Arden Partners plc

("Arden" or the "Group")

Unaudited interim results for the six months ended 30 April 2017

Arden Partners plc (AIM: ARDN.L), the institutional stockbroking company, today announces its unaudited interim results for the six month period ended 30 April 2017.

Highlights

·        Revenue: £2.9m (2016: £2.7m)

·        Loss before tax: £1.3m (2016: £0.7m)

·        Basic loss per share: 7.1p (2016: 4.2p)

·        No interim dividend proposed (2016: nil)

·        Tier 1 Capital Adequacy Ratio at 30 April 2017: 367%

Commenting on the interim results and outlook for the business CEO James Reed-Daunter said:

"After a disappointing first half we are currently active on a number of corporate mandates and I look to the second half and beyond with confidence"

CHIEF EXECUTIVE'S STATEMENT

It is disappointing to announce a loss in H1 of £1,269k (2016 loss: £766k). This is due predominantly to the extremely limited delivery of the pipeline of corporate work which fell well short of internal budgets.

The current corporate pipeline of business is however encouraging and we are active on a number of corporate mandates, covering M&A, IPOs and Secondary fundraisings. Although delivery will be subject to market conditions I look to the second half and beyond with confidence.

The equities trading team which started with Arden towards the latter part of 2016 is now fully operational and continues to function ahead of internal expectations.

We were delighted to announce on 25th May 2017 the arrival of Donald Brown as CEO (designate) and the Arden platform has further been strengthened with the recent appointments of Fraser Marshall as Head of Equities and Tim Dainton as Head of Research. Together with the incumbent personnel we now have in place an extremely experienced and knowledgeable team, with which to develop our equity capital business.

As also announced on 25th May 2017, we plan to further strengthen our balance sheet with the imminent launch of our own secondary placing to raise approximately £5m, where it is hoped to add several prominent institutional names to our list of shareholders.

Finally, I should like to thank all Arden personnel for their continued support and commitment to the business.

James Reed-Daunter

Chief Executive Officer

12 June 2017

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the period ended 30 April 2017

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

At 30 April 2017

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

For the period ended 30 April 2017

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY 

For the period ended 30 April 2017                                                        

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 2017.

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 2016.

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 2016 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2016 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 financial statements of the Group have been prepared on a going concern basis as the Directors have satisfied themselves that, at the time of approving the financial statements and having taken into consideration the strength of the Group's statement of financial position and cash balances, the group has adequate resources to continue trading for the foreseeable future.

2)           Revenue

3)            Operating expenses

4)             Loss per share

The basic loss per share of 7.1p (2016: 4.2p) is calculated on a loss after tax of £1,274,000 (2016: £777,000) and 17,962,894 (2016: 18,698,303) 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 2016, the basic loss per share of 2.5p is calculated on a loss after tax of £470,000 and 18,734,234 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 6.5p (2016: 4.0p) for the six months ended 30 April 2017 is calculated on a loss after tax of £1,168,000 (2016: £740,000) being the loss after tax, adjusted for the effect of IFRS 2 costs of £27,000 (2016: £37,000), reorganisation costs of £60,000 (2016: £Nil) and exceptional costs of £19,000 (2016: £Nil).  The underlying basic loss per share of 3.2p for the year to 31 October 2016 is calculated on a loss after tax of £598,000 being the loss after tax, adjusted for the effect of IFRS 2 costs of £22,000 and lease settlement credit of £150,000.

5)            Dividends

The Directors have not proposed an interim dividend (2016: Nil).

INDEPENDENT REVIEW REPORT TO ARDEN PARTNERS PLC

Introduction

We have been engaged by the company to review the condensed interim set of financial statements in the half-yearly financial report for the six months ended 30 April 2017 which comprises the consolidated condensed statement of comprehensive income, the consolidated condensed statement of financial position, the consolidated condensed statement of cash flows, the consolidated condensed statement of changes in equity and the related explanatory notes that have been reviewed.

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 interim set of financial statements in the half-yearly financial report based on our review.

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.

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'', pursuant to the Financial Reporting Council's (FRC) guidance on Review of Interim Financial Information.  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 ISAs (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 interim set of financial statements in the half-yearly financial report for the six months ended 30 April 2017 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.

BDO LLP

Chartered Accountants and Registered Auditors

London

United Kingdom

12 June 2017

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).