REG - Cavendish Financial - Trading Update

CavendishAnnouncement

04/04/2024 07:00

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RNS Number : 2115J  Cavendish Financial PLC  04 April 2024

 
 
                            4 April 2024

Cavendish Financial plc ("Cavendish")

Trading update((1)) - strong post-merger performance

Cavendish (LON: CAV), a leading UK mid-market investment bank, today issues a
trading update for the year ended 31 March 2024.

Financial performance((1))

In H2, we saw significant growth with revenues expected to be approximately
£34.5m, c.77% up on pro forma H1 revenue of £19.5m.   As a result,
statutory revenue for the full year is expected to be approximately £47.5m
(FY23: £32.9m) up c.44%.  On a full year pro forma basis revenue is expected
to be c.£54m (FY23 pro forma: £50.5m).

The newly merged team delivered an H2 performance well ahead of H1 as we
completed multiple deals for our clients, across all parts of our business and
strengthened our balance sheet further.  As at 31 March 2024, cash was
approximately £20.8m, up from c.£12.3m at our half year.

Having locked in annualised synergies of £7m, we continue to deliver further
savings from the merger and the run rate cost base of the merged group has
been substantially reduced giving us greater resilience and better operating
leverage.

Outlook

Whilst the interest rate cycle appears to have peaked, conditions continue to
impact demand for UK equities, making deal execution in ECM challenging across
all market participants.  However, private and public M&A has remained
buoyant in H2 and our pipeline across both ECM and M&A remains good.

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Cavendish's obligations under Article 17 of
the UK MAR. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

CONTACTS

Cavendish (Management)
 
Tel: +44 (0) 207 220 0500

Julian Morse, Co-Chief Executive Officer

John Farrugia, Co-Chief Executive Officer

Ben Procter, Chief Financial Officer

Grant Thornton (Nominated Adviser)
                                      Tel: +44 (0) 207 383
5100

Philip Secrett/Samantha Harrison

Cavendish (Broker)
 
     Tel: +44 (0) 207 220 0500

Tim Redfern

Hudson Sandler (PR)
 
    Tel: +44 (0) 20 7796 4133

Dan de Belder/Rebekah Chapman

(1)    References to unaudited pro forma revenues reflect the addition of
the unaudited consolidated revenue of finnCap Group plc and the unaudited
consolidated revenue of Cenkos Securities plc for the relevant period as if
they were consolidated fully for that period.  Pro forma information is a
non-GAAP measure and is provided to assist with a better understanding of
Cavendish's performance.

 

END

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