17th Sep 2013 07:51
LONDON (Alliance News) - Cenkos Securities PLC Tuesday said its pretax profit from continuing operations for the half-year was stable, though slightly down on last half-year.
Cenkos, which provides corporate finance advice to companies, said it made a GBP3.1 million pretax profit from continuing operations for the six months to June 30, down 12% on last half-year's GBP3.5 million.
The company's revenues declined by just 1.0% to GBP20.0 million, resulting in a 10% increase in underlying operating profit to GBP4.0 million. However, a 44% decline in investment income to GBP102,000 resulted in a underlying pretax profit from continuing operations of GBP4.1 million, up 7.9% from a year earlier.
Cenkos sold its controlling stake in offshore fund and wealth management business Cenkos Channel Islands Limited in two tranches April and October 2012.
Cenkos said its revenue streams in the recent half came from 18 transactions, which helped its clients raise GBP322 million, as well as two mergers and acquisitions transactions that it worked on.
Cenkos said it was confident despite market pressures because of its flexible cost model, under which broker remuneration is linked to net income.
"Our successful strategy of being a leading UK institutional broker to listed growth companies through understanding our clients' needs, delivering sustainable, diversified and growing income streams, adding high quality individuals to our teams and managing our costs and risks carefully has led to us being profitable in every year since our formation in 2005. This approach continues to bear fruit and we have made an encouraging start to the second half of 2013 with a healthy pipeline of deals," Cenkos Chief Executive Jim Durkin said in a statement.
Cenkos maintained its interim dividend at 3.5 pence.
Cenkos shares were Monday quoted at 97 pence, up 2.5 pence, or 2.7 pence.
By Samuel Agini; [email protected]; @samuelagini
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