Daniel Stewart recovering well

30th Aug 2011 12:14

Stockbrokers Daniel Stewart Securities has reported strong results for the fiscal year, which showed the company is recovering well, despite difficult market conditions. Revenue for the year was significantly up from £3.53m last year to £7.62m resulting in a gross profit of £8.14m (2010: £3.59m). Pre-tax profit moved back into the black at £1m, almost £3m up from the previous year. The fast growing wealth management division has seen assets under management rise to more than £125m; at the end of September, assets under management in the retail division had stood at £65m.Chief executive Peter Shea said: "The results achieved at our year end reflect the substantial improvement in our business model and we anticipate that we will continue to improve upon this further during the current financial year."He added: "Despite the poor conditions we remain optimistic for the future we have a reasonable pipeline of business and completed £34m of transactions in the first quarter of the new year. We have seen growing interest in our ability to provide debt financing and anticipate seeing growth in this area." The group's operating cash flow was negative, at £0.62m, but this represented an improvement on last year's outflow of £2.64m.At the end of the March, the company had a cash balance of £2.4m, up from £1.3m a year earlier, after the company raised £2.5m through an equity issue.The company does not pay dividends.The share price was up 7.27% to 1.48p at 12:26. NR