Cenkos Securities

Cenkos Securities

AIM: CNKS

Market Cap£26m

Last Close 45p

Cenkos is a leading UK securities business, which acts as nominated advisor, sponsor, broker and financial adviser to companies, focusing on UK small- and mid-cap companies and investment funds. Since inception in 2005 it has raised more than £22bn in equity capital for corporate clients, which stood at 103 at end June 2022.

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Investment summary

Cenkos’s H122 results announced in September were affected by the challenging capital markets background. Total revenue was 30% below H121 at £12.7m. The flexible business model with contained fixed costs meant that underlying operating profit fell by a similar percentage (29%) from £2.7m to £1.9m; this was before changes in the fair value of options and warrants received in lieu of fees (a reduction of £1.9m in H122) and incentive plan costs (£0.6m). After these items there was a reported loss before tax of £0.48m compared with a £1.69m profit in H121. An interim dividend of 1.0p, versus 1.25p for H121 is to be paid.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 31.7 3.1 2.3 3.3 13.6 4.0
2021A 37.2 4.8 4.0 6.0 7.5 3.7
2022E N/A N/A N/A N/A N/A N/A
2023E N/A N/A N/A N/A N/A N/A
Industry outlook

On the outlook, Cenkos cautioned that market conditions are likely to remain challenging for the foreseeable future given the macroeconomic background. Nevertheless, there are encouraging signs in that Cenkos accounted for 23% of money raised on AIM in the first half (FY21: 10%), the number of corporate clients is higher and the company had carried out three transactions in H222 to date (nine in H122). The balance sheet remained strong with capital resources of £23.6m, comfortably above the regulatory requirement, and cash stood at £15.9m. This supports selective investment in staff to maintain service levels to a growing client base.

Last updated on 08/11/2022
Content on Cenkos Securities
Cenkos Securities – Flexible model well suited to market conditions
Financials | research Outlook | 15 September 2022
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Cenkos Securities – Uncertain background but resilient model
Financials | research Update | 30 March 2022
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Cenkos Securities – Reinvigorated and looking to the long term
Financials | research Outlook | 12 October 2021
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.0 (24.4) (41.6)
Relative* (4.7) (21.9) (39.0)
52-week high/low 82.0p/40.0p
*% relative to local index
Key management
Lisa Gordon Chairman
Julian Morse CEO