Cenkos profits surge sixfold on £31.5m revenue from AA’s float

 
Tim Wallace
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SMALL and mid-market specialist Cenkos recorded a 650 per cent boom in profits in the first half, thanks to its work on AA’s initial public offering, the broker said yesterday.

Profits came in at £23.5m, up from £3.1m in the first six months of 2013.

Revenues rocketed from £20m to £65.2m – meaning the AA deal alone represents just under half of the firm’s revenues for the period.

IPO and corporate finance deals brought in £54m, up from £13.1m.

Thanks to the deal the broker paid out more in bonuses this year, driving costs up 143 per cent to £24.8m.

Its shares jumped 12.27 per cent on the strong results.

“The key to the share price is the outlook,” said analyst Mark Thomas from Edison Investment Research. “While the first half AA deal was exceptional in size, it is indicative of this aspect of the business.”

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