TIDMARDN
RNS Number : 0707U
Arden Partners plc
27 July 2020
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Arden Partners plc
("Arden" or the "Company" or the "Group")
Unaudited results for the six months ended 30 April 2020
Arden Partners plc (AIM: ARDN.L), the institutional stockbroking
company, today announces its unaudited results for the six months
ended 30 April 2020 (the "period").
Highlights
-- Arden made a good start to the period despite the elevated
political uncertainty prevailing around Brexit and the General
Election.
-- Trading towards the end of the period was negatively impacted
by the significant global market declines in reaction to the
COVID-19 pandemic, with the Company's equity trading operation
suffering material losses.
-- Corporate finance revenues for the period were materially
higher than the comparative period and included higher corporate
client retainer levels. Equity commissions for the period were
lower, as anticipated.
-- The Board implemented steps to reduce costs and preserve cash
in response to COVID-19. As a result, the Company's current
annualised cost base is significantly lower than last year.
-- The Company has traded profitably post the period end, with a
number of corporate transactions completed and an encouraging
pipeline.
Financial highlights
-- Revenue: reduced by 26.8% to GBP2.3m (2019: GBP3.2m) with the
losses incurred in the equity trading operation offsetting
increased corporate finance revenue
H1 2020 H1 2019 %
GBP'm GBP'm Change
------------------------------------- --------- --------- ---------
Equities (1.1) 0.4 (408.1)
------------------------------------- --------- --------- ---------
Corporate Finance (incl. corporate
retainers) 3.4 2.7 23.7
------------------------------------- --------- --------- ---------
Wealth Management 0.0 0.1 (20.6)
------------------------------------- --------- --------- ---------
Revenue 2.3 3.2 (26.8)
------------------------------------- --------- --------- ---------
-- Loss before tax: GBP1.5m (2019: GBP1.6m)
-- Basic loss per share: 5.7p (2019: 5.5p)
-- No interim dividend proposed (2019: nil)
-- Strong balance sheet with capital maintained at a level above minimum FCA requirements
Commenting Chief Executive Officer Donald Brown said:
"During these unprecedented times our priorities have been
ensuring the wellbeing of our staff and continuing to support our
clients. We are grateful for our staff's efforts in ensuring that
our business activities suffered no disruption and that the quality
of our service has not been compromised.
As a result of our swift actions, Arden continues to have the
balance sheet strength and the people to compete effectively.
Our clients continue to react to the significant effect of
COVID-19 on their businesses and seek our support, for example, to
raise equity or assist with development or acquisition plans. We
have an encouraging pipeline of transactions and the Company's
performance for the current financial year as a whole is likely to
be determined by the delivery of these deals."
Arden Partners plc 0207 614 5900
Donald Brown - Chief Executive Officer
James Reed-Daunter - Executive Director
Steve Douglas - Group Finance Director
GCA Altium - NOMAD to Arden Partners
plc 0207 484 4040
Tim Richardson
Copies of this Interim Report are available from the Company's website
(www.arden-partners.com) and from its registered office, 5 George Road,
Edgbaston, Birmingham B15 1NP.
Notes for editors
Arden is a dedicated corporate adviser and multi-service stockbroker
to small and mid-cap companies in the UK and their investors.
The absolute core of our business is the effective management of the
needs of our significant and growing base of corporate clients, and the
effective support of their relationships with existing and potential
shareholders.
These relationships are enhanced by the quality of our corporate finance
advice and industry research, and the strong market presence of our sales
and trading teams.
Our corporate finance capabilities encompass M&A, corporate finance advisory,
broking and Sponsor and NOMAD services. We represent our clients in private
transactions and AIM and Main Market share issues.
Our research is designed to be sector focused, concentrating on top down
thematic trends which highlight companies giving investors an exposure
to the real growth areas of the small-cap and AIM markets.
It is the job of the sales team to keep institutions abreast of these
themes and stock ideas. When there is a requirement for our corporate
clients to raise money to fulfil their growth ambitions, the sales team
is in a strong position to effect this, with its entrenched relationships
with the UK institutional and non-institutional markets.
Our market making and trading teams provide liquidity in the shares of
our corporate clients. We also trade the shares of non-client corporates
on behalf of institutions.
CHIEF EXECUTIVE'S STATEMENT
Overview
The macro agenda for the first half of the period was dominated
by the UK General Election of December 2019. The clear result of
that election led to strong equity market gains and presaged a
resurgence of corporate activity. However, this trading environment
was short lived as, in the second half of the period, the impact of
the COVID-19 pandemic then led to unprecedented declines in equity
markets, significant volatility levels and a pause on all corporate
activity.
