Finncap has reported a jump in turnover for the first half amid “very testing market conditions”, with the broker boosted by strong performance of its M&A division.
The company reported a jump in turnover of just over 56 per cent in the six months to 30 September.
Turnover hit £14.2m during the period, compared to £9.1m for the five months to the end of September 2018.
This increase was driven by £5m turnover from its new M&A arm, Cavendish Corporate Finance, which Finncap acquired in December last year.
Finncap’s profit before tax was flat at £1.4m, and adjusted earnings per share hit 0.76p.
The broker announced an interim dividend of 0.42p per share.
Shares in the AIM-listed company were flat at 21.5p following the update.
Why it’s interesting
Finncap has been moving to diversify its revenue streams and the acquisition of Cavendish last year appears to have been successful in doing that.
The company said the performance of its M&A division had been “largely unaffected by the political backdrop” – encouraging news for Finncap as other financial services are buffeted by ongoing uncertainty.
Finncap said in an update to the stock market that today’s results were in line with its expectations.
What Finncap said
“The period has seen some very testing market conditions, ongoing domestic political uncertainty and turbulent macro-economic headwinds affecting equities globally,” said chief executive Sam Smith.
“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.”