TIDMFCAP
RNS Number : 4475U
finnCap Group PLC
25 November 2019
finnCap Group plc ("finnCap" or "the Company")
Interim results for the six months ended 30 September 2019
and
interim dividend
finnCap Group plc (AIM:FCAP), together with its subsidiaries the
"Group", today announces its unaudited interim results for the six
months ended 30 September 2019.
Financial highlights:
-- Turnover of GBP14.2m (5 months to 30 September 2018: GBP9.1m)
o Equity Capital Markets division turnover GBP9.2m (5 months to
30 September 2018: GBP9.1m)
o M&A division turnover GBP5.0m (5 months to 30 September
2018: GBPnil)
-- Pre-tax profit GBP1.4m (5 months to 30 September 2018: GBP1.4m)
-- Adjusted EPS of 0.76p per share*
-- Interim dividend of 0.42p per share
-- Cash of GBP5.1m (31 Mar 2019: GBP4.7m)
Operational highlights:
-- Completed 29 transactions across a broad range of sectors and
service lines, with total deal and advisory fees of GBP9.2m (5
months to 30 September 2018: GBP4.7m)
-- Won 12 new retained corporate clients, with 131 retained clients at 22 November 2019
-- Average monthly retainer fees of GBP529k (5 months to 30 September 2018: GBP520k)
-- Completed 8 sale mandates across 5 sectors, for a variety of
owner-managed businesses and subsidiaries of public companies
-- Signed up 19 new M&A division mandates
-- Executed or currently mandated on 8 plc bid or advisory
mandates for clients outside our retained client base
-- Continued to hire in to existing teams and to develop new teams
The comparable figures throughout this announcement are for the
five-month period from 1 May 2018 to 30 September 2018 because of a
change in year-end, and only include the performance of finnCap Ltd
as this period was before the acquisition of Cavendish Corporate
Finance.
Commenting on the results, Sam Smith, Chief Executive Officer,
said:
"The period has seen some very testing market conditions,
ongoing domestic political uncertainty and turbulent macro-economic
headwinds affecting equities globally. 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."
Contacts
finnCap Group plc Tel: +44 (0) 20 7220 0500
Sam Smith, Chief Executive Officer
investor.relations@finncap.com
Tom Hayward, Chief Financial Officer
Grant Thornton (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Philip Secrett/Samantha Harrison/Seamus Fricker
finnCap Ltd (Broker) Tel: +44 (0) 20 7220 0500
Rhys Williams / Tim Redfern
Sapience Communications (PR adviser to the Group) Tel: +44 (0) 20 3195 3240
Richard Morgan Evans
Notes to Editors
About finnCap Group
finnCap Group plc provides financial services to growth
companies. It provides advisory, broking and research services to
131 companies on AIM and on the London Stock Exchange Main Board as
well as trading services to a broad range of institutional
investors. It also advises on specialist M&A, debt advisory and
private company fundraisings with a specialism in sell-side
M&A. Together, finnCap and its subsidiaries have helped raise
GBP3bn of new capital to support their clients and advised on the
sale of over 600 companies.
About Oaklins
Oaklins is a global advisory organisation of which Cavendish
Corporate Finance is a member, providing M&A, growth equity and
ECM, debt advisory and corporate finance advisory services, with
over 700 dedicated professionals covering 15 industries in 40
countries.
* Adjusted EPS is calculated excluding share-based payments
(GBP79k), amortisation of intangible assets from the acquisition of
Cavendish (GBP59k) and includes a nominal tax charge adjustment
(GBP9k). The weighted average number of shares in issue during the
period excludes shares held by the Group's Employee Benefit
Trust.
Business review
The six-month period has seen a number of macro-economic
headwinds and structural issues that have made market conditions in
the Group's traditional equity capital markets business tougher. UK
Equity markets have lacked direction and the future relationship of
the UK and EU has dominated the political agenda. As a result of
this we have seen the lowest level of public capital markets
activity for a number of years with net cash outflows from the UK
equity markets and a greater focus on liquidity following the
demise of Woodford Investment Management.
