Deferral of publication of results and COVID 19
3 April 2020
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Cenkos Securities plc
("Cenkos" or the "Company")
Deferral of publication of results and COVID 19
Cenkos intended to announce its results for the year ended 31 December 2019, by the end of March 2020. The audit of its results is substantially complete but, following the request from the Financial Conduct Authority and the Financial Reporting Council for listed companies to delay the reporting of their financial results, and following advice from its auditors, Ernst & Young LLP, the Board has deferred the announcement of its audited results. A further announcement will be made in due course.
When released, the audited results are expected to be in line with the trading update issued on 18 February 2020. As previously reported, following the unfavourable market backdrop in 2019 (before COVID 19), the Board had implemented steps to reduce the Company's cost base. As a result, Cenkos' annual fixed cost base today is anticipated to be more than £3.0 million lower than in 2019. The Board will continue to take action to reduce costs and minimise the financial impact of the uncertainty caused by COVID 19. The Company has a strong balance sheet, with cash resources of £23.8m as at 01 April 2020, and other financial resources well in excess of its regulatory requirements. The Company was profitable for the second half of 2019 and expects to report a small profit for the year ended 31 December 2019.
Cenkos responded to COVID 19 promptly and successfully implemented a comprehensive remote working capability, which has enabled us to ensure both the wellbeing of our staff and the ability to continue servicing our clients during this period of uncertainty. The Company is fully operational and continues to operate as normal. Due to the quality and flexibility of our people and the strengths of our business, our ability to attract and win new high-quality corporate clients remains strong. We continue to sign up quality clients, having added one this week, along with a number in the pipeline, and have the capacity to add many more to our stable.
Cenkos continues to service and raise funds for its clients and completed a number of fund raisings in March, including the IPO of FRP Advisory Group plc, the largest company to IPO on AIM this year. Even during these unprecedented times, last week, we undertook a secondary fund raising for Arena Events Group plc (at a premium to the prevailing market price) and expect to undertake further capital raisings as we aim to consolidate our position as the largest fundraising NOMAD (ex-Real Estate) on AIM.
We are continuing to work closely with our corporate clients to assess the impact of COVID 19 and the disruption that many of them are currently experiencing. Our aim is to support all corporate and institutional clients during these unprecedented times and where possible assist our corporate clients in protecting their businesses and continuing to implement their strategies.
For further information, please contact:
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Cenkos Securities plc Jim Durkin, Chief Executive Officer
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Tel: 0207 397 8900 |
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SPARK Advisory Partners Limited Matt Davis, Nominated Adviser |
Tel: 0203 368 3552 |
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Buchanan Communications David Rydell, PR Adviser
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Tel: 0207 466 5066
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