Cavendish tips half-year revenue hike and sees 'encouraging signs'

Cavendish PLC on Wednesday said it expects to a report a slight rise in half-year revenue, and it hailed a ‘solid pipeline’ of activity in both public and private markets.

In a trading statement, the London-based investment bank said revenue for the six months to September 30 is expected to amount to £28.0 million, up 1.8% from £27.5 million a year prior.

Equity issues in public markets and a ‘steady flow of private M&A mandates’ have contributed to the revenue lift.

Looking ahead, Cavendish said: ‘We have a solid pipeline of both public and private transactions including potential IPOs and ongoing public M&A activity.

‘There continue to be encouraging signs that sentiment to UK equities may slowly be improving. In the period the FTSE 100 reached all-time highs and since the reversal of the ’Trump tariffs’ the UK has been one of the best performing global equity markets. Anecdotal evidence of increased asset allocation from global investors to the UK initially into the largest and most liquid companies is consistent with the relative strength of the FTSE 100.’

Cavendish added, however, that the signs of encouragement are yet to flow into small and mid-cap equities, ‘despite very attractive valuations’.

‘While some fiscal uncertainty ahead of the November budget is tempering market sentiment, the board believes that the group is well positioned to deliver an encouraging close to the financial year, particularly if inflationary pressures ease and monetary policy becomes more supportive,’ it said.

Cavendish shares closed down 4.3% to 11.49 pence each in London on Wednesday.

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