Preliminary Results

Cenkos Securities PLC
22 March 2007


CENKOS SECURITIES plc ('THE COMPANY') TOGETHER WITH ITS SUBSIDIARIES 
('THE GROUP')


PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS OF THE GROUP FOR THE 13 MONTH PERIOD
                     ENDED 31 DECEMBER 2006 ('THE PERIOD')

'A strong set of debut results'

Financial Highlights

  • Turnover up 110% to £32.7 million (2005: £15.6 million)

  • Profit before tax up 88% to £20.8 million (2005: £11.0 million)

  • Pro forma profit before tax up 112% to £13.0 million (2005: £6.1 million)
    (Based on pro forma figures set out in the appendix to this announcement)

  • Basic and diluted EPS down 12% to 16.2p (2005: 18.4p), reflecting the
    issue of partly paid B shares to new teams recruited prior to the IPO

  • Net assets up 208% to £33.9 million (2005: £11.0 million)

  • As set out in our admission document, no dividend declared for this year

  • The Board establishes a dividend policy for future years based on a low
    dividend cover, reflecting the cash generative nature of the business

Business Highlights

  • Oversubscribed IPO and admission to AIM

  • Good success in attracting new institutional and corporate clients

  • Expertise significantly enhanced with the recruitment of two well
    respected teams and strengthening of existing teams

  • Infrastructure developed for the next stage of growth

  • Strong start to the current year


Commenting on the results, Andrew Stewart, Chief Executive Officer said:

 'In a good year which saw Cenkos Securities plc admitted to AIM, we have
delivered significant success across all of our business streams. The Company
has continued to attract new institutional and corporate clients and this
remains our strategy for growth. We have also added two well respected teams:
one specialising in investment funds and the other in providing corporate
broking services to small cap companies. During the period we have also
continued to widen and deepen our research capability. As a result of this
growth and our admission to AIM, we have also strengthened our infrastructure in
order to deal with the increased activity levels. We continue to look for high
quality teams which will augment and complement our existing ones; an approach
which we believe will continue to be beneficial to the ongoing growth of the
Group.'



Enquires:              Andrew Stewart - CEO                Tel. [phone]



Chairman's Statement

I was delighted to be appointed Chairman of Cenkos Securities plc ('Cenkos')
prior to the Company's successful flotation on AIM in October 2006. The Company
was formed in 2005 by a small team of individuals, most of whom had previously
worked together for a number of years at Collins Stewart. Even with this well
established track record, in a remarkably short period of time they have turned
the Company into a highly profitable financial services company with a
reputation for offering an entrepreneurial and innovative service to its client
base.

This team provides corporate broking and advisory services to small and medium
sized companies quoted on the London Stock Exchange, both on the Official List
and on AIM. During the current period we have managed to attract two high
calibre teams which complement the original team, one specialising in investment
funds and the other in providing corporate broking services to small cap
companies. In addition, we have added to our institutional equities team which
now provides coverage of a number of important industry sectors. This expansion
now means that the Company employs 67 focused and high quality individuals. At
the time of writing, this client base includes 53 listed companies with a
combined market capitalisation of approximately £8 billion. It is very much the
Company's intention to continue to enlarge this base without compromising the
quality of our client base. We have specialist research, sales and market making
resources, all of which contributed to a strong set of results for the Group.
Corporate finance has also been active during the period to the end of December
2006. In addition to being involved in substantial fundraisings, it has also
advised on mergers and acquisitions for our corporate clients.

Some commentators have expressed caution concerning the current climate for
investment banking, questioning the continuing demand for listings on AIM and
noting that, after such a successful bull run in mergers and acquisitions
activity, the rapid and profitable pace of corporate activity may slow down. For
our part, given the solid performance in delivery of corporate finance
transactions and an encouraging pipeline, we continue to view the future with
optimism and will concentrate on expanding our business on all fronts. If the
markets were to turn against us we believe that, given our low fixed cost base
and an overall remuneration package heavily skewed towards performance, we are
in a better position than most to deal with such an event. We also believe that
there may be some further consolidation within our industry and we will continue
to be alert to opportunities which will enhance shareholder value.

The current year has started well, and in the years ahead we aim to offer our
shareholders an above average dividend return, together with growth within the
core business. This objective can, of course be affected by the market
conditions prevailing during the period.

The Company is not a capital intensive business and is cash generative and the
board does not seek to retain profits unless it can produce superior returns by
doing so. As a result we will be adopting a distribution policy reflecting a low
dividend cover.

Finally, to create and list a business of this quality, within such a short time
frame, demonstrates the skills and commitment of our staff and the loyalty of
our corporate and institutional clients and we are proud of this significant
achievement.

John Hodson
Chairman
22 March 2007


Operating and Financial Review

Financial Review

In order to provide greater clarity about the 2006 performance, unaudited pro
forma financial information is included as an appendix to this announcement. The
pro forma statement of profits has been prepared to illustrate the effect on the
profits of the Group if all individual members and employees of Cenkos
Securities LLP had been employed by the Group during the periods to 31 December
2006 and 30 November 2005. On the basis of these pro forma figures turnover in
the thirteen month period ended 31 December 2006 rose by 110% to £32.7 million
(2005: £15.6 million) and profit before tax increased by 112% to £13.0 million
(2005: £6.1 million). These profit figures are based on the unaudited pro-forma
statement of profits set out in the Appendix. Basic and diluted earnings per
share decreased by 12% to 16.2p from 18.4p. This decrease is predominantly due
to the fact that the weighted average number of shares in the current period
includes the total number of B shares granted to the new teams, even though they
are partly paid shares, as these shares are entitled to a full dividend payout.
These shares were predominantly issued in July and August 2006 and the teams
joined us some months later due to previous employer restrictions and therefore
were only able to produce revenues at the end of the year.

We are delighted by the performance of the Group, which was achieved against a
backdrop of a difficult IPO market, since May 2006. We have seen an increase in
both secondary issues and other corporate transactions including mergers and
acquisitions advisory work. The Group has declared an interim dividend of £1.00
(2005: £nil) per share during the current period. As set out in the Group's
admission document, the directors do not propose to pay a final ordinary
dividend (2005: nil) but do expect to pay an interim dividend in respect of 30
June 2007.

Corporate broking and advisory

We have seen another year of growth, not only in turnover, but the number of
transactions completed and funds raised. With the widely reported tightening of
the IPO market, it is pleasing to report that we have also seen the Company
participate in a number of corporate transactions not involving the raising of
funds, including advising on various mergers and acquisitions. In addition, we
have continued to grow the number of retained corporate clients and have a firm
strategy in place to attract new clients. The Company was nominated adviser or
corporate broker to 32 companies as at 31 December 2006. During the period, the
Company also raised more than £800 million for its clients. The Company was
granted sponsor status from the UK Listing Authority on 4 August 2006, enabling
it to act as sponsor to companies listed on the Official List. During the period
we have added to this team which will allow us to continue the growth in this
area.

Institutional equities

The institutional equities team currently provides research-driven investment
recommendations to institutional clients. At present, the team has particular
expertise in the business services, chemicals and consumer sectors, having
recruited professionals who were previously top-ranked analysts in these
sectors. The Group intends to expand its institutional equities team by
recruiting further professionals with specific sector expertise. The team
focuses on servicing large institutional and hedge fund clients, as we believe
that this avoids the reduction in margins caused by servicing a larger number of
smaller clients.

Market making

The Group has market making capabilities to support the other services that it
provides to its clients. The Company makes markets in the securities of all
companies where it has a broking relationship, its strategy being to take small
positions in a wide range of stocks, thereby providing liquidity. The Company
does not engage in proprietary trading.

