Investment bank Cavendish has abandoned its joint chief executive structure and announced plans to reduce annualised costs by more than £3m after reporting weaker revenues and a statutory first-half loss.
Julian Morse has become sole chief executive of the AIM-listed company, while John Farrugia has stepped down as joint chief executive and left the board. Farrugia is expected to remain involved in selected client activities.
The changes accompany interim results showing that revenue declined 19.6% to £22.9m during the six months ended 30 September 2026, compared with £28.5m a year earlier.
Cavendish reported a statutory pre-tax loss of £498,000, reversing a £1.1m profit during the equivalent period last year.
However, the company remained profitable on its adjusted measure, reporting core pre-tax earnings of £785,000, compared with £2m previously.
The adjusted figure excludes share-based payments, certain investment valuation movements, and results from associates and joint ventures. It therefore differs from the company’s statutory financial performance.
Cavendish completed more than 50 transactions with an aggregate value of £425m during the half-year, although weaker capital markets and delayed deal completions reduced income from advisory activity.
Revenue from investment banking declined to £17.9m from £23.5m, with transaction fees falling from £18.2m to £12.4m. Recurring retainer income increased modestly to £5.5m.
The group attributed some of the decline to private transactions taking longer to complete, with several expected deals moving into the second half of its financial year.
Restructuring targets employee and operating costs —
The company expects its cost reduction programme to deliver annualised savings exceeding £3m over the next six months.
Approximately £2m will come from employee-related restructuring, while more than £1m will be generated through changes to non-employee expenditure, supported by investment in core business systems.
Cavendish has not disclosed the final number of roles that may be affected. Some savings will also be offset by continued recruitment into selected senior advisory positions.
Chair Lisa Gordon thanked Farrugia for his contribution to the business and confirmed that the company intended to retain his expertise for certain clients.
She said: “It is our intention that John remains engaged on specific client activity for the foreseeable future.”
The leadership changes follow the 2023 combination of finnCap and Cenkos Securities, which established Cavendish as an adviser to public and privately owned businesses.
Its activities include mergers and acquisitions, equity fundraising, corporate broking, debt advisory services, and private growth capital.
Conditions in the UK market for smaller listed companies remained difficult during the reporting period. Reduced share issuance and weaker secondary-market liquidity constrained activity, although public takeover work provided some opportunities.
Private M&A conditions were more resilient, with buyers continuing to pursue profitable businesses. Cavendish reported an increase in new sell-side advisory and private growth capital mandates through its centralised business development operation.
The company entered the second half with a pipeline including potential initial public offerings, public takeovers, and private company transactions, although the timing of completion fees remains uncertain.
Cavendish held £10.6m in cash at 30 September, down from £19.8m a year earlier. It attributed the reduction partly to earlier dividend payments and lower transaction income.
The board has decided not to declare an interim dividend, compared with 0.3p per share in the previous period, while retaining capital for regulatory requirements, targeted recruitment, and business development.
The planned savings and simplified executive structure will reduce the company’s operating cost base as it pursues additional advisory transactions during the second half.
