finnCap Beats Own Expectations In First Full Results Since IPO

(Alliance News) - Stockbroker finnCap Group PLC beat its own expectations for a period in which ...

Alliance News 9 July, 2019 | 10:14AM
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(Alliance News) - Stockbroker finnCap Group PLC beat its own expectations for a period in which it listed on the London Stock Exchange, it said Tuesday.

finnCap started trading on London's AIM market in December 2018, raising GBP3.8 million for itself in the process.

For the 11 months to March 31, finnCap's pretax profit excluding non-recurring items was GBP4.3 million, up 41% on the 12 months to April 2018. Including such items, pretax profit rose 3.2% to GBP3.2 million from GBP3.1 million.

Revenue was GBP24.5 million, 11% higher than the 12 months to April.

finnCap is to pay a dividend of 0.355 pence per share to its shareholders for the period.

Chief Executive Sam Smith said: "This has been a very significant year for finnCap and marks our transformation into a full-service financial group dedicated to helping drive the success of ambitious growth companies.

"Performance in the period was strong and the financial results were slightly ahead of management expectations. During the period we continued to win good quality corporate clients and we are clearly seeing the benefits of the acquisition of Cavendish and the combination of the two firms."

"Our suite of financial services now includes being able to advise on all significant forms of financing, across both debt and equity, including private equity, IPOs and secondary public offerings," he continued.

"In addition, we can advise on buy-side and sell-side M&A, exit planning, bid defence and offer PLC regulatory counsel."

Public markets were volatile during the period, finnCap said, and it also believes there is a "significant" underpayment for trading services it offers.

"Since the start of the current financial year, we have continued to trade profitably, winning new high-quality corporate clients and have executed 19 transactions. In addition, we have continued to recruit high calibre individuals across the firm, particularly within the debt advisory team," added finnCap.

"The market backdrop remains difficult, particularly with Brexit still to be resolved, but we have a healthy pipeline of transactions for the coming months, which are spread over a broad number of sectors and group services, making us less reliant on the public market equity issuance environment and giving us confidence in our portfolio approach."

finnCap shares were untraded on Tuesday morning, last quoted at 24.00 pence each. Shares were priced at 28p in its IPO, meaning they have fallen 14% since then.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
FinnCap Group PLC Ordinary Shares 26.00 GBX 0.00 -
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