St Helen’s Capital Plc (‘St Helen’s Capital’ or ‘the Company’)

Interim Results

St Helen’s Capital, the AIM-listed independent institutional stockbroker and corporate finance adviser focussed on companies in the small cap and high growth arena, announces its unaudited results for the six months ended 30 September 2008.

Chairman’s Statement

During the period under review we have continued to make progress in many aspects of our business, despite the current market conditions, and have remained focussed on building our position as an advisor and broker of choice in the small cap and growth company arena.  Our flexible approach enables us to offer our clients innovative and appropriate solutions to their funding requirements both on and off market and through equity and debt instruments.

As investors will know, the market for equity financing in particular has been, and remains, difficult, which has undoubtedly affected our performance.  However, we have remained active in expanding our retained business and building our reputation amongst AIM and PLUS listed companies and investors.  To this end we now act as Broker to 13 AIM clients and Corporate Adviser to 31 PLUS companies. 

In the first half of the current year the market for small cap stocks has been particularly difficult, despite this St Helen’s Capital continued to attract new investment opportunities. During this period investors have been particularly cautious and the most significant potential transactions on which we have been working, have understandably been postponed.  Since the summer, however, we are seeing a renewed interest in high quality, competitively priced off market transactions, from a range of institutions, as valuation expectations have become more realistic.  We have completed a number of small fundraisings and are currently engaged and actively working on a number of interesting transactions and have further prospects particularly in renewables and other businesses with an environmental angle.  We remain committed to the small cap and growth company sector and our ongoing broking efforts have enabled us to identify those parties who are starting to become active again.  As well as strengthening relationships with the traditional players, we have developed a broad active investor contact base which encompasses specialists in the UK, mainland Europe, the US and the Middle East.

Our PLUS Markets advisory business continues to perform and remains a solid cornerstone of the Company.  We represent 31 clients quoted on PLUS which continues to see us as the leading PLUS Markets advisory firm.  The PLUS market remains active and is gaining further recognition during this time of economic uncertainty, with many companies considering moving their listing to PLUS in order to reduce running costs.  An increasing proportion of active institutions are now looking at PLUS and this institutional support will be key to its future success. 

Our research team is rapidly increasing the number of companies under coverage and our broking team is actively marketing the research ideas.  We believe that as and when markets improve it will be the companies that are best positioned with, and understood by, investors that will benefit first and most.  Valuations have been driven to very low levels among small cap companies, and will represent some of the best value investment opportunities once confidence returns.

Our main source of revenue in the period has been from our Corporate Finance activities and fees paid by our retained clients.  Our equity fund raising business is by nature irregular and market conditions have impacted a number of proposed transactions.  Although we expect increased fund raising activity and retained income going forward, we have taken steps to reduce our already low cost base.  As at 30 November 2008, the Company had cash at bank of over GBP 1.1m. 

The Directors are confident that St Helen’s Capital is well placed to weather the economic turmoil.  We have launched a number of initiatives to generate value for our clients and investors by playing to our strengths, including our joint broking service, which offers at sensible pricing levels, an attractive alternative to sponsored research.  I believe we have a defined business strategy and an experienced and dedicated team that can both carry the business through the current financial turbulence and grow our position in our stated area of operation.

Finally, I would like to thank our Shareholders for their patience during this frustrating and challenging period. The majority of St Helen’s Capital’s employees are also Shareholders and we remain determined to build the business into a leading small-cap focussed institutional stockbroker and to repay shareholder loyalty with increasing shareholder value.

Mark Warde-Norbury

Chairman

● December 2008

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Income Statement

For the six months ended 30 September 2008

* Due to the 2008 loss, the 2008 diluted EPS calculation will show a lower loss per/share, making the options ‘anti-dilutive’.  Accordingly the basis EPS and the diluted EPS are the same.

Balance Sheet

As at 30 September 2008

Cash Flow Statement

For the six months ended 30 September 2008

Basis of accounting

This financial information has been prepared for use in the European Union.  The Company’s financial statements have been prepared in accordance with IFRS and International Financial Reporting Interpretations Committee (‘IFRIC’) interpretations adopted by the European Union, and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS, with the prior periods being reported on the same basis.