Post the period end, however, we have seen a substantial
increase in demand for equity issuance and a gradual return of
corporate activity as clients react to the opportunities as well as
the challenges triggered by the pandemic. We anticipate this trend
continuing.
The Company operated throughout the period, albeit remotely for
the later part, and we continue to win new corporate clients.
Overall, revenues decreased 26.8% to GBP2.3m (H1 2019: GBP3.2m)
and the operating loss was GBP1.5m (H1 2019: operating loss of
GBP1.6m). The equity trading operation suffered material unrealised
losses predominantly caused by a small number of larger positions
that suffered material falls in value as financial markets were
impacted by COVID-19. Post the period end, there has been a partial
recovery in some of these positions. Excluding the losses of its
equity trading operation, the Company delivered revenue growth in
the period, driven by a 23% increase in corporate finance revenues.
Excluding the equity trading losses and restructuring costs, the
Company generated a small operating profit for the period.
The Company has a strong balance sheet, with cash and cash
equivalent resources well in excess of its regulatory requirements.
Further, the Company's cash and cash equivalent resources have
increased post period end following the profitable start to the
second half of the financial year.
Over the period the Board has taken action to ensure the
appropriateness of the Company's cost base. This was particularly
evident with the swift action taken to manage costs and preserve
cash as COVID-19 impacted the UK market. As a result, staff and
overhead costs for the period are 28% lower than in the prior
period and the Company's cost base for the current financial year
is anticipated to be significantly lower than last year. The Board
will continue to take all necessary action to manage costs and
minimise the impact of any further uncertainty caused by COVID
19.
Post period end and in recognition of the continued hard work
and sacrifice of Arden's employees during this extraordinary time,
the Company's employee Benefit Trust distributed ordinary shares to
all employees and the Company re-set the exercise price of all
existing share options.
Looking forward, our current pipeline, together with our lower
cost base and strong balance sheet, means we are well placed to
meet the challenges ahead and are cautiously optimistic for the
remainder of the financial year.
Business review
Summary
H1 2020 H1 2019 %
GBP'm GBP'm Change
------------------------------------- --------- --------- ---------
Equities (1.1) 0.4 (408.1)
------------------------------------- --------- --------- ---------
Corporate Finance (incl. corporate
retainers) 3.4 2.7 23.7
------------------------------------- --------- --------- ---------
Wealth Management * 0.0 0.1 (20.6)
------------------------------------- --------- --------- ---------
Revenue 2.3 3.2 (26.8)
------------------------------------- --------- --------- ---------
* Wealth Management revenues in the period were GBP33,982 (2019
GBP40,950) which have been rounded to the nearest thousand in the
table above.
Equities division
Equities income comprises equity execution commission, payments
for research, the equity trading operation and the market value of
warrants held by the Company.
Equity execution commission, in line with our expectations,
reduced slightly compared to the prior period reflecting the
ongoing impact of regulation reducing trading volumes in the small
and mid-cap market. Payments for research were in-line with the
prior year. We recorded a small loss on our warrant position
reflecting reduced market values at the period end.
The equity trading operation suffered material unrealised losses
predominantly caused by a small number of larger positions that
suffered material falls in value as financial markets were impacted
by COVID-19. These larger positions were predominantly in sectors
whose share prices were particularly impacted by the onset of the
pandemic. Post the period end, there has been a partial recovery in
some of these positions and the equity trading operation has made
material unrealised profits.
Corporate Finance
Corporate Finance revenues comprise fees for fund raisings and
other corporate transactions together with retainers from corporate
clients. These revenues rose by 23.7% in the period compared to the
first half of last year.
Following the General Election in the first half of the period,
Arden completed a number of corporate transactions. The second half
of the period then suffered from a decline in transaction volumes
as COVID-19 significantly impacted the wider market. However, since
the period end, the Company is experiencing strong fundraising and
transactional demand and the transaction pipeline has improved,
leaving us well placed for the remainder of the year.
Corporate finance retainers in the period increased by 9.1%
reflecting an increase in client numbers compared to the prior
year. Post the period end, the Company has continued to win new
clients.
Wealth Management
Our wealth management operation remains in its infancy whilst we
wait for more stable market conditions to properly launch our
offering. Revenues in the period comprised equity trading
commissions broadly in line with the prior period. The small team
has offered considerable assistance on a number of our fund
raisings and bring a new investor audience to our offering.
