25th Nov 2019 09:32
(Alliance News) - City stockbroker finnCap PLC expressed confidence on Monday despite experienced "very testing" market conditions in its first half.
London-based finnCap's revenue for the six months to September rose 56% on the five weeks to September 2018 to GBP14.2 million, with pretax profit flat at GBP1.4 million.
The reporting period discrepancy arises after finnCap changed its financial year-end.
The company is paying an interim dividend of 0.42 pence per share, from none the prior year, when it was a private company. It listed in London last December, raising GBP5 million in its initial public offering.
finnCap's growth has mainly been driven by its M&A advisory operations, which generated GBP5.2 million of revenue in the period. There was none the year before, as finnCap bought sell-side M&A advisor Cavendish Corporate Finance for an unspecified sum at the same time as the IPO.
Some eight transactions were complete during the half, included Naked Wines PLC's sale of Lay & Wheeler and advertising giant WPP PLC's Farm Group disposal.
The other division, Equity Capital Markets, delivered marginal growth in revenue of 1.1% to GBP9.2 million.
"The period has seen some very testing market conditions, ongoing domestic political uncertainty and turbulent macro-economic headwinds affecting equities globally," said Chief Executive Sam Smith.
"The group now has a more diversified revenue stream following our acquisition of Cavendish Corporate Finance in December 2018, and we remain excited about continuing to build a financial services business for growth companies."
finnCap shares were untraded on Monday morning in London at 21.50 pence each.
By George Collard; [email protected]
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