The effects of these factors have been particularly evident on
AIM, with the total value of issuances for the nine months to 30
September 2019 down 39% compared to the prior year period and the
number of new issues 59% lower (7 IPOs year to date). Trading
volumes in core UK stocks has also been noticeably lower with the
number of trades down 8% year to date on AIM and the value traded
down 19%. Given these factors, we are pleased that the Group's
Slide Rule Fund has delivered +7.49% between 1 January and 30
September, outperforming benchmark by 385bps.
As a Group we now earn a higher proportion of our revenues from
outside traditional equity capital market activities: from our
growing mandates in public market M&A technical advice,
sell-side and buy-side advice, debt raising and refinancing, and
private fundraisings. Our sell-side focused M&A activities have
been largely unaffected by the political backdrop and the
performance in the first half was in line with expectations at the
time of the acquisition of Cavendish Corporate Finance. Overall,
the Group's results are encouraging.
Equity Capital Markets
Given the market backdrop noted above the equity capital markets
division of the Group has performed satisfactorily with total
turnover for the six months of GBP9.2m (5 months to 30 September
2018: GBP9.1m).
Retainers - total fees from retainers were GBP3.2m (5 months to
30 September 2018: GBP2.6m) with an average monthly retainer
revenue of GBP529k (5 months to 30 September 2018: GBP520k) and, as
at the date of this announcement, a run rate of GBP548k. During the
period we won 12 new clients. However, the number of clients (127)
remained the same during the period reflecting a number that were
lost mainly as a result of acquisition or delisting in the period.
We have won 6 further clients since period end. We believe that the
clients we win provide a solid base for future financial
performance.
Transactions - total transaction and advisory fees in the period
were GBP4.3m (5 months to 30 September 2018: GBP4.7m) and we acted
on fundraisings totalling over GBP100m for our corporate clients,
reflecting the tough market backdrop. This was made up for to an
extent by a relatively high level of advisory fees from our
existing clients as they have undertaken corporate activity or have
been the subject of bids.
We had a quiet period on the investment company side after a
strong performance in the last financial year and completed one
private company fundraising for Parsley Box. We are very encouraged
by the high level of activity within the PLC strategic advisory
business working on behalf of non-retained clients, accounting for
approximately GBP1.0m of total fees and where the pipeline remains
strong. Notable equity capital markets transactions included:
-- Placing of GBP7.5m for Iofina PLC
-- Placing of GBP18.0m for Angle PLC
-- Placing of GBP16.0m for Independent Oil & Gas plc
-- Rule 3 advice to FFI Holdings PLC on its GBP39.5m recommended offer from 777 Group
-- Advising a consortium on its refinancing of 7digital Group plc
-- Rule 3 advice to SCISYS Group PLC on its GBP79m recommended offer from CGI Inc.
-- Raising of GBP3m of private growth capital for Parsley Box Limited
Trading - trading revenues of GBP1.8m (5 months to 30 September
2018: GBP1.8m) have improved from GBP1.6m in the second half of
last year despite reduced volumes in the public markets. This
reflects a core focus on providing liquidity in our corporate
client list where there have been a number of secondary sell-downs.
We were delighted to initiate Retail Service Provider trading with
Barclays Capital, the largest RSP in the marketplace, during the
period. Having started market making in 2013, finnCap now makes
markets in 177 stocks.
M&A Advisory
As set out above, the headwinds in the equity capital markets
division have not affected the M&A advisory business and the
division has performed in line with the Board's expectations when
it was acquired in December 2018, generating revenues of GBP5.2m.
During the period 8 transactions were completed as detailed below
with a mix of entrepreneurs and quoted company sellers,
including:
-- The sale of three subsidiaries of Centaur Media PLC to separate purchasers
-- The sale by WPP and management of The Farm Group to Picture Head
-- The acquisition of Java Republic by Cafento
-- The sale by Naked Wines of Lay & Wheeler to Coterie Limited
-- The sale of Avicenna Holdings to Juno Health
Revenues from deal retainers on new mandates were GBP747k which
is a run rate of 41% higher than the previous period. This
represents a significant pipeline for the division, albeit that a
deal can take over 12 months to complete. We were also instructed
on a buy-side mandate.
