Cenkos Securities Share Discussion Threads

[kenmitch] 01/4/2019 17:57

Thanks speedsgh.

It's Crystal Amber wanting a strategic review why I still hold Cenkos. Richard Bernstein is shrewd - discovered that when holding his Eurovestech years ago.

Good point about MPL too. But hoping obvious negatives are priced in and either corporate action or recovery isn't.

[speedsgh] 01/4/2019 16:04

kenmitch - Many thanks for your kind post & apologies for the slow reply. I have no inside line here so can only speculate like anyone else. What is clear is that Crystal Amber, a generally respected activist investor, are clearly not impressed with the current state of affairs at Cenkos whom they have referred to as 'rudderless'. It would appear that the objectives/strategy of the Cenkos board do not currently align with those of Crystal Amber who have been agitating for the company to undertake a strategic review. Holders must draw their own conclusions from this.

On the subject of Quindell, Cenkos seem to have a habit of working with some somewhat-less-than-squeaky-clean clients. I do wonder if they may come to regret their association with Mercantile Ports & Logistics Ltd (MPL) [formerly SKIL Ports & Logistics Ltd] in due course?

[lord gnome] 30/3/2019 08:35

Kenmitch- The Quindell connection - there you have it. FWIW I think he may be ‘warned off’ to use a racing term.

[kenmitch] 30/3/2019 08:29

Thanks speedsgh for your excellent and well informed posts here. The latest one is particularly interesting. Have you any idea how events will/could pan out if FCA do not give green light? e.g successful low ball bid?

Also wondering whether this is linked to the disgraceful Quindell events and CENKOS association with that fraudulent Company?

[speedsgh] 30/3/2019 07:26

A Cenkos curiosity

Curiouser and curiouser. It’s now 144 days since Jim Durkin’s return as Cenkos Securities’ chief executive was triumphantly broadcast by its board, yet he has still not received regulatory approval.

The Financial Conduct Authority, remember, has a 90-day window to approve or reject such applications, although its clock pauses whenever it makes requests for new information or clarifications.

Durkin, though, ran Cenkos for nearly six years before he stepped down in July 2017. What the FCA could be deliberating over so painstakingly is beyond most market observers.

This week’s full-year results announcement from the AIM-listed broker only deepened the mystery. Rather than reassuring investors that Durkin’s renaissance is on track, it said only that outgoing chief executive officer Anthony Hotson would step down “as soon as a suitable successor has received regulatory approval”.

I’m now told that Durkin has a crucial interview with the FCA in the next few days, which should determine whether he gets the green light.

Any further delays – or, worse, a decision to block Durkin’s comeback – will leave Cenkos’ embattled board at the mercy of an irritated crop of shareholders.

[cwa1] 28/3/2019 07:34

Cenkos the Nomad on this one but not the bookrunner for the placing:-

[lord gnome] 26/3/2019 16:20

I fear that some of the 'goings on' in the past, under Jim Durkin's last watch, may have come back to haunt him.

[speedsgh] 26/3/2019 14:22

Brief take outs from the above comparables & other detail in the results...

- Lowest PBT, EPS & DPS since 2011
- Size of client base has not been disclosed. This has been disclosed in both the interim & final results since 2011 so why stop disclosing now?
- Continued healthy cash/cash equivalents on balance sheet £33.6m
- Outgoing CEO strikes a relatively bullish tone in the outlook statement.

OUTLOOK
"We have had a better start to 2019 than the same time last year. The pipeline of significant transactions in our business remains strong. Consequently, we look forward to the current year with optimism."

THE BOARD
"... I announced my intention to step down from the Board as soon a suitable successor has received regulatory approval. On 12 December 2018, Philip Anderson (Finance Director and Head of Compliance) announced his intention to step down from the Board on 31 March 2019. He will continue as Head of Compliance until a suitable successor is appointed and has received regulatory approval."

CEO
rns 9/10/18: "The Board of Cenkos Securities plc today announces that Anthony Hotson, Chief Executive Officer, will stand down from the Board on 31 October 2018 but will remain an employee of the Company until 31 December 2018. It is anticipated that a successor for Anthony Hotson will be announced shortly."

rns 31/10/18: "The Board reported on 9 October 2018 that Anthony Hotson had informed the Board that he was to stand down from the Board on 31 October 2018. The Board is pleased to announce that Anthony Hotson has now agreed to remain as an Executive Director and as Chief Executive Officer until his successor has received FCA regulatory approval. It is anticipated that a successor for Anthony Hotson will be announced shortly."

rns 5/11/18: "The Board is pleased to announce that, subject to FCA approval, Jim Durkin is to be appointed as an Executive Director and to the position of Chief Executive Officer once regulatory approval has been received."

