2026 Full Year Results
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.
24 June 2026
Cavendish plc
("Cavendish" and together with its subsidiary undertakings, the "Group")
2026 Full Year Results
Cavendish plc (AIM: CAV), a leading UK investment bank and trusted adviser to ambitious companies, today announces results for the year ended 31 March 2026.
FINANCIAL HIGHLIGHTS
- Revenue £56.9m (FY25: £55.6m)
- Core profit before tax* £3.5m (FY25: £3.7m)
- Core EPS* 0.80p (FY25: 0.94p);
- Profit before taxation £1.5m (FY25: £0.7m)
- Basic EPS 0.16p (FY25: 0.23p); Diluted EPS 0.15p (FY25: 0.21p)
- Year-end cash £19.2m (FY25: £21.2m); Group remains debt free
- Total dividend 0.8p per share (interim 0.3p; proposed final 0.5p), FY25: 0.8p
OPERATIONAL HIGHLIGHTS
2026
2025
Change
Net assets
£39.0m
£39.8m
(2.0)%
Transaction volume
96
100
(4.0)%
Average market cap of clients
£183.1m
£157.5m
16.3%
STRATEGY FOR GROWTH
- Improving the quality and scale of clients and mandates, supported by the continued expansion of our one-firm origination model.
- Moving from cross selling to joint selling by deepening sector-led collaboration across Public and Private markets.
- Strengthening equity distribution processes and systems across Research, Sales and Trading, delivering increased revenue contributions
- Embedding AI and data analytics at every stage of the client lifecycle.
JULIAN MORSE AND JOHN FARRUGIA, CO-CHIEF EXECUTIVE OFFICERS OF CAVENDISH, COMMENTED:
"FY26 was a year of steady progress. We stayed consistently profitable, maintained a strong debt-free balance sheet, and continued to invest in the people, systems and capabilities that will support long-term growth. Core profit before tax* was £3.5m (FY25: £3.7m), our compensation ratio was 66% (64%), and year-end cash of £19.2m (FY25: £21.2m) gives us flexibility to invest while continuing to support shareholder returns.
We strengthened our platform through targeted senior hires, investment in regional capability and continued development of our data analytics and applied AI tools. That is improving how we originate, advise, and execute, while helping us build a more scalable business with better market positioning and stronger conversion of relationships into mandates.
In public markets, we improved performance over the year and grew net quoted client numbers in the second half (170 clients, 11% Mkt Share) despite the broader decline in the number of UK quoted companies. That strengthens our recurring retainer base and supports future advisory and transaction income. Transaction volumes were stable, and while average fees were lower because of deal mix, recurring revenues and trading income increased to 35% of revenue from 31% last year.
In private markets, transaction volumes remained solid (34 transactions in FY26, 31 transactions in FY25), but revenues were comparatively lower (15.6% decrease) due to the absence of larger deal fees, with two very sizeable deals falling away during the period. Our investment in technology, origination and regional reach, intended to create a more resilient pipeline, with less dependencies on key relationships, is increasingly showing through in performance. Our nascent regional private markets team became profitable in the latter part of the year, and stronger origination is reducing reliance on third-party referrals"
OUTLOOK
Cavendish enters the new financial year with a strong and well‑capitalised platform, supported by a diversified business model and disciplined investment approach. The Group will continue to invest selectively in areas that enhance origination, strengthen equity distribution, and deepen sector expertise, while maintaining a clear focus on cost discipline and sustainable returns.
Further progress is expected from the expansion of regional capabilities and continued development of data and analytics, including AI‑enabled workflows. These initiatives are designed to improve decision‑making, enhance client insight and increase operational efficiency, supporting a more scalable and resilient advisory model.
In equity markets, near‑term conditions remain influenced by political and macroeconomic uncertainty, particularly around inflation and interest rate expectations following recent energy price volatility. However, there are encouraging signs that, as these pressures normalise, capital flows could return to UK small and mid‑cap equities, where valuations remain attractive. A potential shift back towards monetary easing would be supportive of a re‑rating across the segment, providing a more constructive backdrop for activity and growth in the period ahead.
