Despite the impact on equity market conditions from the tough economic backdrop, Cenkos Securities (CNKS) - which provides broking services for growth companies - delivered solid growth in 2012. Indeed, group operating profit jumped 35 per cent to £6.5m, even though operating costs increased 13 per cent on higher staff expenses.
In the corporate broking and advisory division, revenue rose 14 per cent to £40.1m - largely reflecting more fundraisings, an expanding list of corporate clients and better conditions in the market-making business. In fact, in Cenkos's core Aim market segment, 46 transactions were completed in the year, up from 25 in 2011, raising a total of £711m for clients. The group now acts as either broker, nominated adviser of financial adviser to 119 companies, compared with 111 in 2011. What's more, corporate broking and market-making fees jumped 60 per cent to £10.7m.
The small institutional equities division, meanwhile, boosted revenue 40 per cent to £3m and doubled profits to £1m. In order to focus on the UK broking side, Cenkos sold its 50 per cent stake in Guernsey-based fund manager, Cenkos Channel Islands Ltd, in two tranches during 2012, for a total cash consideration of £5.17m.
CENKOS SECURITIES (CNKS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 89p | MARKET VALUE: | £54m | |
| TOUCH: | 86-92p | 12-MONTH HIGH: | 89p | LOW: 42p |
| DIVIDEND YIELD: | 8.4% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 37p | NET CASH: | £22.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 28.3 | 5.12 | 4.88 | 10.0 |
| 2009 | 46.2 | 7.50 | 6.20 | 20.0 |
| 2010 | 58.5 | 6.60 | 4.99 | 8.00 |
| 2011 | 37.4 | 5.12 | 5.00 | 5.00 |
| 2012 | 43.2 | 7.00 | 7.40 | 7.50 |
| % change | +16 | +37 | +48 | +50 |
Ex-div: 17 Apr Payment: 14 May | ||||
