Finncap shares the spoils of market pick up

 
Michael Bow
Follow Michael
BROKER Finncap paid its staff a quarterly bonus for the first time in six years this spring after enjoying its best start to the year since the financial downturn.

The broker, which looks after more junior stock market listed companies than any other firm, enjoyed a 22 per cent rise in revenue for the six months ending September, thanks to a boom in confidence among its corporate clients.

The firm normally pays staff an interim or annual bonus but after its best April to June period since 2007 it returned to a quarterly payout to reward hard working staff.

The company, which boasts private equity stalwart Jon Moulton as chairman, said operating profits rose 74 per cent over the period up to £1.9m. Revenues were up to £6.9m.

Chief executive Sam Smith said government changes to permit savers to put alternative investment market listed stocks into their Isas had also boosted liquidity on the market, helping the broker.

“The impact was bigger than anyone thought it might be,” she said. “On day one of it coming into force, volumes just started to move. Our commissioning was almost doubling on the back of the retail interest.”

Smith added that the firm was looking to expand over the next year by hiring more staff.

“We’ve recruited 15 people over the last year. It’s not a recruitment drive it’s more a selective few hires.” she said.