Cenkos Securities

LN: CNKS

£23.5m market cap

41.5p last close

Cenkos is a leading UK securities business, which acts as nominated advisor, sponsor, broker and financial adviser to companies across all sectors and stages of growth. Since inception in 2005, it has raised more than £19.6bn in equity capital for corporate clients, which currently number 110. There are 114 employees and the business has an approach where fixed costs are contained and variable rewards are closely geared to revenues.

Investment summary

Cenkos has a record of successful fund-raising for clients and maintaining annual profitability since its inception in 2005. This reflects its focus on client outcomes, a well-established network of business relationships and flexibility in its cost base. Its client relationships should stand it in good stead when market conditions become more favourable. In the meantime, the company’s strong balance sheet, with substantial capital headroom, provides reassurance and Cenkos would not need to attain earlier levels of return on equity to warrant a materially higher valuation.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 59.5 10.2 10.0 13.2 3.1 3.3
2018A 45.0 3.3 3.2 4.2 9.9 6.8
2019E 32.5 1.5 1.0 1.0 41.5 7.1
2020E 37.5 3.7 3.5 5.0 8.3 3.6
Share price graph
Balance sheet
Forecast net cash (£m) 26.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (11.7) 2.5 (43.2)
Relative* (13.7) (0.3) (46.1)
52-week high/low 73.0p/38.0p
*% relative to local index
Key management
Anthony Hotson CEO
Calvin Gregory-Lilley FD
Michael Johnson Equity Sales
Mike Chilton Finance Director