Cavendish Financial PLC rose on Thursday, after the company said it saw ‘significant growth’ in the second half of its financial year.
The London-based investment bank is the result of a merger in September last year between finnCap Group PLC and Cenkos Securities PLC. Cavendish shares were up 39% to 12.00 pence each in London on Thursday morning.
For the half ended March 31, the newly merged entity expects revenue to increase by 77% to £34.5 million from the pro forma revenue of £19.5 million reported in the first half.
Consequently, statutory revenue for the full year is expected to rise 44% to £47.5 million from £32.9 million a year prior. The company anticipates a pro forma revenue of around £54 million, rising from £50.5 million.
Since its inception Cavendish has completed multiple deals for clients across all parts of the business and successfully strengthened the balance sheet. As of March 31 the company has a cash position of approximately £20.8 million, up from £12.3 million reported halfway through the year.
The company said: ‘Having locked in annualised synergies of £7 million, we continue to deliver further savings from the merger and the run rate cost base of the merged group has been substantially reduced giving us greater resilience and better operating leverage.’
Looking ahead, Cavendish believes economic conditions will continue to impact demand for UK equities despite the apparent peak in interests rates. However, it said its pipeline across both equity capital markets and mergers and acquisitions remains good following a buoyant second half.
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