Cenkos pleased with trading ahead of proposed finnCap merger

Financial services company Cenkos Securities updated the market on its trading on Wednesday, as well as its planned all-share merger with finnCap Group.

The AIM-traded firm, which was holding its annual general meeting, had recommended the merger in a bid to create a “market-leading” full-service advisory firm for growth and investment companies.

It told shareholders that the proposed merger would result in a pro-forma combined entity with more than 210 retained listed or quoted clients, and a workforce of more than 230.

The combined group would leverage its foundations across equity capital markets, merger and acquisition advisory, debt advisory, and private growth capital fundraising, the board said.

It added that Cenkos was “dedicated” to executing the transaction, and had already posted the scheme document to shareholders on 20 April.

The required court and general meetings would be held on 17 May.

“Despite the equity capital markets remaining challenging with relatively low levels of activity, revenue for the year to date continues to track ahead of the average run-rate for the second half of 2022,” said non-executive chair Lisa Gordon on Cenkos’ current trading.

“So far this year we have added six new clients, undertaken nine fundraisings including the initial public offering of Onward Opportunities, and have a solid pipeline of further potential IPOs, secondary fundraisings and merger and acquisition transactions being worked on.

“As a firm, we remain focused on cost control, growing our market share and providing a first-class service to our clients and remain poised to take advantage of improving market conditions.”

At 1142 BST, shares in Cenkos Securities were down 1.82% at 37.31p.

Reporting by Josh White for Sharecast.com.