Cenkos Securities, the only institutional stockbroker with a Scottish office, has reported a double-digit increase in revenues and profits for the first six months of this year.
Focused on raising money for corporate clients trading on the Alternative Investment Market (AIM), Cenkos posted a 44 per cent increase in underlying profits, which rose to £2.8 million. Revenues were 37% higher at £18.2m, driven by the acquisition of 12 new clients.
The firm secured more than 10% of all funds raised on AIM during the period, and executed “significant” follow-on placings for several of its main list investment company clients. That momentum has carried through into the second half of the year, with two IPOs and a further eight fundraisings completed so far.
Julian Morse, who took over as chief executive earlier this year, said the market for UK equities has been strong and there was no reason to believe this will change in the near-term.
“By continuing to lay the groundwork for growth and through our tenacity and long-term partnering with innovative clients, we see reasons for optimism for the remainder of 2021 and beyond,” he said.
Opened in 2008, the Edinburgh office of Cenkos spearheaded last October’s AIM listing of Livingston-based Calnex. Headed by Neil McDonald, Cenkos’ Scottish arm employs eight people.
The number of clients represented by Cenkos rose from 94 to 100 during the period, while corporate finance fees rose by 38%. Net trading gains trebled to £2.4m.
Earnings during the first half more than doubled from 1.2 to 3.1p per share, and the dividend has been hiked by a quarter to 1.25p. Shares in Cenkos closed yesterday’s trading 5p higher at 84.5p.