While others are still waiting for the winds to shift, Cavendish Plc (LON:CAV) is quietly delivering results. In this interview, analyst Jason Streets breaks down why Cavendish’s strong balance sheet, strategic positioning, and merger execution make it a standout in the UK’s challenged small-cap advisory space. With £20 million in cash, a stable dividend, and valuation upside to 18p, investors may want to look closer before the broader market catches on.
Key Moments
- 00:11 – Cavendish’s focus on sub-£1bn companies and three-part revenue model
- 01:07 – Merger of FinnCap and Cenkos in 2023
- 01:24 – Importance of retainers for steady income
- 02:47 – Interim results: revenue up 3%, profit up, costs down
- 03:53 – 18p valuation vs 10p market price
- 04:03 – Disappointing H1 despite early momentum
- 05:00 – UK market conditions and IPO delays
- 05:45 – Peer comparison: Peel Hunt trading on higher multiples
- 06:50 – Cavendish’s deep discount vs peer and valuation logic
- 09:48 – Analyst discusses DCF assumptions and discount rate used
- 10:04 – Final summary: solid profits, strong balance sheet, high yield
Cavendish Plc is a UK investment bank focused on companies with market caps under £1 billion. Formed from the 2023 merger of FinnCap and Cenkos, it operates across public and private markets, advising on capital raising, M&A, and providing research and trading services. Its revenue comes from advisory fees, trading income, and recurring retainers — a blend that offers both stability and upside in cyclical markets.
