Half Yearly Report

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the Board. It has, however, delegated day-to-day management to the Chief Executive Officer and the Finance Director. The Company has in place an appropriate liquidity risk management framework for the management of its short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Given the nature of the Company's business, the Company does not run any material liquidity mismatches, financial liabilities are on the whole short-term and the Company has sufficient liquid assets to cover all of these liabilities.

Liquidity and interest risk tables

The following tables detail the Company's remaining contractual maturity for its financial assets and liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company is required to pay. The table includes both interest and principal cash flows. The tables also detail the Company's expected maturity for its financial assets. The tables below have been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. No maturity date has been listed where there is no contractual maturity for the financial assets.

RNS Number : 7401Z

Cenkos Securities PLC

22 September 2015

UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2015

Cenkos Securities plc (the "Company" or "Cenkos") together with its subsidiaries (the "Group") is an independent, specialist institutional securities group, focused on small and mid-cap companies and investment funds. The Company's principal activity is institutional stockbroking.

Cenkos' shares are admitted to trading on the AIM Market of the London Stock Exchange ("LSE"). The Company is authorised and regulated by the Financial Conduct Authority ("FCA") and is a member of the LSE.

Financial highlights		30-Jun-15	30-Jun-14
Revenue	- 19%	£53.1 m	£65.2 m
Profit before tax	- 21%	£18.6 m	£23.5 m
Cash	+ 12%	£48.2 m	£43.2 m
Basic earnings per share	- 16%	26.1 p	31.2 p
Interim dividend per share declared	0%	7.0 p	7.0 p

Commenting on the interim results, Chief Executive Officer Jim Durkin noted:

"Our successful strategy of being a leading UK institutional broker to growth companies and investment funds has led to us being profitable in every year since our formation in 2005. This approach continues to bear fruit and I am pleased to report a strong performance for the first six months of 2015, with profits before tax of £18.6 million.

Given the overall results, the Board has declared an interim dividend of 7p per share, in line with what was paid last year. The Board plans to launch a tender offer as soon as is practicable to return £8.0 million of surplus capital to shareholders.

We have made a good start to the second half of the year. There continues to be institutional demand to fund high quality companies and ideas. Since July we have been engaged in relation to a number of significant fundraisings and our current pipeline is encouraging."

For further information contact:

Jim Durkin +44 20 7397 8900

Chief Executive Officer

Cenkos Securities plc

Dr Azhic Basirov / David Jones / Ben Jeynes +44 20 7131 4000

Nominated Adviser

Smith & Williamson Corporate Finance Limited

David Rydell / Duncan Mayall / James Newman +44 20 3772 2500

Bell Pottinger

Interim Management Report

Review of performance

Overall performance

I am pleased to report that we delivered £18.6 million of pre-tax profits in the six months ending 30 June 2015. We demonstrated again, as in H1 2014, the strength of our equity placing capabilities. In both periods we have completed an individual fundraise in excess of £1 billion, as well as raising a further £1 billion in aggregate for other clients in H1 2015. Indeed, we have now raised in excess of £13.6 billion for our clients - mainly acting as sole broker - over our 10 year history.

We had our best ever financial performance in H1 2014 with both a large transaction and number of other significant fundraisings. When compared to this, H1 2015's revenues fell 19% on the back of lower fundraising and a lower level of activity on the AIM market. This was also reflected in lower performance-related pay. Profit before tax was £18.6 million (H1 2014: £23.5 million) and basic earnings per share fell by 16% to 26.1p (H1 2014: 31.2p).

Notwithstanding the above, it is worth noting that the profit before tax achieved in the six month period under review exceeds the profit before tax recorded in full year 2013 (£10.7 million) and full year 2012 (£7.0 million) - a reflection of the Company's continued development over the last few years.

Revenues

Revenue for the period decreased by 19% to £53.1 million (H1 2014: £65.2 million). In H1 2015 we raised £2,020 million for our clients (H1 2014: £2,209 million), including £1,029 million for BCA Marketplace plc. The fall reflects quieter equity markets - including AIM - than those experienced in H1 2014. Against the backdrop of the UK election and wider European macro-economic uncertainty, total funds raised by AIM companies fell by 25%, when compared to H1 2014, to £2,763 million in H1 2015 (source: LSE AIM factsheet June 2015). Despite the fall in our revenues when compared to H1 2014, the results are nonetheless still very encouraging and include revenues in excess of the £51.4 million of revenues delivered in all of 2013.

We remain ranked as one of the leading brokers in London for growth companies, as demonstrated by Adviser Rankings Limited's July 2015 'AIM Adviser Rankings Guide' where we were ranked top Nominated Adviser for 'FTSE AIM 100 clients' by number of clients and second in terms of both 'Nominated Adviser' and 'Stockbroker' for all AIM clients by number of clients. We were also ranked top 'Nominated Adviser' for 'Oil and Gas' and 'Consumer Services' by number of AIM clients, third for 'Technology' companies by number of AIM clients and number one Nominated Adviser for 'Financials' and 'Industrials' by AIM client market capitalisation. The size of our corporate client base (Nominated Adviser / broker / financial adviser appointments) remained broadly flat at 125.

We make markets in the securities of all the companies where we have a broking relationship to support the other services we provide to our clients. We actively provide liquidity to the market and facilitate institutional business in both small and large cap equities. Our trading desks now make markets in the shares of 342 (H1 2014: 340) companies and investment funds.

Costs

Costs fell 17% to £34.6 million in the period, primarily due to lower performance-related pay on the back of lower levels of activity. Additionally, we have continued to invest in the business and to hire new staff. We also incurred a cost of £2.1 million (H1 2014: £1.8 million) due to staff bonuses resulting from the Compensatory Award Phantom Dividend Plan 2009 (the "CAP"). Payments under this scheme are triggered only by the payment of a dividend to ordinary shareholders. A CAP cost was incurred during the period as a result of the 10p final dividend for 2014 paid in H1 2015. This compares to a H1 2014 CAP cost incurred in respect of an 8.5p 2013 final dividend, albeit in respect of 9% fewer CAP options (as holders of CAP options were also invited to participate in our January 2015 share buy-back).

