Annual Report for the year ended 31 December 2008

Corporate Finance
Evolution securities has 21 highly experienced corporate finance
executives, based in london and leeds, working in teams with a
predominantly sector based focus, in line with the research structure.
This business has an extensive track record in ipO’s, secondary fundraisings
and public and private merger and acquisition activity. We act for corporate
clients across both the Full list and AiM in a number of sectors.
Throughout 2008 we continued to improve our internal controls via
committees dealing with new business, commitment, underwriting and
pricing. We believe our procedures remain at the leading edge of those
within our peer group.
Corporate Broking
We offer advice on market facing issues through our corporate broking
team. This can either be a separate service or can be included as part
of our overall corporate finance service. The department draws on the
significant resources of Evolution securities within the regulatory framework
to ensure that we act as our client’s best advocate in the market.
We advise our corporate clients at all stages of their development, becoming
involved in the flotation process and developing our relationship with
them post-ipO on both a day-to-day and transactional basis. providing a
market facing service for our corporate clients is very important to us.
Knowing what the market thinks of a stock helps us position our clients’
story in the market.
evolution securities china
Evolution securities China is a specialist Chinese investment banking and
securities operation based in the uK, Hong Kong and shanghai. it holds
regulated status in both regions. This business completed its fifth year
of operation during the summer of 2008. income (before fee and
commission expense) fell to £2.7m (2007: £5.8m), a decrease of 53%.
On 9 March 2009, the Company entered into an investment Agreement
with First Eastern. under the terms of the investment Agreement First
Eastern and Evolution Group will between them invest an aggregate
£900,000 by way of a subscription for new Ordinary shares in EsCl.
On the 1 April 2009 the Company announced the completion of the
investment which included subscription for shares whereby First Eastern
now holds 51% of the Ordinary shares upon completion and the Company
holding will reduce from 70.94% to 48.5%. The balance will be held by
those existing minority shareholders who elect to retain their interests,
although an opportunity is being provided for those minority shareholders
to realise their investment on completion of the investment Agreement,
should they so wish. Although First Eastern will have a majority shareholding,
Evolution Group will continue to be represented on the Board of EsCl.
We believe this is an extremely exciting joint venture with China’s largest
direct investment group and their decision to enter into a partnership with
Evolution Group is a significant endorsement of our capabilities. First
Eastern has an unrivalled track record and experience, and this combined
with our expertise and strength in the uK and the Far East region will
deliver real opportunities between China and Europe.
We have made very good progress
WiTh The inTegraTion and developmenT
of each of our businesses.
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