Cenkos Securities Share Discussion Threads

[speedsgh] 02/9/2019 18:38

UK stockbroking consolidation fails to make waves -

When Mifid II was introduced in January last year, the stockbroking industry braced for a wave of consolidation.

The landmark EU legislation forced banks and brokers to charge separately for investment research, rather than bundling it with commissions for executing trades. As predicted, spending on research they provide has tumbled. That has put the business model of smaller brokers under pressure, compounding woes caused by thin trading commissions and a dry spell in the IPO markets.

Industry executives expected brokers to team up to cut regulatory costs and squeeze out savings on their research coverage. Spanish bank Santander explored an acquisition of mid-cap broker Peel Hunt, while Macquarie took a look at Liberum.

But there has been no consolidation tsunami. Senior broking executives say there is little incentive to take over a rival when you can wait for it to burn through the last of its cash and then take on its clients instead.

There has been some activity: Shore Capital’s acquisition of Stockdale Securities in February; finnCap’s purchase of Cavendish Corporate Finance last October and Cenkos’s deal to pick up Smith & Williamson’s nominated adviser and corporate broking business last August...

Cenkos

The acquisition of Smith & Williamson’s nomad business — acting as adviser to Aim-quoted companies — has been less transformational to Cenkos than the shift in its management.

Cenkos announced last November that it was bringing back former chief executive Jim Durkin after an 18-month break from the company. Mr Durkin’s return to the helm came after the broker reported a 90 per cent drop in pre-tax profits for the first half of its 2019 financial year.

But it took nine months for the financial regulator to approve Mr Durkin’s appointment, leaving Cenkos lacking a clear sense of direction at a critical time.

Mr Durkin’s appointment was confirmed this month. The broker scored another success this week when it acted on the IPO of Brickability, which started trading on Aim in one of the year’s biggest listings for London’s junior market.

[speedsgh] 23/8/2019 07:57

Shares in Eddie Stobart Logistics (ESL) have been suspended this morning. CEO is stepping down with immediate effect following the recent discovery of accounting errors. Cenkos acted as broker on the £122m IPO fundraising in Apr 2017 (during Jim Durkin's previous time at the helm of Cenkos), presumably introducing Neil Woodford as a major shareholder. Cenkos continue to act as Nomad & joint broker today.

[cwa1] 23/8/2019 07:46

That is an ugly announcement from ESL, to which Cenkos are NOMAD and joint broker...

[speedsgh] 23/8/2019 07:41

Not sure if Cenkos will have had any fee earning involvement in this? Westmount Energy Ltd (WTE) are raising up to £5m via subscription. Cenkos are Nomad/sole broker to the company.

[speedsgh] 16/8/2019 14:28

Cenkos are acting as joint broker, alongside Cannacord Genuity, for Equals Group (EQLS) [previously FairFX Group] on a placing/open offer to raise up to £16m...

Placing and Open Offer to raise up to £16 million -

[speedsgh] 14/8/2019 08:58

Cenkos have been replaced as Nomad to Cloudcall Group (CALL). Cenkos & Arden Partners also lose their position as joint brokers; Cannacord Genuity take over as Nomad/sole broker...

[topvest] 14/8/2019 08:07

A reasonable sized IPO at last!

[keith95] 13/8/2019 21:49

CRS probably worried that Durkin will sell the business for less than their purchase price ...

... grabbed a few today watching out for another Panmure Gordon.

[speedsgh] 13/8/2019 08:09

Cenkos laid low by manic Monday -

...Richard Bernstein, head of Crystal Amber, said: “We want someone to lead the consolidation of the sector. Cenkos should be acquiring mid to small-cap brokers. I’m not sure that’s Jim’s skill-set.”...

[speedsgh] 12/8/2019 23:14

Assuming that it is kept up-to-date, the Cenkos website is still showing Crystal Amber as a major shareholder...



Cenkos dropped off CRS's list of top 10 shareholders a few months back (found on their regular Monthly NAV Reports) but this is likely due to the continued fall in the Cenkos share price as opposed to a reduction in shareholding. Haven't seen any holdings rns in recent months to suggest that CRS have reduced materially.

Would not be surprised to see some comment from CRS (either via official channels or Richard Bernstein tweet) on today's news confirming Jim Durkin's appointment.

[topvest] 12/8/2019 18:06

Not great news I guess, but investment trust launches are going to be thin on the ground anyway at this point in the cycle. Cenkos has effectively had an interim leader for 2 years, so fairly confident Jim Durkin can turn things around. 2019 will be a poor year though. Realistically, we are not going to see much improvement until 2020 at the earliest.

[fenners66] 12/8/2019 17:34

Any thoughts about the resignations?

[topvest] 12/8/2019 16:21

Trading update is no surprise really. We know that there have been no large fundraises YTD. Jim Durkin appointment is good news as hopefully he can reinstall the Cenkos entrepreneurial culture, that has been sadly missing for a couple of years.

[imranawan] 12/8/2019 16:03

Does anyone know whether Crystal Amber (CRS) are still invested here? They did make some comments during the summer about £CNKS being mismanaged.