Investment funds

In August 2006, the Company recruited an investment funds team. This team
provides a broad range of services, including corporate broking, corporate
finance, market making and sales, with a sole focus on investment funds. They
act as counterparty for a large number of investment fund investors, and have
detailed knowledge of their asset allocation strategies enabling successful
secondary distribution and primary sales. The Group currently makes markets in
approximately 200 investment fund securities, and by 31 December 2006, the
Company had been appointed as corporate broker to 14 investment funds raising
over £100 million having completed two transactions.

The investment funds team uses (and will continue to use) significant levels of
capital to take positions in the shares of quoted investment funds. These
positions primarily facilitate institutional client trading and support the
strategies of its investment fund clients. As the investment funds business
grows, the level of capital used is expected to increase.

Offshore wealth management and stockbroking services

Offshore wealth management and stockbroking services are provided through Cenkos
Channel Islands Limited, a 75 per cent. owned subsidiary of the Company, which
was founded in August 2005 and is based in Guernsey. Varying levels of
stockbroking services, from discretionary to execution-only, are provided
primarily to high net-worth individuals, and also to financial intermediaries
and institutions.

People

We have continued to invest in our staff whilst maintaining a tight control over
on overhead base and are looking to acquire further high quality teams and
businesses. We believe that these teams should be rewarded by a mixture of bonus
and equity based payments that align their interests with that of our
shareholders. However, unlike some of our competitors we will not grant cheap
options which would under international accounting standards give rise to a high
share based payments charge.

Our concentration on controlling overheads has ensured a flat operating margin
of 37% (2005: 38%), which is after fully charging bonuses and payments to the
Cenkos LLP. We have assembled an excellent team and I should like to thank them
all for their achievements and hard work. We have made a commitment to grow the
business and we look forward to their continued support.

Outlook

We are pleased to have started the new financial year on a positive note. Our
pipeline of business is encouraging and we are confident that our
entrepreneurial philosophy will help the continued growth in our revenues. We
will continue to expand our corporate client base and believe that our ability
to attract high quality individuals will serve the Company well in its objective
of being a first class, relationship based stock broking business.

Andy Stewart
Chief Executive Officer
22 March 2007


Consolidated income Statement
13 month period ended 31 December 2006

                                         1 December 2005 to   20 August 2004 to
                                           31 December 2006    30 November 2005
                         Note                             £                   £
                                                                         
Continuing Operations

Revenue                     2                    32,670,329          15,571,727
Administrative expenses     3                   (12,715,410)         (4,743,275)

Operating profit                                 19,954,919          10,828,452

Investment income 
- interest receivable                               811,526             215,770
Finance costs - interest 
payable                                             (13,740)             (5,498)

Profit before tax                                20,752,705          11,038,724
Tax                         4                    (3,978,747)         (1,843,680)

Profit for the period                            16,773,958           9,195,044

Attributable to:
Equity holders of the parent                      9,011,374           4,281,774
Minority interests                                7,762,584           4,913,270

                                                 16,773,958           9,195,044

Earnings per share
Basic                       6                          16.2p               18.4p

Diluted                     6                          16.2p               18.4p


All amounts shown in the consolidated financial statements derive from
continuing operations of the Group.

The profit attributable to the Company for the thirteen month period ended 31
December 2006 was £8,762,275 (period ended 30 November 2005: £4,299,756).



Consolidated Balance Sheet
31 December 2006

                                                31 December         30 November 
                                                       2006                2005
                                                          £                   £
Non-current assets
Property, plant and equipment                       737,174             364,445
Available for sale investments                    3,229,164           4,327,797
Deferred tax asset                                  158,356                   -

                                                  4,124,694           4,692,242
Current assets
Trading investments - long                       13,123,643             977,363
positions
Trade and other receivables                      39,620,045           7,701,859
Cash and cash equivalents                         9,780,584          12,261,523

                                                 62,524,272          20,940,745

Total assets                                     66,648,966          25,632,987

Current liabilities
Trading investments - short                     
positions                                        (5,127,238)           (954,823)
Trade and other payables                        (26,968,091)        (12,265,481)

