Cavendish scraps co-chief executive regime as it swings to loss

City investment bank Cavendish has eliminated its co-chief executive structure in an operations overhaul, following the bank's first-half loss. The Aim-listed group recorded a pre-tax loss of nearly £500,000 in the six months to September, reversing a £1 million profit in the same period last year. Revenue dropped 20% to £22.9 million, while deal fees fell to £12.4 million.

Private market transactions decreased by 44%, and public market transactions fell by 25%. The bank plans to cut annual costs by £3 million over the next six months through restructuring and IT efficiencies, with around £2 million of the savings expected from employee changes. Julian Morse, appointed co-chief in 2023, will retain the position of sole chief executive.

Former co-chief executive John Farrugia will resign from his role and the board. Cavendish also discontinued its interim dividend following the slowdown to preserve capital. The Aim slowdown impacted Cavendish, as the firm saw a "healthy pipeline" of public and private transactions, including potential IPOs for the next 12 months.

The UK public markets have been "subdued" for the first six months, with low new issuances and weak secondary-market liquidity due to persistent economic uncertainty constraining institutional demand. The Bank of England recently raised interest rates for the first time since 2023 in response to new inflationary pressures from the US-Iran conflict and supply disruptions in the Strait of Hormuz.