21 Sep 2020 07:00
Date: 21 September 2020
finnCap Group PLC
AGM Trading Statement
finnCap Group PLC ("finnCap" or the "Company") provides the following update on current trading in advance of its Annual General Meeting ("AGM") to be held later today.
With our preliminary results in July, we reported record Q1 results, a strong pipeline for Q2 and a substantial increase in the group's cash resources. Q2's pipeline has been executed with a significant contribution from the equity capital markets team, where significant corporate fundraising continued.
As a result, we expect to report Group revenue for the six months ending 30 September 2020 of not less than £19.5m, up c.37 per cent. on last year (H120: £14.2m). Given the level of operational gearing in the business there will be a significant uplift in profitability on the prior period. Costs have remained under control and our cash position has further improved. At the close of business on 18 September 2020, net cash was £12.4m(1).
Although trading for the last few months has been exceptionally strong, we remain mindful of the overall social and economic backdrop to the current operating environment. However, our pipeline for Q3 2021 is good and this gives us confidence that we will deliver a satisfactory result for the full year.
As the result of our trading performance and strengthened balance sheet, we expect to return to dividend payments with our interim results which are expected to be released in November.
Sam Smith, CEO said:
"Although the external environment has been dominated by COVID-19 and its economic and social impact, our second quarter has been strong, with continued equity issuances by clients to support COVID-19 related activities, to support balance sheets and to raise funds to develop strong business cases including one of the only IPOs to take place during lock down. The M&A market is quiet but the team still closed a number of transactions and continued to win new mandates for H2.
In September we started working from our new office at One Bartholomew Close bringing together the finnCap and Cavendish teams in a single location. This required significant capital investment however, our performance in H1 means that our cash resources are higher now than in June.
We are in a good position to help our clients meet and respond to the economic challenges of the months ahead."
(1) Cash at 18 September excludes £0.9m due to HMRC under COVID-19 arrangements repayable over the next 6-9 months.
Contacts:
finnCap Group PLC Tel: +44 (0) 207 220 0500
Sam Smith, Chief Executive Officer
Richard Snow, Chief Financial Officer
Grant Thornton (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Philip Secrett/Samantha Harrison/Seamus Fricker
finnCap Limited (Broker) Tel: +44 (0) 20 7220 0500
Rhys Williams
Sapience Communications (PR adviser to the Group) Tel: +44 (0) 20 3195 3240
Richard Morgan Evans
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