(Sharecast News) - Institutional stockbroking firm Cenkos Securities said on Friday that it had swung to a full-year pre-tax loss as revenues almost halved amid low levels of activity.
Cenkos stated annual revenues had crashed 46% to £20.3m, pushing underlying profits down 95% to £200,000 and dragging it from a pre-tax profit of £4.0m in 2021 to a pre-tax loss of £2.7m in 2022.
Net assets fell £5.2m to £21.8m and cash balances tumbled £19.2m to £14.2m as Cenkos said the UK Smaller Companies indices recorded "disappointing returns", which were "significantly lower" than more internationally exposed larger cap indices of UK equities.
Looking ahead, the AIM-listed group noted that "tough conditions" seen in 2022 had "eased slightly" in the early part of the new year but highlighted that capital markets still remained subdued relative to 2021.
Despite this, we believe that our ongoing emphasis on working closely with clients and maintaining a proactive dialogue with investors will continue to generate opportunities and attract new clients.
Chief executive Julian Morse said: "Despite the AIM market experiencing its lowest levels of activity for almost two decades, a continued attention to cost control, paired with a resolute focus on our strengths, has allowed us to find opportunity despite the volatility."
As of 0945 GMT, Cenkos shares were down 9.14% at 47.70p.
Reporting by Iain Gilbert at Sharecast.com