[lord gnome] 12/8/2019 15:50

Second half of next year I would guess. This year is being blighted by Brexit.Surprised to see Big Jim back at Cenkos. I really thought he had been blackballed by the powers that be. Not surprised at resignations following his appointment. Either some people can't work with him or he is having a clear out.Glad I sold out at 50p. Took a nasty loss but it could been a lot worse. I shall now watch from the sidelines and look for signs of life.

[imranawan] 12/8/2019 15:17

Jim Durkin confirmed as CEO and TU issued this pm. Trading conditions still difficult. Results to be significantly 2nd half weighted.

[speedsgh] 08/8/2019 14:43

Cenkos are acting on the placing/open offer for Intelligent Ultrasound Group (MED) [formerly Medaphor Group] who are looking to raise up to £6.5m...

[speedsgh] 07/8/2019 14:10

Some recent related new items...

New appointment as Nomad/joint broker to Xpediator (XPD), replacing share price Angel; Cantor Fitzgerald remain as joint broker...

Change of Adviser -
Xpediator, (AIM: XPD), a leading provider of freight management services across the UK and Europe, is pleased to announce that Cenkos Securities plc has been appointed with immediate effect as the Company's Nominated Adviser and Joint Broker alongside its existing Joint Broker Cantor Fitzgerald Europe.

Cenkos are acting as sole broker for Rotala (ROL) on their fundraising of up to £1.1m...

Placing and conditional Subscription to raise £1.1 million -

Cenkos have been replaced as Nomad/sole broker to Rosenblatt Group (RBGP) by Stifel Nicolaus Europe. Not quite sure what the last sentence implies re retaining 'an ongoing relationship with Cenkos'...

Change of Adviser -
Rosenblatt Group plc (AIM: RBGP), the professional services company, today announces the appointment of Stifel Nicolaus Europe Limited ("Stifel") as its Nominated Adviser and Broker with immediate effect. The Company will also retain an ongoing relationship with Cenkos.

[quepassa] 06/8/2019 18:45

Despite the slump in share price - akin to other peers in the sector- the Cenkos Employee Benefit Scheme clearly continue to have strong faith and have purchased another big chunk of 210,000 shares in Cenkos as detailed in two separate RNS's today.

This morning an RNS for 25,000...

and this evening another RNS for 185,000 shares.

This last RNS came out AFTER HOURS at 17.27 which is in my view a somewhat unusual time to release such an RNS.



ALL IMO. DYOR.
QP

[speedsgh] 26/7/2019 08:41

A couple of recent appointments for Cenkos...

Appointment of Joint Broker -
United Oil & Gas PLC (AIM: "UOG"), the AIM listed oil and gas exploration and development company, is pleased to announce the appointment of Cenkos Securities Plc as joint broker to the Company with immediate effect.

Change of Adviser -
Velocity, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, announces that Cenkos Securities plc has been appointed as the Company's nominated adviser and broker with immediate effect.

[topvest] 22/7/2019 17:41

The FCA need to get their act together. What a bunch of bureaucrats. Turnaround time should be no longer than 3 months and a clear decision one way or the other. Just get on with it and make a decision.

[cwa1] 22/7/2019 16:33

Directorate Change

Appointment of Jeremy Miller as a Non-Executive Director

On 11 March 2019, the Board announced the appointment of Jeremy Miller as an independent Non-Executive Director of the Company, subject to receiving regulatory approval from the FCA. We are pleased to announce that Jeremy Miller's regulatory approval has been received, accordingly Jeremy is appointed as a Non-Executive Director of the Company and as Chairman of the Company's Audit Risk and Compliance Committee with immediate effect.

Jeff Hewitt, Acting Non-executive Chairman, commented:

"We are delighted that Jeremy has joined the Board. Jeremy brings an impressive breadth and depth of financial services experience and will be a valuable addition to the senior management team."

So a mere 4 and a bit months to get FCA approval for Jeremy then...

[speedsgh] 12/7/2019 07:11

Cenkos’ broker clock -

The clock continues to tick. I last wrote here in March about hapless City broker Cenkos Securities’ efforts to bring former chief executive Jim Durkin back to the helm.

At the time, it was 144 days since his appointment had been announced, far exceeding the standard 90-day period for the Financial Conduct Authority (FCA) to consider Cenkos’ application.

It turns out that that was nowhere near enough. Here we are, another 104 days on, and still no news about Durkin’s comeback

It’s arguable that this vacuum constitutes a false market in Cenkos shares, given the importance of a rainmaker such as its former boss.

The latest suggestion is that Cenkos is now formulating a back-up plan that involves appointing another veteran of the firm, Joe Nally, as the permanent successor to Anthony Hotson instead.

To outside investors, Nally may resemble an identikit of Durkin: a veteran Cenkos employee who lacks the desire to think afresh about the firm’s future in a sector requiring a dose of realism.

The broker refuses to disclose whether it has imposed a deadline of its own on FCA approval for Durkin. In the meantime, Hotson’s impatience to hold his retirement party must be unbearable.

[quepassa] 12/7/2019 07:05

Another 200,000+ shares just bought by the Cenkos Employee Benefit Trust.


it would seem unlikely in my view that management would sanction ongoing EBT share purchases unless they were positive about future prospects.


ALL IMO. DYOR.
QP