Furthermore, recent regulatory changes, and a growing political commitment to foster an investing culture in the UK, together with the launch of both the Government and LSEG's new marketing campaigns, aimed at raising investor participation in UK equities, are all particularly welcome initiatives in establishing a more vigorous environment for the UK market. While market conditions remain uncertain, Cavendish is well positioned to benefit from improving sentiment over time. A growing client base, leading market share, strengthening origination capability and diversified revenue streams provide a solid foundation for future performance and long‑term value creation for shareholders.
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
Matt Lewis
Hudson Sandler (PR adviser) Tel: +44 (0) 20 7796 4133
Dan de Belder/Rebekah Chapman
* Core profit before tax and core earnings per share are alternative performance measures used by the Group to provide a clearer view of underlying operating performance. These measures exclude share-based payments, option revaluation movements and the share of associate and joint venture profits or losses. By removing items that can introduce volatility or are not reflective of ongoing operations, these measures enhance comparability between periods and are more closely aligned with the generation of long-term distributable reserves. As a result, they provide a more meaningful basis for assessing the Group's performance and value creation.
BUSINESS REVIEW
FY26 has been a year of measured progress for Cavendish, characterised by disciplined execution and targeted investment to support sustainable long-term growth. Importantly, activity levels and pipeline development across both Public and Private Markets remain encouraging as the Group enters the new financial year.
Strategic investment has been a defining feature of the year. The Group has continued to strengthen its people, systems, and operating model to enhance its long-term competitive position. Senior hires across Equity Research, Institutional Sales, Trading and Corporate Broking have materially enhanced the equity distribution platform, while the establishment of a centralised corporate development, marketing and communications function has improved market positioning and increased the conversion of relationships into mandates. These initiatives are complemented by sector-aligned origination, which is sharpening client engagement and supporting more consistent revenue generation.
Cavendish has also accelerated the build-out of its data analytics and applied AI capabilities, embedding technology more deeply across origination, advisory, and execution. These tools are enhancing decision-making, strengthening pricing discipline and improving client insight, while increasing the efficiency and scalability of the business. At the same time, continued investment in regional capability across both equity capital markets and private M&A is beginning to deliver tangible benefits, with regional teams increasingly established and contributing to performance. Organisational changes during the year have also reduced reliance on third-party referrals, supporting a more diversified and sustainable origination model, while creating greater opportunity for emerging talent to develop within the firm.
Group revenue comprises the following:
2026
2025
Change
Retainers
£10.7m
£11.7m
(8.8)%
Transactions
£36.8m
£38.3m
(3.9)%
Securities
£9.4m
£5.7m
66.0%
Total revenue
£56.9m
£55.7m
2.2%
Revenue per head
£0.285m
£0.282m
1.1%
Number of transactions
96
100
(4.0%)
Public Markets
The public markets business delivered resilient performance during FY26 against a mixed market backdrop. While the overall number of quoted companies in the UK has continued to decline in recent years, Cavendish has demonstrated its ability to win new clients and grow its market position. This was particularly evident in the second half of the year, when the Group achieved a net increase in client numbers, reversing earlier trends and reinforcing its position as a leading adviser to UK small and mid-cap companies. We now advise 1 in every 9 listed companies in the UK.
Growth in the client base reflects the continued strengthening of the equity distribution platform and underpins an expanding base of recurring retainer income, which provides greater revenue visibility and stability. At the same time, the Group has introduced additional revenue streams, which, while currently modest in scale, contribute to improving the quality and diversification of earnings.
Transaction volumes remained broadly consistent over the year, although average fees were lower, reflecting deal mix and prevailing market conditions. Notwithstanding this, execution activity remained strong, demonstrating the resilience of client relationships and the benefits of earlier and more integrated client engagement across service lines. Performance improved across key areas of the business, including Investment Companies and Equities Trading, supported by disciplined risk management and enhanced collaboration between research, sales and trading teams. This more integrated operating model, combined with targeted senior hires, has strengthened the Group's ability to deliver high-quality outcomes for clients across market cycles. Recurring revenues and trading income increased to 35% of Group revenues (FY25: 31%), reflecting progress in building a more balanced and resilient revenue mix.
