Cenkos Securities

Cenkos Securities

LN: CNKS

Market Cap£35m

Last Close 62p

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 101 at end December 2021.

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Investment summary

Cenkos’ full year figures for 2021, reported in March, showed revenue up 18% to £37.2m with the second half slightly ahead of the first half at £19.0m versus £18.2m. During the year the firm carried out two IPOs and 34 transactions in total (29 in FY20) raising over £1.2bn for clients (£0.9bn). Underlying operating profit increased from £4.0m to £5.9m while reported pre-tax profit was £4.0m compared with £2.3m. Diluted EPS increased from 3.3p to 6.0p. A full year dividend of 3.0p is proposed giving a full year figure of 4.25p (+21%) reflecting the board’s confidence in the business’s ability to weather potential market volatility and the strength of the balance sheet (year-end net cash £33.5m).

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 18.8 5.6
2021A 37.2 4.8 4.0 6.0 10.3 5.1
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

The outlook is clouded by the war in Ukraine and macroeconomic concerns but Cenkos reported a good start to 2022 with two IPOs and an introduction, four placings and two M&A transactions carried out in the first 10 weeks. In its AGM statement in May the company noted the continued impact of uncertainty on investor confidence and capital markets activity but indicated it is working on a number of transactions for clients, has an encouraging pipeline and retains a strong balance sheet and resilient business model.

Last updated on 30/06/2022
Content on Cenkos Securities
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
architecture-buildings-business-417382
Cenkos Securities – Strong FY20 and positive outlook
Financials | research Update | 12 April 2021
architecture-buildings-business-417382
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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 (3.1) (22) (22)
Relative* 3.3 (17.1) (20.6)
52-week high/low 90.0p/53.0p
*% relative to local index
Key management
Lisa Gordon Chairman
Jim Durkin CEO
Calvin Gregory-Lilley FD