finnCap Group PLC Trading Update (2694E)
27 February 2020 - 6:00PM
UK Regulatory
TIDMFCAP
RNS Number : 2694E
finnCap Group PLC
27 February 2020
27 February 2020
finnCap Group plc
("finnCap" or the "Group")
Trading Update
The Group provides the following update on trading for the year
ending 31 March 2020.
Throughout the year the equity capital markets division has
continued to complete a variety of deals and has won a further 19
retained corporate clients, offset by client churn largely from
delistings or acquisitions. The Board expects that the trading
performance in the equity capital markets division will be in line
with that recorded in the first half of this financial year.
In the M&A division the Board noted at the time of the
interims that the outturn was reliant on a number of higher value
transactions. Since then the timetable for these deals has
lengthened, and the Board has now concluded that the trading
performance in this division will be below that seen in the first
half of the year.
Whilst deals have been slow to close in the M&A division, it
has continued to sign up deal retainers during the period and since
1 April 2019 has signed 36 mandates and generated deal retainers of
GBP1.2m. The level of deal retainers gives the Board confidence in
the outlook for the division and the delayed transactions are
expected to benefit the first quarter of FY21.
Overall the Board expects that the Group's trading performance
for the second half of the financial year will be broadly
breakeven, and that the Group will trade profitably for the
financial year.
The Board has recently reduced the Group's operating expenses to
ensure that the fixed costs of the business in FY21 will be broadly
the same as in the current financial year.
The combination of the reduction in costs, the expectation that
the M&A division will benefit from closing the larger deals
delayed from the second half of the current financial year, and a
continuing return to more normal market conditions in the equity
capital market division, means that the Board expects the Group's
trading performance in the first quarter of FY21 will show an
improvement on its performance in the second half of the current
financial year. The Board does however note the continued spread of
COVID-19 and its effect on global capital markets and will closely
monitor the situation.
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
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
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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