8 Feb 2023 07:00
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] 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] 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.