Cenkos Securities (CNKS)

Business description

Cenkos is a specialist, UK institutional stockbroker, focused on growth companies and investment funds. Its principal activities are primary and secondary fund-raising, corporate advisory, research, trade execution and market-making activities.

Stock data

Market cap.£61.2m
Last close108.00p
High / Low (52 weeks)122.0p / 69.0p
Stock market listingLN
Forecast net cash (£m)28.1
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual6.94.451.1
Relative *5.82.638.9

* % Relative to local index

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Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2015A 76.5 20.0 19.9 27.2 4.0 3.9
2016A 43.7 4.5 4.4 4.7 23.0 N/A
2017E 58.0 8.6 8.4 12.4 8.7 6.5
2018E N/A N/A N/A N/A N/A N/A

Last updated on 08/12/2017

Latest research

Making hay when the sun shines

Update | Financials | 06/10/2017

A flexible model that rewards innovation

Update | Financials | 03/04/2017

Transparent, entrepreneurial business model

Update | Financials | 26/05/2016

Daily comment

Institutional Comment | Financials | 30/03/2015

Daily comment

Institutional Comment | Financials | 14/10/2014

AA super-charged

Outlook | Financials | 13/10/2014

Daily Comment

Institutional Comment | Financials | 18/09/2014

Daily comment

Institutional Comment | Financials | 23/06/2014

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

Cenkos Securities’ H117 result announced in September was strong with a pre-tax profit increase of over 150% bolstered by the Eddie Stobart IPO that provided further evidence of the company’s ability to complete larger transactions as well as a flow of smaller deals. The second half had started well and, subject to market conditions, the pipeline was reported to be healthy. We increased our FY17 earnings estimate by nearly 11%. Revenue and profit are subject to market fluctuations but the business model of contained fixed costs and high variable compensation mitigates the impact of this. The valuation both in terms of P/E and yield appears cautious.

Last updated on 13/12/2017

Industry outlook

Equity market levels have risen substantially since June last year and sustained higher levels despite a range of uncertainties surrounding Brexit and global geopolitical developments. This is helpful for transactions; although in recent months a number of planned IPOs have been cancelled, reflecting qualified appetite. Implementation of MiFID II in 2018 may put further pressure on institutional commissions, but these are a relatively small part of revenues. Longer-term, the breadth of client base and transaction record are encouraging features.

Last updated on 13/12/2017

Key management

Gerry Aherne, Chairman
Anthony Hotson, CEO
Philip Anderson, FD

Company address

6.7.8 Tokenhouse Yard,
London
EC2R 7A
United Kingdom
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