Daniel Stewart bolsters cash position before growth drive

INCOMING Daniel Stewart boss Adam Wilson yesterday gave a bullish update on the state of play at the stockbroker, as it unveiled a £2m fundraising deal to complete the restructuring of its balance sheet.

Daniel Stewart has conditionally raised £0.5m by placing 25m shares with investment firm Brainspark, giving it a 6.66 per cent stake. Brainspark also has an option to buy a further 75m shares by the end of June.

The news comes after Daniel Stewart recently raised £0.5m through a placing with Close Asset Management and £1m via Swiss trust firm FCI switching a loan into equity.

It also last month acquired Mena-RL, a consultancy set up by former Hichens Harrison chief Wilson, who becomes chief executive in April.

“The firm now has about £4m of cash and is much more liquid,” said Wilson, who plans to grow Daniel Stewart from its current market cap of £8.1m to over £70m by adding a retail offering, raising capital abroad and beefing up sales and distribution.

Wilson said he is “envious” of larger rivals Numis and Evolution, which have plenty of cash.

“I’d be privileged to get this business into the same league,” he said.