Cenkos Securities


£39.3m market cap

71p last close

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.

Investment summary

Cenkos Securities’ H117 result was strong with a pre-tax profit increase of over 150% bolstered by the Eddie Stobart IPO, which provided further evidence of the company’s ability to complete larger transactions as well as a flow of smaller deals. The second half has started well and, subject to market conditions, the pipeline is reported to be healthy. Our FY17 earnings estimate has been increased 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.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2016A 43.7 5.2 5.1 4.6 15.4 N/A
2017A 59.5 10.2 10.0 13.2 5.4 5.6
2018E N/A N/A N/A N/A N/A N/A
2019E N/A N/A N/A N/A N/A N/A
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual 3.7 (26.4) (27.2)
Relative* 3.9 (20.6) (23.2)
52-week high/low 119.5p/64.2p
*% relative to local index
Key management
Gerry Aherne Chairman
Anthony Hotson CEO
Philip Anderson FD
Calvin Gregory-Lillely Financial Director