Cenkos Securities - Trading Update

Cenkos Securities

08/02/2023 07:00

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RNS Number : 2280P  Cenkos Securities PLC  08 February 2023

8 February 2023

 

Cenkos Securities plc

("Cenkos" or the "Company")

 

Trading Update

 

Cenkos, the independent institutional stockbroking firm, today issues a
trading update in respect of the unaudited financial year ended 31 December
2022.

 

Revenue for the full year is expected to be approximately £20m and the Board
expects to break even at underlying profit 1  (#_ftn1) level.  This has been
achieved against a backdrop of significantly depressed market conditions for
2022, with the overall level of money raised on AIM at its lowest since 2003
and new money at its lowest level since launch in 1995.

 

Notwithstanding market conditions, we have focused on gaining market share and
have managed to complete the three largest AIM IPOs by new money raised during
the course of the year, add 17 new clients bringing our retained corporate
clients total to 105 and performed a Nomad and/or broker role on transactions
representing around 15% of total money raised on AIM.  We have also continued
to develop our M&A capabilities, acting on a number of transactions in
both the AIM and Main Market Investment Companies space.

 

We have maintained a tight control on costs throughout the year, benefiting
from our flexible business model and have maintained a strong balance sheet
and cash position while making targeted investments in people to further
develop our franchise.

 

Outlook

 

Conditions remain challenging and the outlook uncertain but markets have made
a more encouraging start to 2023.  We have made a solid start to the year
with revenue for January ahead of the average run rate for H2 2022.  We have
already completed four placings and one M&A transaction this year, with a
growing pipeline of future transactions and clients continuing to engage on
both capital raising and M&A opportunities.  We remain focused on our
operational stability and resilience, maintaining the strength of our balance
sheet and regulatory capital position and growing our market share and are
well placed to benefit from any increased market activity.

 

This announcement contains certain inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"),
and is disclosed in accordance with the Company's obligations under Article 17
of MAR.

 

For further information, please contact:

 

Cenkos Securities plc

Julian Morse, Chief Executive Officer
                                Tel: 0207 397
8900

 

SPARK Advisory Partners Limited

Matt Davis, Nominated Adviser
 
Tel: 0203 368 3552

 1  (#_ftnref1) As defined in the 2022 Interim Results, underlying profit is
the operating profit before the impact of the day one value of options and
warrants received in the period, the fair value gain/loss on option and
warrants held and the costs associated with LTIP and CSOP incentive schemes.

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