Cenkos Securities (CNKS)

Business description

Cenkos is an independent, specialist, institutional securities group, focused on growth companies and investment funds. Its principal activities are corporate broking and advisory and institutional equities.

Share price chart

Share chart
Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2012A 43.2 6.8 7.0 7.43 22.3 7.1
2013A 51.4 10.9 10.7 14.19 11.7 7.5
2014E 56.0 11.5 11.3 14.70 11.3 13.4
2015E 59.0 12.4 12.2 16.15 10.2 10.4

Last updated on 17/04/2014

Latest research

Galloping ahead in positive markets

Update | Financials | 17/04/2014

Daily comment

Institutional Comment | Financials | 26/03/2014

A thoroughbred broker

Initiation | Financials | 14/10/2013

Specialism pays

Outlook | Financials | 30/09/2011

Investment summary

In 2013 Cenkos delivered on all its key business model objectives. A growing corporate client list and improving markets saw a 19% growth in revenue, which generated pre-tax profits growth of 53%. Costs are flexible and performance related and so rose just 11%. Capital is tightly managed with a 2013 dividend of 12p (2012: 7.5p) and prior year buybacks helped EPS rise 92% and a 2013 ROE of 36%. 2014 has started well with revenues "materially ahead" of the same period last year and a strong pipeline.

Last updated on 17/04/2014

Industry outlook

Small and medium-sized brokers are strategically challenged with margins squeezed and costs largely fixed or increasing with regulation. However, Cenkos has more than met these challenges, and should weaker competitors exit the market, Cenkos is likely to see further franchise growth. The most recent LSE market announcements indicate a substantial improvement in near-term trading (UK ytd order book trades up over 30% on 2013) as well as capital raising.

Last updated on 31/03/2014

Key management

Gerry Aherne, Chairman
Jim Durkin, CEO
Mike Chilton, FD

Company address

6.7.8 Tokenhouse Yard,
United Kingdom
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