Cenkos sees fortunes turn
STOCKBROKER Cenkos Securities has recovered from its battering last year to report a spike in first-half profits, though it warned the markets are still in a delicate state.
Cenkos yesterday posted a 13 per cent rise in pre-tax profit for the six months to June, to £6.2m, after it fell from £11.6m to £5.5m in the same period last year. Revenue for the period increased 12 per cent to £21.2m.
But Cenkos chairman John Hodson warned of the dangers of overstating the recent market upturn, saying: “Investors remain nervous and exceptionally averse to risk… Confidence is growing but remains fragile.”
Cenkos managed to almost double the amount of capital it raised for clients in the first half despite the tough economic environment, raising £430m over the period compared to £230m in 2008.
The group also said it had continued to recruit staff to its research team as it won new business from the big investment banks.
“The demise of the trading capacity of the large international houses has levelled the playing field for other firms,” it said.
Cenkos said it would pay an interim dividend of 15p, rising from 5p last year.