Latest news with #SmithWilliamson
Daily Mail
7 hours ago
- Business
- Daily Mail
SMALL CAP MOVERS: Spring could be here after a three-year deep freeze
After more than three years of deep freeze, liquidity dried up, valuations languished, and investor apathy reigned, there are signs of a tentative spring. Cavendish, the boutique investment bank with a front-row seat to the UK's small and mid-cap market, has just signalled a change in the weather. According to commentary alongside its full-year results this week, there are three drivers: a weakening US dollar, rising political risk stateside, and a growing sense among global investors that being overexposed to America may be more of a bug than a feature. As portfolios rebalance, undervalued UK equities, particularly smaller ones, are starting to get a second look. Cavendish's optimism isn't just PR gloss. It's grounded in a strong pipeline of private equity dealmaking and a rising tide of founder exits. Interesting, then, that against this backdrop Cavendish, born from the merger of small-cap brokers finnCap and Cenkos, has landed in the middle of bid speculation. An approach from private equity-backed accountancy firm Smith & Williamson to acquire Cavendish's M&A arm sent shares up 25 per cent to 13.76p. The enquiry was promptly rebuffed. Now, onto the wider market. Underlining Cavendish's point, the AIM All Share rose 1.1 per cent to 768.20, its highest level since last August. The FTSE 100 was flat. Top of the leader board was Autins, the automotive insulation firm, which surged 64 per cent after announcing it was on track to make its first net profit since 2017. Ariana Resources also impressed, unveiling a major uplift in the economics of its Dokwe gold project in Zimbabwe. Proactive flagged it earlier as one to watch after it missed the sector's rerating. Dokwe, conservatively valued at around £250 million, appears to have lit the blue touch-paper, with shares up 38 per cent. Turning to the debit column, the week's biggest faller was Dekel Agri-Vision, the West Africa-focused farming group, which dropped 38 per cent following a deeply discounted £2 million fundraising and debt conversion. Arkle Resource, the gold and zinc explorer chaired by veteran Irish entrepreneur John Teeling, sank 39 per cent after prelims showed the firm is running on fumes. It ended last year with £23,000 in the bank, then raised £270,000. Investors were told more capital can be raised 'as required' - the market is braced for a dilutive, discounted cash call. Mosman Oil & Gas also had a rocky week, falling 30 per cent after a failed helium drill in Colorado. While the crew moves on to the next well, it was the end of the road for CEO Andy Carroll. Next 15 endured a turbulent 24 hours. The PR and marketing group behind City spin shop MHP issued a doozy of a profit warning on Thursday, prompting the CEO's departure and a boardroom reshuffle, plus a sharp drop in the share price. No sooner had the rollercoaster hit bottom than bid interest emerged, with an unnamed buyer circling the group's 'legacy' advertising and PR business. Shares bounced 8 per cent on Friday but still ended the week down 25 per cent, and 42 per cent lower year to date. Finally, a breakthrough for Zanaga Iron Ore. The company has made a metallurgical leap that could transform the economics of its flagship Republic of Congo project. Test work confirms Zanaga can now produce direct reduction iron (DRI) grade pellet feed—essential for the fast-growing electric arc furnace (EAF) steel sector. DRI-grade feedstock must meet tight specs. According to Panmure Liberum, Zanaga's samples exceeded them, with iron content over 68.5 per cent and low impurities. Crucially, the upgrade appears cost-neutral. As Panmure put it: 'There should be no expectation of any significant change to capital and operating costs as a result.' The shares ended Friday up 8 per cent at 8.34p.
Yahoo
3 days ago
- Business
- Yahoo
Smith & Williamson tables bid for deals unit of investment bank Cavendish
Smith & Williamson (S&W), the private equity-backed professional services firm, has tabled an approach that would result in the break-up of the London-listed investment bank Cavendish. Sky News has learnt that S&W, which itself was part of Evelyn Partners until earlier this year, made an offer in recent weeks to acquire Cavendish's mergers and acquisitions arm. The value of the offer, which is said to have been rejected, was unclear on Tuesday morning. It was also unclear whether news of the approach from S&W might flush out interest from other parties in a potential deal with Cavendish. Money blog: 'My water bill has gone up by 50%' Cavendish was formed from the merger of Finncap and Cenkos Securities in 2023 amid pressure on the City's crowded mid-market investment banking sector. A dearth of new company flotations has squeezed the revenue bases of firms operating in the space, spurring a string of mergers, such as the one which resulted in the creation of Panmure Liberum last year. In 2018, Finncap, the stockbroker, bought Cavendish, a specialist in advising private companies on sale processes, for £14m. The fresh interest in acquiring the deals division underlines the more buoyant nature of that side of the investment banking business. Apax Partners, the private equity firm, bought a controlling stake in Evelyn Partners' professional services arm for a reported £700m. Read more from Sky News:Sir Alan Bates backs Post Office Capture victimsReasons for sharp drop in retail sales revealed It then rebranded the business as Smith & Williamson, thereby reviving one of the City's most prominent names in the sector. A spokesperson for Apax declined to comment, while Cavendish has been contacted for comment.
Sky News
3 days ago
- Business
- Sky News
Smith & Williamson tables bid for deals unit of investment bank Cavendish
Smith & Williamson (S&W), the private equity-backed professional services firm, has tabled an approach that would result in the break-up of the London-listed investment bank Cavendish. Sky News has learnt that S&W, which itself was part of Evelyn Partners until earlier this year, made an offer in recent weeks to acquire Cavendish's mergers and acquisitions arm. The value of the offer, which is said to have been rejected, was unclear on Tuesday morning. It was also unclear whether news of the approach from S&W might flush out interest from other parties in a potential deal with Cavendish. Cavendish was formed from the merger of Finncap and Cenkos Securities in 2023 amid pressure on the City's crowded mid-market investment banking sector. A dearth of new company flotations has squeezed the revenue bases of firms operating in the space, spurring a string of mergers, such as the one which resulted in the creation of Panmure Liberum last year. In 2018, Finncap, the stockbroker, bought Cavendish, a specialist in advising private companies on sale processes, for £14m. The fresh interest in acquiring the deals division underlines the more buoyant nature of that side of the investment banking business. Apax Partners, the private equity firm, bought a controlling stake in Evelyn Partners' professional services arm for a reported £700m. It then rebranded the business as Smith & Williamson, thereby reviving one of the City's most prominent names in the sector.
