4
April 2024
Cavendish Financial plc
("Cavendish")
Trading update(1) - strong
post-merger performance
Cavendish
(LON: CAV), a leading UK mid-market investment
bank, today issues a trading update for the year ended 31 March
2024.
Financial
performance(1)
In H2, we saw significant growth with revenues
expected to be approximately £34.5m, c.77% up on pro forma H1
revenue of £19.5m. As a result, statutory revenue for
the full year is expected to be approximately £47.5m (FY23: £32.9m)
up c.44%. On a full year pro forma basis revenue is expected
to be c.£54m (FY23 pro forma: £50.5m).
The newly merged team delivered an H2
performance well ahead of H1 as we completed multiple deals for our
clients, across all parts of our business and strengthened our
balance sheet further. As at 31 March 2024, cash was
approximately £20.8m, up from c.£12.3m at our half year.
Having locked in annualised synergies of £7m,
we continue to deliver further savings from the merger and the run
rate cost base of the merged group has been substantially reduced
giving us greater resilience and better operating
leverage.
Outlook
Whilst the interest rate cycle appears to have
peaked, conditions continue to impact demand for UK equities,
making deal execution in ECM challenging across all market
participants. However, private and public M&A has
remained buoyant in H2 and our pipeline across both ECM and M&A
remains good.
The information contained within this
announcement is deemed to constitute inside information as
stipulated under the retained EU law version of the Market Abuse
Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Cavendish's
obligations under Article 17 of the UK MAR. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
CONTACTS
Cavendish
(Management)
Tel:
+44 (0) 207 220 0500
Julian Morse, Co-Chief Executive
Officer
John Farrugia, Co-Chief Executive
Officer
Ben Procter, Chief Financial Officer
Grant Thornton
(Nominated Adviser)
Tel:
+44 (0) 207 383 5100
Philip Secrett/Samantha Harrison
Cavendish
(Broker)
Tel: +44 (0) 207 220
0500
Tim Redfern
Hudson Sandler
(PR)
Tel: +44 (0) 20 7796 4133
Dan de Belder/Rebekah Chapman
(1) References to unaudited pro forma
revenues reflect the addition of the unaudited consolidated revenue
of finnCap Group plc and the unaudited consolidated revenue of
Cenkos Securities plc for the relevant period as if they were
consolidated fully for that period. Pro forma information is
a non-GAAP measure and is provided to assist with a better
understanding of Cavendish's performance.
END