Financial Services

CEPS plc

Market Cap (£m) 8.9
Listing AIM

Analysts

Company Description

CEPS is an AIM-quoted industrial trading group, comprising a diverse range of small UK businesses that each typically rank among the leading players in their respective niche market. Business activities include sports trophies and engraving, specialist stretch fabrics and gymnastics wear, and construction services. CEPS aims to achieve capital growth through steadily growing operating profits at group companies. The group seeks to acquire growing, profitable and cash-generative companies, primarily in the £2m to £5m value range, using private equity-style financial structuring, usually incorporating equity and debt components. Company management teams are incentivised to grow their businesses while focusing on cash generation and the steady repayment of CEPS' capital investment. Group companies benefit from CEPS' financial backing and strategic and operational support.

Investment Summary

Restructuring of the group was undertaken during 2019 and 2020, with weaker businesses discontinued and other businesses strengthened through merger and acquisition transactions, reshaping CEPS into a smaller group with improved prospects for both profitability and growth. CEPS' more streamlined operations and reduced cost base helped it to navigate successfully through the COVID-19 crisis, with group businesses expected to recover during 2021 and into 2022. In the near term, improving cash flow generation is likely to support lower-risk bolt-on acquisitions, such as Millington Lord, which joined the group in March 2021. CEPS' medium-term objective is to use its cash flow to reduce gearing at group companies, add further businesses to the group and ultimately provide CEPS shareholders with a robust, steadily growing dividend stream.

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Company Management Team

  • David Horner

    Chairman

    David qualified as a Chartered Accountant in 1984. His experience includes working for Touche Ross Insolvency and Corporate Recovery before joining 3i Corporate Finance where he advised on buying and selling typical “old” 3i unquoted companies with a value generally up to £10 million. He has also worked extensively with small public companies. He joined Strand Partners where he specialised in rescue, recovery and restructuring of small public companies before setting up Chelverton Asset Management Limited in 1998 as a UK small company investment specialist with in excess of £1 billion funds under management.

  • Vivien Langford

    Group Finance Director & Company Secretary

    Vivien qualified as a Chartered Accountant in 1987. She has many years’ experience in senior finance roles in service sector companies, particularly with listed public relations and marketing companies. She possesses sound business acumen with strong team and management skills and has significant project management experience with expertise in financial analysis, contract negotiation and company acquisitions. She was appointed Finance Director in July 2010 and is our Company Secretary. Vivien is also the Finance Director for Chelverton Asset Management Limited.

Key Dates

Sep 2019
30th
Interims
Actual
Apr 2020
15th
Q4 TU
Actual
May 2020
22nd
Finals
Actual
Jun 2020
23rd
AGM
Actual
Aug 2020
20th
Q2 TU
Estimate
Sep 2020
25th
Interims
Actual
May 2021
25th
Finals
Actual
Jun 2021
22nd
AGM
Actual
Sep 2021
16th
Interims
Actual
May 2022
10th
Finals
Actual
Jun 2022
14th
AGM
Actual
Sep 2022
27th
Interims
Estimate
May 2023
10th
Finals
Estimate
Jun 2023
14th
AGM
Estimate