Having supported and liaised with the LSE through its development, Cavendish has also been approved as a Registered Auction Agent (RAA) for the LSE's new Private Securities Market (PSM) and was involved in the inaugural transaction successfully completed on the PSM. Cavendish is in discussions regarding a number of further opportunities on the PSM, such potential transactions demonstrating additional diversification of the Group's business and the breath of its services
Public market revenue comprises the following:
2026
2025
Change
Retainers
£10.7m
£11.7m
(8.8)%
Transactions
£21.3m
£19.9m
6.8%
Securities
£9.4m
£5.7m
66.0%
Total public markets revenue
£41.4m
£37.3m
10.9%
Number of transactions
62
69
(10.1)%
Private Markets
In the market for private companies, the Group delivered consistent transaction volumes despite lower average fees, again reflecting deal mix and broader market dynamics. Performance increasingly reflects the benefits of strategic investment in origination and regional expansion, with the regional private markets team achieving profitability in the latter part of the year and continuing to build momentum.
Strengthened origination capability has been a key driver of performance, increasing mandate flow while reducing dependence on third-party introductions and individual networks. This shift supports a more scalable and repeatable advisory model, enhancing the sustainability of the business over time. The development of local origination and execution capability is also improving client access and deepening relationships across regional markets.
Targeted organisational changes within teams have further supported performance, creating greater capacity for emerging talent and improving succession planning. By providing increased responsibility and development opportunities, the Group is actively building its future leadership pipeline while maintaining strong delivery capability in the near term. Collectively, these initiatives are reinforcing the resilience, scalability, and long-term growth potential of the services we provide for private companies.
Private market revenue comprises the following:
2026
2025
Change
Transactions
£15.5m
£18.3m
(15.6)%
Number of transactions
34
31
9.7%
Financial Performance
FY26 delivered another year of consistent profitability and disciplined financial management despite ongoing uncertainty across UK capital markets, reflecting the resilience of our diversified revenue base and operating model. Revenues increased to £56.9m (FY25: £55.6m), while core profit before tax* reduced modestly to £3.5m (FY25: £3.7m), primarily due to deliberate investment in regional expansion, talent, and technology. Statutory profit before tax improved to £1.5m (FY25: £0.7m), reflecting lower exceptional items and reduced share-based payments. Cavendish closed the year with a strong, debt‑free balance sheet and cash of £19.2m (FY25: £21.2m).
Revenue
Revenue growth of 2.2% reflects stable activity levels in subdued market conditions. Public Markets performed modestly ahead of the prior year, supported by equity capital markets activity, investment companies, and stronger equities trading. Private markets revenues were slightly lower due to reduced average deal size, although transaction volumes remained consistent. The diversified service offering continued to provide stability, with movements across individual revenue lines offsetting each other at Group level and supporting consistent profitability.
Year ended
Year ended
31 March 2026
31 March 2025
£'000
£'000
Retainers
10,682
11,708
Transactions
36,759
38,260
Investment Banking
47,441
49,968
Securities
9,426
5,678
Operating Expenses
Cost control remained a key focus. Employee costs increased because of targeted hiring and regional expansion, with the compensation ratio remaining competitive. Non‑employee costs reduced on a like-for-like basis through efficiency initiatives and tighter cost governance.
Year ended
Year ended
31 March 2026
31 March 2025
£'000
£'000
Employee benefit expense
40,488
38,428
Depreciation
2,043
1,938
Amortisation
101
-
Foreign exchange
(52)
14
Introducers fees
505
1,370
Other expenses
12,231
12,881
Total administrative expenses
55,316
54,631
Compensation ratio
66%
64%
Cash flow, liquidity, and capital allocation
The Group generated £4.9m of operating cash flow before working capital movements (FY25: £5.4m). Cash outflows primarily related to dividends, leases and share purchases for employee plans. The Group remains well capitalised and debt free, supporting investment and shareholder returns. A total dividend of 0.8p per share is proposed, unchanged year-on-year.