                                                (32,095,329)        (13,220,304)

Net current assets                               30,428,943           7,720,441

Non-current liabilities
Deferred tax liabilities                           (669,032)           (996,622)
Preference shares                                         -            (400,000)

Total liabilities                               (32,764,361)        (14,616,926)

Net assets                                       33,884,605          11,016,061

Equity
Share capital                                       725,936             440,283
Share premium account                            22,733,114           3,962,551
Revaluation reserves                              1,556,408           2,325,452
Retained earnings                                 8,843,146           4,281,774

Equity attributable to equity
holders of the parent                            33,858,604          11,010,060

Minority interests                                   26,001               6,001

Total equity                                     33,884,605          11,016,061


The financial statements were approved by the board of directors and authorised
for issue on 22 March 2007. They were signed on its behalf by:

Andrew Stewart                               Simon Melling
Chief Executive Officer                      Director


Consolidated cash flow statement
13 month period ended 31 December 2006

                                         1 December 2005 to   20 August 2004 to
                                           31 December 2006    30 November 2005
                                                          £                   £


Profit for the period                            16,773,958           9,195,044
Adjustments for:
Finance costs                                      (797,786)           (210,272)
Tax                                               3,978,747           1,843,680
Depreciation of property, plant and equipment       133,552              50,620
Share-based payment expense                         372,832                   -

Operating cash flows before movements in 
working capital                                  20,461,303          10,879,072

Net increase in trading investments              (7,973,865)            (22,540)
Increase in trade and other receivables         (14,198,456)         (7,701,859)
Increase in trade and other payables             13,452,715          10,421,801
Distributions to minority interests              (7,762,584)         (4,913,270)

Net cash inflow from operating activities         3,979,113           8,663,204

Interest paid                                       (13,605)             (5,498)
Taxation paid                                    (2,891,208)                  -

Net cash inflow from operating activities         1,074,300           8,657,706

Investing activities
Interest received                                   535,729             215,770
Purchase of property, plant and equipment          (506,281)           (415,065)
Purchase of available-for-sale investments                -          (1,005,723)

Net cash generated by/(used in) investing 
activities                                           29,448          (1,205,018)

Financing activities                                  
Dividends paid                                   (4,822,834)                  -
Proceeds from issue of equity shares              1,612,147           4,402,834
(Redemption of)/issue of preference shares         (400,000)            400,000
Issue of capital by subsidiary to minority 
interests                                            26,000               6,001

Net cash (used in)/generated by financing 
activities                                       (3,584,687)          4,808,835

Net (decrease)/increase in cash and cash 
equivalents                                      (2,480,939)         12,261,523

Cash and cash equivalents at beginning of 
period                                           12,261,523                   -

Cash and cash equivalents at end of period        9,780,584          12,261,523


Consolidated statement of changes in equity
13 month period ended 31 December 2006


                                        Share        Share  Revaluation      Retained      Minority
                            Note      capital      premium      reserve      earnings     Interests        Total
                                            £            £            £             £             £            £

On incorporation                            -            -             -            -             -            -
Shares issued                         440,283    3,962,551             -            -             -    4,402,834
Capital contributed by
minority interest                           -            -             -            -         6,001        6,001
Retained profit for the                     
period                                      -            -             -    6,607,226             -    6,607,226
Profit allocated to
minority interests                          -            -             -            -     4,913,270    4,913,270
Distribution of profit to
minority interest                           -            -             -            -   (4,913,270)  (4,913,270)

At 30 November 2005                   440,283    3,962,551             -    6,607,226         6,001   11,016,061
Implementation of IFRSs
Increase in fair value of
available-for-sale                          
investments                                 -            -     3,322,074   (3,322,074)            -            -
Deferred tax liability
arising on fair valuation
of available-for-sale
investments                                 -            -      (996,622)     996,622             -            -

At 30 November 2005                   440,283    3,962,551     2,325,452    4,281,774         6,001   11,016,061

