REG - Cavendish PLC - 2026 Interim Results
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RNS Number : 3812F Cavendish PLC 30 October 2025
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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 Cavendish's obligations under
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inside information is now considered to be in the public domain.
30 October 2025
Cavendish plc
("Cavendish" and together with its subsidiary undertakings, the "Group")
2026 Interim Results
Cavendish plc (AIM: CAV), a leading UK investment bank and trusted adviser
to both public and private companies, today announces unaudited interim
results for the six-month period ended 30 September 2025.
H1'26 FINANCIAL HIGHLIGHTS
o Revenues of £28.5m (H1'25: £27.7m)
o Adjusted profit before tax* of £2.0m (H1'25: £1.9m) delivers an
improved profit margin of 7.0%
o Cash balances at 30 September 2025 of £19.8m, an increase of 15% vs the
same date last year (H1'25: £17.2m)
o Interim dividend of 0.3p per share (H1'25: 0.3p), commensurate with
performance during the period and confidence in performance for the full
year
o Adjusted Earnings per Share*: 0.4p (H1'25: 0.4p)
H1'26 OPERATIONAL HIGHLIGHTS
o More than 30 transactions executed during the period, with a value
of £1.1 billion
o Continued investment in Group talent with select and strategically aligned
hires
o Non-employee costs reduced by 9% to £7.0m during the period
(H1'25: £7.7m) reflecting continued Group efficiencies and investments in AI
capabilities
* Adjusted profit before tax is prior to share-based payments, share of
associate profits and fair value gains and losses on long term investments.
JULIAN MORSE AND JOHN FARRUGIA, CO-CHIEF EXECUTIVE OFFICERS OF CAVENDISH,
COMMENTED:
"We delivered a profitable first half across both public and private markets,
highlighting the broad appeal of our services and the efficiency of our
platform. Our pipeline remains strong, with a mix of public and private
transactions underway, including several potential IPOs.
While overall client numbers declined due to market exits, we continue to hold
our market-leading position as the adviser to the largest number of AIM-quoted
companies, including the addition of eight new clients across AIM and the Main
Market through a combination of IPOs and competitive wins. At the same time,
we are expanding our regional footprint in the UK, and our international
reach, supported by our membership of the Oaklins network, remains a clear
competitive advantage.
Our work spans the full company life cycle, advising and supporting small and
mid-sized businesses at every stage of their growth. Thanks to the breadth of
our capabilities, we can offer one of the most comprehensive ranges of
solutions in the market, enabling us to deliver tailored outcomes for each
client."
CAPITAL STRENGTH
The Group continues to have surplus capital and a strong liquidity position -
cash balance of £19.8m at 30 September 2025, reflecting careful cash-flow
management and operational efficiency. This provides the flexibility to adapt
to changing market conditions and to invest in opportunities that align with
our growth objectives.
INTERIM DIVIDEND
The Board has declared an interim dividend of 0.3p per share in respect of the
six months ended 30 September 2025 (the "Interim Dividend") (interim dividend
0.3p in FY'25). The Interim Dividend will be paid on 10 December 2025 to
shareholders registered on the record date of 21 November 2025, reflecting
Cavendish's commitment to returning value to shareholders.
OUTLOOK
We have made a solid start to the second half, with a pipeline of both public
and private transactions including potential IPOs and ongoing M&A
activity. We remain optimistic about the outlook, supported by continued
client wins and growing demand for IPOs as companies look to access the UK
markets.
There are encouraging indications that sentiment toward UK equities may be
gradually improving. During the period, the FTSE 100 reached record highs, and
since the reversal of the 'Trump tariffs,' the UK has ranked among the best
performing global equity markets. We are also seeing anecdotal evidence of
increased allocations from global investors into the UK, initially directed
toward the largest and most liquid companies. However, this trend has yet to
extend meaningfully to small and mid-cap equities, where valuations remain
highly attractive in the context of long-term trends.
In the near term, fiscal uncertainty linked to the delayed Budget continues to
weigh heavily on business confidence. Nonetheless, once this overhang clears
and particularly if inflation moderates, there is potential for a strong
finish to the financial year.
