REG - Cavendish PLC - Full Year Trading Update

CavendishAnnouncement

04/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250404:nRSD6252Da&default-theme=true

RNS Number : 6252D  Cavendish PLC  04 April 2025

 

 

 

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 Company'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. 

4 April 2025

Cavendish plc
("Cavendish" and together with its subsidiary undertakings, the "Group")

Full Year Trading Update

Consistently Profitable During FY25

Cavendish, a leading UK investment bank, today issues a trading update for the
year ended 31 March 2025 ("FY25").

FY25 Financial performance

FY25 Group Revenues are expected to be approximately £55m, in line with FY24
on a like-for-like basis*, with Cavendish having been profitable in both
halves of the financial year, demonstrating the broad appeal of our service
offering and efficiency of our platform in both public and private markets.

Net cash balances were £21m at 31 March 2025.  The Board believes that a
strong cash-rich balance sheet provides financial resilience for the Group and
allows us to continue to build our business for the benefit of all our
stakeholders.

Market share increased in our public markets business despite challenging
market conditions. Cavendish transactions completed during FY25 included the
last UK IPO of calendar year 2024 and the first of 2025, and the solid
pipeline of transactions in train includes further IPOs.  We continue to rank
first for the number of growth companies we support on AIM and to add to our
portfolio of Main Market clients.

Our private markets business delivered very strong revenue growth during the
period, reflecting the strength of our advisory capabilities and the continued
demand for high-quality execution in this segment. The recent opening of
offices in Manchester and Birmingham has enabled us to further deepen our
regional presence, supported by the addition of high-calibre teams in both
locations. We enter the new financial year with a higher number of active
mandates than at the same point last year, and we remain confident in our
ability to sustain momentum.

Across our business we act for and advise small and mid sized companies at all
stages of their life cycle. Due to the multi-faceted nature of our business we
are fortunate to be able to offer the widest array of solutions for our
clients giving them tailor made outcomes.

Outlook

The private markets pipeline remains encouraging, underpinned by a growing
number of entrepreneurs considering exit opportunities and increasing
engagement from private equity firms seeking to realise value from their
portfolios of companies. Cavendish maintains active relationships with
approximately 150 UK private equity firms. These investors are currently
deploying over £50 billion of committed capital from their latest funds.
Notably, 20 of these firms have raised a combined £7 billion over the past 18
months to invest in sectors that align closely with Cavendish's core focus.
Encouragingly, the UK Budget last September did not have a material impact on
business owner sentiment.

Well publicised challenges persist for the UK public markets, but with our
Chair's recent appointment to the Capital Markets Industry Taskforce (CMIT),
we remain central to the increasing number of stakeholder voices advocating
for the policies and initiatives required to revitalise investment in UK small
and medium-sized UK companies.

After a challenging period for UK and European equities, we remain cautiously
optimistic that sentiment may finally be turning. President Trump's tariff
policies and government spending cuts have heightened US recessionary risks,
coincident with historically high US equity valuations and extreme
concentration of capital in the largest US tech firms.

These risks to US equities have begun to prompt a reappraisal of
diversification, driving a rotation from the US to European and UK equities.
Whilst this rotation will initially favour the largest and most liquid
European and UK stocks, history suggests that any incremental asset allocation
to UK equities will ultimately flow through to smaller and mid-cap companies,
especially given their attractive valuations. We believe that a combination of
increasing diversification and the compelling valuation of the UK small and
mid-cap sector will create significant opportunities in the year ahead.

As a leading UK small and mid-cap investment bank, Cavendish is ideally
positioned to benefit both from this change in sentiment and the ongoing
momentum in private markets and will do so from a position of balance sheet
strength.

 

 

Contacts

Cavendish (Management)
                                    Tel:
+44 (0) 20 7220 0500

Julian Morse, Co-Chief Executive
Officer
investor.relations@cavendish.com

John Farrugia, Co-Chief Executive
Officer

Ben Procter, Chief Financial Officer

 

Spark Advisory Partners (Nominated Adviser)              Tel: +44
(0) 203 368 3550

Matt Davis

 

Cavendish
(Broker)
Tel: +44 (0) 20 7220 0500

Tim Redfern

 

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

Dan de Belder/Rebekah Chapman

 

 

*Note: FY24 comparative numbers are on a pro forma basis, including the
pre-merger' revenues for Cenkos Securities plc.  Pro forma information is a
non-GAAP measure and is provided to assist with a better understanding of
Cavendish's performance.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTZZGGDLFMGKZM