AIM NOMAD Westhouse complete the acquisition of Arbuthnot Securities Limited

AIM NOMAD Westhouse Holdings plc, in November 2011 Westhouse announced the acquisition of Arbuthnot Securities Limited, the transaction was completed on 20 January 2012 following the receipt of FSA consent. The acquisition of Arbuthnot has provided Westhouse with the opportunity to increase the size of the business, improve its visibility and win new clients, all with a much improved ratio of cost to recurring revenues.

Following the integration of Arbuthnot, the Placing will strengthen the balance sheet and put the Group in a position to continue to take advantage of opportunities from consolidation of the corporate broking sector and provide greater flexibility in trading.

Westhouse Securities has:

• around 90 corporate clients (of which 60 are AIM Nomad relationships, putting the company in the top tier by client numbers);
• an enhanced commission stream;
• a broad research coverage of nine sectors as well as macro strategy;
• a strong sales and trading division;
• a very competitive cost base; and
• a strong executive and non-executive management team.

Garth Milne, Chairman, commented: “The reaction of clients, intermediaries and our peers to the acquisition has been very favourable. We now have a significantly enhanced sales and trading business, a materially stronger research product and a larger and more diversified corporate client base. We are optimistic about our market position and our ability to grow our market share.”