21st Sep 2016 06:57
LONDON (Alliance News) - Stockbroker Cenkos Securities PLC on Wednesday slashed its interim dividend as it reported steep drops in revenue and profit in the first half of 2016.
Pretax profit for Cenkos sunk to GBP1.7 million in the half to the end of June, down 91% from the GBP18.6 million made a year earlier. Revenue fell 71% to GBP15.3 million from GBP53.1 million.
Cenkos said it was hit by quieter conditions in equity markets, particularly London's junior AIM market, and by a unusually strong comparison period. Cenkos had worked on the GBP1.02 billion float of BCA Marketplace PLC, the owner of the British Car Auctions brand, in the first half of 2015.
The broker said it raised GBP529.0 million on behalf of its clients in the first half, sharply lower than the GBP2.02 billion raised a year before, and said total funds raised by AIM companies declined 30% amid the sluggish market conditions.
The slump in profit prompted the group to slash its interim dividend 86% to 1.0 pence, from 7.0p a year prior.
"We believe that, as one of the leading brokers in London for growth companies, we are well-placed to benefit from improvements in market conditions and have made a good start to the second half of the year. There is institutional demand to fund high-quality companies and ideas and since July we have been engaged in relation to a number of significant fundraisings and our current pipeline is encouraging," said Chief Executive Jim Durkin.
By Sam Unsted; [email protected]; @SamUAtAlliance
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