LONDON (Alliance News) - Cenkos Securities PLC Wednesday doubled its interim dividend and said it is evaluating further ways of making returns to shareholders, particularly share buy-backs, as it reported a significant jump in first-half pretax profit due to a buoyant UK equities market.
Cenkos paid an interim dividend of 7.0 pence per share and said it expects to pay a full-year dividend higher than that paid last year.
Cenkos, which provides corporate finance, corporate broking and securities services to small and mid-cap growth companies across a wide range of industry sectors, said it made a GBP23.5 million pretax profit in the six months ended June 30, compared with GBP3.1 million in the corresponding period last year.
Revenue increased to GBP65.2 million from GBP20.0 million as Cenkos completed eighteen transactions, including six initial public offerings, and helped its clients to raise GBP2.21 billion, of which GBP1.39 million was from the IPO of AA PLC. Cenkos also completed four mergers and acquisitions transactions during the period. Corporate finance revenue, including fees from placings, rose to GBP54.2 million from GBP13.1 million.
Corporate broking, market-making, research and commission revenues rose 59% to GBP11.0 million on the back of more favourable trading conditions, Cenkos said.
Costs rose by GBP24.8 million in the period, Cenkos said, due to higher performance-related pay on the back of increased profitability. It has also grown staff number by 10%.
Chief Executive Jim Durkin said Cenkos has made a good start to the second half of 2014 with an encouraging pipeline of deals.
Cenkos shares were Wednesday quoted up 15% at 248.35p.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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