Cavendish 'consistently profitable' in FY25
By Iain Gilbert
Date: Friday 04 Apr 2025
(Sharecast News) - Investment bank Cavendish said on Friday that it had been "consistently profitable" during FY25 and said it was " ideally positioned" to benefit from a potential rotation from the US to European and UK equities.
Cavendish stated that FY25 group revenues were expected to be approximately £55,0m, in line with FY24 on a like-for-like basis, with the firm having been profitable in both halves of FY25.
Market share increased in its public markets business despite "challenging market conditions", while its private markets business delivered "very strong revenue growth" during the year, reflecting the strength of its advisory capabilities and the continued demand for high-quality execution in the segment.
Looking forward, the AIM-listed group noted that after "a challenging period for UK and European equities", it remains "cautiously optimistic" that sentiment may finally be turning.
"President Trump's tariff policies and government spending cuts have heightened US recessionary risks, coincident with historically high US equity valuations and extreme concentration of capital in the largest US tech firms," said Cavendish.
"These risks to US equities have begun to prompt a reappraisal of diversification, driving a rotation from the US to European and UK equities. Whilst this rotation will initially favour the largest and most liquid European and UK stocks, history suggests that any incremental asset allocation to UK equities will ultimately flow through to smaller and mid-cap companies, especially given their attractive valuations. We believe that a combination of increasing diversification and the compelling valuation of the UK small and mid-cap sector will create significant opportunities in the year ahead."
Cavendish said that as "a leading UK small and mid-cap investment bank", it was "ideally positioned" to benefit both from this change in sentiment and the ongoing momentum in private markets.
As of 0925 BST, Cavendish shares were up 0.62% at 8.70p.
Reporting by Iain Gilbert at Sharecast.com
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN