4th Apr 2025 14:59
(Alliance News) - Cavendish PLC on Friday said the private markets pipeline "remains encouraging" as it expects financial 2025 revenue in line with the prior year.
The London-based investment bank said it has been "consistently profitable" during the 12 months to March 31, with it anticipating revenue for financial 2025 of approximately GBP55 million, which it noted is in line with the prior year on a like-for-like basis.
It said that this demonstrates both the efficiency of its platform as well as the broad appeal of its service offering.
Cavendish reported market share growth in its public markets business "despite challenging market conditions", with it noting strong revenue growth in its private markets business.
The private markets growth, said Cavendish, reflects both a continued demand for high quality execution within the segment along with the strength of its advisory capabilities.
The firm said it enters the new financial year with a greater number of active mandates compared to the prior year and expressed confidence in sustaining momentum.
Shares in Cavendish were down 4.1% at 8.30 pence on Friday afternoon in London.
Cavendish said that the private markets pipeline "remains encouraging".
It noted that its positive outlook for the private markets pipeline is supported by the increasing number of entrepreneurs contemplating exit options and the growing involvement of private equity firms looking to extract value from their company portfolios.
"After a challenging period for UK and European equities, we remain cautiously optimistic that sentiment may finally be turning. President Trump's tariff policies and government spending cuts have heightened US recessionary risks, coincident with historically high US equity valuations and extreme concentration of capital in the largest US tech firms," said Cavendish.
Cavendish added: "These risks to US equities have begun to prompt a reappraisal of diversification, driving a rotation from the US to European and UK equities. Whilst this rotation will initially favour the largest and most liquid European and UK stocks, history suggests that any incremental asset allocation to UK equities will ultimately flow through to smaller and mid-cap companies, especially given their attractive valuations.
"We believe that a combination of increasing diversification and the compelling valuation of the UK small and mid-cap sector will create significant opportunities in the year ahead."
By Olivia Mason-Myhill, Alliance News reporter
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