City brokers Cenkos and FinnCap have ambitions to build-out a mid-market investment bank after a merger that will create a new group valued at £43m and shows continued consolidation in the sector.

The combined entity will look to diversify away from the traditional City broker model, which is reliant on capital raising on equity markets and research, into new business lines including debt advisory, M&A and private capital markets, according to Julian Morse, co-chief executive of the new venture.