BUSINESS REVIEW
Revenue from public and private market transactions continued to be well
diversified. Transaction fees from equity issuance and sell-side private
M&A continued to underpin this significant revenue stream, with the size
of public market deals varying throughout the period as the market became
increasingly volatile following the introduction of the 'Trump tariffs'.
The Group recorded a notable improvement in revenue from market making and
agency commission, compared with the previous period driven by disciplined
execution and more buoyant markets.
MARKET CONDITIONS
The FTSE AIM All-Share rose approximately 14% in the period, driven by a
strong second quarter as smaller companies benefited from renewed investor
appetite, selective corporate activity, and the Bank of England's August rate
cut, although elevated gilt yields later moderated gains.
Investment company shares continued to trade on wide average discounts, with
some modest narrowing supported by buybacks, mergers, and sector-specific
corporate actions. Renewable infrastructure funds remained weak despite high
yields, while broader sentiment stabilised.
In private markets, M&A activity strengthened modestly as attractive UK
valuations and easing financing conditions encouraged selective trade and
private equity participation.
EXPANSION
Towards the end of the prior year, Cavendish expanded into the Regions with
offices opened in Manchester and Birmingham, partnering with industry experts
to bring in local contacts and expand the clientele. During H1'26, the new
team completed their first transaction and have numerous others in the
pipeline for the future, with nine staff now employed across the two offices.
INVESTMENT BANKING REVENUE
Investment Banking revenue comprises recurring retainer income from corporate
clients and advisory fees earned from ECM, M&A, Debt, and Private
placings.
Revenue decreased slightly versus the same period last year, due to a lower
volume of equity issuance and a small reduction in average deal fees in
private sales. Income from retainers declined in line with the net reduction
in quoted clients in the period.
6 months ended 6 months ended
30 Sep 2025 30 Sep 2024
Unaudited Unaudited
£'000 £'000
Retainers 5,276 5,956
Transactions 18,244 18,931
Investment Banking 23,520 24,887
EQUITIES REVENUE
Market making profit and agency commission were materially ahead (+78%) of the
same period last year. This reflects better market conditions coupled with the
strength of our experienced team and disciplined capital management.
6 months ended 6 months ended
30 Sep 2025 30 Sep 2024
Unaudited Unaudited
£'000 £'000
Equities 5,008 2,820
OPERATING EXPENSES
Non-employee costs reduced by 9% compared with the same period last year
through a combination of supplier contract review and renewal and a continued
focus on process automation.
Employee costs increased 7% compared with the same period last year driven by
the expansion into new regional offices and other targeted hires.
Share-based payments reduced as pre-merger share schemes fell away over the
period.
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Employee Costs 19,621 18,262 35,975
Share-based Payments 887 1,579 2,453
Non-employee 7,045 7,740 16,203
Administrative expenses 27,553 27,581 54,631
Average number of employees 203 197 197
CONSOLIDATED INCOME STATEMENT
UNAUDITED FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2025
6 months ended 6 months ended 12 months ended 31 March 2025
30 September 2025
30 September 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Notes
Revenue 2 28,528 27,707 55,646
Other operating income / (expense) 3 99 (87) (294)
Administrative expenses 4 (27,553) (27,581) (54,631)
Operating profit 1,074 39 721
Share of joint venture and associate losses (135) (135) (211)
Finance income 287 338 604
Finance charge (163) (190) (366)
Profit before taxation 1,063 52 748
Analysed as
Adjusted profit before tax 1,986 1,853 3,706
Share-based payments (887) (1,579) (2,453)
Adjusting items 8 (36) (222) (505)
Profit before taxation 1,063 52 748
Taxation (337) (15) 17
Profit attributable to equity shareholders 726 37 765
Total comprehensive profit for the year 726 37 765
Earnings per share (pence)
Basic 5 0.21 0.01 0.23
Diluted 5 0.20 0.01 0.21
Analysed as
