Arden Partners : 26 Jan 2017 Results for the Year Ended 31 October 2016

Arden Partners plc ("Arden" or the "Company") Audited results for the year ended 31 October 2016

Arden Partners plc (AIM: ARDN), the institutional stockbroking company, today announces audited results for the year ended 31 October 2016.

Financial highlights

• Revenue £5.9 million (2015: £5.5 million)

• Loss before tax £0.4 million (2015: £2.1 million)

• Underlying loss before tax* £0.5 million (2015: £1.8 million)

• Basic loss per share 2.5p (2015: 10.8p)

• Capital adequacy ratio 404% (2015: 392%)

  * Profit before tax as adjusted for the effect of share based payments, lease settlement credit and reorganisation costs

  Operational highlights

• Funds raised for clients £61m

• Retained corporate clients 39

Commenting on the results and Arden's outlook, Luke Johnson, Chairman, said:

"While the sector background and competitive forces remain ferocious, I am cautiously optimistic that in the medium term Arden can achieve a satisfactory level of profitability".

Arden Partners plc James Reed-Daunter - Chief Executive Officer Steve Wassell - Chief Operating Officer	020 7614 5900
GCA Altium Limited Sam Fuller	020 7484 4040

Chairman's Statement

Together with other small and mid-market stockbrokers, your company found trading conditions difficult in 2016.

However, the second half year delivered a better result than the first half, so that the full year loss was reduced from that recorded at the half year, and helped deliver a better result than in 2015.

We continue to face challenges: commissions are under pressure, and the regulatory burden grows remorselessly. All brokers like Arden will have to increasingly rely on their corporate client list to generate fees in order to succeed.

Given these circumstances, the executive have managed the company's cost base tightly. Cash is being preserved. At the end of the year under review, Arden recruited a first-rate execution team from a rival firm. Early indications are that they will add materially to equity trading commissions, and they are helping to grow Arden's corporate list in the current financial year.

I hope we will be able to announce further hires of able stockbrokers in the months to come. We will also look to evaluate potential acquisitions of complementary businesses to take advantage of synergies and cost savings. The industry must consolidate further if it is to prosper, and Arden has cash, and an excellent corporate client list.

While the sector background and competitive forces remain ferocious, I am cautiously optimistic that in the medium term Arden can achieve a satisfactory level of profitability.

Given the loss for the year it would be inappropriate to pay a dividend.

I would like to thank our institutional and corporate clients for their continued loyalty to Arden, and all the staff for their hard work during the 2016 financial year.

Luke Johnson Chairman Chief Executive's Statement

I am pleased to report that Arden ended the year on a positive note, producing a profit of £0.3m in the second half, thereby reducing the H1 loss of £0.7m previously reported.

In October we were delighted to announce the hiring of a top rated small and mid cap Sales and Trading team. Early indications are positive with a strong increase of revenues in this area and a number of corporate client wins.

Financial Review

Revenue in the year ended 31 October 2016 was £5.9m compared to £5.5m in 2015. The underlying loss before taxation, which is stated before adjusting for share-based payments, lease settlement credit and reorganisation costs, was £0.5m and compares to a loss before taxation in 2015, of £1.8m.

Overheads continue to be managed tightly, resulting in a further £0.9m reduction year on year.

The Board has continued to buy back the Company's shares, under the shareholders authority granted at the last AGM. During the year ended 31 October 2016, the Company purchased net, 744,266 ordinary shares for a consideration of £0.287m. At the financial year end the Company held 1,200,242 ordinary shares in treasury at a total cost to the Company of £0.5m.

Outlook

Arden has managed its cost base tightly over the past two years, during what has been a difficult trading environment for the small and mid cap sector. Notwithstanding the generally harsh industry backdrop, we are encouraged by recent hires and are keen to recruit further quality individuals and teams on to what is a clean and financially strong platform. This will be key to continuing the momentum generated in H2 2016 into Arden's current financial year.

Finally may I take this opportunity to thank all our clients for their continued support and our staff for their dedication and hard work throughout the year.

James Reed-Daunter Chief Executive Officer Consolidated Statement of Comprehensive Income For the year ended 31 October 2016

Note	2016 £'000	2015 £'000
Revenue	2	5,857	5,486
Administrative expenses	(6,323)	(7,646)
Loss from operations	(466)	(2,160)
Finance income	40	65
Finance expense	(3)	(2)
Loss before taxation	(429)	(2,097)
Income tax charge	(41)	-
Loss after taxation	(470)	(2,097)
Other comprehensive income for the year: Items that will or may be reclassified subsequently to profit or loss: Decrease in fair value of available for sale financial assets	(5)	(7)
Deferred tax taken to equity	-	6

Total comprehensive income for the year attributable to equity shareholders (475)(2,098)

Loss per share Basic	3	(2.5p)	(10.8p)
Diluted	3	(2.5p)	(10.8p)