Cavendish shares soared on Thursday after the company revealed the synergies of the FinnCap and Cenkos merger in a trading statement highlighting a pick-up in deal activity and cost savings.
The mid-market investment bank’s revenues in H2 are expected to hit approximately £34.5m, a bumper 77% increase compared to the pro forma £19.5m in H1.
Cavendish anticipates statutory revenues of around £47.5m, a 44% increase from the previous year’s £32.9m. On a pro forma basis, full-year revenues are projected to reach approximately £54m, up from £50.5m in FY23.
The newly merged Cavendish team completed multiple deals across all business segments, helping to bolster the company’s balance sheet.
As of 31st March 2024, Cavendish’s cash position stood at approximately £20.8 million, a significant increase from £12.3 million at the half-year mark.
Investors will be delighted Cavendish said it has locked in annualised synergies of £7m from the merger between FinnCap and Cenkos and continues to realise additional cost savings.
Although Cavendish has demonstrated the benefits of the recent merger, the company noted that while the interest rate cycle appears to have peaked, conditions continue to impact demand for UK equities, and challenges remain for the sector.
However, Cavendish said it had buoyant pipelines in both private and public M&A during H2, and its capital markets and M&A pipelines remain strong.
Cavendish shares were 27% higher at the time of writing.