We are looking to add three sector specialist partners to
further develop our capabilities in the Technology, Business
Services and Industrials sectors. The Group has recruited a new
director and two new assistant directors, to expand execution
capacity and enable others to focus on origination.
Progress on business combination
The Group continues to develop the revenue synergies from the
business combination in December 2018, and notable progress
includes:
-- The debt team, which previously performed lender education
for sell-side mandates and raised debt for private companies, has
been expanded to a team of three who are aiming to provide services
to the Group's existing client base as well as its historic
services. The team are winning mandates and are currently executing
two transactions on behalf of quoted companies as well as providing
a point of differentiation in winning new retained clients
-- We have two sale mandates on behalf of public companies that
are retained clients of the ECM division
-- The introduction of several opportunities from Oaklins
-- The ability to offer dual track mandates
The Group's combination of services is attractive to a number of
markets and we have appointed an individual to oversee private
equity sponsor coverage and develop our relationships in the
private equity community. We also continue to focus on improving
our ability to track leads more efficiently and to market our
services efficiently by investing further in our Client
Relationship Management system and the individuals to run it.
Administrative expenses
Costs increased compared to the comparable period as a result of
the longer period duration, the cost base assumed from the
acquisition of Cavendish, and the additional costs of being a
public company. In addition, during the period we continued to
invest in existing sectors, new services (including debt) and in
the infrastructure to allow us to scale in the future. A
substantial proportion of this investment represents the hiring of
key individuals and we expect to continue this. The key operating
costs of the business are analysed as:
-- Staff Costs (including bonuses) GBP8.9m
-- Data, IT and Settlement GBP1.5m
-- Property GBP0.7m
-- Depreciation and Amortisation GBP0.2m
-- Other GBP1.6m
Capital and liquidity
The Group retained cash and cash equivalents of GBP5.1m as at 30
September 2019 (31 March 2019: GBP4.7m). The increase in cash
represents GBP1.7m of cash generated from operations before working
capital movements, a net working capital outflow of GBP0.9m
reflecting the bonus payments related to the prior year offset by a
reduction in debtors, a reduction in the net market making book of
approximately GBP0.6m and receipt of cash from the sale of shares
of GBP0.5m received as part payment of fees offset by the payment
of tax (GBP0.5m), dividends (GBP0.6m) and rent (GBP0.4m).
The Group has implemented IFRS 16 for the current period,
resulting in an increase in the carrying value of Property, Plant
and Equipment, and a corresponding creditor. However, as both of
the Group's office leases are into their last year, the impact on
both the Consolidated Statement of Financial Position and the
Consolidated Statement of Comprehensive Income is not material. The
Group is continuing to evaluate its premises needs for the
future.
Dividend
In line with the dividend policy disclosed in the AIM admission
document published on 29 November 2018, the Board intends to pay an
interim dividend of 0.42p per share on 8 January 2019 with an
associated record date of 20 December 2019 and ex-dividend date of
19 December 2019.
Current trading and outlook
The current trading environment is very difficult which reflects
the market environment referred to earlier being further affected
by the normal slow-down in activity associated with an upcoming
general election. Since the period end the Group has continued to
close transactions and win business and has:
-- Completed the sale of Blayhall Professional to IRIS Software Group
-- Signed up 6 new retained corporate clients
-- Closed fundraisings for Access Intelligence, Xeros and Avacta
In our trading update of 8 October 2019, we reported that the
Group was well-positioned to meet its full year expectations. At
the time of writing we continue to have a pipeline of opportunities
that supports a satisfactory outcome to the year but would caution
that our ability to execute on this is subject, in our view, to the
result of the general election and to market conditions for equity
fundraisings returning to a normal level. Within the ECM division
there are a limited number of transactions that are not wholly
reliant on equity capital fundraisings, alongside a healthy
pipeline of PLC strategic advisory work for both retained clients
and one-off mandates. On the M&A advisory side the pipeline is
strong, and the level of retainers paid is at a high level compared
to prior periods although the outturn for this business is reliant
on a number of higher value transactions. We cannot control these
external factors, but we are confident that our ability to generate
a variety of smaller fees from different service lines stands the
business in good stead while conditions remain difficult.