Profit and earnings per share

Profit before tax decreased by 21% to £18.6 million (H1 2014: £23.5 million) and profit after tax decreased by 22% to £14.6 million (H1 2014: £18.8 million). Our basic earnings per share ("EPS") fell by a less than proportional 16% to 26.1p as a result of the buy-back and subsequent cancellation of 9% of our ordinary shares in January 2015.

Statement of consolidated financial position and cash flow

At 30 June 2015, our net trading investments were £6.5 million, and cash held was £48.2 million (H1 2013: £43.2 million). During the six months to 30 June 2015 there was a net increase in cash and cash equivalents of £15.3 million. This is largely due to the cash inflow from the Company's profitable trading in H1 2015 and lower net trading positions, offset partly by the payment of accrued bonuses in respect of 2014, the 2014 final dividend of 10p per share, the £10.8 million share buy-back carried out in January 2015 and corporation tax payments.

Dividend and capital levels

We aim to retain sufficient capital and reserves to meet our regulatory capital and cash requirements after taking account of the likely future working capital needs and potential growth requirements.

In December 2014 a Tender Offer was launched to purchase up to 5.7 million ordinary shares in Cenkos (9% of the then issued share capital). The Tender Offer subsequently returned £10.8 million of surplus capital to shareholders when the offer closed in January 2015, and as part of the same offer process we also cancelled 9% of the CAP options in issue at that time.

Since our flotation on AIM in October 2006, we have paid out 101.5p in dividends (prior to the 7p proposed interim dividend for 2015) and bought back 15.0 million shares at a cost of £17.3 million for cancellation (including the £10.8 million Tender Offer completed in January 2015), thereby increasing the Company's prospective earnings per share. We have therefore returned £86.2 million of cash to shareholders, equivalent to 128p per share (before 2015's interim dividend) since our flotation in 2006.

The Board proposes an interim dividend of 7p per share, in line with last year's interim dividend of 7p per share. The payment of this interim dividend will trigger payments to staff under the CAP of £1.0 million in H2 2015 (H2 2014: £1.1 million). The dividend will be paid on 5 November 2015 to all shareholders on the register at 9 October 2015. In line with existing shareholder authorisation, given our strong results in H1 2015 and prospects for the rest of the year, the Board plans to launch a further tender offer as soon as is practicable to return £8.0 million of surplus capital to shareholders.

People

The continued professionalism of our employees has enabled us to achieve the robust performance for the period. We continue to look to recruit staff who are attracted by our culture and business model, and we increased our overall headcount by six staff in H2 2014 and four in H1 2015. We continue to look to attract experienced staff who can help grow our business.

Principal risks and uncertainties

The principal risks and uncertainties that Cenkos currently faces, and how these are managed, have not materially changed from those outlined in the Strategic Report section of our 2014 Annual Report, namely the health of UK equity markets as well as reputational, operational, regulatory, conduct and market risk. Aside from the health of UK equity markets, the key changes that may impact Cenkos' risk profile over the next six months - and how they are being managed - relate to:

· The pace of change in the regulatory environment - we continue to focus heavily on our regulatory risks to ensure the appropriate systems and controls, reporting, capital and liquidity requirements, resources, conduct and culture are all in place to meet the ongoing obligations of an FCA regulated (IFPRU Investment) firm; and

· Ensuring that we continue to retain and attract high quality staff.

Outlook

We have made a good start to the second half of the year. There continues to be institutional demand to fund high quality companies. Since July we have been engaged in a number of significant fundraisings and our current pipeline is encouraging.

Jim Durkin

Chief Executive Officer

21 September 2015

Responsibility statement

We confirm that to the best of our knowledge:

a) The condensed set of financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of Cenkos Securities plc and the undertakings included in the consolidation taken as a whole as at 30 June 2015; and

b) The interim management report includes a fair review of the development and performance of the business and the position of Cenkos Securities plc and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that the Company faces.

Forward-looking statements

These financial statements contain forward-looking statements with respect to the financial condition, results, operations and businesses of Cenkos Securities plc. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors' current view and information known to them at the date of this statement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed consolidated income statement

For the six months ended 30 June 2015

		Unaudited	Unaudited	Audited
		Six months ended	Six months ended	Year ended
	Notes	30 June	30 June	31 December
		2015	2014	2014
Continuing operations		£ 000's	£ 000's	£ 000's
Revenue	2	53,115	65,225	88,516
Administrative expenses		(34,607)	(41,757)	(61,704)
Operating profit		18,508	23,468	26,812
Investment income - interest income		65	77	161
Interest expense		(3)	(1)	(1)
Profit before tax from continuing operations		18,570	23,544	26,972
Tax	3	(3,936)	(4,751)	(5,644)
Profit after tax		14,634	18,793	21,328
Attributable to:
Equity holders of Cenkos Securities plc		14,634	18,793	21,328
Basic earnings per share	5	26.1p	31.2p	35.2p
Diluted earnings per share	5	24.1p	29.7p	32.0p

Condensed consolidated statement of comprehensive income

For the six months ended 30 June 2015

	Unaudited	Unaudited	Audited
	Six months ended	Six months ended	Year ended
	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Profit	14,634	18,793	21,328
Amounts that will be recycled to income statement in future periods
(Loss) / gain on available-for-sale financial asset	(2)	-	132
Tax on available-for-sale financial asset	-	-	(28)
Other comprehensive income	(2)	-	104
Total comprehensive income	14,632	18,793	21,432

Attributable to:
Equity holders of Cenkos Securities plc	14,632	18,793	21,432

Condensed consolidated statement of financial position

As at 30 June 2015

		Unaudited	Unaudited	Audited
	Notes	30 June	30 June	31 December
		2015	2014	2014
		£ 000's	£ 000's	£ 000's
Non-current assets
Property, plant and equipment	6	380	480	421
Deferred tax asset	11	2,151	2,794	2,042
		2,531	3,274	2,463
Current assets
Trade and other receivables	7	37,103	47,777	19,717
Available-for-sale financial assets		559	1,000	729
Other current financial assets	8	10,844	29,876	10,014
Cash and cash equivalents	9	48,218	43,156	32,932
		96,724	121,809	63,392
Total assets		99,255	125,083	65,855
Current liabilities
Trade and other payables	10	(55,224)	(79,929)	(23,583)
Other current financial liabilities	8	(4,341)	(3,915)	(2,711)
		(59,565)	(83,844)	(26,294)
Net current assets		37,159	37,965	37,098
Total liabilities		(59,565)	(83,844)	(26,294)
Net assets		39,690	41,239	39,561