Financial position
Total assets were £77.0m (FY25: £77.3m). Equity remained stable at £39.0m (FY25: £39.8m). The Group maintains a robust capital and liquidity position, supported by disciplined forecasting and oversight.
Outlook and financial priorities
Financial priorities remain focused on maintaining profitability, improving productivity, investing selectively in growth opportunities, and preserving balance sheet strength, positioning the Group to grow as conditions improve.
CONSOLIDATED INCOME STATEMENT
Year ended
Year ended
31 March 2026
31 March 2025
£'000
£'000
Revenue
56,867
55,646
Net fair value gains / (losses)
19
(294)
Administrative expenses
(55,316)
(54,631)
Operating profit
1,570
721
Share of joint venture and associate losses
(274)
(211)
Finance income
504
604
Finance charge
(318)
(366)
Profit before taxation
1,482
748
Taxation
(916)
17
Profit attributable to equity shareholders
566
765
Total comprehensive profit for the year
566
765
Profit per share (pence)
Basic
0.16
0.23
Diluted
0.15
0.21
CONSOLIDATED BALANCE SHEET
31 March
31 March
2026
2025
£'000
£'000
Non-current assets
Property, plant and equipment
7,828
9,618
Intangible assets
13,623
13,579
Financial assets held at fair value
811
264
Investment in associates and joint ventures
1,737
1,871
Deferred tax asset
2,072
2,988
Total non-current assets
26,071
28,320
Current assets
Trade and other receivables
27,876
22,903
Corporation taxation receivable
-
595
Securities held for trading
3,808
4,210
Cash and cash equivalents
19,200
21,223
Total current assets
50,884
48,931
Total assets
76,955
77,251
Non-current liabilities
Lease liabilities
5,844
7,503
Provisions
25
58
Total non-current liabilities
5,869
7,561
Current liabilities
Trade and other payables
28,314
26,261
Lease liabilities
2,177
2,050
Securities held for trading
1,625
1,535
Total current liabilities
32,056
29,846
Equity
Share capital
3,871
3,857
Share premium
3,380
3,216
Own shares held
(4,018)
(4,494)
Merger relief reserve
25,151
25,151
Share based payments reserve
4,207
4,236
Retained earnings
6,439
7,878
Total equity
39,030
39,844
Total equity and liabilities
76,955
77,251
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
Own
Merger
Share Based
Share
Share
Shares
Relief
Payments
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
-
-
-
-
-
765
765
Transactions with owners:
Share-based payments charge
-
-
-
-
2,445
-
2,445
Vesting of share-based payments
-
-
-
-
(1,975)
1,975
-
Transfers to employees to satisfy share-based awards
-
-
1,481
-
-
(1,481)
-
Purchase of own shares
-
-
(1,176)
-
-
-
(1,176)
Dividends paid
-
-
-
-
-
(1,937)
(1,937)
Issued share capital
10
117
-
-
-
-
127
10
117
305
-
470
(1,443)
(541)
Balance at 31 March 2025
3,857
3,216
(4,494)
25,151
4,236
7,878
39,844
Total comprehensive profit for the period
-
-
-
-
-
566
566
Transactions with owners:
Share-based payments charge
-
-
-
-
1,733
-
1,733
Vesting of share-based payments
-
-
-
-
(1,762)
1,726
(36)
Transfers to employees to satisfy share-based awards
-
-
1,201
-
-
(916)
285
Purchase of own shares
-
-
(725)
-
-
-
(725)
Dividends paid
-
-
-
-
-
(2,815)
(2,815)
Issued share capital
14
164
-
-
-
-
178
14
164
476
-
(29)
(2,005)
(1,380)
Balance at 31 March 2026
3,871
3,380
(4,018)
25,151
4,207
6,439
39,030
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended
Year ended
31 March 2026
31 March 2025
£'000
£'000
Cash flows from operating activities
Profit before taxation
1,482
748
Adjustments for:
Depreciation and amortisation
2,144
1,938
Finance income
(504)
(604)
Finance charge
318
366
Share of joint venture and associate losses
274
211
Share based payments charge
1,733
2,453
Net fair value (gains) / losses recognised in profit or loss
(19)
294
Payments received of non-cash assets
(528)
(20)
4,900
5,386
Changes in working capital:
Increase in trade and other receivables
(4,994)
(189)
(Decrease)/increase in trade and other payables
2,053
(46)
Decrease in provisions
(33)
(24)
Cash generated from operations
1,926
5,127
Net cash receipts for current asset investments
held at fair value through profit or loss
762
1,736
Tax paid
595
56
Net cash inflow from operating activities
3,283
6,919
Cash flows from investing activities
Purchase of property, plant and equipment
(79)
(68)
Purchase of intangible assets
(145)
(143)
Investment in associates and joint ventures
(140)
(100)
Interest received
504
604
Net cash inflow from investing activities
