Cavendish plc (AIM: CAV), a UK investment bank and adviser to public and private companies, has published unaudited interim results for the six months ended 30 September 2026, reporting revenues of £22.9m against £28.5m in the comparable period. Core profit before tax fell to £0.8m from £2.0m year-on-year, reflecting challenging market conditions and reduced transaction fees. Alongside the financial results, the company announced a board restructuring, with Julian Morse assuming the role of sole Chief Executive Officer following the departure of Joint CEO John Farrugia.

Key Points

  • Cavendish plc (AIM: CAV) is a UK-headquartered investment bank providing corporate advisory, broking, M&A advisory, and institutional stockbroking services
  • H1 FY2027 revenues declined to £22.9m from £28.5m, with core profit before tax falling to £0.8m; the group recorded a statutory loss before tax of £0.5m
  • More than 50 transactions were executed during the period with a combined value of £425m; cash stood at £10.6m at 30 September 2026
  • Investors should watch the pipeline of IPOs and sell-side M&A mandates cited for H2, alongside the £3m annualised cost reduction programme now under way

Revenue Decline Across Investment Banking and Transaction Fees in H1 FY2027

Investment banking revenue fell to £17.9m from £23.5m in H1 FY2026, with private sales down 44% and public transactions down 25% year-on-year. Retainer income provided a partial offset, rising modestly to £5.5m from £5.3m, reflecting a higher number of retained quoted clients than in the prior comparable period. Equities revenue was broadly stable at £5.1m compared with £5.0m, as a 15% increase in agency commission was offset by lower market-making income and research fees. The statutory loss before tax for the period was £0.5m, against a profit of £1.1m in H1 FY2026.

Julian Morse Appointed Sole CEO as John Farrugia Steps Down from the Board

Cavendish confirmed it is moving to a single chief executive structure, with Julian Morse becoming sole CEO with immediate effect. John Farrugia has stepped down as Joint CEO and from the board, though the announcement states it is the company's intention that he remains engaged on specific client activity for the foreseeable future. Chairman Lisa Gordon's remarks, included in the announcement, acknowledged Farrugia's contribution and his focus on supporting entrepreneurial businesses. The leadership change represents a structural simplification of the executive team at a period of cost discipline and strategic repositioning.

£3m Annualised Cost Reduction Programme and Decision to Withhold Interim Dividend

The board announced a cost reduction programme expected to lower annualised costs by more than £3m over the next six months, comprising over £1m in non-employee cost savings through investment in core systems and approximately £2m in employee cost savings through restructuring. Employee benefit costs fell 24% year-on-year to £14.9m, primarily due to a lower bonus accrual. The board has decided not to declare an interim dividend for the six months ended 30 September 2026, compared with 0.3p per share paid in the equivalent prior period, citing challenging market conditions and continued selective investment in the business.

Iran Conflict and Rate Pressures Cited as Key Headwinds for UK Small and Mid-Cap Markets

The company's market outlook commentary identifies the Iran conflict and supply disruption through the Strait of Hormuz as dominant factors weighing on UK equities, particularly small and mid-caps. The announcement states oil prices reached conflict highs of $115 per barrel, with UK interest rate expectations shifting from three anticipated cuts to a recent 0.25% rise with further hikes expected. The group notes its cash balance of £10.6m at 30 September 2026 is lower than the £19.8m recorded at the same point last year, attributing this to earlier payment of prior-year dividends and reduced transaction fees, while expecting the cash position to strengthen from December onwards.