Whilst we are mindful of the short-term headwinds we continue to
focus on the longer term for the Group where over the last 12
months we have diversified from the Company's almost total reliance
on public market activity to one where a good proportion of the
Group's revenues are expected to come from outside this area. The
Board expects to continue to invest in quality people to grow
organically as well as to explore further opportunities to grow in
both the financial services sector and wider professional services
to complement our existing activities.
Sam Smith
Chief Executive Officer
25 November 2019
Consolidated Statement of Comprehensive Income
6 months 5 months 11 months
ended ended ended
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Revenue 2 14,182 9,115 24,516
Other operating
income 25 4 14
------------------------------ ----- ---------- ------------- ----------
Total income 14,207 9,119 24,530
Administrative expenses 3 (12,857) (7,772) (20,264)
------------------------------ ----- ---------- ------------- ----------
Operating profit before
non-recurring items 1,350 1,347 4,266
Non-recurring
items - - (1,095)
Operating
profit 1,350 1,347 3,171
Finance income 13 12 28
----------------------------- -----
Profit before
taxation 1,363 1,359 3,199
Taxation (276) (258) (875)
Profit attributable to
equity shareholders 1,087 1,101 2,324
------------------------------- ----- ---------- ------------- ----------
Total comprehensive income
for the year 1,087 1,101 2,324
------------------------------- ----- ---------- ------------- ----------
Earnings per share
(pence)
Basic 4 0.68 0.93 1.85
Diluted 4 0.63 0.86 1.65
Consolidated Statement of Financial Position
30 September 30 September
2019 2018 31 March 2019
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Non-current
assets
Property, plant
and equipment 6 i) 1,126 279 487
Intangible
assets 6 ii) 13,593 232 13,644
Financial assets
held at fair value 476 388 691
Deferred tax
asset 6 iii) 365 - 428
Total non-current
assets 15,560 899 15,250
----------------------------- ------- ---------- ------------- --------------
Current assets
Trade and other
receivables 6 iv) 7,757 11,098 8,541
Current assets held
at fair value 533 1,457 1,111
Cash and cash equivalents 5,056 1,250 4,659
Total current
assets 13,346 13,805 14,311
---------------------------- ------- ---------- ------------- --------------
Total assets 28,906 14,704 29,561
---------------------------- ------- ---------- ------------- --------------
Non-Current liabilities
Provisions 58 74 63
------------------------------ ------- ---------- ------------- --------------
Current liabilities
Trade and other
payables 7,061 7,169 8,065
Corporation
taxation 256 444 498
Borrowings 6 v) - 944 -
Total current liabilities 7,317 8,557 8,563
----------------------------- ------- ---------- ------------- --------------
Equity
Share capital 1,697 1,184 1,688
Share premium 616 784 575
Capital redemption
reserve - 452 -
Own shares
held 6 vi) (1,636) (1,936) (1,636)
EBT reserve - (62) -
Merger relief
reserve 6 vii) 10,482 - 10,482
Share based payments
reserve 371 305 292
Retained earnings 10,001 5,346 9,534
Total equity 21,531 6,073 20,935
---------------------------- ------- ---------- ------------- --------------
Total equity and
liabilities 28,906 14,704 29,561
----------------------------- ------- ---------- ------------- --------------
Consolidated Statement of Cash Flows
6 months 5 months 11 months
ended ended ended
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
Cash flows from operating
activities GBP'000 GBP'000 GBP'000
Profit before taxation 1,363 1,359 3,199
Adjustments for:
Depreciation 495 88 242
Amortisation of intangible
assets 59 16 56
Finance income (13) (12) (28)
Share based payments charge 79 44 100
Net fair value gains recognised
in profit or loss (38) - (155)
Payments received of non-cash
assets (224) - (218)
1,721 1,495 3,196
Changes in working capital:
Decrease/(increase) in trade
and other receivables 784 (1,856) 778
(Decrease)/increase in trade