In today's results there is not a single mention of Jim Durkin. Instead Anthony Hotson states "I look forward to handing over the leadership of Cenkos to a new Chief Executive in the near future who I expect will build upon Cenkos' strengths and deliver growth for all our stakeholders".

Is Jim Durkin now out of the picture? If so, was his regulatory approval not granted or did the Board change their mind on his appointment?

CFO
The original announcement on 12/12/18 stated "Philip Anderson, Chief Financial Officer, has indicated his intention to step down from the Board to pursue other interests and will leave the Company on 31 March 2019".

Is PA still leaving the company on 31/3 (i.e. this Sunday)? In view of the short timescales, the fact that they today state that "he will continue as Head of Compliance until a suitable successor is appointed and has received regulatory approval" would perhaps suggest that he will remain with the company for a while longer.

[speedsgh] 26/3/2019 13:58

A comparison of today's finals against previous years.



REVENUE
2011: £37.4m
2012: £43.2m
2013: £51.3m
2014: £88.5m (AA IPO)
2015: £76.5m (BCA Marketplace IPO)
2016: £43.7m
2017: £59.5m
2018: £45.0m

PROFIT BEFORE TAX on continuing operations
2011: £5.1m
2012: £7.0m
2013: £10.7m
2014: £27.0m (AA IPO)
2015: £19.9m (BCA Marketplace IPO)
2016: £4.4m
2017: £10.0m
2018: £3.2m

BASIC EPS on continuing/discontinued operations
2011: 5.2p
2012: 12.1p
2013: 14.2p
2014: 35.2p (AA IPO)
2015: 27.2p (BCA Marketplace IPO)
2016: 4.7p
2017: 13.2p
2018: 4.2p

FULL YEAR DIVIDEND PER SHARE
2011: 5.0p
2012: 7.5p
2013: 12.0p
2014: 17.0p (AA IPO)
2015: 14.0p (BCA Marketplace IPO)
2016: 6.0p
2017: 9.0p
2018: 4.5p

SIZE OF CORPORATE CLIENT BASE (as at 31 Dec)
2011: 111
2012: 119
2013: 125
2014: 130
2015: 124
2016: 116
2017: 117
2018: UNDISCLOSED

[speedsgh] 26/3/2019 13:41

Small director/PDMR buy today. NED Andy Boorman has bought £15k worth in 2 tranches...

[keith95] 22/3/2019 19:42

Second sale today was mine £20 loss ... results soon .... but 1 published fund raise this year despite the large sign off Dec. 2018 and delay to Durkin makes this a 50/50 call for last year and a 5/95 call going forwards .... unless something positive is noted in the results ... I'll happily not make 5% now than lose 20% on results.

[tanneg] 20/3/2019 20:19

A late morning RNS from Seeing Machines Limited,

Conditional Placing and Subscriptions to raise £27.5 million (approx. AUD$51.3 million)

Proposed Offer of new Ordinary Shares to Qualifying Participants to raise up to
£6.8 million (approx. AUD$12.7 million)

Cenkos Securities plc ("Cenkos") and Canaccord Genuity Limited ("Canaccord Genuity") acted as joint bookrunners to the Company on the Placing (together the "Bookrunners").

[lord gnome] 19/3/2019 10:05

You are wise to be cynical, speedsgh. I just hope that Durkin is busy negotiating the sale of Cenkos as I doubt he will want to have to come back and take the helm again. I can't see my ever getting back the 1.20 I paid for most of my shares, but right now I'd take £1 and walk away.

[speedsgh] 19/3/2019 09:14

Would tend to agree, LG, that the chances have to be pretty high that Cenkos will not remain a stand alone entity for much longer. They appear rudderless at present. I was actually surprised to see them pick up some new business (Diaceutics) recently and be linked to the possible Brickability IPO which is looking to raise £75m. If a takeover is in the offing, the company is being sold from its weakest position in many years but I'm sure that won't prevent Durkin & other executives from negotiating themselves a decent deal. Forgive my cynicism!

