Image source: Shutterstock

Highlights

  • CAV reports 3.7 million adjusted pre-tax profit for FY25, reversing prior year loss.
  • The company completes over 100 transactions valued at approximately GBP 2.7 billion.
  • CAV delivers increased equity issuance as public M&A activity declines.
  • CAV shares rise 6.25% to GBX 12.75 following FY25 earnings release.

Cavendish plc (LSE:CAV), a UK-based investment bank focused on small and mid-cap companies, has released its financial results for the year ended 31 March 2025, reporting a return to profitability and a year of transactional momentum, particularly in equity capital markets. Following the results announcement, CAV shares were trading 6.25% higher at GBX 12.75 as of 26 June 2025.

The firm reported revenue of GBP 55.6 million, slightly exceeding the previous year on a like-for-like basis. It also posted an adjusted profit before tax of GBP 3.7 million, compared to a loss of GBP 1.8 million in FY24. Statutory profit before tax came in at GBP 0.7 million, recovering from a GBP 4.3 million loss the prior year.

Adjusted earnings per share stood at 0.94p, compared to a (0.44) p loss in FY24. On a reported basis, earnings per share were 0.23p, up from a (1.40) p loss. Cash balances at the end of the period were GBP 21.2 million, and the company announced a total dividend of 0.8p per share for FY25, up from 0.25p in FY24.

Cavendish completed more than 100 transactions during the year, with a total deal value of around GBP 2.7 billion. The firm continued to expand its national presence by opening new offices in Manchester and Birmingham and made selective hires across client-facing teams. Efforts to streamline operations also led to a 16% reduction in non-employee costs, which fell to GBP 14.8 million from GBP 17.6 million the prior year.

While revenue from public M&A activity declined 55% YoY primarily due to reduced deal volume this was largely offset by a 23% increase in equity issuance activity. Despite lower average fees (down 13%), the firm noted that equity deals offer more recurring revenue and longer client relationships than M&A transactions, which often conclude the advisory cycle.

In private markets, Cavendish recorded a 15% increase in transaction volume and a 13% rise in average fees, driven by steady demand for quality assets and growing interest from private capital. The firm cited its internal capability across private M&A, debt advisory, and equity capital markets as factors enabling cross-functional collaboration and transaction execution.

The company also continued its role as a prominent adviser to AIM-quoted companies, winning 21 new quoted clients and completing 70 capital markets transactions. Over the last six months of FY25, Cavendish accounted for more than 60% of total UK IPO capital raised, according to its data.

Looking ahead, the firm expects continued growth in its core markets. It reported active engagements with approximately 150 UK private equity firms, representing over GBP 50 billion in capital deployment, with GBP 7 billion raised in the last 18 months by firms targeting sectors aligned with Cavendish’s focus.

In the early part of FY26, the company has already completed two initial public offerings, including the largest UK IPO of 2025, and has reported improved performance from its trading book.