Merchant Securities says that second half trading showed an improvement and the business made an operating profit in the period.
This sparked a 50% rise in the share price to 6p, which values Merchant Securities at £4.68m.
Merchant owns Aim adviser John East and it intends to merge it with the core Merchant Securities business. The subsidiary will be called Merchant John East Securities and the integration should be completed in September 2009.
Revenues were £5.3m in the year to March 2009, while Merchant should generate enough second half profit to more than cover the first half loss of £582,000. There is cash in the bank of £2.2m.
The results for the year to March 2009 will be released by the end of July 2009.
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