Equity
Share capital	12	599	635	637
Share premium		2,061	9	232
Capital redemption reserve		150	93	93
Own shares	13	(3,203)	(3,228)	(3,218)
Available-for-sale reserve		102	-	104
Retained earnings		39,981	43,730	41,713
Total equity		39,690	41,239	39,561

Condensed consolidated cash flow statement

For the six months ended 30 June 2015

		Unaudited	Unaudited	Audited
		Six months ended	Six months ended	Year ended
	Notes	30 June	30 June	31 December
		2015	2014	2014
		£ 000's	£ 000's	£ 000's
Profit		14,634	18,793	21,328
(Loss) / gain on available-for-sale financial assets through Other Comprehensive Income		(2)	-	104
Adjustments for:
Net finance income		(61)	(76)	(160)
Tax expense		3,936	4,751	5,644
Tax expense arising on available-for-sale asset		-	-	28
Depreciation of property, plant and equipment		104	185	386
Shares and options received in lieu of fees		(1,232)	(11,961)	(3,443)
CAP options cancelled as part of tender offer buy-back	12	(698)	-	-
Share-based payment expense		339	57	250
Operating cash flows before movements in working capital		17,020	11,749	24,137
Decrease / (increase) in net trading investments		2,204	(4,503)	5,976
Increase in trade and other receivables		(17,377)	(28,436)	(379)
Increase / (decrease) in trade and other payables		30,849	41,131	(12,940)
Cash flow from operating activities		32,696	19,941	16,794
Interest paid		(3)	(1)	(1)
Tax paid		(2,837)	(1,816)	(4,815)
Net cash flow from operating activities		29,856	18,124	11,978
Investing activities
Interest received		56	85	173
Purchase of property, plant and equipment	6	(65)	(277)	(420)
Net cash flow used in investing activities		(9)	(192)	(247)
Financing activities
Dividends paid		(5,656)	(5,128)	(9,386)
Proceeds from issue of own shares		1,847	9	234
Transfer of shares by EBT to employee share plans		15	-	10
Acquisition of own shares for cancellation		(10,767)	-	-
Net cash used in financing activities		(14,561)	(5,119)	(9,142)
Net increase in cash and cash equivalents		15,286	12,813	2,589
Cash and cash equivalents at beginning of period		32,932	30,343	30,343
Cash and cash equivalents at end of period	9	48,218	43,156	32,932

Condensed consolidated statement of changes in equity

For the six months ended 30 June 2015

	Notes		Share capital		Share premium		Capital redemption reserve			Own shares			Available-for-sale reserve			Retained earnings					Total
	£ 000's				£ 000's		£ 000's			£ 000's			£ 000's			£ 000's					£ 000's
Balance at 1 January 2014			635		-		93			(3,228)			-			28,592					26,092
Profit			-		-		-			-			-			18,793					18,793
Total comprehensive income			-		-		-			-			-			18,793					18,793
Shares issued in the period			-		9		-			-			-			-					9
Credit to equity for equity-settled share-based payments			-		-		-			-			-			57					57
Deferred tax on share-based payments			-		-		-			-			-			1,416					1,416
Dividends paid			-		-		-			-			-			(5,128)					(5,128)
Balance at 30 June 2014			635		9		93			(3,228)			-			43,730					41,239
Profit			-		-		-			-			-			2,535					2,535
Gain on available-for-sale financial assets net of tax			-		-		-			-			104			-					104
Total comprehensive income			-		-		-			-			104			2,535					2,639
Shares issued in the period			2		223		-			-			-			-					225
Transfer of shares to employee share plans			-		-		-			10			-			-					10
Credit to equity for equity-settled share-based payments			-		-					-			-			193					193
Credit to equity for day 1 valuation of acquired share options			-		-		-			-			-			68					68
Deferred tax on share-based payments			-		-		-			-			-			(598)					(598)
Current tax on share-based payments			-		-		-			-			-			43					43
Dividends paid			-		-		-			-			-			(4,258)					(4,258)
Balance at 31 December 2014			637		232		93			(3,218)			104			41,713					39,561
Retained profit			-			-		-	-			-				14,634					14,634
Gain on available-for-sale financial assets net of tax				-		-		-	-			(2)						-		(2)
Total comprehensive income			-			-		-	-			(2)					14,634					14,632
Shares issued in the period			19			1,829		-			-			-		-			1,848
Transfer of shares to employee share plans		-				-		-			15				-			-		15
Acquisition of own shares for cancellation			(57)		-		57			-			-			(10,767)					(10,767)
Charge to equity for cancelled CAP options	12		-		-		-			-			-			(698)					(698)
Credit to equity for equity-settled share-based payments			-		-		-			-			-			339					339
Deferred tax on share-based payments			-		-		-			-			-			39					39
Current tax on share-based payments			-		-		-			-			-			377					377
Dividends paid			-		-		-			-			-			(5,656)					(5,656)
Balance at 30 June 2015			599		2,061		150			(3,203)			102			39,981					39,690

Notes to the condensed consolidated financial statements

1. Accounting policies

General information

The interim condensed consolidated financial statements of Cenkos Securities plc. ("Cenkos" or the "Company" together with its subsidiaries) for the six months ended 30 June 2015 are unaudited and were approved by the Board of Directors for issue on 21 September 2015.

The Company is incorporated in the United Kingdom under the Companies Act 2006 (company registration No. 05210733), and its shares are publicly traded. The Company's principal activity is as an institutional stockbroker to UK small and mid-cap companies and investment funds. These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Company operates.

The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those of estimates.
These financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments.

Where appropriate prior year figures have been restated to conform to the current year presentation.

Basis of accounting

The interim condensed consolidated financial statements for the six months ended 30 June 2015 have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements for the year ended 31 December 2014.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 31 December 2014, which are prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

The financial information contained in these interim condensed consolidated financial statements does not constitute the Company's statutory accounts within the meaning of section 434 of the Companies Act 2006. The comparative information contained in this report for the year ended 31 December 2014 does not constitute the statutory accounts for that financial period. Those accounts have been reported on by the Company's auditors Ernst & Young LLP, and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Going concern

The Company's business activities, together with the factors likely to affect its future development and performance, its principal risks and uncertainties, the financial position of the Company, its cash flows and liquidity position are set out in the Strategic Report in the Company's Annual Report for the year ended 31 December 2014.

The Directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, the Directors continue to adopt a going concern basis in preparing the interim financial statements.

Adoption of new and revised standards

During the period, a number of amendments to IFRS became effective and were adopted by the Company, none of which had a material impact on the Company's net cash flows, financial position, statement of comprehensive income or earnings per share.

2. Business and geographical segments

Cenkos is managed as an integrated UK institutional stockbroking business and although it has different revenue streams, the nature of its activities is considered to be subject to similar economic characteristics. The internal reports used by the Chief Executive Officer for the purpose of monitoring performance and allocating resources reflect that Cenkos is managed as a single business unit.

Revenue is wholly attributable to the principal activity of the Company and arises solely within the UK.

Major clients

In the six months ended 30 June 2015, one of Cenkos' clients contributed more than 10% of Cenkos' total revenue. The amount was £26.75 million (six months ended 30 June 2014: £31.50 million; year ended 31 December 2014: £33.29 million).

3. Tax

The tax charge comprises:	Six months ended	Six months ended	Year ended
	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Current tax
United Kingdom corporation tax at 20.25% (2014: 21.50%) based on the profit for the period	4,006	5,105	5,813
Adjustment in respect of prior period
United Kingdom corporation tax at 20.25% (2014: 21.50%)	-	-	31
Total current tax	4,006	5,105	5,844
Deferred tax
Credit on account of temporary differences	(70)	(354)	(173)
Deferred tax prior period adjustment	-	-	(27)
Total deferred tax (refer to note 11)	(70)	(354)	(200)
Total tax on profit on ordinary activities from continuing operations	3,936	4,751	5,644

A reconciliation of the tax expense for the six months to June 2015 and the comparative periods and the accounting profit multiplied by the standard rate of UK corporation tax of 20.25% (2014: 21.50%) is set out below:

	Six months ended	Six months ended	Year ended
	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Profit before tax from continuing operations	18,570	23,544	26,972
Tax on profit on ordinary activities at the UK corporation tax rate of 20.25% (2014: 21.50%)	3,760	5,062	5,799
Tax effect of:
Non-deductible expenses for tax purposes	78	43	152
Current year losses of non-trading overseas subsidiary for which no deferred tax asset has been recognised	27	-	-
Share-based payments	70	(390)	(336)
Deferred tax rate change adjustment	1	36	25
Adjustment in respect of prior period deferred tax	-	-	(27)
Adjustment in respect of prior period current tax	-	-	31
Tax expense for the period	3,936	4,751	5,644

In addition to the tax expense presented in the income statement, the following amounts have been recognised directly in equity:

	Six months ended	Six months ended	Year ended
	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Other Comprehensive Income (OCI)
Current tax expense arising on available-for-sale financial asset	-	-	28
Statement of Changes in Equity (SOCIE)
Current tax credit arising on share-based payments	(377)	-	(43)
Deferred tax credit arising on share-based payments	(39)	(1,416)	(818)
Total income tax recognised directly in equity	(416)	(1,416)	(833)

4. Dividends

	Six months ended	Six months ended	Year ended
	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2014 of 10.0p (2013: 8.5p) per share	5,656	5,128	5,128
Interim dividend for the period to 30 June 2014 of 7.0p (June 2013: 3.5p) per share	-	-	4,258
	5,656	5,128	9,386
The proposed interim dividend for 30 June 2015 of 7.0p (30 June 2014: 7.0p) per share was approved by the Board on 21 September 2015 and has not been included as a liability as at 30 June 2015. The dividend will be payable on 5 November 2015 to all shareholders on the register at 9 October 2015.
Under the Compensatory Award Plan ("CAP"), as described in the 2014 Annual Report, the payment of a dividend to ordinary shareholders will trigger a cash payment to holders of options under the CAP. The payment of this interim dividend will increase staff costs by £0.99 million in the second half of 2015 (7.0p 2014 interim dividend increased staff costs by £1.11 million in the second half of 2014).

5. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:
	Six months ended	Six months ended	Year ended
	30 June	30 June	31 December
	2015	2014	2014
Basic earnings per share	26.1p	31.2p	35.2p
Diluted earnings per share	24.1p	29.7p	32.0p
Earnings for the purpose of basic and diluted earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
	£ 000's	£ 000's	£ 000's
Earnings for the purpose of basic and diluted earnings per share being net profit attributable to equity holders of the parent	14,634	18,793	21,328
	No.	No.	No.
Number of shares
Weighted average number of ordinary shares for the purpose of basic earnings per share	56,046,643	60,327,458	60,530,876
Effect of dilutive potential ordinary shares:
Share options	4,750,534	2,857,571	6,132,434
Weighted average number of ordinary shares for the purpose of diluted earnings per share	60,797,177	63,185,029	66,663,310

The Board has agreed to continue to fund the Company's Employee Benefit Trust ("EBT") so that it can make market purchases in Cenkos Securities plc shares as and when market conditions allow. During the period, no further ordinary shares were purchased (2014: no further shares were purchased), however 14,323 shares were transferred out of the EBT at average cost to the Cenkos Securities plc Share Incentive Plan Trust to satisfy awards under that scheme. As at 30 June 2015 the EBT held a total of 2,796,707 (30 June 2014: 3,158,477, 31 December 2014: 2,811,030) ordinary shares at an aggregate consideration of £2.86 million (30 June 2014: £3.23 million, 31 December 2014: £2.87 million). These shares held by the EBT have been excluded from the weighted average number of shares calculation up to this date. As at 30 June 2015 the Cenkos Securities plc Share Incentive Plan Trust held a total of 338,174 (30 June 2014: nil, 31 December 2014: 338,174) Free and Matching ordinary shares at an aggregate consideration of £0.35 million (30 June 2014: £nil, 31 December 2014: £0.35 million). As at 30 June 2015, in total these trusts held 3,134,881 shares at an aggregate consideration of £3.20 million, as shown in note 13.

6. Property, plant and equipment

During the period, the Company spent approximately £64,581 (30 June 2014: £276,565, 31 December 2014: £419,057) on property, plant and equipment. This mostly related to the purchase of IT equipment and leasehold improvements.