and other payables (1,659) 266 109
Increase/(decrease) in provisions (5) 1 (10)
Cash generated from operations 841 (94) 4,073
Net cash payments for current
asset investments
held at fair value through
profit or loss 578 (811) (465)
Tax paid (518) (112) (796)
Net cash inflow from operating
activities 901 (1,017) 2,812
------------------------------------ ------------- ------------- ----------
Cash flows from investing
activities
Acquisition of subsidiaries,
net of cash acquired - - (3,592)
Purchase of property, plant
and equipment (99) (39) (249)
Purchase of intangible assets (9) (11) (30)
Proceeds on sale of investments 477 - 70
Interest received (13) 12 28
Net cash (outflow)/inflow
from investing activities 356 (38) (3,773)
------------------------------------ ------------- ------------- ----------
Cash flows from financing
activities
Purchase of own shares by
EBT - (1,260) (1,260)
Sale of own share by EBT - - 693
Equity dividends paid (557) (1,181) (1,635)
Proceeds from the issue of
new shares net of costs - - 3,665
Proceeds from exercise of
options 50 20 375
Lease liabilities payments (353) - -
Proceeds from borrowings - 205 (739)
Net cash outflow from financing
activities (860) (2,216) 1,099
------------------------------------ ------------- ------------- ----------
Net increase/(decrease) in
cash and cash equivalents 397 (3,271) 138
Cash and cash equivalents
at beginning of year 4,659 4,521 4,521
Cash and cash equivalents
at end of year 5,056 1,250 4,659
------------------------------------ ------------- ------------- ----------
Consolidated Statement of Changes in Equity
Share
Capital Own Merger Based
Share Share Redemption Shares EBT Relief Payment Retained Total
Capital Premium Reserve Held Reserve Reserve Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30 April
2018 1,180 768 452 (676) (54) - 247 5,418 7,335
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Total comprehensive
income for the
period - - - - (8) - - 1,109 1,101
Transactions with
owners:
Transfer of own
shares - - - (1,260) - - - - (1,260)
Share based payments
charge - - - - - - 58 - 58
Dividends - - - - - - - (1,181) (1,181)
Share options exercised 4 16 - - - - - - 20
4 16 - (1,260) - - 58 (1,181) (2,363)
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Balance at 30 September
2018 1,184 784 452 (1,936) (62) - 305 5,346 6,073
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Total comprehensive
income for the
period - - - - 62 - - 1,161 1,223
Transactions with
owners:
Transfer of own
shares - - - 300 - - - - 300
Issue of share
capital 134 3,616 - - - - - - 3,750
Share issue costs - (85) - - - - - - (85)
Shares issued as
part of the
consideration in
a business combination 334 - - - - 9,019 - - 9,353
Elimination in
share for share
acquisition - (1,011) (452) - - 1,463 - - -
Share premium
cancellation (3,048) - - - - - 3,048 -
Share based payments
charge - - - - - - 42 - 42
Deferred tax on
share based payments - - - - - - - 378 378
Dividends - - - - - - - (454) (454)
Share options exercised 36 319 - - - - (55) 55 355
504 (209) (452) 300 - 10,482 (13) 3,027 13,639
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Balance at 31 March
2019 1,688 575 - (1,636) - 10,482 292 9,534 20,935
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Total comprehensive
income for the
period - - - - - - - 1,087 1,087
Transactions with
owners:
Share based payments
charge - - - - - - 79 - 79
Deferred tax on
share based payments - - - - - - - (63) (63)
Dividends - - - - - - - (557) (557)
Share options exercised 9 41 - - - - - - 50
9 41 - - - - 79 (620) (491)
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Balance at 30 September
2019 1,697 616 - (1,636) - 10,482 371 10,001 21,531
------------------------ -------- -------- ----------- -------- -------- -------- -------- --------- --------
Notes to the Financial Statements
Unaudited for the 6 months ended 30 September 2019
1. Basis of preparation
finnCap Group plc (the "Company") is a public limited company,
limited by shares, incorporated and domiciled in England and Wales.
