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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

finnCap raises lower end of revenue guidance range after strong finish to the first half

The finnCap Capital Markets team performed well in a comparatively quieter period while finnCap Cavendish has clearly capitalised on a robust M&A market

finnCap Group PLC has upgraded full-year revenue expectations after a strong finish to the first half of the fiscal year.

It is only 11 days since the company issued a trading statement ahead of its annual general meeting when it said full-year revenue was likely to be slightly ahead of the £40mln-£45mln guidance range; that guidance range has now been amended to £45mln-£50mln.

Group revenue in the six months to the end of September was up 55% at £31.8mln from £20.5mln in the same period of 2020, thanks to a 286% increase in revenues to £16.2mln at finnCap Cavendish.

“finnCap Cavendish has clearly capitalised on a robust M&A market,” said Sam Smith, the chief executive officer of the stockbroking firm.

“We closed 4 further M&A deals between our AGM update on 23rd September and the end of the first half of the year and group revenue is up 55%. In H1, we raised £243mln of equity for clients, advised on five public company M&A [mergers & acquisitions] transactions with an aggregate value of nearly £500mln and on 13 private M&A transactions with an aggregate value of £1bn,” Smith revealed.

“Our overall revenue growth shows the clear benefit of our strategy to diversify our products beyond ECM – undertaken over the past three years – to service the broader strategic and financial needs of ambitious growing companies. Our pipeline is healthy and we now feel confident in delivering a revenue outcome for the year within an upgraded range of £45mln-£50mln,” she added.

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