2009 3,272 11,705 (3,845) - 293 (5,446) 5,979
Share based payments (5) (5)
Profit for the 6 months ended 123 123
30 September 2009
Equity as at 30 September 3,272 11,705 (3,845) - 288 (5,323) 6,097
2009
NOTES
Note 1 - Accounting policies
Basis of preparation
The consolidated interim financial information has been prepared in accordance with IAS 34 'Interim Financial Reporting'. These policies are in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union.
The interim financial statements have been prepared on the basis of the accounting policies as stated in the consolidated financial statements for the year ended 31 March 2009. The interim financial statements should be read in conjunction with those audited financial statements for the year ended 31 March 2009. The Group has adopted the requirements of IFRS 8 - Segmental Reporting for the first time, the results of which are presented in note 3. below.
The financial information set out in this interim statement is unaudited and does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The statutory accounts for the year ended 31 March 2009, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditors of the Group, Horwath Clark Whitehill LLP, reported on those accounts: their report was unqualified and did not contain a statement under either Section 237 (2) or Section 237 (3) of the Companies Act 1985.
Note 2 - Basis of consolidation
The financial information incorporates the results of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.
All intra-group transactions, balances, income and expenses have been eliminated on consolidation.
Note 3 - Revenue and gross profit by segment
The Group's results for the period ended 30 September 2009, all of which were generated within the United Kingdom, can be analysed by product as follows:
Six months to 30 Six months to 30 September 2008 Year ended 31 March 2009
September 2009 Unaudited Audited
Unaudited £000 £000
£000
Revenue
Private client 1,788 1,175 2,396
Institutional broking 708 336 1,199
Corporate 803 870 1,830
Central (33) - -
3,266 2,381 5,425
Profit/(loss) before tax
Private client 585 (152) (253)
Institutional broking 100 (261) 355
Corporate (396) (259) (714)
Central (166) (678) (3,965)
123 (1,350) (4,577)
Total assets - Central 7,341 10,026 6,721
The Group does not allocate its balance sheet between business segments. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 4 - Taxation
Taxation disclosed in the Consolidated Income Statement represents an estimate of the sum of corporation tax currently payable, any adjustments to previously disclosed corporation tax, and deferred tax income and charges.
The corporation tax currently payable is based on the estimated taxable profit for the period. Taxable profit differs from net profit or loss as reported in the Consolidated Income Statement because it excludes items of income and expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
The tax charge/(credit) is based on the results for the period of ordinary activities and movement in deferred tax.
Six months to 30 Six months to 30 September 2008 Year ended 31 March 2009
September 2009 Unaudited Audited
Unaudited £000 £000
£000
Current UK corporation tax - 5 (78)
UK Corporation tax adjustments in respect of prior
periods - - (25)
Deferred tax - (14) (5)
- (9) (108)
Note 5 - Earnings per share
The basic and diluted earning per share is calculated based on:
Six months to 30 Six months to 30 September 2008 Year ended 31 March 2009
September 2009 Unaudited Audited
Unaudited £000 £000
£000
Basic EPS
Profit/(loss) for the period 123 (1,341) (4,468)
Weighted average number of shares in issue 46,897 37,172 42,021
(000)
Diluted EPS
Profit/(loss) for the period 123 (1,341) (4,468)
Weighted average number of shares in 52,219 42,717 47,220
issue (000)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFLDFLLDIIA
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| 30-11-09 | RNS |
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RNS Number : 2720D Merchant Securities PLC 30 November 2009
30 November 2009 Merchant Securities plc Merchant Securities plc Interim results for the six months ended 30 September 2009 Merchant Securities plc, the financial services group specialising in institutional research and trading, private client investment management, corporate finance and corporate broking, will announce its interim results for the six months ended 30 September 2009, during the week commencing 7 December 2009. This information is provided by RNS The company news service from the London Stock Exchange END
NORGCBDBSXXGGCG More |
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| 05-02-10 | ||||
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If you havent already take a look at ANGM...
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Newby11,
I have a small amount of VIY shares. Could go broke could go £5+ a share. 3 years at least. I don't post on all the boards I invest in. I don't have time!  Good luck. |
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| 01-02-10 |
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Hi Elena,
Off topic but i came across VIY tonight. They look very interesting... Im to tired to do much research now but looking at their website and the short-medium term i think i will sit down for a few hours tomoro night and have a good look into them. The bb has some repreted posters to. The potential is what gives it such a good upside and Q1 seems to be where things will happen. Was going to post this on the MHG board but to many different agendas over there at the moment ha. Hope the presentation goes well tomoro. |
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| 01-02-10 |
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i think Morgan Stanley are more involed with merchant than we think..
http://www.merchantjohneast.com/documents/downloads/MS%20Hindsight%20II%20May%2009.pdf Heres a bit on this Simon Clements bloke aswell.. http://www.augustaco.com/team.html#scd |
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The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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