Daniel Stewart warning despite return to profit

GROWTH in the Far East helped stockbroker Daniel Stewart swing back into the black after years of turmoil.

The AIM-listed firm made a £1m pre-tax profit, compared to a £2.91m loss the previous year, and said its wealth management arm is growing quickly. It warned, however, that market conditions had dipped since the year end, following a pick-up in the third and fourth quarters.

Revenue for the year to 31 March hit £8.5m, up from £3.6m, as it won more advisory work overseas. Peter Shea, chairman and chief executive, said the firm had done well in “challenging market conditions”.

“The key to our progress is that we have been proactive and innovative in expanding our product and service range for corporate and private clients alike,” he added.

It advised seven Kuala Lumpur-based firms on London listings and its wealth management arm is now responsible for more than £125m of funds, including more than £50m in Dubai after it developed links with local brokers.

The firm, which suffered during the financial crisis as liquidity on the junior stock market all but dried up, strengthened its balance sheet in 2010 with a £1.5m cash injection from investment group Brainspark and a share placing with staff.