‘Material losses’ on the markets hits stockbroker’s performance
Institutional stockbroker Arden Partners suffered “material losses” when the markets fell in the early stages of the coronavirus pandemic.
The Birmingham-based firm recorded a pre-tax loss of £1.5m in the six months to April, with revenues down by one-quarter.
However it was able to reduce its cost base and said it has “traded profitably” since April, completing a number of corporate transactions while it also has “an encouraging pipeline”.
Arden’s chief executive Donald Brown said: “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’s own share price has also taken a battering in 2020. It was down two-thirds since the start of the year, while Friday’s close of 6p also represents a 90% fall since January 2018.