Birmingham stockbroker Arden Partners has reported a 41 per cent slump in profits after struggling against subdued equity markets.

The Edgbaston-based firm posted underlying pre-tax profits of £1.3 million for the year to October 31, compared to £2.2 million in 2009.

The reduction came despite revenues remaining relatively flat, at £13 million, compared to £13.1 million the year before.

Interim chairman Lord Flight said the year’s results were satisfactory, and were delivered “against a background of challenging conditions and subdued equity markets”.

He added: “At an operational level, the board is overseeing changes designed to focus coverage and resource on core UK sectors and those with reach into India.

“The board believes the group is well placed to deliver profitability in the current financial year. Our closing balance sheet is strong with a healthy regulatory capital position.”

Arden revealed that total funds raised for clients across the year stood at £183 million, compared with £73 million in 2009.

A total of 15 transactions were completed by the firm during the year, comprising ten M&A, four secondary fundraisings, and one IPO

Corporate Finance revenue increased by 57 per cent to £6.9 million.