7. Trade and other receivables

	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Current assets
Financial assets
Market and client receivables	34,794	45,607	17,512
Unpaid share capital and loans due from staff	8	2	1
Accrued income	889	701	597
Other receivables	487	595	653
	36,178	46,905	18,763
Non-financial assets
Prepayments	925	872	954
	37,103	47,777	19,717

8. Other current financial assets and liabilities

	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Financial assets at FVTPL
Trading investments carried at fair value	10,769	29,380	9,122
Derivative financial assets	75	496	892
	10,844	29,876	10,014
Financial liabilities at FVTPL
Contractual obligation to acquire securities	(4,341)	(3,915)	(2,711)

9. Cash and cash equivalents

	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Cash and cash equivalents	48,218	43,156	32,932

10. Trade and other payables

	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Current liabilities
Financial liabilities
Trade creditors	24,337	40,822	7,909
Other creditors	630	494	309
	24,967	41,316	8,218
Non-financial liabilities
Accruals and deferred income	26,634	33,508	12,533
Corporation tax payable	3,623	5,105	2,832
	30,257	38,613	15,365
	55,224	79,929	23,583

11. Deferred tax

Deferred tax arises on all taxable and deductible temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The following are the deferred tax assets and liabilities recognised by the Group and the Company and the movement thereon during the current and prior reporting period:
	Group and Company
	temporary differences
	Bonus	Fixed	Share
	payments	assets	options	Total
	£ 000's	£ 000's	£ 000's	£ 000's
At 31 December 2013	230	27	767	1,024
Origination and reversal of temporary differences (expenses) / credit	(36)	(1)	391	354
Deferred tax credit to equity	-	-	1,416	1,416
At 30 June 2014	194	26	2,574	2,794
Origination and reversal of temporary differences credit / (expenses)	48	(20)	(182)	(154)
Deferred tax charge to equity	-	-	(598)	(598)
At 31 December 2014	242	6	1,794	2,042
Origination and reversal of temporary differences credit / (expenses)	143	(11)	(62)	70
Deferred tax credit to equity	-	-	39	39
At 30 June 2015	384	(5)	1,772	2,151

Reductions in the UK corporation tax rate from 23% to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantially enacted on 2 July 2013. In the Budget on 8 July 2015, the Chancellor announced additional planned reductions to 18% by 2020. This will reduce the Company's future current tax charge accordingly.

The Group has unutilised capital losses on which a deferred tax asset has not been recognised as future utilisation of the losses is dependent on future chargeable gains. The unrecognised deferred tax asset in respect of capital losses carried forward is gross £302,261 (net £60,452 at 20%).

The deferred tax balances at 30 June 2015 have been stated at 20% which is the rate substantially enacted at the reporting date.

12. Share capital

The issued share capital as at 30 June 2015 amounted to £598,767 (30 June 2014: £634,921, 31 December 2014: £637,121).

1 January 2014 to 31 December 2014

Date	Ordinary shares of 1p each	Event
23 April 2014	10,000 were issued	exercise of 10,000 options in accordance with the LTIP.
03 July 2014	25,000 were issued	exercise of 25,000 options in accordance with the LTIP.
15 September 2014	100,000 were issued	exercise of 100,000 options in accordance with the LTIP.
02 October 2014	20,000 were issued	exercise of 20,000 options in accordance with the LTIP.
10 December 2014	75,000 were issued	exercise of 75,000 options in accordance with the LTIP.

1 January 2015 to 30 June 2015

Date	Ordinary shares of 1p each	Event
09 January 2015	5,727,340 were cancelled	tender offer to buy back shares (see below)
16 April 2015	35,000 were issued	exercise of 35,000 options in accordance with the LTIP.
21 April 2015	200,000 were issued	exercise of 200,000 options in accordance with the LTIP.
22 April 2015	750,000 were issued	exercise of 750,000 options in accordance with the LTIP.
24 April 2015	190,000 were issued	exercise of 190,000 options in accordance with the LTIP.
27 April 2015	100,000 were issued	exercise of 100,000 options in accordance with the LTIP.
28 April 2015	100,000 were issued	exercise of 100,000 options in accordance with the LTIP.
29 April 2015	10,000 were issued	exercise of 10,000 options in accordance with the LTIP.
11 May 2015	150,000 were issued	exercise of 150,000 options in accordance with the LTIP.
27 May 2015	85,000 were issued	exercise of 85,000 options in accordance with the LTIP.
01 June 2015	10,000 were issued	exercise of 10,000 options in accordance with the LTIP.
08 June 2015	25,000 were issued	exercise of 25,000 options in accordance with the LTIP.
11 June 2015	140,000 were issued	exercise of 140,000 options in accordance with the LTIP.
16 June 2015	97,000 were issued	exercise of 97,000 options in accordance with the LTIP.

LTIP - Cenkos Long-Term Incentive Plan

In December 2014 a Tender Offer was launched to purchase up to 5.73 million ordinary shares in Cenkos (9% of the issued share capital). The Tender Offer subsequently returned £10.77 million of surplus capital to shareholders when the offer closed in January 2015. As part of the same offer process we also cancelled 956,073 of the CAP options and £0.70 million, equivalent to the notional gain on those options, was paid to the option holders. At the beginning of the year, there were 10.55 million options in issue under the CAP agreement. At the 30 June 2015, subsequent to the cancellation, 9.59 million remain.

