finnCap Group PLC resumes dividends after buoyant first half

What it does

finnCap Group PLC (LON:FACP) is the largest adviser on the London Stock Exchange and the number one broker on the junior market.

It provides financial services to growth companies both public and private, with 126 companies listed in London.

It also advises on mergers and acquisitions with a specialism in sell-side M&A through Cavendish Corporate Finance, corporate debt and private company fundraisings, as well as providing trading services to a broad range of institutional investors.

How it is doing

Revenue for the six months ending September 30, is expected to be at least 37% higher at £19.5mln with a ‘significant uplift in profitability on the prior period’, after the record trading seen in the first quarter of its financial year has continued through to September.

Equity capital markets have been especially buoyant, as corporate fundraising has continued to cope with the coronavirus (COVID-19) disruption. 

Costs have remained under control while the cash position improved to £12.4mln near the end of September, which will enable it to pay a dividend with its interim results.

In August finnCap said healthcare companies employing and developing cell and gene therapy are “driving the next wave of innovation in the pharmaceutical industry”, which in turn is causing an uptick in mergers & acquisitions as pharma giants aim to be at the forefront of the next development in medicine.

What the boss says: Sam Smith, chief executive

“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 lockdown.” 

“The M&A market is quiet but the team still closed a number of transactions and continued to win new mandates for the second half.”

Inflexion points

• Dividends eyed
• More activity in the healthcare space
• Corporate fundraising to continue