Cavendish (LSE:CAV) has reported modest Revenue growth and a lower core profit for the year to 31 March 2026, saying it chose to keep investing in people, technology and regional expansion. The independent Investment bank announced its results on 24 June 2026 and left its Dividend unchanged.

What the company does

Cavendish plc is a UK investment bank advising small and mid-cap companies. It says it advises one in every nine UK listed companies. Its activities span public markets work, such as broking and Capital raising, private markets transactions and retained advisory relationships. Its shares trade on AIM under the ticker CAV.

The FY26 results

Revenue was £56.9m, up from £55.6m. Public markets revenue rose 10.9% to £41.4m, and securities income rose 66% to £9.4m. Retainers fell 8.8%, and private markets transaction revenue fell 15.6% to £15.5m. Core profit before tax was £3.5m, against £3.7m, and core Earnings Per Share were 0.80p, compared with 0.94p. Statutory profit before tax rose to £1.5m from £0.7m, with Basic Earnings Per Share of 0.16p against 0.23p. The compensation ratio increased to 66% from 64%.

Cash and dividend

Year-end cash was £19.2m, compared with £21.2m, and LSE:CAV has no debt. Net Assets were £39.0m, against £39.8m. The total dividend is unchanged at 0.8p per share, made up of a 0.3p interim and a proposed 0.5p final, subject to approval at the annual general meeting.

Management commentary

The company attributed the dip in core profit to investment in regional expansion, talent and technology. It described its platform as well capitalised and said it will continue investing selectively while focusing on cost discipline. Management said near-term Stock Markets conditions remain uncertain but sees potential for capital to flow back into UK small and mid-cap stocks if pressures ease. Its quoted client base grew in the second half, and it became a registered auction agent for the London Stock Exchange's Private Securities Market.

Sector and index context

Cavendish is one of the few advisory firms in the FTSE AIM All Share Index, so its fortunes are linked to the health of the market it serves. Fundraising volumes, deal activity and trading in smaller companies influence its revenue. When UK small-cap sentiment is weak, advisory firms can see fewer transactions and thinner retainer fees, as the fall in private markets and retainer revenue indicates.

Reading the numbers

Public markets revenue of £41.4m made up about three-quarters of the total, so LSE:CAV is increasingly tied to listed-company activity. The 0.8p dividend equals core earnings per share of 0.80p, which leaves little room for growth in payouts without a recovery in profit.

Key risks

Revenue depends on Capital Markets conditions beyond LSE:CAV's control. A rising compensation ratio shows pressure on costs, and the investment in expansion needs to translate into revenue. Cash declined over the year, and although the company has no debt, a prolonged downturn could erode its buffer.

What to watch next

Investors will look to the annual general meeting, the final dividend decision and interim results for the six months to 30 September 2026, which should show whether public markets momentum has persisted. Developments in UK listings and secondary fundraisings, as well as the growth of the Private Securities Market, will also be relevant.