finnCap Group PLC – Results for the 11 month period ended 31 March 2019, Dividend Declaration, Notice of AGM and Posting of Annual Report

finnCap Group PLC – Results for the 11 month period ended 31 March 2019, Dividend Declaration, Notice of AGM and Posting of Annual Report

finnCap Group plc (the “Company” or “finnCap”) and together with its subsidiaries (the “Group”), today announces its results for the 11 month period ended 31 March 2019 (the “Period”).

During the Period, Cavendish Corporate Finance (“Cavendish”) was acquired for £14.6m, supporting the Group’s development plan to become the leading full-service provider of growth capital and advisory services to public and private small and mid-cap companies.  Additionally, the year-ends of the group were aligned, and as such, the reported figures for the Period include the performance of finnCap Ltd for 11 months and that of Cavendish for just under 4 months.

finnCap’s 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:

•             Profit before tax and non-recurring items up 41% to £4.29m (year ended 30 April 2018: £3.05m)

•             Record retainer revenue: £5.9m (year ended 30 April 2018: £5.7m), with a current annualised run rate of £6.4m.  The monthly run rate has increased by 13% over the 11 month period

•             7th consecutive year of growth in both total revenue and corporate finance fees

•             Adjusted* earnings per share:  2.86p (year ended 30th April 2018: 2.22p)

•             Operating cash inflow: £2.81m (2018: £0.09m)

•             Dividend declared of 0.355p per share (£0.6m in total)

Operational highlights:

•             finnCap’s Equity Capital Markets division won 18 new quoted clients in the period with an average market cap of £80m (as at the date of take on)

•             Cavendish had its most successful year in the company’s history, closing 28 deals, generating £14.8m of unaudited fees (2018: £10.2m).  Of these, £3.2m were generated after the acquisition and so are included in the Group’s performance for the Period

•             finnCap Group plc won its first debt advisory mandate, as well as completing its first buy-side M&A deal, which illustrates the potential of combining finnCap and Cavendish’s suite of financial services

Current trading – since the end of the financial period, finnCap Group has:

•             continued to trade profitably

•             won 5 new high-quality corporate clients

•             executed 19 transactions

•             built 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

•             continued to recruit high calibre individuals across the firm, particularly within the debt advisory team.

We therefore look forward to updating the market further following completion of the first half of the financial year.

(*) Adjusted EPS is calculated excluding share-based payments, amortisation of intangible assets from the acquisition of Cavendish, non-recurring items and includes a nominal tax charge. The weighted average number of shares in issue during the period includes shares held by the Group’s Employee Benefit Trust.

Commenting on the results, CEO 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. To effect this change has involved a huge commitment from all our staff, which is greatly appreciated.

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

finnCap is well positioned, with a strong multi product offering, a very capable management team and a strengthened board to actively pursue our strategy to become the advisor of choice to ambitious growth companies, supporting them as they seek to accelerate their own business expansion and achieve their strategic goals. “

Commenting on the results, Non-Executive Chairman Jon Moulton said:

“I’m very pleased to chair a financial services group that now occupies a very distinctive market position and boasts an unrivalled suite of services focused on enhancing the prospects of ambitious growth companies. Such businesses have probably never had more funding options but the sheer variety of choices means that having an experienced adviser is essential to ensure they choose the right route.  finnCap is now very well placed to offer such advice across the debt and equity spectrum and we look forward to playing a strong role in supporting scale-up businesses and realising our own potential as a dynamic, forward thinking financial services group.”

Dividend

The Company is declaring a dividend of 0.355p per share. The dividend will be paid to shareholders on 9 August 2019 with an associated record date of 19 July 2019 and ex-dividend date of 18 July 2019.

Notice of AGM and Posting of Annual Report

The Company announces that it will hold its Annual General Meeting (“AGM”) at 12:30pm on 26 September 2019 at the offices of finnCap Group plc, 60 New Broad Street, London EC2M 1JJ.

Copies of the Notice of AGM and the Company’s Annual Report will be posted to shareholders on or before 31 July 2019 and are available on the Company’s website www.finncap.com.

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