Coronavirus update
Trading towards the end of the period was impacted materially by
the significant declines in the global market in reaction to the
start of the COVID-19 pandemic. Our equity trading operation
suffered material unrealised losses as a number of long positions
fell in value and a number of corporate finance transactions were
put on hold.
In response, the Board implemented steps to manage the Company's
cost base and preserve cash and, to ensure both the wellbeing of
our staff and our ability to continue supporting our clients as
normal, to provide a comprehensive remote working capability. As a
result, the Company remained fully operational throughout the
lockdown period and was able to work closely with its corporate
clients to assess the disruption caused to them by COVID-19 and,
where possible, assist them in protecting their businesses and
continuing to implement their strategies.
The measures taken by the Board to manage the Company's cost
base included salary and fee sacrifices of in excess of 40% for all
Board members and certain senior employees; salary sacrifices for
all other employees; the furloughing of a number of staff;
utilising government allowances for deferring the payment of VAT;
and the cancellation or deferral of all discretionary expenditure.
The Board is keeping the cost base under review and will continue
to take all necessary action to minimise the financial impact of
any further uncertainty caused by COVID-19.
Post the period end as the stock market has recovered somewhat
from its lows, the equity trading operation has recovered some of
the losses it incurred and trading conditions in our corporate
finance business have improved, with a number of completed
transactions and an encouraging pipeline. Our ability to attract
and win new high-quality corporate clients remains strong.
The Company has recently re-opened its London offices in
accordance with government guidelines to provide a compliant space
for those employees who choose to utilise it and can access it in
an acceptable, socially distanced way.
Capital and Liquidity
As at 30 April 2020, the Group's net asset position was GBP4.5m
(31 October 2019: GBP6.1m). We maintain excess regulatory capital
to provide strategic flexibility and the financial stability to
protect against possible negative market movements such as those we
have experienced over the last 18 months.
Current trading and outlook
Post the period end, we have completed a number of equity
fundraisings and corporate transactions for our clients and have
continued to win new clients. As our clients continue to analyse
the opportunities as well as the challenges presented by the
COVID-19 pandemic we anticipate this trend continuing.
The Company has traded profitably since the period end.
Our current pipeline is encouraging and, together with our lower
cost base and balance sheet strength, means we are well placed to
meet the challenges ahead and are cautiously optimistic for the
remainder of the financial year.
Donald Brown
Chief Executive Officer
24 July 2020
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 April 2020
Year
Six months Six months ended
ended ended 31 October
30 April 2020 30 April 2019 2019
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
-------------------------------------- ------ ---------------- ---------------- -------------
Revenue 2 2,305 3,156 6,627
Operating expenses 3 (3,806) (4,802) (9,181)
Expected credit loss 3 (32) - (98)
-------------------------------------- ------ ---------------- ---------------- -------------
Loss from operations (1,533) (1,646) (2,652)
Finance income 15 24 94
Finance cost (9) - -
Loss before tax (1,527) (1,622) (2,558)
Income tax (2) - (2)
-------------------------------------- ------ ---------------- ---------------- -------------
Loss after tax attributable
to equity holders of the
parent (1,529) (1,622) (2,560)
Other comprehensive income
for the period:
Items that will be reclassified
subsequently to profit or
loss:
Reclassification from fair
value through other comprehensive - (7) -
income to amortised cost
Deferred tax taken to equity - - (3)
Total comprehensive income
for the period (1,529) (1,629) (2,563)
====================================== ====== ================ ================ =============
Loss per share
Basic 4 (5.7p) (5.5p) (8.9p)
====================================== ====== ================ ================ =============
Diluted 4 (5.7p) (5.5p) (8.9p)
====================================== ====== ================ ================ =============
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
At 30 April 2020
At At At
30 April 2020 30 April 2019 31 October
Unaudited Unaudited 2019 Audited
GBP'000 GBP'000 GBP'000
--------------------------------- ---------------- ---------------- ---------------
Assets
Non-current assets
Plant, property and equipment 79 143 111
Right of use assets 332 - -
Deferred tax asset - 8 2
---------------------------------- ---------------- ---------------- ---------------
Total non-current assets 411 151 113
---------------------------------- ---------------- ---------------- ---------------
Current assets
Financial assets designated
at fair value through P&L 1,606 3,523 3,043
Trade and other receivables 2,963 4,506 2,866
Collateral deposits 620 599 -
