Daniel Stewart could be forced to delist from Aim after broker quits

Daniel Stewart, the City stockbroker, has warned it may be forced to delist from London's Aim if it is unable to replace Westhouse Securities, the in-house broker that resigned on Friday.

This marks the latest twist in a difficult year for Daniel Stewart, which had to relinquish its own licence as a "nominated adviser" to companies listed on the junior market in November because of poor corporate governance.

In addition, Daniel Stewart's shares were suspended between last September and March this year due to a capital shortfall. The company had to undertake a £1.5m fundraising, which it completed in late January.

Peter Shea, the chairman, said this week he anticipates a pre-tax loss of £850,000 for the year ended March 31 2015 following a loss of £1.46m in its previous financial year. The company told shareholders that "exceptional circumstances" had caused some clients to delay mandates.

Companies whose shares trade on Aim must have a nominated adviser, or "nomad", to ensure clients act within the exchange's rules. Daniel Stewart said on Friday it will have to cancel its Aim listing if it does not appoint a replacement within a month of Westhouse's resignation becoming effective on May 1.

In a statement the broker told shareholders it was "in discussions with an alternative Nomad".

This month Rob Terry, founder of Quindell, the claims processing business, revealed a 7.4 per cent stake in Daniel Stewart that he has since raised to 9 per cent. He has told the UK market regulator he intends to take his ownership of Daniel Stewart to beyond 10 per cent.

Mr Terry was ousted as chairman of Quindell in December after admitting he had sold stock as part of a deal initially described as a loan to buy shares. Shortly after Mr Terry's holding was disclosed, Adam Wilson, former Daniel Stewart CEO, sold his stake in the broker, taking it below the 3 per cent disclosure level.

Before it had to relinquish its nomad licence, Daniel Stewart had an active business bringing companies to Aim. Previous nomad clients included Quindell, Rangers Football Club, which cancelled its shares this month after failing to find a new nomad, and Naibu, a Chinese sports shoe maker, which told shareholders in February it had lost all contact with the chairman and senior executive.

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