Cenkos Securities

Cenkos Securities

LN: CNKS

Market Cap£46.2m

Last Close 81.5p

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.

More Cenkos Securities content >

Investment summary

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 06/01/2022
Content on Cenkos Securities
Cenkos Securities – Strong FY20 and positive outlook
Financials | Update | 12 April 2021
architecture-buildings-business-417382
Cenkos Securities – Strong activity and lean cost base
Financials | Outlook | 21 October 2020
architecture-buildings-business-417382
View more
Register to receive research on Cenkos Securities as it is published
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 8.7 (0.6) 40.5
Relative* 5.6 (6.3) 28.1
52-week high/low 94.0p/58.5p
*% relative to local index
Key management
Lisa Gordon Chairman
Jim Durkin CEO
Calvin Gregory-Lilley FD