Cash and cash equivalents 2,383 2,616 2,538
Total current assets 7,572 11,244 8,447
---------------------------------- ---------------- ---------------- ---------------
Total assets 7,983 11,395 8,560
---------------------------------- ---------------- ---------------- ---------------
Current liabilities
Financial liabilities held
at fair value (1,131) (1,378) (244)
Trade and other payables (2,057) (2,645) (2,258)
Lease liabilities (283) - -
--------------------------------- ---------------- ---------------- ---------------
Total current liabilities (3,471) (4,023) (2,502)
---------------------------------- ---------------- ---------------- ---------------
Total liabilities (3,471) (4,023) (2,502)
================================== ================ ================ ===============
Net assets 4,512 7,372 6,058
================================== ================ ================ ===============
Equity:
Called up share capital 3,338 3,338 3,338
Share premium account 6,691 6,691 6,691
Employee Benefit Trust reserve (974) (849) (974)
Capital redemption reserve 700 700 700
Retained earnings (3,801) (1,340) (2,255)
---------------------------------- ---------------- ---------------- ---------------
Total equity before deduction
of own shares 5,954 8,540 7,500
Own shares (1,442) (1,168) (1,442)
---------------------------------- ---------------- ---------------- ---------------
Total equity 4,512 7,372 6,058
================================== ================ ================ ===============
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
For the period ended 30 April 2020
Six months Six months Year ended
ended ended 31 October
30 April 2020 30 April 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------------- ---------------- ---------------- -------------
Operating activities before tax
Loss from ordinary activities before
tax (1,527) (1,622) (2,558)
Adjustments for:
Fair value adjustments of derivative
financial assets 42 (46) (98)
Depreciation charges 202 35 71
Net interest receivable (15) (24) (94)
Net interest paid 9 - -
Share based payments (17) 63 89
----------------------------------------------- ---------------- ---------------- -------------
Operating cash flow before changes
in working capital (1,306) (1,594) (2,590)
Decrease/(increase) in operating assets 675 (1,208) 1,389
Increase/(decrease) in operating liabilities 685 1,094 (252)
Cash generated from operations 54 (1,708) (1,453)
Income taxes paid - - -
----------------------------------------------- ---------------- ---------------- -------------
Net cash flows from operating activities 54 (1,708) (1,453)
----------------------------------------------- ---------------- ---------------- -------------
Investing activities
Purchases of property, plant and equipment (3) (74) (78)
Interest received 15 24 94
Net cash from investing activities 12 (50) 16
----------------------------------------------- ---------------- ---------------- -------------
Financing activities
Payment of lease liability (212) - -
Net interest paid (9) - -
Dividends paid to shareholders - (293) (293)
Purchase of own shares - - (399)
Net cash flows from financing activities (221) (293) (692)
Decrease in cash and cash equivalents (155) (2,051) (2,129)
Net cash and cash equivalents at the
beginning of the period 2,538 4,667 4,667
Net cash and cash equivalents at the
end of the period 2,383 2,616 2,538
=============================================== ================ ================ =============
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 April 2020
Employee
Share Capital Benefit Available
Share Premium Redemption Own Trust for sale Retained
capital account Reserve shares Reserve Reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Balance at
31 October
2018
(audited) 3,338 6,691 700 (1,168) (849) (7) 519 9,224
Transition
adjustment - - - - - 7 (7) -
At 1 November
2018 (as
restated) 3,338 6,691 700 (1,168) (849) - 512 9,224
Loss for
period - - - - - - (1,622) (1,622)
Total
comprehensive
loss for the
period - - - - - - (1,622) (1,622)
Contributions
by and
distributions
to owners
Share based
payments - - - - - - 63 63
Dividends paid
to equity
shareholders - - - - - - (293) (293)
Balance at
30 April 2019 3,338 6,691 700 (1,168) (849) - (1,340) 7,372
Loss for the
period - - - - - - (938) (938)
Deferred tax
taken to
equity - - - - - - (3) (3)
---------- ---------- ------------- ---------- ---------- ------------- ----------- ---------
Total
comprehensive
income for
the period - - - - - - (941) (941)
Contributions
by and
distributions
to owners
Purchase of
own shares - - - (274) (125) - - (399)
Share based
payments - - - - - - 26 26
Balance at
31 October
2019
(audited) 3,338 6,691 700 (1,442) (974) - (2,255) 6,058
Loss for
period - - - - - - (1,529) (1,529)
Total
comprehensive
loss for the
period - - - - - - (1,529) (1,529)
Contributions
by and
distributions
to owners
Share based
payments - - - - - - (17) (17)
Balance at
30 April 2020
(unaudited) 3,338 6,691 700 (1,442) (974) - (3,801) 4,512
================ ========== ========== ============= ========== ========== ============= =========== =========
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1) Basis of preparation
As permitted under AIM listing rules, IAS 34, 'Interim Financial
Reporting' has not been applied in this interim report.
