Cavendish PLC FY26 Trading Update: Steady Revenues and Two Profitable Halves
Cavendish PLC has served up a steady full-year trading update for the 12 months to 31 March 2026. Group revenues are expected to land at approximately £56.0 million (FY25: £55.6 million) and, crucially, the business was profitable in both halves of the year. In a year when equity issuance has been patchy, that consistency matters.
The Group closed FY26 with £19.2 million of net cash (FY25: £21.2 million) and remains debt-free. That gives Cavendish room to keep investing through the cycle while keeping risk in check.
Key numbers at a glance
| Metric | FY26 | FY25 | Notes |
|---|---|---|---|
| Group revenue | ~£56.0m | £55.6m | Flat year-on-year in a tough market |
| Profitability | Profitable in both H1 and H2 | Not disclosed | Margins not disclosed |
| Net cash | £19.2m | £21.2m | Debt-free balance sheet |
| New clients added | 27 | Not disclosed | Net client movement positive in H2 |
| Public markets revenue | Modestly ahead | Baseline | Boosted by the MHA IPO |
| Private markets revenue | Reduced | Baseline | Similar deal volume; smaller average deal size |
Public markets: MHA IPO and stronger distribution offset weak issuance
Despite a “challenging equity issuance backdrop” – code for fewer companies raising money on the stock market – Cavendish delivered public markets revenues modestly ahead of FY25. The MHA IPO in the first quarter helped, and there was a stronger contribution from equity trading and work with investment companies.
Two operational signals stand out. First, Cavendish added 27 new clients during the year. Second, for the first time since its merger, net client movement turned positive in the second half. That stabilised retainers (recurring fees paid by quoted clients) and lays groundwork for future deal flow. Fees held broadly steady, suggesting pricing discipline in mixed markets.
Private markets: smaller deal sizes, better fee economics
Private market revenues dipped. Deal volumes were broadly in line with last year, but the average deal size was smaller. That is not unusual when rates are high and buyers are choosier.
Encouragingly, Cavendish says the rolling 12-month median fee increased. In plain English: even though deals were smaller, the firm’s fee take per deal improved, which points to healthier underlying economics. Regional expansion is helping too – new Birmingham and Manchester offices met their first full-year business plans and strengthened local origination (sourcing new mandates).
Client base and origination: stabilisation that should compound
Momentum on client acquisition matters more than one-off wins. With 27 new clients and a net positive client movement in H2, Cavendish is rebuilding the platform for both recurring retainers and future transactions. That underpins revenue visibility and keeps the pipeline primed as markets normalise.
For investors, this combination – stable pricing, net client adds, and stronger distribution – usually converts into higher operating leverage when deal volumes recover.
Balance sheet and costs: dry powder preserved, discipline intact
Net cash ticked down to £19.2 million from £21.2 million, but the Group remains debt-free. Management is keeping “tight cost control” and emphasising flexibility. That is exactly what you want to hear when macro clouds linger. The cash position also supports continued investment in origination, equity distribution and technology.
Outlook FY27: pipeline firming, but geopolitics still a headwind
Heading into FY27, Cavendish reports a strengthening pipeline and an “improving operational platform”. A growing quoted client base should lift recurring retainers and equity issuance activity. A stronger equity distribution capability – think better placement of shares and broader investor reach – is expected to drive higher commission income. Regional teams are now fully staffed and targeting higher-value deals.
Management notes some tailwinds: gradually declining interest rates and increased capital flowing into European markets. The risks are very clear too: the ongoing conflict in the Middle East, the protracted Russia-Ukraine war, UK political uncertainty, wider geopolitical risk, and the market’s debate around AI returns. If the Middle East conflict persists, the outlook could be negatively impacted.
Strategy: revenue per head, mid-market M&A, and AI-enabled processes
The strategic priorities are tight and sensible: improve revenue per head via better origination, continue growing mid-market private M&A, strengthen equity distribution, and roll out AI-enabled processes across the firm. In practice, that means doing more quality work per banker and making the platform more scalable without piling on costs.
One to watch: AI adoption. Used well, it can compress deal timelines and improve connectivity across teams. The payoff is higher throughput with stable headcount – exactly the lever management is pointing to.
My take: resilient base now set for operating leverage
In a tough year for UK capital markets, Cavendish has held revenues broadly flat at ~£56.0 million and delivered profit in both halves. That is a respectable outcome. Net cash remains healthy at £19.2 million, and client metrics turned a corner in H2. The private markets wobble looks more about deal size than demand, with fee quality improving.
The bullish angle: when issuance and M&A activity recover, Cavendish’s broader client list, stronger equity distribution and regional footprint should allow revenues to expand faster than costs. The cautious angle: macro and geopolitical risks could delay that recovery, and the Group has not disclosed margins or detailed profit figures, so we cannot judge earnings quality yet.
Jargon buster
- Retainer – a recurring fee paid by a quoted company for ongoing advisory and broking services.
- Origination – sourcing new clients or mandates for transactions (IPOs, placings, M&A).
- Equity distribution – the capability to place shares with investors and generate trading commissions.
- IPO (Initial Public Offering) – when a company lists its shares on a stock exchange for the first time.
What to watch next in FY27
- Conversion of the “strengthening pipeline” into completed fees in H1 FY27.
- Net client additions and retainer growth across the quoted client base.
- Recovery in private market deal sizes, with fee discipline intact.
- Commission income from equity distribution and trading.
- Cash trajectory and continued debt-free status while investing in talent and tech.
- Impact of AI-enabled processes on productivity and turnaround times.
Bottom line
Solid, not flashy. Cavendish has protected profitability, broadened its client base, and kept the balance sheet clean. If markets thaw, this is a set-up for operating leverage. If they do not, the Group’s diversification and cost discipline should keep the lights bright. For now, it is a quietly confident hold pending clearer signs of deal-flow acceleration.