140
293
Cash flows from financing activities
Equity dividends paid
(2,815)
(1,937)
Issue of share capital and exercise of options
178
127
Purchase of own shares
(725)
(1,176)
Interest paid
-
(11)
Lease liability interest*
(318)
(355)
Lease liability payments
(1,766)
(2,892)
Repayment of borrowings
-
(484)
Net cash (outflow) from financing activities
(5,446)
(6,728)
Net (decrease)/increase in cash and cash equivalents
(2,023)
484
Cash and cash equivalents at beginning of year
21,223
20,739
Cash and cash equivalents at end of year
19,200
21,223
* In the prior year, lease liability interest was included within lease liability payments. This reallocation is immaterial and has no impact on the Group's overall cash generation.
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
a. Basis of preparation
These consolidated and Parent Company 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.
These consolidated and Parent Company Financial Statements have been prepared in accordance with UK Adopted International Accounting Standards.
The preparation of Financial Statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies.
The consolidated financial information contained within these financial statements does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The auditor has reported on the statutory financial statements and the audit report was unqualified. The annual report and accounts for the year ended 31 March 2026 is expected to be filed with the Registrar of Companies and posted to Shareholders in August. Further copies will be available from the Company Secretary at Cavendish's registered office and on the website www.Cavendish.com.
b. Basis of consolidation
The Group's consolidated Financial Statements include the Financial Statements of the Company and all its subsidiaries. Subsidiaries are entities over which the Group has control if all three of the following elements are present: power over the investee, exposure to variable returns from the investee and the ability of the investor to use its power to affect those variable returns. Subsidiaries are fully consolidated from the date on which control is established and de-consolidated on the date that control ceases.
Transactions and balances between members of the Group are eliminated on consolidation and consistent accounting policies are used throughout the Group for the purposes of consolidation.
c. Going concern
The Group's principal business activities comprise corporate advisory and broking services, M&A advisory and institutional stockbroking.
The Directors have assessed the appropriateness of preparing the financial statements on a going concern basis. In forming this assessment, they reviewed the Group's projected performance, financial resources, and cash flows. The evaluation included both the Group's base case forecasts and a challenging but plausible downside scenario that reflects the principal risks that could affect the Group.
The Directors are satisfied that the Group has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements and for the near future. In reaching this conclusion, the Directors have also considered the potential indirect impacts of ongoing geopolitical instability, including the current conflict in the Middle East, on global economic conditions, market confidence, and capital markets activity. While such factors may contribute to increased volatility and uncertainty, the Group's diversified business model, strong liquidity position and active cost and risk management provide resilience. Accordingly, the Directors continue to adopt the going concern basis in preparing the Annual Report and Accounts.
2. Dividends
Year ended
Year ended
31 March 2026
31 March 2025
£'000
£'000
Dividends proposed and paid during the year
2,815
1,937
Dividends per share
0.80p
0.55p
Dividends are declared at the discretion of the Board.
The Board has proposed a final dividend of 0.5p per share. The final dividend, subject to approval at the AGM, is expected to be paid on 15 September 2026 to shareholders on the register on 21 August 2026.
3. Website publication
The full Financial Statements are included in our Annual Report and Accounts, which will be published on Cavendish's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of Financial Statements, which may vary from legislation in other jurisdictions.
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