Cenkos Securities PLC (AIM:CNKS) said it has made a strong start to the current year as it unveiled 2021 results that showed robust growth across all its key financial metrics.
Operationally geared, the independent institutional stockbroker posted a 47% increase in underlying profits to £5.9mln on revenues of £37.2mln, up 18% year-on-year.
With cash of £33.5mln as at December 31, Cenkos can more than afford its 4.25p a share full-year dividend payment, an increase of more than a fifth on the 2020 pay-out.
Cenkos' performance was driven by an increase in transactions, with its teams completing 34 in the period, raising over £1.2bn for clients. It said the broadly positive conditions of 2021 “should not be taken for granted”, noting the Ukraine war, with the horrendous personal cost to those involved, is having a significant impact on global economies and markets.
The “lingering effects” of COVID on the labour market and supply chains could also affect growth and market recovery, it added.
“Despite the macro environment, we remain confident in our business model and our track record of successful fundraising at every stage of the market cycle,” investors were told.
Underlining this, Cenkos has started the new year “well”, completing three IPOs, four placings and two transactions in the first 10 weeks of 2022.
For those unfamiliar with Cenkos, it acts as adviser, sponsor, and broker to companies mainly admitted to trading on AIM, the London Stock Exchange’s junior bourse, though it has a strong list of main market listed businesses, mainly investment companies.
While it provides share trading, research and advisory services, around two-thirds of its turnover comes from corporate finance.
Cenkos’ service-oriented approach marks it out from many of its competitors.
So, the company provides the full suite of broking services and advice along with research, which is part of the after-market support.