Shares issued                         285,653   20,819,945             -            -             -   21,105,598
Capital contributed by
minority interest                           -            -             -            -        26,000       26,000
Retained profit for the                     
period                                      -            -             -    9,011,374             -    9,011,374
Profit allocated to
minority interests                          -            -             -            -     7,762,584    7,762,584
Distribution of profit to
minority interest                           -            -             -            -    (7,762,584)  (7,762,584)
Transfer of amounts to
payables on retirement of
minority interest members                   -            -             -            -        (6,000)      (6,000)
Decrease in fair value of
available-for-sale                          
investments                                 -            -    (1,098,634)           -             -   (1,098,634)
Reversal of deferred tax
liability on fair valuation
of available-for-sale
investments                                 -            -       329,590            -             -      329,590
Credit to equity for
equity-settled share-based
payments                                    -            -             -      372,832             -      372,832
Share issue costs taken
through premium                             -   (2,049,382)            -            -             -   (2,049,382)
Dividends paid              5               -            -             -   (4,822,834)            -   (4,822,834)

At 31 December 2006                   725,936   22,733,114     1,556,408    8,843,146        26,001   33,884,605



Notes to the financial information

1. Statement of accounting policies

The accounting policies used in arriving at the preliminary figures are
consistent with those which were set out in the Financial Information for the
six month period ended 31 May 2006, included in the Company's AIM admission
document.

Whilst the financial information included in this preliminary announcement has
been computed in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union, this announcement does not itself
contain sufficient information to comply with IFRSs.  The Group's 2006 statutory
accounts comply with IFRSs.

All financial information has been prepared in accordance with IFRSs.  The
comparative results for the period ended 30 November 2005, which were originally
reported in accordance with UK Generally Accepted Accounting Practice, have been
restated accordingly.

2. Business and geographical segments

The directors consider that there is only one activity undertaken by the Group,
that being investment banking. The majority of this activity is undertaken in
the United Kingdom.


3. Staff costs and numbers
                                                     1 December       20 August
                                                        2005 to         2004 to
                                                    31 December     30 November
                                                           2006            2005
                                                              £               £
Staff costs comprise:
Wages and salaries                                    8,430,140       3,151,618
Social security costs                                   976,386         395,415

                                                      9,406,526       3,547,033


The Group does not operate any pension schemes.

The average number of employees (including 
executive directors) was:
                                                     1 December       20 August
                                                        2005 to         2004 to
                                                    31 December     30 November
                                                           2006            2005

Corporate finance                                             7               7
Corporate broking                                            23               3
Administration                                               10               3

                                                             40              13

Notes to the financial information (continued)

4. Tax

The tax charge comprises:
                                                           2006            2005
                                                              £               £
Current tax
United Kingdom corporation tax at 30% (2005 - 30%) 
based on the profit for the period                    4,091,258       1,843,680
                                                                            
Adjustment in respect of prior period                    43,845               -

Total current tax                                     4,135,103       1,843,680

Deferred tax
Credit on account of timing differences                (158,356)              -
Charge on account of timing differences                   2,000               -

Total deferred tax                                     (156,356)              -

Total tax on profit on ordinary activities            3,978,747       1,843,680


The tax charge for the period differs from that resulting from applying the
standard rate of UK corporation tax of 30% to the profit before tax for the
reasons set out in the following reconciliation.
                                                           2006            2005
                                                              £               £

Profit on ordinary activities before tax             20,752,705      11,038,724

Tax on profit on ordinary activities at the 
UK corporation tax rate of 30% (2005: 30%)            6,225,812       3,311,617
Tax effect of:
Depreciation in excess of capital allowances            (22,990)           (382)
Expenses that are not deductible in determining 
taxable profits                                          91,161         (43,998)
Different tax rates of subsidiaries operating 
in other jurisdictions                                  (31,632)          6,043
Income not subject to corporation tax                (2,327,449)     (1,429,600)
Adjustment in respect of prior period                    43,845               -

Tax expense for the period                            3,978,747       1,843,680

In addition to the amount charged to the income statement, deferred tax relating
to the fair value of the Group's available for sales investments amounting to
£329,590 (2005: £996,622 charged to equity) has been credited directly to
equity.