Adjusted profit before tax 1,986 1,853 3,706
Share of joint venture and associate losses (135) (135) (211)
Taxation (337) (371) 17
Adjusted earnings 1,514 1,347 3,512
Basic shares 338,384,123 330,827,536 339,632,342
Adjusted earnings per share (pence) 0.4 0.4 1.0
CONSOLIDATED BALANCE SHEET
UNAUDITED FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2025
30 Sep 2025 30 Sep 2024 31 Mar 2025
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Non-current assets
Property, plant and equipment 8,671 10,150 9,618
Intangible assets 13,551 13,432 13,579
Investment in associates and joint ventures 1,876 1,947 1,871
Financial assets held at fair value 729 451 264
Deferred tax asset 7 2,651 3,611 2,988
Total non-current assets 27,478 29,591 28,320
Current assets
Trade and other receivables 7 36,275 24,338 22,903
Corporation tax receivable - - 595
Current assets held at fair value 4,838 4,339 4,210
Cash and cash equivalents 19,810 17,213 21,223
Total current assets 60,923 45,890 48,931
Total assets 88,401 75,481 77,251
Non-current liabilities
Lease liability 6,664 8,397 7,503
Provisions 25 815 58
Total non-current liabilities 6,689 9,212 7,561
Current liabilities
Trade and other payables 40,940 24,105 28,311
Current Liabilities held at fair value 1,612 2,135 1,535
Borrowings - 291 -
Total current liabilities 42,552 26,531 29,846
Equity
Share capital 3,871 3,857 3,857
Share premium 3,380 3,216 3,216
Own shares held 7 (3,287) (4,379) (4,494)
Merger relief reserve 7 25,151 25,151 25,151
Share based payments reserve 3,243 3,365 4,236
Retained earnings 6,802 8,528 7,878
Total equity 39,160 39,738 39,844
Total equity and liabilities 88,401 75,481 77,251
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
UNAUDITED FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2025
Own Merger Share Based
Share Share Shares Relief Payment Retained Total
Capital Premium Held Reserve Reserve Earnings Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 March 2024 3,847 3,099 (4,799) 25,151 3,766 8,556 39,620
Total comprehensive profit for the period - - - - - 37 37
Transactions with owners:
Share-based payments charge - - - - 789 - 789
Vesting of share-based payments - - - - (1,190) - (1,190)
Transfers to employees relating to share-based payments - - 1,008 - - - 1,008
Purchase of own shares - - (588) - - - (588)
Issued share capital 10 117 - - - - 127
10 117 420 - (401) - 146
Balance at 30 September 2024 3,857 3,216 (4,379) 25,151 3,365 8,593 39,803
Total comprehensive expense for the period - - - - - 728 728
Transactions with owners:
Share-based payments charge - - - - 1,656 - 1,656
Vesting of share-based payments - - - - (785) 1,975 1,190
Transfers to employees relating to share-based payments - - 473 - - (1,481) (1,008)
Purchase of own shares (588) - (588)
Dividends paid - - - - - (1,937) (1,937)
- - (115) - 871 (1,443) (687)
Balance at 31 March 2025 3,857 3,216 (4,494) 25,151 4,236 7,878 39,844
Total comprehensive income for the period - - - - - 726 726
Transactions with owners:
Share-based payments charge - - - - 887 - 887
Vesting of share-based payments - - - - (1,880) 1,880 -
Transfers to employees relating to share-based payments - - 1,923 - - (1,923) -
Purchase of own shares - - (716) - - - (716)
Dividends paid - - - - - (1,759) (1,759)
Issued share capital 14 164 - - - - 178
14 164 1,207 - (993) (1,802) (1,410)
Balance at 30 September 2025 3,871 3,380 (3,287) 25,151 3,243 6,802 39,160
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2025
30 Sep 2025 30 Sep 2024 31 Mar 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flow from operating activities
Profit before taxation 1,063 52 748
Adjustments for:
Depreciation 980 941 1,938
Amortisation 54 41 -
Share of associate profits 135 135 211
Finance income (287) (338) (604)
Finance charge 163 190 366
Share-based payments charge 887 1,579 2,453
Net fair value (gains) / losses recognised in profit or losses (99) 87 294
Payments received of non-cash assets (366) (226) (20)
2,530 2,461 5,386
Changes in working capital
Trade and other receivables (13,372) (1,624) (189)
Trade and other payables 10,575 (4,911) (46)
Provisions 33 - (24)
Cash Generated from Operations (234) (4,074) 5,127
Net cash payments for current asset investments held at fair value through (302) 2,006 1,736
profit or loss
Taxation receipts 595 - 56
