TIDMFCAP
RNS Number : 1845S
finnCap Group PLC
07 July 2020
finnCap Group plc ("finnCap" or "the Company")
Preliminary results for the year ended 31 March 2020
Financial Highlights(1) :
-- Turnover of GBP26.0m (FY19: GBP24.5m)
-- Equity Capital Markets division turnover of GBP18.7m (FY19: GBP21.3m)
-- M&A division turnover of GBP7.3m (FY19: GBP3.2m; 12 months to 31 March 2019: GBP14.9m)
-- Pre-tax profit GBP1.4m before non-recurring costs of GBP0.2m
(FY19: GBP4.3m before non-recurring costs of GBP1.1m)
-- Basic EPS: 0.49p (FY19: 1.85p). Adjusted EPS: (2) 0.80p (FY19: 2.86p)
-- Cash of GBP4.7m (31 Mar 2019: GBP4.7m)
Strategic Development (1) :
-- Completed 61 transactions with total deal and advisory fees of GBP16.0m (FY19: GBP15.2m)
-- Completed 13 private M&A transactions in Cavendish
-- Completed 3 debt mandates and signed up 9 new mandates for FY21
-- Hired new revenue generators to cover target sectors and services
-- Debt advisory and private growth capital practices launched,
further diversifying revenue
Current Trading (unaudited)(3)
-- Q1 2021 revenue GBP9.8m (Q120: GBP6.5m) including GBP6.5m of
advisory fees (Q120: GBP4.3m)
-- COVID-19: significantly reduced cost base and enhanced cash generation
-- Cash(4) at 30 June 2020 was GBP8.5m (excluding proceeds from
property loan and HMRC deferrals)
Commenting on the results, Sam Smith, Chief Executive Officer,
said:
"The financial year was dominated by the uncertain political and
economic backdrop which is reflected in our results. Equity
issuance levels reached a multi-year low and M&A deal cycles
lengthened considerably during the latter half of the year.
Nonetheless we have continued to concentrate on expanding services,
such as debt advisory and private growth capital, to enhance our
product line up, as well as investing in sector coverage from which
we expect to derive the benefit in future years.
At the end of March we anticipated a difficult trading
environment due to COVID-19 and took the right steps to prepare
quickly. In Q1 2021, we helped clients raise significant equity to
strengthen balance sheets and support investment cases from a range
of companies, many of which operate in areas such as life sciences
and tech and are at the forefront of the UK's efforts to recover
from the pandemic. This contributed to making the period the best
quarter we have ever recorded.
Our capital raising activity and market volatility also helped
drive higher trading revenues. While the global M&A business
slowed, our team still completed several mandates, both public and
private.
This strong performance in Q1 coupled with our actions to
significantly reduce costs has resulted in us having a much more
resilient balance sheet at 30 June 2020.
The overall outlook for the global economy and the effects of
COVID-19 remain uncertain and we must continue to be cautious about
the overall prospects for the current financial year. In the
shorter term, our pipeline of deals for the first half remains good
and we will continue to deliver on our strategy for growth."
Contacts
finnCap Group plc Tel: +44 (0) 20 7220 0500
Sam Smith, Chief Executive Officer
investor.relations@finncap.com
Richard Snow, 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) Tel: +44 (0) 20 3195 3240
Richard Morgan Evans
Notes to Editors
About finnCap Group
finnCap Group plc provides financial services to growth
companies both public and private. We provide advisory, broking and
research services to 126 companies on AIM and on the London Stock
Exchange Main Market and also advises on M&A, with a specialism
in sell-side M&A through Cavendish Corporate Finance, corporate
debt and private company fundraisings. finnCap also provides
trading services to a broad range of institutional investors.
Notes:
(1) The FY19 comparable figures throughout this announcement,
except for the M&A revenue comparative, are for the 11 month
period from 1 May 2018 to 31 March 2019 because of a change in
year-end and the approximately 4 months results of Cavendish
Corporate Finance following its acquisition on 5 December 2018. In
order to provide an appropriate 12 month comparative for the
performance of the M&A segment, the comparative revenue for the
M&A divisions is extracted from the audited accounts of
Cavendish Corporate Finance LLP for the 12 months ended 31 March
2019.
(2) Adjusted EPS is calculated excluding share-based payments,
amortisation of intangible assets from the acquisition of
Cavendish, non-recurring costs and includes an adjustment to
normalise tax. The weighted average number of shares in issue
during the period excludes shares held by the Group's Employee
Benefit Trust.
