Cenkos Securities

Cenkos Securities

LN: CNKS

£26.7m market cap

47p 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 £20bn in equity capital for corporate clients, which currently number c 100.

Investment summary

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.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 45.0 3.4 3.2 4.4 10.7 7.7
2019A 25.9 0.4 0.1 (0.2) N/A N/A
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

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.

Last updated on 18/09/2020
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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 (5.1) (3.1)
Relative* 0.9 (2.4) 16.2
52-week high/low 65.0p/31.5p
*% relative to local index
Key management
Calvin Gregory-Lilley FD