Cavendish

From all of us at Cavendish.

As 2024 draws to a close, at Cavendish we’re proud to reflect on a year of significant achievements and resilience. Despite challenging market conditions, we have continued to deliver for our clients with agility, innovation, and a steadfast focus on results.   This year, we have further cemented our position as the leading adviser to growth companies across public and private markets in the UK. Some of the key highlights include:   - Advising 1 in 10 UK quoted and listed equities across the Main Market and AIM. - Raising over £300m across 50 fundraisings, including an IPO and a Main Market Admission. - Completing 30 private M&A, private capital, and debt advisory transactions. - Being recognised as the No. 1 public M&A adviser in the UK for deals under £500m. - Welcoming 18 new clients and making key strategic hires to strengthen our team.   Beyond these milestones, we have been at the forefront of discussions on the future of UK capital markets. We have worked closely with policymakers to champion reforms that align public and private markets, paving the way for sustainable growth.   As we look ahead to 2025, we are excited about what’s to come. With initiatives such as our inaugural IPO Forum in February and our Non-Executive Director Programme restarting in January, we remain committed to supporting our clients in navigating the evolving market landscape.   Thank you to our clients, partners, and teams for their trust and collaboration. Together, we are poised to make 2025 another year of progress and innovation. Explore more in the attached snapshot.

  Cavendish is pleased to have supported Amcomri Group plc in their recent IPO on the AIM Market of the London Stock Exchange, successfully raising £12 million through a placing. The IPO will enable Amcomri to further their “Buy-Improve-Build” strategy in the UK engineering sector.    Adrian Hadden, Corporate Finance Director at Cavendish, commented: "Amcomri has an outstanding track record of acquiring and improving small engineering businesses, led by a hugely impressive management team. The admission to AIM and associated fund raise will ideally position the business for future success. We're proud to have played a role in this standout IPO and fundraise. The IPO environment is challenging and it is a credit to the quality of the Amcomri story and its management team to have achieved this success in such challenging stock market conditions.

Roger Lee, Head of Equity Strategy at Cavendish comments: UK Interest Rates: risks to the downside in 2025   The UK economy seems to be teetering on the brink. Two successive quarters of negative GDP and that’s before we see the full impact of one of the largest tax rising budgets in recent history.   Despite a big week for UK economic data, it is still too early for the official statistics to pick up how Corporates have responded to the NIC and minimum wage increases.   However, the risks to the economy from the recent survey data are becoming increasingly clear and will inevitably slow the inflationary pressure of a tight labour market.   Given these economic risks, the UK is starting to look a lot more like a European economy rather than the high growth US. Yet interest rate expectations don’t reflect that reality, with the market still forecasting UK interest rates to be HIGHER than US during 2025.   This outcome seems increasingly difficult to square with economic fundamentals; the risks to UK interest rates are clearly to the downside in 2025.   As we know, falling interest rates have historically proved positive for UK equities.

We are delighted Cavendish acted as Sponsor to Geiger Counter Investment Fund on their successful admission to the FCA’s Official List and to trading on the London Stock Exchange's Main Market on 11th December 2024 as a closed-ended investment fund.   Tunga CHIGOVANYIKA, Director, Investment Funds Corporate Finance at Cavendish, commented: “We are delighted to have supported Geiger Counter Limited on this transaction. This listing not only underscores the company’s growth ambitions but also highlights the ongoing strength of the uranium sector as an investment opportunity. Congratulations to Geiger Counter Limited on reaching this milestone.” 

Cavendish is delighted to have advised Much Better Adventures (MBA) on its successful £5 million fundraise, led by Gresham House Ventures. This marks Cavendish’s fourth travel-sector transaction this year, further cementing our expertise in this dynamic industry. MBA, a pioneering platform for active outdoor adventure holidays, is redefining travel for socially responsible adventurers, particularly solo travellers seeking meaningful, expert-led experiences. Partnering with handpicked local operators, MBA delivers trips that are unique, sustainable, and unforgettable. The company has achieved 11x revenue growth since 2019, tripled revenues in just two years, and welcomed adventurers from over 100 countries. This latest investment will enable the company to expand its destination and activity offerings, enhance platform automation, and strengthen its international footprint. Zuleika Salter, Head of Private Growth Capital at Cavendish, shared: “It’s been a privilege to work with Alex and the Much Better Adventures team. They’ve created a strong community united by a passion for sustainable, unforgettable travel. We’re excited to see where this talented, mission-driven team can take the business.” Read more about the transaction here - https://lnkd.in/eb5jx7Tj

Cavendish is pleased to have supported Duke Capital Limited in their recent fundraise, successfully securing £23.5 million through a placing and retail offer on AIM. This milestone will further enable Duke Capital to continue its innovative approach to alternative financing solutions for SMEs across the UK and Europe. Callum Davidson, Corporate Finance Director at Cavendish, commented: "Duke Capital's unique approach to flexible capital solutions makes it a standout player in the alternative finance space. We're proud to have played a role in this fundraise, which will help the company continue to empower SMEs with bespoke financing options and drive growth in this critical sector." We look forward to watching Duke Capital's ongoing success and impact on the SME landscape. 

Roger Lee, Head of Equity Strategy at Cavendish comments: UK Small & Mid-Cap Valuations: A UK Problem, or Something Bigger? For the last few years, UK Small & Mid-Caps have traded at a notable discount to global equities, often seen as a reflection of challenges unique to the UK market. But is this just a UK issue? Looking around the World, it’s a similar story in Europe and even US Small & Mid-Caps are grappling with valuation discounts, as the charts below highlight. Yes, there is a historic valuation discount between UK Small & Mid-Caps and the World’s largest companies, but this isn’t just a British malaise this is a Developed Market Small & Mid-Cap problem. Following the US election and the recent outperformance of US Small & Mid-Caps, how much longer will these Developed Market Small & Mid-Cap discounts persist?

This morning, our Head of Equity Strategy, Roger Lee, sat down with Stephen Sedgwick and Karen Tso on CNBC’s Squawk Box Europe to share his insights into the effects of the Budget on UK corporate profitability and the clear valuation discount of UK equities, in the spotlight again after Direct Line’s rejection of the takeover bid from larger rival, Aviva.

We were delighted to have hosted another full house to our latest NED workshop this morning, hosted by our Chair Lisa Gordon alongside Joanna Copestake and Louise Nash from JLC Investor Relations. The workshop unpicked the complexities of the evolving ESG reporting landscape, and provided valuable insight into the key issues for businesses and how these impact the duties of the Board. The forum demonstrated that the ESG lens is becoming increasingly important to businesses, customers and investors alike.   This concludes Cavendish’s NED breakfast workshops for 2024, and we look forward to seeing you at one of our events in the New Year, where we will be kicking off with workshops on Cyber and Remuneration. Cavendish runs regular thematic NED workshops, please do get in touch with Emily Watts if you would like to register your interest to join our NED programme.