CITY broker Cenkos moved into profit as it did what rivals have also managed to do – help clients raise funds to battle the pandemic.
In the half year, revenue rose by more than £2 million to £12.9 million. It made a profit of £800,000 compared to a loss last time of £100,000.
It said the “clear outcome” of the last general election led to an encouraging start to the year with more corporate activity and a rise in asset values.
Since then, times have been harder.
CEO Jim Durkin said: “Since the end of the period, we have completed several equity fundraisings for our clients. Although our current pipeline is encouraging and we continue to win new clients, we recognise that the prevalence of both the virus and measures taken to contain it, pose a continuing risk to the health of the economy and the financial markets.”
There were signs of rising pay for Cenkos staff, as “variable remuneration” — that’s bonuses – rose. But some lost their jobs, staff numbers fell from 95 to 89.
Durkin added: “The restructuring programme started in 2019, has resulted in a significantly lower cost base going forward which, combined with the strength of Cenkos balance sheet and a rejuvenated strategic focus, means the Company is well placed to face the challenges ahead. The second half of the current financial year has begun with energy and purpose at Cenkos, despite the ongoing macro challenges presented by the ongoing coronavirus.”