Cenkos Securities hit by 'weak' first half

Cenkos Securities has warned on annual revenues following a "weak" start to the year.

Revenues in the six months to 30 June fell from £18.1m to £10.6m, causing the stockbroker to swing into the red. Pre-tax losses were £200,000 compared to a pre-tax profit of £500,000 a year earlier.

Chief executive Jim Durkin said: "As a result of the weak first half, revenue for the full year may be below that recorded in 2018. However, the second half has started well with a number of transactions completed, including an IPO.

"This means Cenkos has completed two of only seven IPOs whose shares were admitted to trading on the Aim market in the period to August 2019.

"Pipeline for the remainder of the year and for 2020 is encouraging. We continue to evolve our business to adapt to market changes."

Cenkos, which is itself listed on AIM, also announced plans on Wednesday to shake up its board. Paul Hodges, head of equity capital markets and one of the broker’s founding members, and Joe Nally, head of natural resources, are both stepping down with immediate effect.

Cenkos said: "This will result in a smaller board with a majority of non-executive directors being in place, and brings it into line with current regulatory and good corporate governance practices."

Both Hodges and Nally will continue to lead their teams and will remain on the executive committee.

Cenkos has come under pressure this year from activist investor Crystal Amber to shake up its corporate governance.