Net cash (outflow)/inflow from operating activities 59 (2,068) 6,919
Cash flows from investing activities
Purchase of property, plant and equipment (33) (46) (68)
Purchase of intangible assets (26) (36) (143)
Proceeds on sale of investments - - (100)
Investment in associates and joint ventures (140) (100) -
Interest received 287 338 604
Net cash inflow from investing activities 88 156 293
Cash flows from financing activities
Equity dividends paid - - (1,937)
Issue of share capital and exercise of share options 178 17 127
Purchase of own shares (716) - (1,176)
Interest paid - (14) (11)
Lease liability payments (1,022) (1,424) (3,247)
Repayment of borrowings - (193) (484)
Net cash outflow from financing activities (1,560) (1,614) (6,728)
Net (increase) / decrease in cash and cash equivalents (1,413) (3,526) 484
Cash and cash equivalents at beginning of period 21,223 20,739 20,739
Cash and cash equivalents at end of period 19,810 17,213 21,223
NOTES TO THE FINANCIAL STATEMENTS
UNAUDITED FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2025
1. BASIS OF PREPARATION
Cavendish plc (the "Company" or the "Group") is a public limited company,
limited by shares, incorporated and domiciled in England and Wales. The
Company was incorporated on 28 August 2018. The registered office of the
Company is One Bartholomew Close, London EC1A 7BL, United Kingdom. The
Company's registered number is 11540126. The Company is quoted on the AIM
market of the London Stock Exchange.
The financial information contained within these condensed consolidated
Interim Financial Statements is unaudited and has been prepared in accordance
with International Accounting Standard 34 Interim Financial Reporting ('IAS
34') and AIM Rule 18. The financial information contained in the Interim
Financial Statements is unaudited and does not constitute statutory accounts
within the meaning of Section 434 of the Companies Act 2006.
The statutory accounts for the 12 months ended 31 March 2025 have been
delivered to the Registrar of Companies. The statutory accounts have been
prepared in accordance with UK Adopted International Accounting Standards and
in accordance with applicable law. The Independent Auditor's Report to the
members of Cavendish plc contained no qualification or statement under section
498 (2) or (3) of the Companies Act 2006.
These consolidated Interim Financial Statements contain information about the
Group and have been prepared on a historical cost basis except for certain
financial instruments which are carried at fair value. Amounts are rounded to
the nearest thousand, unless otherwise stated and are presented in pounds
sterling, which is the currency of the primary economic environment in which
the Group operates.
The preparation of these Interim Financial Statements requires the use of
certain critical accounting estimates. It also requires Group management to
exercise judgement in applying the Group's accounting policies. Judgements and
estimates used in these Interim Financial Statements have been applied on a
consistent basis with those used in the statutory accounts for the 12 months
ended 31 March 2025.
The Group has assessed the appropriateness of accounting on a going concern
basis. This process involved the review of a forecast for the coming 18
months, along with stress testing a second downside scenario. Both cases
showed that the Group has the required resources to operate within its
resources during the period. The Directors believe that the Group has adequate
resources to continue trading for at least 12 months from the date of approval
of this report. Accordingly, they continue to adopt the going concern basis in
preparing the Interim Financial Statements.
2. Segmental Reporting
The Group is managed as an integrated financial services group and the
different revenue streams are considered to be subject to similar economic
characteristics. Consequently, the Group is managed as one business unit. The
trading operations of the Group comprise of Corporate Advisory and Broking,
M&A Advisory and Institutional Stockbroking. The Group's revenues are
derived from activities conducted in the UK, although several of its corporate
and institutional investors and clients are situated overseas. All assets of
the Group reside in the UK.
