finnCap Group PLC said it hopes to increase its dividend in the current year if the strong second-quarter performance continues.
Group revenues are currently trending slightly above the top end of the full-year revenue guidance range of £40-50mln given two months ago, the stockbroker said ahead of its annual general meeting today.
Chief executive Sam Smith hailed "significant activity" in the equities business and a continuation of the robust M&A performance both in private and public markets seen towards the end of the last financial year.
"Our balance sheet strength is enabling us to invest in our business - to drive our strategy of product diversification and profitable revenue growth even if conditions become more volatile, whilst at the same time securing our attractive dividend for shareholders - a key part of our investment proposition.
"If our current performance continues, we expect our cash position to improve further, underpinning our commitment to pay dividends of at least 1.6p per share for the current financial year."
The finnCap Capital Markets business has seen slightly softer equity capital markets activity than in the first half of last year to end-March, but a "significant number" of equity transactions have been completed, with a good contribution reported from both debt advisory and the initial launch of finnCap Analytics.
Mergers and acquisitions arm finnCap Cavendish benefited from the continued and vigorous M&A market seen at the start of the calendar year, with "significant, incremental M&A deals with the potential to close before the end of the half year".
The cash position has further improved and is ahead of the £17.2mln reported at the end of the first quarter, even after payment of a £1.65mln dividend to shareholders in August.