DANIEL STEWART SECURITIES PLC. ("the Company") (AIM: DAN) INTERIM RESULTS DANIEL STEWART SECURITIES PLC (AIM: DAN)

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1 Thursday 22 December, DANIEL STEWART SECURITIES PLC ("the Company") (AIM: DAN) INTERIM RESULTS DANIEL STEWART SECURITIES PLC (AIM: DAN) INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER The Board of ("Daniel Stewart" or "the Company") is pleased to announce its unaudited financial results for the six months to. FINANCIAL HIGHLIGHTS: Revenues: 3.6 million as against 3.5 million for the same period last year Net loss after tax but before retention payments and share based payments: 143,799 (H1 2010: profit of 190,572) Net assets: 5.9 million ( 5.7 million at 2010) Cash: 0.9 million ( 1.1 million at ) Adjusted EPS: (0.11)p per share (H1 : 0.04p per share) OPERATIONAL HIGHLIGHTS: 33 million raised for our corporate clients during the period (H1 2010: 39.9 million) 56 retained brokerships (H1 2010: 57) 11 transactions completed (H1 2010: 22) The six months to September have been an extremely difficult time for the brokerage industry. Despite this we have continued to invest in our international development, with a particular focus on Asia. We are confident that this investment will assist in sustaining our business should the economic outlook in Western Europe remain bleak. As part of this investment in Asia we announced, earlier in the year, that we have entered into a joint co-operation agreement with Clarkson Capital Markets, a subsidiary of Clarkson shipbrokers, jointly to produce and distribute research in the transportation and related services areas with a primary focus on Asia. This arrangement is progressing well and we believe it will prove to be a valuable partnership. We have already produced, and begun the distribution of, our first joint research products. Although we have been investing in our business and markets have been hostile for the period we are still disappointed to have returned a small loss. Whilst our first quarter started well with the completion of a number of transactions, the majority of which had been sourced overseas, the second quarter, July 1st to September 30th, however proved to be particularly slow as to completions. We can however attribute much of this to timing differences rather than lack of pipeline, the newly sourced international transactions simply taking longer to execute than similar UK or European transactions. Since the end of H1 we have seen a number of transactions complete, including several successful IPO's from Asia, which we had

2 originally anticipated completing pre September 30th and, as such, we are very confident about a positive outcome for the year. We have made significant progress in the development of our Far East business and expect to open an office in Hong Kong during the 1st quarter of 2012 subject to regulatory approvals. We continue to generate business from the region with further planned IPO's expected to be completed before our financial year ends. Our Wealth Management business has continued to perform well and we have added additional clients continuously throughout the period. Revenue for the period increased slightly from 3.5m to 3.6m. Costs associated with our international development were a little higher than planned and that combined with our staff retention plan and share based payments produced the reported loss. If adjusted, so that we can compare like for like, the loss would have been 143,799. The Directors are pleased with the performance and are confident we will continue to finance our expansion plans from current cash flows, which will ultimately mean that we are well positioned to take advantage of the economic shift to the "east". Enquiries: Daniel Stewart Securities Plc Peter Shea, Chief Executive Officer Tel: Arbuthnot Securities Ltd James Steel/Ed Groome Tel: Tavistock Communications Lydia Eades/Sonya Williams Tel:

3 Statement of Comprehensive Income for the six months ended 2010 Corporate Finance revenue 3,081,182 7,622,131 2,992,306 Share trading account 500, , ,011 3,581,215 8,413,067 3,531,317 Cost of sales (165,506) (494,062) (142,445) Contribution to fixed costs 3,415,709 7,919,005 3,388,872 Administrative costs (3,561,109) (7,086,490) (3,261,718) Retention payment (360,753) - - Share Based Payments (101,400) 55,524 - Operating profit / (loss) (607,553) 888, ,154 Net interest receivable 1, ,868 63,418 (605,952) 1,000, ,572 Exceptional Items Profit/ (loss) before tax (605,952) 1,000, ,572 Taxation Profit / (loss) for the period (605,952) 1,000, ,572 Earnings per share - pence (0.11)p 0.18p 0.04p

4 Consolidated Statement of Financial Position as at 2010 Non current assets Goodwill 2,704,954 2,691,938 2,757,133 Available for sale assets 613, , ,436 Property, plant and equipment 207, , ,003 Loans receivable 80,886 80, ,822 3,606,480 3,442,964 3,657,394 Current assets Financial assets 1,013, , ,153 Trade and other receivables 1,909,804 1,587,581 1,735,141 Cash and Cash equivalents 905,194 2,480,242 1,087,524 3,828,768 4,745,098 3,624,818 Total assets 7,435,248 8,188,062 6,140,592 Liabilities Trade and other payables 1,493,973 1,653,858 1,477,748 Corporation tax - - 1,493,973 1,653,858 1,477,748 Non current liabilities 80,767 80,767 80,767 Total liabilities 1,574,740 1,734,625 1,558,515 Net assets 5,860,508 6,453,437 5,723,697 Equity Capital and reserves attributable to equity shareholders Share capital 1,274,756 1,274,756 1,274,809 Share premium 9,345,342 9,345,342 9,345,699 Retained earnings (12,735,450) (12,142,522) (12,952,861) Other reserves 7,975,860 7,975,861 8,056,050 Equity shareholders funds 5,860,508 6,453,437 5,723,697

5 Consolidated Statement of Cash Flows for the period Operating activities Operating profit / (loss) (607,553) 888, ,154 Provision for impairment of fixed assets 49, ,864 47,341 Tax paid - (133,958) (133,958) Exceptional items Movements on reserves - (93,789) (13,604) (557,666) 771,156 26,933 Movements in working capital (Increase) in receivables (296,021) (293,378) (286,238) (Decrease) in payables (143,465) (304,855) (445,564) (Increase) in financial assets (515,899) (844,475) (823,788) (955,385) (1,442,608) (1,552,590) Operating cash flow (1,513,051) (671,452) (1,528,657) Investing activities Expenditure on tangible fixed assets (20,986) (104,883) (42,224) Fixed asset disposals Amounts written off investments - - Investment in subsidiary companies - (960,406) (1,025,601) Cash flow from investing activities (20,986) (1065,289) (1,067,825) Financing Loans to third parties (65,428) (488,181) 288,842 Loans received 22, ,377 (523,582) Issue of share capital - 2,541,811 2,542,221 Net interest receivable 1, ,868 63,418 Cash flow from financing activities (41,011) 2,903,875 2,370,899 Cash and cash equivalents at 1 April 2,480,242 1,313,108 1,313,108 Cash and cash equivalents at 905,194 2,480,242 1,087,524 (Decrease) / Increase in cash and cash equivalents (1,575,048) 1,167,134 (225,584)