The Company was incorporated on 28 August 2018. The registered
office of the Company is at 60 New Broad Street, London, EC2M 1JJ,
United Kingdom. The registered company number is 11540126. The
Company is listed on the AIM market of the London Stock
Exchange.
The Interim Financial Statements comparatives include the
performance of finnCap Ltd for 11 months (due to the alignment of
year ends), and for Cavendish for just under four months (since the
date of its acquisition). The 5 months ended 30 September 2018
include only the results of finnCap Ltd as this period was before
the formation of the Group.
These consolidated Interim Financial Statements have been
prepared in accordance with AIM Rule 18. The financial information
contained in the Interim Financial Statements is unaudited and does
not constitute statutory accounts within the meaning of Section 434
of the Companies Act 2006.
The statutory accounts for the 11 months ended 31 March 2019
have been delivered to the Registrar of Companies. The statutory
accounts have been prepared in accordance with International
Financial Reporting Standards and International Accounting
Standards as adopted by the European Union and the IFRS
Interpretation Committee interpretations (collectively IFRSs), and
in accordance with applicable law. The Independent Auditor's Report
to the members of finnCap Group plc contained no qualification or
statement under section 498 (2) or (3) of the Companies Act
2006.
These consolidated Interim Financial Statements contain
information about the Group and have been prepared on a historical
cost basis except for certain financial instruments which are
carried at fair value. Amounts are rounded to the nearest thousand,
unless otherwise stated and are presented in pounds sterling, which
is the currency of the primary economic environment in which the
Group operates.
The preparation of these Interim Financial Statements requires
the use of certain critical accounting estimates. It also requires
Group management to exercise judgement in applying the Group's
accounting policies. Judgements and estimates used in these Interim
Financial Statements have been applied on a consistent basis with
those used in the statutory accounts for the 11 months ended 31
March 2019.
The Directors believe that the company has adequate resources to
continue trading for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing the Interim
Financial Statements.
The Group adopted IFRS 16 using the modified retrospective
approach, with recognition of transitional adjustments on the date
of initial application (1 April 2019), without restatement of
comparative figures. On adoption of IFRS 16, the Group recognised
right-of-use assets and lease liabilities in relation to leases of
office space, which had previously been classified as operating
leases. The Group has elected not to recognise right-of-use assets
and lease liabilities for some leases of low value assets based on
the value of the underlying asset.
The lease liabilities were measured at the present value of the
remaining lease payments, discounted using the Group's incremental
borrowing rate as at 1 April 2019. The Group's incremental
borrowing rate is the rate at which a similar borrowing could be
obtained from an independent creditor under comparable terms and
conditions. A right-of-use asset and lease liability of GBP1,034k
were recognised at 1 April 2019. The current period includes
depreciation of GBP354k that would have been recognised as an
operating lease expense in the prior period.
2. Segmental reporting
The Group is managed as an integrated full-service financial
services group and the different revenue streams are considered to
have similar financial characteristics. Consequently, the Group is
managed as one business unit.
The trading operations of the Group comprise of Corporate
Advisory and Broking, M&A Advisory and Institutional
Stockbroking. The Group's revenues are derived from activities
conducted in the UK. All assets of the Group reside in the UK.
