Cenkos is today issuing an update on trading for the financial year ended 31 December 2019.
The challenging market conditions that persisted throughout 2019 have been widely reported and, as described in the Company’s interim results released on 18 September 2019, Cenkos was not immune from this.
In 2019 the Board responded to the unfavourable market backdrop and implemented steps to reduce its cost base, incurring approximately £1.4 million of restructuring costs, such that Cenkos’ annual fixed cost base today is anticipated to be more than £3.0 million lower than in 2019.
The Company is pleased to announce that, subject to audit, after taking account of the non-recurring restructuring costs of approximately £1.4m that took place in 2019, the Company has been profitable for the second half of 2019 and expects to be profitable for the year ended 31 December 2019.
Notwithstanding concerns around Brexit and the General Election, the latter part of the 2019 saw an improvement in revenues, with Cenkos completing a number of significant fund raising transactions. Whilst still early in the year, the Company is encouraged with the strength of its pipeline and is pleased to report that the momentum that took place in the fourth quarter in 2019 is continuing into the new year. The confidence in our pipeline is reflected in the Board’s expectation of announcing a final dividend when it releases its results for the year ended 31 December 2019, in late March 2020.
Jim Durkin, Chief Executive Officer, said
“With levels of new issues and IPOs for Growth Companies being at an unprecedented low in 2019, it is testament to the quality of our staff and the strength of our model that we were able to maintain our record of having been profitable every year since incorporation. Market conditions may still be impacted by factors outside our control but we have started 2020 well and we look forward to the year ahead.”