13. Own shares

Own shares represent the cost of shares purchased by the Company's Employee Benefit Trust ("EBT") and those transferred to the Cenkos Securities plc Share Incentive Plan. The EBT was established by the Company in 2009. It is funded by the Company and has the authority to acquire Cenkos shares. During the period, no further ordinary shares were purchased (2014: no further shares were purchased), however 14,323 shares were transferred out of the EBT at average cost to the Cenkos Securities plc Share Incentive Plan Trust to satisfy awards under that scheme. As at 30 June 2015 the EBT held a total of 2,796,707 (30 June 2014: 3,158,477, 31 December 2014: 2,811,030) ordinary shares at an aggregate consideration of £2.86 million (30 June 2014: £3.23 million, 31 December 2014: £2.87 million). As at 30 June 2015 the Cenkos Securities plc Share Incentive Plan Trust held a total of 338,174 (30 June 2014: nil, 31 December 2014: 338,174) Free and Matching ordinary shares at an aggregate consideration of £0.35 million (30 June 2014: £nil, 31 December 2014: £0.35 million). These shares are held by the trusts and have been excluded from the weighted average number of shares calculation up to the reporting date.
		Six months ended		Six months ended		Year ended
		30 June 2015		30 June 2014		31 December 2014
	Shares held by EBT	Number		Number		Number
		of shares	£ 000's	of shares	£ 000's	of shares	£ 000's
	At 1 January	2,811,030	2,872	3,158,477	3,228	3,158,477	3,228
	Acquired during the period	-	-	-	-	-	-
	Transferred to Cenkos Securities plc Share Incentive Plan
	Free shares	-	-	-	-	(166,706)	(171)
	Matching shares	-	-	-	-	(171,468)	(175)
	Dividend reinvestment	(14,323)	(15)	-	-	(9,273)	(10)
	At the period ended	2,796,707	2,857	3,158,477	3,228	2,811,030	2,872

	Free and Matching shares held by	Number		Number		Number
	Cenkos Securities plc Share Incentive Plan	of shares	£ 000's	of shares	£ 000's	of shares	£ 000's
	At 1 January	338,174	346	-	-	-	-
	Transferred from the EBT
	Free shares	-	-	-	-	166,706	171
	Matching shares	-	-	-	-	171,468	175
	At the period ended	338,174	346	-	-	338,174	346
	Own shares held at the period ended	3,134,881	3,203	3,158,477	3,228	3,149,204	3,218

14. Financial instruments

Capital risk management

The Company manages capital to ensure that the Company and its subsidiaries will be able to continue as a going concern while aiming to maximise the return to shareholders. The capital structure of the Company consists of equity attributable to equity holders of the parent comprising issued capital, reserves and retained earnings as disclosed in the condensed consolidated statement of changes in equity. At present the Company has no gearing and it is the responsibility of the Board to review the Company's gearing levels on an on-going basis. As at 30 June 2015, Cenkos Securities plc had a solvency ratio of 170% (30 June 2014: 145%, 31 December 2014: 234%).

Externally imposed capital requirement

The Company has to retain sufficient capital to satisfy the UK Financial Conduct Authority's ("FCA") capital requirements. These requirements vary from time to time depending on the business conducted by the Company. The Company always retains a buffer above the FCA minimum requirements and has complied with these requirements during and subsequent to the period under review.

Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 of the Company's financial statements for the year ended 31 December 2014.

Categories of financial instruments	Carrying value
	30 June	30 June	31 December
	2015	2014	2014
	£ 000's	£ 000's	£ 000's
Available-for-sale investments	559	1,000	729
Financial assets at fair value through profit and loss (FVTPL)
Trading investments carried at fair value	10,769	29,380	9,122
Derivative financial assets	75	496	892
Financial liabilities at fair value through profit and loss (FVTPL)
Contractual obligations to acquire securities	4,341	3,915	2,711

Financial risk management objectives

The Chief Executive Officer and Finance Director monitor and manage the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including price risk), credit risk and liquidity risk. Summaries of these reports are reviewed by the Board.

Compliance with policies and exposure limits is reviewed by the Chief Executive Officer and senior management on a continuous basis. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Interest rate risk management
The Company is exposed to interest rate risk because it has financial instruments on its statement of financial position which are at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate instruments. The Company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity and interest rate risk table section of this note.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the reporting date. For floating rate assets, the analysis is prepared based on the average rate due on the asset or liability through the period. A 25 basis points increase or decrease is used when reporting interest rate risk internally to senior management and represents management's assessment of a reasonably possible change in interest rates. If interest rates had been 25 basis points higher / lower and all other variables were held constant, the Company's: • profit for the period ended 30 June 2015 would increase / decrease by £0.04 million (30 June 2014: increase / decrease by £0.04 million, 31 December 2014: increase / decrease by £0.10 million). This is mainly attributable to the Company's exposure to interest rates on its variable rate instruments; and • other comprehensive income for the period ended 30 June 2015 would increase / decrease by £0.04 million (30 June 2014: increase/decrease by £0.04 million, 31 December 2014: increase / decrease by £0.10 million).
Equity price risks
The Company is exposed to equity price risks arising from equity investments. The financial instruments represent investments in listed equity securities that present the Company with opportunity for return through dividend income and trading gains. There are limits set for each financial instrument to limit the concentration of risks.
Equity price sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to equity price risks at the reporting date and, in the opinion of senior management, a material movement in equity prices. This is based on the largest fall in the All Share AIM index in one day and over a two week period. These parameters are also considered in the Company's Individual Liquidity Adequacy Assessment (ILAA). If equity prices had been 10% higher/lower:
• Net profit for the 6 months ended 30 June 2014 would have been £0.64 million higher / lower (30 June 2014: £2.55 million higher / lower, 31 December 2014: £0.80 million higher / lower) due to a change in the value of FVTPL held-for-trading investments.
The Company's exposure to equity price risk is closely managed. The Company has built a framework of overall and individual stock limits and these are actively monitored by the Chief Executive Officer and senior management on a daily basis. This framework also limits the concentration of risks. The Company's overall appetite for exposure to equity price risk is set by the Board.
Foreign currency risk
The Company does not have any material dealings in foreign currency, as the majority of transactions are in UK based equities and hence denominated in sterling.

Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. These parties may default on their obligations due to bankruptcy, lack of liquidity, operational failure and other reasons. The exposure of the Company to its counterparties is closely monitored and limits are set to minimise the concentration of risks. The vast majority of the Company's credit risk arises from the settlement of security transactions. However, the settlement model primarily used by the Company does not expose the Company to counterparty risk as a principal to a trade. Rather, the Company's exposure lies solely with Pershing Securities Limited ("Pershing"), a wholly owned subsidiary of the Bank of New York Mellon Corporation, a AA- (2014: AA-) rated bank. In addition, in circumstances in which the Company does act as principal when acting as a market maker, the counterparty will normally be an FCA regulated market counterparty rather than a corporate or individual trader. The Company does not have any significant credit risk exposure to any single counterparty with the exception of Pershing. Cash resources also give rise to potential credit risk. The Company's cash balances are held with HSBC Bank plc. ("HSBC", an AA- rated bank), Royal Bank of Scotland plc (a BBB+ rated bank), Barclays Bank plc (an A rated bank) and Pershing. The banks with which the Company deposits money are reviewed at least annually by the Board and are required to have at least an investment grade credit rating. To limit the concentration risk in relation to cash deposits, the maximum amount which may be deposited with any one financial institution is set at no more than 100% of the Company's regulatory capital.
Trade receivables not related to the settlement of market transactions consist almost entirely of outstanding corporate finance fees and retainers and are spread across a wide range of industries. All new corporate finance clients are subject to a review by the New Business Committee. This committee considers, amongst other issues, the financial soundness of any client taken on. The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Company's maximum exposure to credit risk without taking account of the value of any collateral obtained.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
The table below summarises the Company's exposure to credit risk by asset class according to whether the exposure is collateralised or not.
Exposure to Credit Risk		30 June	30 June	31 December
		2015	2014	2014
		£ 000's	£ 000's	£ 000's
Derivative financial assets	Uncollateralised	75	496	892
Market and client receivables	Uncollateralised	34,794	45,607	17,512
Unpaid share capital and loans due from staff	Uncollateralised	8	2	1
Accrued income	Uncollateralised	889	701	597
Other receivables	Uncollateralised	1,412	595	653
Cash and cash equivalents	Uncollateralised	48,218	43,156	32,932
		85,396	90,557	52,587

The table below summarises the Company's exposure to credit risk by asset class according to credit rating.
Exposure to Credit Risk		30 June	30 June	31 December
		2015	2014	2014
		£ 000's	£ 000's	£ 000's
Derivative financial assets	Unrated	75	496	892
Market and client receivables	Unrated	19,257	24,413	5,830
Market and client receivables	AA-	14,019	14,915	6,235
Market and client receivables	A	367	4,089	4,858
Market and client receivables	A-	-	2,190	-
Market and client receivables	BBB	1,151	-	589
Unpaid share capital and loans due from staff	Unrated	8	2	1
Accrued income	Unrated	889	701	597
Other receivables	Unrated	1,412	595	653
Cash and cash equivalents	AA-	6,979	37,739	22,438
Cash and cash equivalents	A	41,239	5,417	10,494
		85,396	90,557	52,587

Liquidity and interest rate table		Weighted	No		More
		average	maturity	Less than	than
		effective	date	1 month	1 month	Total
As at 30 June 2015	interest rates		£ 000's	£ 000's	£ 000's	£ 000's
Available-for-sale financial assets	Non-interest bearing		559	-	-	559
Financial assets at FVTPL	Non-interest bearing		10,769	-	75	10,844
Trade and other receivables	Non-interest bearing		-	36,178	-	36,178
Financial liabilities at FVTPL	Non-interest bearing		-	(4,341)	-	(4,341)
Trade and other payables	Non-interest bearing		-	(24,967)	-	(24,967)
Cash and cash equivalents	Variable interest rate instruments	0.60%	-	20,777	-	20,777
Cash and cash equivalents	Variable interest rate instruments	0.30%	-	20,462	-	20,462
Cash and cash equivalents	Variable interest rate instruments	0.25%	-	6,979	-	6,979
			10,769	55,088	75	65,932

		Weighted	No		More
		average	maturity	Less than	than
		effective	date	1 month	1 month	Total
As at 30 June 2014	interest rates		£ 000's	£ 000's	£ 000's	£ 000's
Available-for-sale financial assets	Non-interest bearing		1,000	-	-	1,000
Financial assets at FVTPL	Non-interest bearing		29,380	-	496	29,876
Trade and other receivables	Non-interest bearing		-	46,905	-	46,905
Financial liabilities at FVTPL	Non-interest bearing		-	(3,915)	-	(3,915)
Trade and other payables	Non-interest bearing		-	(41,316)	-	(41,316)
Cash and cash equivalents	Fixed interest rate instruments	0.60%	-	5,330	-	5,330
Cash and cash equivalents	Variable interest rate instruments	0.30%	-	87	-	87
Cash and cash equivalents	Variable interest rate instruments	0.25%	-	37,739	-	37,739
			29,380	44,830	496	74,706

		Weighted	No		More
		average	maturity	Less than	than
		effective	date	1 month	1 month	Total
As at 31 December 2014	interest rates		£ 000's	£ 000's	£ 000's	£ 000's
Available-for-sale financial assets	Non-interest bearing		729	-	-	729
Financial assets at FVTPL	Non-interest bearing		9,122	-	892	10,014
Trade and other receivables	Non-interest bearing		-	18,763	-	18,763
Financial liabilities at FVTPL	Non-interest bearing		-	(2,711)	-	(2,711)
Trade and other payables	Non-interest bearing		-	(8,218)	-	(8,218)
Cash and cash equivalents	Variable interest rate instruments	0.50%	-	7,394	-	7,394
Cash and cash equivalents	Variable interest rate instruments	0.30%	-	3,099	-	3,099
Cash and cash equivalents	Variable interest rate instruments	0.13%	-	11,671	-	11,671
Cash and cash equivalents	Variable interest rate instruments	0.25%	-	10,768	-	10,768
			9,122	40,766	892	50,780

The carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair values.
Fair value hierarchy All financial instruments carried at fair value are categorised in three categories, defined as follows: Level 1 - Quoted market prices Level 2 - Valuation techniques (market observable) Level 3 - Valuation techniques (non-market observable) The Company held the following financial instruments measured at fair value:
	Level 1	Level 2	Level 3	Total
As at 30 June 2015	£ 000's	£ 000's	£ 000's	£ 000's
Available-for-sale financial assets	-	-	559	559
Financial assets at FVTPL
Derivative financial assets	-	-	75	75
Trading investments carried at fair value	10,769	-	-	10,769
	10,769	-	75	10,844
	10,769	-	634	11,403
Financial liabilities at FVTPL
Contractual obligation to acquire securities	4,341	-	-	4,341
There were no transfers between Level 1, 2 and 3 during the period.
	Level 1	Level 2	Level 3	Total
As at 30 June 2014	£ 000's	£ 000's	£ 000's	£ 000's
Available-for-sale financial assets	-	-	1,000	1,000
Financial assets at FVTPL
Derivative financial assets	-	-	496	496
Trading investments carried at fair value	29,380	-	-	29,380
	29,380	-	496	29,876
	29,380	-	1,496	30,876
Financial liabilities at FVTPL
Contractual obligation to acquire securities	3,915	-	-	3,915
There were no transfers between Level 1, 2 and 3 during the period.

