Cenkos lifts dividend after strong full-year performance

Stockbroker Cenkos Securities reported an 19% improvement in revenue in its annual results on Friday, to £37.2m, as the board lifted the final dividend by more than a fifth.

The AIM-traded firm said its underlying profit grew 47% over the 12 months ended 31 December, to £5.9m, while its profit before tax jumped 75% to £4m.

Its profit after tax rocketed 88%, meanwhile, to £3.4m, while it recorded cash at year-end of £33.5m - £0.7m higher than at the end of 2020.

Net assets grew by £1.4m over the year to £27m, and the company reported basic earnings per share of 7.1p, up 91% year-on-year.

The board’s paid and proposed full-year dividend was lifted 21%, to total 4.25p per share for 2021.

Looking ahead, Cenkos said the “broadly positive conditions” from 2021 were not being taken for granted, with the war in Ukraine having a “significant effect” on global economies and markets.

The lingering effects of Covid-19 on the labour market and supply chains could also impact growth and market recovery, the company warned.

Despite that macroeconomic environment, Cenkos said it remained “confident” in its business model and track record of successful fundraising at each stage of the market cycle.

It said it had started the new year well, having already completed three initial public offerings, four placings and two merger and acquisition transactions in the first 10 weeks.

“This performance was driven by an increase in transactions, with our teams completing 34 in the period, raising over £1.2bn for clients,” said chief executive officer Julian Morse.

“During the year, we have added 17 new companies to our client list.

“Our investment company and trading company client base is well spread across multiple sectors and UK and other geographies.”

Morse said the company supported a “diverse range” of companies in 2021, raising money on equity markets, from builders' merchants and music royalty businesses to smart fabrics and oncology diagnostics.

“With a broad pool of knowledgeable, committed investors, we partner with our clients to articulate investment cases and reduce risk in the fundraising process.”

At 1315 GMT, shares in Cenkos Securities were up 17.63% at 69.99p.