- Cenkos Securities PLC on Friday reported a jump in annual profit and said it has started 2022 well despite a more uncertain macro economic backdrop.

Shares in Cenkos were up 11% at 66.00 pence in London in morning trade.

Revenue for 2021 grew 18% to £37.2 million, boosted by an increase in transactions with Cenkos completing 34 in the period, raising over £1.2 billion for clients. ‘Particularly pleasing’ were the two IPOs completed, the stockbroker said.

This helped boost pretax profit to £4.0 million, 75% higher than £2.3 million the year before.

Cenkos said 2021 was a strong year for London’s junior AIM market, with over £8.7 billion raised across IPOs and secondary fundraises - the highest since 2007.

‘AIM saw a slight increase in the number of companies in 2021. This is the first time since 2014 and, paired with general levels of activity, we believe this represents a gradual shift towards quality, with stronger, well-run companies at the heart of it...With depth of expertise and an integrated approach across Corporate Finance, Research, Sales and Trading, these are trends that Cenkos is well placed to take advantage of,’ the firm said.

Cenkos will pay a full-year dividend of 4.25p, up 21% from 3.5p for 2020.

Looking ahead, the firm said that positive conditions in 2021 ‘are not taken for granted’ as it enters 2022.

Despite the macro environment - including uncertainty over the war in Ukraine and supply chain disruption - the firm said it remains confident and has started the new year well. In the first 10 weeks of 2022, it has already completed three IPOs, four placings and two M&A transactions.

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