6 months 5 months 11 months
ended ended ended
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenues
Retainers 3,172 2,601 5,922
Fundraising
and advisory
transactions 4,268 4,698 11,950
Corporate advisory
and broking 7,440 7,299 17,872
Sell Side M&A advisory 4,975 - 3,229
Institutional Stockbroking 1,767 1,816 3,415
Total Revenue 14,182 9,115 24,516
----------------------------- ------------- ------------- ----------
Services transferred at
a point in time 10,154 5,610 16,891
Services transferred over
a period of time 4,028 3,505 7,625
Total Revenue 14,182 9,115 24,516
----------------------------- ------------- ------------- ----------
3. Expenses by Nature
6 months 5 months 11 months
ended ended ended
30 September 30 September
2019 2018 31 March 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Employee benefit
expense 8,859 5,437 12,829
Non-employee
costs 3,998 2,335 7,435
Total administrative
expenses 12,857 7,772 20,264
----------------------------- ------------- ------------- --------------
Total number of employees 137 90 106
----------------------------- ------------- ------------- --------------
4. Earnings per share
6 months 5 months 11 months
ended ended ended
30 September 30 September
2019 2018 31 March 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Earnings per
share
Number of
shares
Weighted average number of shares for
the purposes
of basic earnings
per share 158,976,251 118,351,283 125,845,121
------------------------------- -------------- ------------- --------------
Weighted average dilutive effect of
conditional share
awards 14,040,237 9,749,612 14,927,048
-------------- ------------- --------------
Weighted average number of shares for
the purposes
of diluted earnings
per share 173,016,488 128,100,896 140,772,169
------------------------------- -------------- ------------- --------------
Profit per ordinary
share (pence)
Basic profit per
ordinary share 0.68 0.93 1.85
Diluted profit per
ordinary share 0.63 0.86 1.65
------------------------------- -------------- ------------- --------------
The shares held by the Group's Employee Benefit Trust have been
excluded from the calculation of earnings per share.
The earnings per share for the 11 months ended 31 March 2019 is
reported after charging the non-recurring costs from the IPO and
acquisition of Cavendish, which equate to 0.87p per share.
5. Dividends
6 months 5 months 11 months
ended ended ended
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Dividends proposed and paid
during the year 557 1,181 1,635
--------------------------------- ---------- ------------- ----------
Dividends per share 0.35p 1.05p 1.38p
--------------------------------- ---------- ------------- ----------
6. Balance Sheet items
i) Plant, property and equipment
In accordance with IFRS 16, a right-of-use asset and lease
liability of GBP1,034k has been recognised at the start of the
period and a depreciation charge against profit based on the
remaining term. At the reporting date the remaining balance was
GBP690k.
ii) Intangible assets
Intangible assets include goodwill of GBP13,335,000 recognised
on the acquisition of all the share capital of Cavendish Corporate
Finance (UK) Limited and all the partnership rights of Cavendish
Corporate Finance LLP on the 5(th) December 2018.
iii) Deferred tax asset
Deferred taxation for the Group relates to timing differences on
the taxation relief on the exercise of options. The amount of the
asset is determined using tax rates that have been enacted or
substantively enacted when the deferred tax assets are expected to
be recovered.
iv) Trade and other receivables
Trade and other receivables principally consist of amounts due
from client, brokers and other counterparties.
v) Borrowings
The overdraft balance at 30 September 2018 related to the
funding of unsettled trades by Pershing through our Model A
Settlement Agreement. As at 30 September 2019, there was no such
balance.
vi) Own shares held
The value of own shares held is the cost of shares purchased the
Group's Employee Benefit Trust. The Trust was established with the
authority to acquire shares in finnCap Group plc and is funded by
the Group.
vii) Merger relief reserve
The merger relief reserve represents:
-- the difference between net book value of finnCap Ltd and the
nominal value of the shares issued due to the share for share
exchange on the acquisition of finnCap Ltd. Upon consolidation,
part of the merger reserve was eliminated to recognise the
pre-acquisition share premium and capital redemption reserve of
finnCap Ltd; and
-- the difference between the fair value and nominal value of
shares issued for the acquisition of Cavendish Corporate Finance
(UK) Limited and Cavendish Corporate Finance LLP.
This reserve is not distributable.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LFFFILSLSFIA
(END) Dow Jones Newswires
November 25, 2019 02:00 ET (07:00 GMT)
Grafico Azioni Finncap (LSE:FCAP)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Finncap (LSE:FCAP)
Storico
Da Apr 2023 a Apr 2024
