Daniel Stewart's shares suspended for second time

The shares of Daniel Stewart have been suspended from trading on Aim for the second time since the autumn, the latest sign of trouble for the City stockbroker whose own house broker resigned last month.

Daniel Stewart said on Friday it is in "final discussions" with a new nominated adviser - or nomad - and said it hopes to have the suspension from London's junior market lifted "during the course of the next week".

A nomad is a requirement for companies quoted on Aim to ensure that they comply with rules of the exchange.

Daniel Stewart warned last month that it may be forced to delist from Aim if it is unable to replace its nomad Westhouse Securities following its resignation.

It came after Daniel Stewart was forced in November to relinquish its own licence as a nominated adviser to companies listed on the junior market because of poor corporate governance.

Rob Terry, founder of controversial insurance claims-processing company Quindell, has been gradually building a stake in Daniel Stewart.

According to the last stock market disclosure, he holds 9.06 per cent of the broker, but he has made clear he intends to lift this 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.

Daniel Stewart's shares were suspended between last September and March this year because of a capital shortfall.

The company had to undertake a £1.5m fundraising, which it completed in late January.

The broker's chairman, Peter Shea, said last month 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.

Daniel Stewart once had an active business shepherding clients on to Aim.

Previous nomad clients included Rangers Football Club, which cancelled its shares last month after failing to find a new nomad, and the Chinese sports shoe market Naibu, which in February told shareholders that it had lost all contact with its chairman and senior executive.

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