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Retainers 5,276 5,956 11,708
Transactions 18,244 18,931 38,260
Equities 5,008 2,820 5,678
Revenue 28,528 27,707 55,646
3. Other Operating Income / (Expense)
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Other Operating Income / (Expense) 99 (87) (294)
4. Administrative Expenses
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Employee Costs 19,621 18,262 35,975
Share-based Payments 887 1,579 2,453
Non-employee Costs 7,045 7,740 16,203
Administrative expenses 27,553 27,581 54,631
Average number of employees 203 197 197
Employee benefit expense includes share-based payments of £887k (H1'25:
£1,579k).
5. Earnings per share
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
Weighted average number of shares for the purposes of basic earnings per share 338,384,123 330,827,536 339,632,342
Weighted average dilutive effect of conditional share awards 19,649,559 3,542,276 26,528,921
Weighted average number of shares for the purposes of diluted earnings per 358,033,682 334,369,812 366,161,263
share
Profit per ordinary share (pence) (pence)
Basic profit per ordinary share 0.21 0.01 0.23
Diluted profit per ordinary share 0.20 0.01 0.21
Shares held by the Group's Employee Benefit Trusts have been excluded from the
calculation of earnings per share.
6. Dividends
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Dividend proposed and paid 1,730 - 1,937
Dividends per share (pence) 0.50 - 0.55
7. Balance Sheet Items
i. Deferred tax asset
Deferred taxation for the Group relates to timing differences on the taxation
relief on the exercise of options and tax losses carried forward. The amount
of the asset is determined using tax rates that have been enacted or
substantively enacted when the deferred tax assets are expected to be
recovered.
ii. Trade and other receivables
Trade and other receivables principally consist of amounts due from clients,
brokers and other counterparties. In addition, the Group has credit risk
exposure to the gross value of unsettled trades (on a delivery versus payment
basis) at its agency settlement agent (Pershing, a wholly-owned subsidiary of
Bank of New York Mellon Corporation).
iii. Own shares held
The value of own shares held is the cost of shares purchased in the Group's
Employee Benefit Trusts. The Trusts were established with the authority to
acquire shares in the Group and are funded by the Group.
iv. Merger relief reserve
The merger relief reserve represents: the difference between net book value of
subsidiaries acquired via share-for-share exchanges and the nominal value of
the shares issued as consideration. Upon consolidation, part of the merger
reserve is eliminated to recognise the pre-acquisition reserves of Cavendish
Capital Markets Limited (December 2018) and Cavendish Securities plc
(September 2023); and the difference between the fair value and nominal value
of shares issued for the acquisition of Cavendish Corporate Finance (UK)
Limited and Cavendish Corporate Finance LLP from the acquisition in December
2018. This reserve is not distributable.
v. Post balance sheet events
There are no material post balance sheet events.
8. ALTERNATIVE PERFORMANCE MEASURES
The below non-GAAP alternative performance measures have been used.
Adjusted profit before tax
Measure: Adjusted profit before tax is calculated excluding share-based
payments, non-recurring items, share of joint venture and associate profits
and fair value (gains) / losses on long term investments.
Use: Provides a consistent measure of the earnings performance of the core
business activities.
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit before tax 1,063 52 748
Fair value (gains) / losses on long term investments (99) 87 294
Share-based payments 887 1,579 2,453
Share of joint venture and associate losses 135 135 211
Adjusted profit before taxation 1,986 1,853 3,706
6 months ended 6 months ended 12 months ended
30 September 2025 30 September 2024 31 March 2025
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit attributable to equity shareholders 726 37 765
Fair value (gains) / losses on long term investments (99) 87 294
Share-based payments 887 1,579 2,453
Taxation (33) (329) (369)
Adjusted earnings 1,481 1,374 3,143
Basic shares 338,384,123 330,827,536 339,632,342
Adjusted earnings per share (pence) 0.4 0.4 0.8
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