LONDON (Alliance News) - Stockbroker Cenkos Securities PLC on Monday said its pretax profit more than doubled in 2014 on the back of higher revenue and a robust market share for fundraisings on AIM.
Cenkos said its pretax profit rose to GBP27 million from GBP10.5 million in 2014, with revenue increasing to GBP88.5 million from GBP51.4 million. Cenkos said the increase in revenue was down to a higher level of corporate activity in the year, boosted by the recovery in the UK economy. Corporate finance revenue rose 91% in the year to GBP69.1 million.
The group said it had a market share of 15% of all funds raised on AIM in 2014 and was also given a boost from its role as the sole coordinator and bookrunner on the flotation of AA PLC.
It added the new year has started well, echoing its statement last week that the planned takeover of British Car Auctions Ltd by investment vehicle Haversham Holdings PLC will result in a big uptick in fees for Cenkos.
Cenkos has proposed a final dividend of 10 pence per share, up from 8.5 pence, making a total dividend for the year of 17 pence against 12 pence a year earlier.
"Our successful strategy of being a leading UK institutional broker to growth companies and investment funds has led to us being profitable in every year since our formation in 2004. This approach continues to bear fruit and I am pleased to report a very strong performance for 2014. We have materially increased our profitability and earnings per share. We strengthened our position as one of the leading brokers in London for growth companies," said Cenkos Chief Executive Jim Durkin.
Cenkos shares were up 2.4% to 190.00 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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