The financial information presented in this report has been
prepared using accounting policies that are expected to be applied
in the preparation of the financial statements for the year ending
31 October 2020.
These policies are in accordance with the recognition and
measurement principles of International Financial Reporting
Standards, International Accounting Standards and Interpretations
(collectively IFRS) issued by the International Accounting
Standards Board as endorsed for use in the European Union, and
these principles are disclosed in the Financial Statements for the
year ended 31 October 2018.
The financial information in this interim report does not
constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006.
The Annual Report and Financial Statements for 2019 have been
filed with the Registrar of Companies. The Independent Auditors'
Report on the Annual Report and Financial Statement for 2019 was
unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006.
Going concern
The Directors believe that taking into account the available
cash and liquid assets that the Group will have adequate resources
to continue in operational existence for the foreseeable future.
The Directors have assessed the impact of COVID-19 on the Group,
running various scenarios taking into account the impact of the
pandemic to date and making various assumptions on the timing and
extent of the pandemic's longer term impact on the Group's
operations. The Directors are pleased to report that current
trading is above the upside sensitivity scenario although the
Directors are very aware that this may not be an indicator of
longer-term trends. Further, the Director's continue to assess the
liquidity of the Group's capital resources by realising certain
assets into cash. The combination of these exercises reassured the
Board that the Group's liquid assets could be accessed, at short
notice, should market conditions deteriorate. For this reason, they
continue to believe it is appropriate to adopt the going concern
basis in preparing the Financial Statements.
Accounting policies
The same accounting policies, presentation and methods of
computation are followed in these condensed set of financial
statements as are applied in the Group's latest audited Report and
Accounts for the year ended 31 October 2019, except for those that
relate to new standards and interpretations effective for the first
time for periods beginning on (or after) 1 January 2019 and will be
adopted in the 2020 annual financial statements. New standards
impacting the Group that will be adopted in the annual financial
statements for the year ending 31 October 2020, and which have
given rise to changes in the Group's accounting policies are:
-- IFRS 16 Leases
Details of the impact this new standard has had is given below.
Other new and amended standards and Interpretations issued by the
IASB that will apply for the first time in the next annual
financial statements are not expected to impact the Group as they
are either not relevant to the Group's activities or require
accounting which is consistent with the Group's current accounting
policies.
IFRS 16 Leases
IFRS 16 has been adopted from 1 November 2019 and applied on a
modified retrospective basis which recognises a right of use asset
at an equal amount to the lease liability, using the Group's
current incremental borrowing rate. Comparative figures have not
been restated.
The Group made the following additional choices, as permitted by
IFRS 16, for existing operating leases:
- to apply a single discount rate to a portfolio of leases with
reasonably similar characteristics.
- not to bring leases with 12 months or fewer remaining to run
as at 1 November 2019 on balance sheet. Costs for these items
continue to be expensed directly to the income statement.
- for all leases, the lease liability was measured at 1 November
2019 as the present value of any future lease payments discounted
using the incremental borrowing rate. The Group also excluded any
initial direct costs (e.g. legal fees) from the measurement of the
right of use assets at transition.
- to apply the use of hindsight when reviewing the lease
arrangements for determination of the measurement or term of the
lease under the retrospective option.
The weighted average incremental borrowing rate applied to lease
liabilities on 1 November 2019 was 5%.
Right of use assets are initially measured at the amount of the
lease liabilities and adjusted by the amount of any prepaid or
accrued lease prepayments as at 31 October 2019.
The aggregate lease liability recognised in the Statement of
Financial Position at 1 November 2019 and the Group's operating
lease commitment at 31 October 2019 is set out below:
GBP'000
--------------------------------------------------------- --------------
Operating lease commitment at 1 November 2019 519
Effect of discounting lease commitments at a
rate of 5% (21)
Lease liability at 1 November 2019 498
========================================================= ==============
Lease liabilities are measured at the present value of the
contractual payments due to the lessor over the lease term, with
the discount rate determined by reference to the rate inherent in
the lease unless (as is typically the case) this is not readily
determinable, in which case the group's incremental borrowing rate
on commencement of the lease is used.
