30th Apr 2020 15:32
(Alliance News) - Cenkos Securities PLC on Thursday reported a sharp drop in annual profit but is looking forward to 2020 with "tempered optimism".
In 2019, the stockbroker saw its pretax profit almost wiped out, decreasing to GBP100,000 from GBP3.2 million in 2018.
Revenue was down 42% year on year in 2019 at GBP25.9 million from GBP45.0 million.
Chief Executive Jim Durkin said: "Difficult markets in 2019, and uncertainty surrounding the UK's exit from the European Union, has resulted in a reduction in revenue compared to last year. This result was set against the backdrop of a 30% reduction in the total funds raised by AIM companies in 2019. Performance related payments to staff have been reduced in line with net revenue, leading to a modest pretax profit for the year."
Cenkos cut its total 2019 dividend by 33% to 3.0 pence from 4.5 pence in 2018. The annual payout includes a 1.0p final dividend, down from 2.5p a year before.
Looking ahead, Durkin said the outlook for 2020 is "clouded", with the damage caused by Covid-19 "unknown".
"I am however, pleased to report that we have started the year well, completing the largest IPO on AIM so far this year and despite unprecedented market circumstances have also executed a number of secondary fund raisings," he added.
Durkin continued: "We are continuing to work closely with our corporate clients to assess the impact of Covid-19 and the disruption that many of them are currently experiencing. We have a good pipeline, a cost base that is significantly below the 2019 level and a strong balance sheet, so I look forward to 2020 with tempered optimism. We are well placed to face the challenges ahead."
Shares in Cenkos Securities were up 5.1% in London on Thursday afternoon at 50.45 pence each.
By Paul McGowan; [email protected]
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