[lord gnome] 19/3/2019 09:04

Bad news and bad publicity, speedsgh. That sort of press coverage won't do the departing Phil any favours with his new employer.
The end game must be in sight here. I am only holding on to my shares to see how this plays out.

[speedsgh] 19/3/2019 08:50

Seems like Crytsal Amber, third largest shareholder in Cenkos, are both agitated and agitating...



Richard Bernstein @CrystalAmberRB1
CEO of Cenkos resigned in October, Chairman resigned in November and the FD is leaving at the end of the month. We’ve been shareholders for 8 years and are the third largest holder. Jeff Hewitt was made Acting Chairmen on 5th November. Radio silence. Baffling.
1:05 PM - 14 Mar 2019



Richard Bernstein @CrystalAmberRB1
The Times: "Phil Anderson, the soon-to-depart Cenkos finance director, put on expenses a £3,500 bill for a night out with his team at the Savoy,treating guests to drams of whisky at £200 a pop. Shareholders have had no such cause for celebration." What sort of company allows this?
8:05 AM - 19 Mar 2019

Direct link to brief piece in The Times...

Shareholder takes potshot at wee drams that cost £200 -

An activist shareholder in Cenkos Securities, the troubled City stockbroker, has been left in need of a stiff drink after learning of one outgoing director’s extravagant leaving do. It seems that Phil Anderson, the soon-to-depart finance director, put on expenses a £3,500 bill for a night out with his team at the Savoy, treating guests to drams of whisky at £200 a pop. Shareholders have had no such cause for celebration and Richard Bernstein, at Crystal Amber, which has a 7 per cent stake, said: “He’s been there for 18 months and I think if Phil Anderson wants to spend £200 on a glass of whisky, he should be doing it with his own money and not shareholders’ money.”

[speedsgh] 18/3/2019 07:26

Further to post #3076 confirmation this morning of Diaceutics plc IPO. Cenkos, acting as Nomad & sole broker, have conditionally raised £17m by way of placing. Admission to AIM expected 21/3.

[albert zog] 16/3/2019 15:21

Dirkin is one of the biggest shareholders - so presumably will lock in some value with a sale. Surely not worth just eking out a living in a troubled sector ?

[lord gnome] 16/3/2019 08:19

Post 3079 - as QP intimated, the two things, Durkin and a takeover, might be linked. Interesting times. Perhaps that article might spark some share price action and smoke out the bid interest.

[speedsgh] 16/3/2019 07:28

Some potentially lucrative IPO work in the pipeline for Cenkos.

Bricks supplier Brickability eyeing £200m float to build up its empire -

An acquisitive building materials firm is cementing £200 million-plus float plans to fuel further expansion, the Evening Standard understands.

City sources say Bridgend-based Brickability has appointed Cenkos to work on a launch on the Alternative Investment Market this year.

It is said to be raising £75 million to reduce debts while also giving it the firepower for further deals.

[speedsgh] 16/3/2019 07:25

Top Cenkos shareholder fears rudderless broker is takeover target -

One of the biggest shareholders in Cenkos has warned that the City broker was at risk of being acquired while it remains rudderless.

Richard Bernstein, the fund manager behind the Crystal Amber Fund and the group's biggest investor, said he found it "baffling" that Cenkos still had so much uncertainty in its top ranks at a time of industry-wide consolidation.

The business reinstated its former chief and co-founder Jim Durkin as chief executive in November, just 18 months after he stepped down, but he has still not officially joined the business. The firm is understood to be waiting on regulatory approvals...

[speedsgh] 14/3/2019 15:25

Cenkos have been appointed Nomad/sole broker to Duke Royalty Ltd (DUKE). They were previously joint broker alongside Mirabaud Securities. Cenkos replace Grant Thornton as Nomad...

[topvest] 07/3/2019 20:29

Nice to see an IPO for them. Looks relatively small, but at least its something!

[speedsgh] 07/3/2019 18:16

Possible fundraising work in the pipeline. Cenkos are acting as Nomad/broker on the AIM IPO of Diaceutics plc. Details of capital to be raised on admission TBC. Expected Admission Date currently slated for 'late March'.

[speedsgh] 07/3/2019 17:35

Crystal Amber (CRS) released their Interim Results today. There was no commentary on their investment in Cenkos, merely confirmation that they continue to own 6.9% of the company. They may just have no new comments on their investment or they may prefer/have to remain silent if there is possible corporate actvity in the offing.