As permitted under IFRS 16, all leases are accounted for by
recognising a right of use asset and a lease liability except
for:
-- Leases with a term of twelve months or less remaining at 1 November 2019
-- Lease of low value assets
Subsequent to initial measurement lease liabilities increase as
a result of interest charged at a constant rate on the balance
outstanding and are reduced for lease payments made. Right-of-use
assets are amortised on a straight-line basis over the remaining
term of the lease or over the remaining economic life of the asset
if, rarely, this is judged to be shorter than the lease term.
2) Revenue
Year
Six months Six months ended
ended ended 31 October
30 April 2020 30 April 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------- ---------------- ---------------- --------------
Equities division * (1,128) 366 751
Corporate Finance division 3,399 2,749 5,839
Wealth division 34 41 37
Total revenue 2,305 3,156 6,627
=========================== ================ ================ ==============
Services transferred at a point
in time 1,055 2,018 4,164
Services transferred over a period
of time 1,250 1,138 2,463
Total revenue 2,305 3,156 6,627
=================================== ============ ============ ============
* Included within revenue of the Equities Division is a loss of
GBP1,415,000 (2019: GBP111,000) derived from the equity trading
operation.
3) Administrative expenses
Six months Six months
ended ended Year ended
30 April 2020 30 April 2019 31 October
Unaudited Unaudited 2019 Audited
GBP'000 GBP'000 GBP'000
------------------------------------------- ---------------- ---------------- ---------------
Staff costs including incentive
scheme 1,976 2,889 5,592
Other overheads 1,371 1,814 3,429
------------------------------------------- ---------------- ---------------- ---------------
Staff and overhead costs 3,347 4,703 9,021
Expected credit loss 32 - 98
Share based payments (17) 64 89
Depreciation 203 35 71
Redundancy and restructuring 273 - -
costs
Total administrative expenses 3,838 4,802 9,279
=========================================== ================ ================ ===============
4) Loss per share
The basic loss per share of 5.7p (2019: 5.5p) is calculated on a
loss after tax of GBP1,529,000 (2019: GBP1,622,000) and 26,763,511
(2019: 29,428,534) being the weighted average number of ordinary
shares in issue during the period less shares held in Treasury and
by the Arden Partners Employee Benefit Trust. For the year to 31
October 2019, the basic loss per share of 8.9p is calculated on a
loss after tax of GBP2,560,000 and 28,794,079 being the weighted
average number of ordinary shares in issue during the period less
shares held in Treasury and by the Arden Partners Employee Benefit
Trust.
The basic loss per share has not been adjusted in respect of a
dilution as the impact of the weighted average outstanding share
options would be to decrease the loss per share.
The underlying basic loss per share of 4.7p (2019: 5.3p) for the
six months ended 30 April 2020 is calculated on a loss after tax of
GBP1,273,000 (2019: GBP1,558,000) being the loss after tax,
adjusted for the effect of IFRS 2 credit of GBP17,000 (2019: cost
GBP64,000) and redundancy and restructuring costs of GBP273,000
(2019: GBPNil). The underlying basic loss per share of 8.6p for the
year to 31 October 2019 is calculated on a loss after tax of
GBP2,471,000 being the loss after tax, adjusted for the effect of
IFRS 2 costs of GBP89,000.
5) Dividends
Year
Six months Six months ended
ended ended 31 October
30 April 2020 30 April 2019 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------------- ----------------- ---------------- --------------
Final dividend year ended 31
October 2018 - 293 293
Distribution to equity shareholders - 293 293
=============================================== ================= ================ ==============
The Directors have not proposed an interim dividend (2019:
Nil).
INDEPENDENT REVIEW REPORT TO ARDEN PARTNERS PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 April 2020 which Consolidated Condensed
Statement of Comprehensive Income, Consolidated Condensed Statement
of Financial Position, Consolidated Condensed Statement of Cash
Flows and Consolidated Condensed Statement of Changes in
Equity.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the Company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Financial Reporting Council for use
in the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
April 2020 is not prepared, in all material respects, in accordance
with the rules of the London Stock Exchange for companies trading
securities on AIM.
Use of our report
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London
24 July 2020
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR PPUUPMUPUGAC
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July 27, 2020 02:00 ET (06:00 GMT)
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