Stockbroker Cenkos Securities surprised the City this morning after announcing its chief executive is to step down in the wake of tumbling profits.
Boss Anthony Hotson will leave his post at the end of the month, putting an end to a 12-month reign which was dampened last month when Cenkos halved its dividends and posted a 90 per cent drop in pre-tax profit during the first half of 2018.
Shares lifted more than two per cent in early morning trading following the news. However, Cenkos' stock has lost 20 per cent of its value since August.
Read more: Cenkos profits dive by 90 per cent
The Aim-listed firm, which offers broking and advisory services to small and mid-cap companies, has seen its revenues come under threat since Mfid II regulations came into force earlier this year.
According to Cenkos, the new rules have hit revenues from its research and commission units by 12 per cent.
Cenkos, which did not explain the reason behind Hotson’s resignation, said a successor to the former Bank of England economist will “be announced shortly”.
In a statement this morning the board said: “The board would like to thank Anthony for his hard work and the contribution that he has made in implementing significant enhancements to the company's internal structures to meet the company's current and future regulatory obligations (including the senior managers regime). The company is now well placed in meeting these demands going forward and to improve our offering to our clients.”