Update on Claim and Current T

RNS Number : 0865Y

Cenkos Securities PLC

16 December 2010

 



Cenkos Securities plc ("Cenkos" or the "Company")

16 December 2010

Update on Claim and Current Trading

The Company has today been informed that the Court of Appeal has upheld an appeal against it regarding a claim for commission. Although the final sum has yet to be agreed, it is believed that the maximum liability in respect of the claim against the Company, including costs and interest, will be approximately £2.3m. 

In 2009 a sub-broker instigated proceedings for payment of commission he claimed was due for assisting the Company in introducing investors to an investee company. The Company defended the claim and the case went to trial in the High Court in February 2010 with judgment handed down in March 2010. The judge dismissed the claim. The claimant was subsequently granted leave to appeal and the appeal hearing took place in the Appeal Court in November 2010.

The claim will not affect the Company's ability to declare a second interim dividend of 2p per share and subject to the continuing satisfactory financial performance of the Company a final dividend of not less than 4p per share for the year ended 31 December 2010 will be proposed.

The Company continues to build on its strong franchise in attracting new clients. The Company aims to deliver an exceptional quality of service to both corporate and institutional clients alike.  Its client base has grown from its inception in 2005 to 102 clients today, ranking third in the recently published Hemscott list of stockbrokers and adviser rankings.

Since the announcement of the Company's interim financial statement on 30 September 2010 the Company has continued to trade strongly and will enter 2011 with a high degree of confidence.

Enquiries:

Simon Melling

Chief Executive Officer

Cenkos Securities plc                 Tel: [phone]

David Rydell

Pelham Bell Pottinger                Tel: [phone]

 

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