18th Sep 2018 10:56
LONDON (Alliance News) - Stockbroker Cenkos Securities PLC on Tuesday reported a steep drop in profit and revenue, cutting its interim dividend after a result the firm described as "disappointing".
Shares were 7.1% lower on Tuesday at a price of 91.50p each.
For the six months to June, Cenkos' revenue fell to GBP18.1 million from GBP29.2 million for the same period a year prior.
The firm's pretax profit was GBP464,000, compared to GBP4.6 million a year earlier. Cenkos is paying an interim dividend of 2.0 pence per share, less than half the 4.5p a year ago.
Cenkos said revenue in the recent period suffered in comparison to a year before due to a large client transaction in the prior year period, as well as as slow transaction rates.
Corporate finance revenue fell to GBP11.9 million from GBP21.2 million, while nominated advisor & broking revenue was flat at GBP2.6 million. Research revenue slipped to GBP1.5 million from GBP1.7 million, while execution revenue declined to GBP2.1 million from GBP3.7 million.
Looking ahead, Cenkos said it has made a "good start" to the second half of 2018.
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