Cenkos Securities profits fall after difficult second half

2011 was a year of two halves for financial services firm Cenkos Securities, with the low level of corporate activity in the second half of the year taking its toll on the company's profits.

Revenue fell 25.3% from £58.5m in 2010 to £43.7m in 2011, while profit before tax dropped by 9% from £6.6m to £6.0m. te sharp differential in the rats of decline is largely down to a sharp fall in performance related pay.

Earnings per share, however, rose from 5p to 5.6p once discontinued operations are stripped out.

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The dividend per share was reduced from 8p to 5p.

The company said: "After a strong first half in 2011, the second half was far more challenging as the economic slowdown started to have an impact on financial markets.

"Whilst not immune to events in the general economy, our pipeline remains strong and we have made an encouraging start to 2012. Since 31 December 2011, we have undertaken a number of corporate and issuance transactions and raised £158m for our clients."

Cash at the end of the period fell from £28.5m at the end of 2010 to £14m a year later.

The share price 5.72% to 70.00p

NR