Cenkos is a leading UK securities business, which acts as nominated advisor, sponsor, broker and financial adviser to companies, focusing on entrepreneurial growth companies and investment trusts. Since inception in 2005 it has raised more than £21bn in equity capital for corporate clients, which stood at 100 at end June 2021.
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Cenkos’s H121, reported in September, benefited from continued strength in UK equity market activity levels as corporate investment and M&A activity revived with the easing of lockdown restrictions. Reflecting the strength of its team, Cenkos was able to expand its client base (by six to 100) and carried out 16 transactions, raising £0.58bn for clients in the period. H121 revenue was £18.2m, 37% ahead of H120 and, after a 40% increase in staff and administrative expenses, underlying operating profit increased by 44% to £2.8m. Lower restructuring and incentive plan costs left reported pre-tax profit up 124% at £1.7m and diluted EPS 146% higher at 2.7p. The interim dividend was 1.25p, up from 1.0p for H120.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2019A | 25.9 | 1.0 | 0.1 | 0.1 | 815.0 | N/A |
| 2020A | 31.7 | 3.1 | 2.3 | 3.3 | 24.7 | 7.3 |
| 2021E | N/A | N/A | N/A | N/A | N/A | N/A |
| 2022E | N/A | N/A | N/A | N/A | N/A | N/A |
Industry outlook
After a strong first half, Cenkos indicated it remained active with corporate transactions completing two IPOs and eight other transactions. The company’s pipeline of further transactions was also good although, as always, subject to changing market conditions. Reported earnings in H221 should benefit from the likely absence of restructuring costs. Cenkos is investing selectively in staff and systems, which should support service levels to clients and efforts to increase the client count further.
Last updated on 06/01/2022Content on Cenkos Securities
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Financials
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Key management |
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| Lisa Gordon | Chairman |
| Jim Durkin | CEO |
| Calvin Gregory-Lilley | FD |