	Level 1	Level 2	Level 3	Total
As at 31 December 2014	£ 000's	£ 000's	£ 000's	£ 000's
Available-for-sale financial assets	-	-	729	729
Financial assets at FVTPL
Derivative financial assets	-	-	892	892
Trading investments carried at fair value	9,122	-	-	9,122
	9,122	-	892	10,014
	9,122	-	1,621	10,743
Financial liabilities at FVTPL
Contractual obligation to acquire securities	2,711	-	-	2,711
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lower level input that is significant to the fair value measurement as a whole) at the end of the reporting period.
There were no transfers between Level 1, 2 and 3 during the period.
Reconciliation of recurring fair value measurements categorised within Level 3 of the fair value hierarchy
		Unlisted securities	Share options and warrants	Total
		£ 000's	£ 000's	£ 000's
Opening balance 1 January 2015		729	892	1,621
Share options and warrants exercised		-	(768)	(768)
Unlisted securities awarded		82	-	82
Impairment recognised in income statement		(250)	(49)	(299)
Net unrealised loss recognised in equity		(2)	-	(2)
Closing balance 30 June 2015		559	75	634
Level 3 financial instruments consist of derivative financial assets and unlisted shares received in lieu of fees. The unlisted equity shares are carried as available-for-sale financial assets, classified as Level 3 within the fair value hierarchy. A number of valuation techniques have been used to provide a range of possible values for these shareholdings in accordance with the International Private Equity and Venture Capital ("IPEV") valuation guidelines. The carrying values have been adjusted to values within these ranges. There have been no other factors brought to the Board's attention which would suggest that there has been a further impairment. The derivative financial assets are carried as financial assets at FVTPL classified as Level 3 within the fair value hierarchy and comprise equity options and warrants over listed securities.

Impact of reasonably possible alternative assumptions
The significant unobservable input used in the fair value measurement of Cenkos holdings of share options and warrants is the volatility measure. Significant increases (decreases) in the volatility measure would result in a significantly higher (lower) fair value measurement.
A sensitivity analysis based on a 10% increase / decrease in the volatility measure used as an input in the valuation of the share options and warrants shows the impact of such a movement would be an increase of £46,407 / decrease of £38,008 respectively the profit in the income statement.

Determination of fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Financial instruments measured at fair value on an ongoing basis include trading assets and liabilities and financial investments classified as available-for-sale.

Fair values are determined according to the following hierarchy:

(a) Level 1 - Quoted market price

Financial instruments with quoted prices for identical instruments in active markets.

(b) Level 2 - Valuation technique using observable inputs

Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

Financial instruments valued using models where one or more significant inputs are not observable. The best evidence of fair value is a quoted price in an actively traded market. In the event that the market for a financial instrument is not active, a valuation technique is used. The majority of valuation techniques employ only observable market data and so the reliability of the fair value measurement is high. However, certain financial instruments are valued on the basis of valuation techniques that feature one or more significant market inputs that are "Not observable". For these instruments, the fair value derived is more judgemental. 'Not observable' in this context means that there are few or no current market data available from which to determine the level at which an arm's length transaction would be likely to occur. It generally does not mean that there is absolutely no market data available upon which to base a determination of fair value (historical data may, for example, be used). Furthermore, the assessment of hierarchy level is based on the lowest level of input that is significant to the fair value of the financial instrument.

The valuation models used where quoted market prices are not available incorporate certain assumptions that the Company anticipates would be used by a third party market participant to establish fair value.

	Fair value at 30/06/15	Valuation Technique	Unobservable input	Range
	£ 000's
Share options and warrants	75	Montecarlo simulation	Volatility	42-61%
Unlisted securities	559	IPEV valuation guidelines	n/a	n/a
	634	IPEV valuation guidelines

15. Deferred bonus scheme

In April 2015 Cenkos introduced a Deferred Bonus Scheme (the "Scheme"), whereby 10% of all staff bonus awards over £100,000 are deferred over a three year period. The deferred element of any bonus award is to be held in Cenkos Ordinary shares in the EBT and released to the employee in thirds on each of the three anniversaries of deferral into the Scheme. Where an employee already holds over £250,000 in Cenkos Ordinary Shares, the deferral will be held in cash and released over a similar period.

16. Related party transactions

Transactions with related parties are made at arm's length. Transactions or balances between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and, in accordance with IAS 24, are not disclosed in this note. The Board includes all employees considered to be key management personnel.

				30 June	30 June	31 December
				2015	2014	2014
Amounts owed by related parties				£ 000's	£ 000's	£ 000's
Cenkos Nominees Limited				184	242	33
The compensation of the key management personnel of the Company (including the Directors) and their interests in the shares and options over the shares of Cenkos Securities plc were as follows:
				Six months ended		Year ended
				30 June	30 June	31 December
				2015	2014	2014
				£ 000's	£ 000's	£ 000's
Aggregate emoluments				3,764	6,575	8,382
During 2014, in order to comply with the Pensions Act, Cenkos was required to enrol all qualifying employees in a pension scheme. Under the scheme, qualifying employees are required to contribute a percentage of their relevant earnings. The Company also contributes 1% of relevant earnings. During the period to 30 June 2015, Cenkos made payments totalling £182 (30 June 2014: nil, 31 December 2014: £90) in respect of one Director who is a member of this scheme.
Related party interests in ordinary shares of Cenkos Securities plc
				30 June	30 June	31 December
				2015	2014	2014
				No.	No.	No.
Number of shares				13,351,413	14,487,294	14,610,074
Percentage interest				22%	23%	23%

Related party interests in share options	Six months ended		Six months ended		Year ended
	30 June 2014		30 June 2014		31 December 2014
	Number	Weighted	Number	Weighted	Number	Weighted
		average		average		average
		exercise		exercise		exercise
		price		price		price
Outstanding at beginning of the period	1,187,391	1.11	1,178,710	1.11	1,178,710	1.11
Granted during the period	8,681	1.73	-	-	8,681	1.73
Exercised during the period
Issued during the period	-	-	-	-	-	-
Outstanding at the end of the period	1,196,072	1.11	1,178,710	1.11	1,187,391	1.11