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 £20bn in equity capital for corporate clients, which currently number c 100.
Cenkos’ AGM statement at the end of June indicated that despite challenging market conditions the group has remained active in the current year. It carried out an AIM IPO for FRP Advisory in February and a number of placings, including 10 since the end of March listed on the company’s website. Five-month revenues were ahead of the same period in 2019 (a relatively soft period) while fixed costs have been significantly reduced, which should benefit H220 in particular.
Given continuing uncertainty resulting from the pandemic we have removed estimates for the moment. Cenkos benefits from a flexible business model that rewards staff and shareholders in periods of strong activity and revenues but limits the downside when the level of transactions is depressed. Cenkos indicated in its statement that it was working on a number of transactions with a potential pipeline of further deals. The group was therefore cautiously optimistic. The strong balance sheet and surplus regulatory capital are additional supportive features for both clients and investors.