5. Dividends

Amounts recognised as distributions to equity 
holders in the period:
                                                           2006            2005
                                                              £               £
Interim dividend for the period of £1.00
(2005: nil) per share.                                4,822,834               -

There is no final dividend proposed for the period (2005: £nil).


Notes to the financial information (continued)

6. Earnings per share

The calculation of the basis and diluted earnings per share is based on the
following data:
                                                           2006            2005
                                                              £               £
Earnings
Earnings for the purpose of basic earnings per  
share being net profit attributable to equity 
holders of the parent                                 9,011,374       4,281,774
Effect of dilutive potential ordinary shares:     
  Share options                                               -               -

Earnings for the purpose of diluted 
earnings per share                                    9,011,374       4,281,774



                                                            No.             No.
Number of shares
Weighted average number of ordinary shares for 
the purpose of basic earnings per share              55,503,588      23,270,380

Effect of dilutive potential ordinary shares:                                            
   Share options                                         57,870               -

Weighted average number of ordinary shares for 
the purpose of diluted earnings per share            55,561,458      23,270,380


The denominators for the purpose of calculating both basis and diluted earnings
per share have been adjusted to reflect the sub-division of shares on 31 October
2006. The weighted average number of shares considered for the period also
includes the total number of B shares, even though they are partly paid shares,
as these shares are entitled to a full dividend payout.

7. Additional information

The financial information in this announcement does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985 but is
derived from those accounts. The auditors have reported on the statutory
accounts for the thirteen month period ended 31 December 2006. Their report was
unqualified and did not contain statements under section 237 (2) or (3) of the
Companies Act 1985. Those accounts have not been delivered to the Registrar of
Companies, and will be delivered following the Company's Annual General Meeting.

Statutory accounts for the period ended 30 November 2005 have been delivered to
the Registrar of Companies. The auditors have reported on those accounts.  Their
report was unqualified and did not contain statements under section 237 (2) or
(3) of the Companies Act 1985.

8. Annual general meeting

The Company's Annual General Meeting will be held at 12.00 pm on 27th April 2007
at 2nd Floor 6.7.8 Tokenhouse Yard, London, EC2R 7AS.

Appendix

The following pro forma financial information set out below has been prepared to
illustrate the effect on the profits of the Group if all individual members and
employees of the Cenkos LLP had been employed by the Company during the thirteen
month period to 31 December 2006 and during the period from 20 August 2004 to 30
November 2005. These unaudited pro forma statements have been prepared for
illustrative purposes only and may not, because of its nature, give a true
picture of the financial results of the Group.


                                           1 December 2005 to 20 August 2004 to
                                             31 December 2006  30 November 2005
                              Note                          £                 £
Continuing Operations

Revenue                                            32,670,329        15,571,727
Administrative expenses          1                (20,477,994)       (9,656,545)

Operating profit                                   12,192,335         5,915,182

Investment revenues - 
interest receivable                                   811,526           215,770
Finance costs - interest payable                      (13,740)           (5,498)

Profit before tax                                  12,990,121         6,125,454
Tax                                                (3,978,747)       (1,843,680)

Profit for the period                               9,011,374         4,281,774

Attributable to:
Equity holders of the parent                        9,011,374         4,281,774
Minority interests               1                          -                 -

                                                    9,011,374         4,281,774

Earnings per share
Basic                                                    16.2p             18.4p

Diluted                                                  16.2p             18.4p


Notes:


1.        In the statements for each period the administrative expenses have
been increased by the amount of the minority interest of £7,762,584 (2005 -
£4,913,270) as this would be the estimated increase in the Group's costs if all
members of the Cenkos LLP were to be employed by the Company. As a result the
minority interest has been eliminated.




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