FinnCap shares soar after M&A deal frenzy hikes revenue by 55 per cent
Shares in Finncap, the AIM-listed tech and life sciences small cap broker, closed 4.29 per cent higher today after the firm posted robust half year results.
FinnCap said that unaudited revenue was up 55 per cent to £32m in the six months to 30 September this year, after the firm advised on £1bn worth of M&A deals in the period.
CEO Sam Smith was positive about the company’s outlook and described its deal pipeline as “healthy.”
As a result, she upgraded the firm’s full year revenue range to between £45m and £50m.
FinnCap’s revenue growth was driven by a huge 286 per cent uptick in revenues to £16.2m from its M&A arm Cavendish, which it acquired at the end of 2018 in a bid to diversify its revenue streams – a strategy that is clearly paying off.
Its Capital Markets arm raked in £15.6m, a 4 per cent decrease from the same period last year but still a good performance, according to Smith, who said this was “in line with our expectations.”
“FinnCap Cavendish has clearly capitalised on a robust M&A market,” Smith said.
“Our overall revenue growth shows the clear benefit of our strategy to diversify our products beyond ECM – undertaken over the past 3 years – to service the broader strategic and financial needs of ambitious growing companies,” Smith said.