(3) The Q1 19 comparable period includes trading for three
months for both finnCap Ltd and Cavendish Corporate Finance
LLP.
(4) Cash at 30 June excludes GBP1.8m proceeds from the 5-year
loan announced on 26 May for fitting out the new premises at One
Bartholomew (which was drawn in June 2020 and which will be spent
over the next three months) and amounts due to HMRC under COVID-19
arrangements and repayable over the next 6-12 12 months of
c.GBP1.6m. Cash is stated before any deduction for market making
working capital.
Business review
During FY20, we made significant progress with business
integration, in consolidating our existing client offerings,
improving our infrastructure and investing in new services which
are central to delivering our strategy for growth and strengthening
the business.
However, the operating environment for UK financial services was
challenging and volatile. Business confidence was significantly
impacted by the protracted discussion on Brexit timing in the first
part of the financial year and then the resulting change in
Conservative Party leadership and general election. Completing
transactions in both Equity Capital Markets ("ECM") and Mergers and
Acquisitions ("M&A") was significantly harder than in the prior
year. This was particularly evident in the quantum of funds raised
on AIM during the period with the funds raised in the calendar year
2019 amounting to only GBP3.8bn, a reduction of 30% on prior year
and the lowest since 2012.
In this context, whilst the result for the year was
disappointing, with revenue per head declining markedly to GBP189k
(FY19: GBP230k), it was important to remain profitable and continue
the development of the business.
ECM
Our equity capital markets division of the Group delivered
GBP18.7m of turnover in the year (FY19: GBP21.3m). The principal
reason for the reduction in turnover was a significant reduction in
deal fees as a result of lower equity issuance by our corporate
clients consistent with the equity market activity as a whole. The
individual contributors to this performance are considered
below.
Retainers - Total fees from retainers in the year were GBP6.5m
(FY19: GBP5.9m). Retainers have remained stable on a pro rata basis
which does not reflect the significant change in the client base in
the year. Our focus on client service saw 24 new client wins which
was offset by client losses principally due to delistings and
takeovers.
Transactions - Total fees received from transactions in the year
were GBP8.7m (FY19: GBP12.0m).
Notable public market fundraisings and advisory mandates
included:
-- Xeros Technology Group plc - GBP5.7m Equity Fundraising
-- Trackwise Designs plc - GBP5.9m Equity Fundraising
-- Synairgen plc - GBP14.0m Equity Fundraising
-- The Barkby Group plc - Admission to AIM, GBP5.0m Equity
Fundraising; GBP30.6m reverse takeover
-- FFI Holdings plc - GBP39.5m recommended offer by Lumiere Acquisitions - Rule 3 Adviser
-- Nasstar plc - GBP79.4m recommended offer by GCI - Rule 3 Adviser, NOMAD and Broker
-- SCISYS Group plc - GBP78.9m recommended offer by CGI Inc -
Rule 3 Adviser, NOMAD and Broker
-- Kingswood Holdings plc - advice on GBP80.0m Convertible Preference Shares issue
Our debt advisory team - which works across Cavendish and
finnCap - closed three deals and signed up a further 9 mandates for
FY21 and our private capital team closed 4 fundraisings including
for Parsley Box and Bella & Duke. Together these generated
GBP0.4m revenue.
Trading - trading revenues were GBP3.6m (FY19: GBP3.4m), an
improvement on the previous year, despite market conditions. This
reflects our core focus on providing liquidity to our corporate
client list.
M&A Advisory
Cavendish generated revenues of GBP7.3m in the year (FY19:
GBP3.2m being c.4 months since acquisition), closing 13 private
M&A transactions. Revenue was well down on the previous full
financial year (year to 31 March 2019: GBP14.9m) reflecting the
impact of political uncertainty in H2 on buyer and seller
confidence and the cancellation of a small number of high value
deals that would have made a material difference to the year's
outturn.
Activity improved in the final quarter and the team signed up a
significant number of new retainers which, we believe, demonstrates
the strength of the Cavendish brand and its engagement with clients
in the private sell-side market. This should benefit revenue when
buyer confidence returns to the market although COVID-19 is clearly
delaying many deal timetables.
Key transactions included:
-- Java Republic - sale to Spanish coffee group Cafento
-- Centaur Media - sale of three subsidiaries as part of its strategic refocus
-- The Farm Post Production - advised the founders and WPP plc
on the sale to Picture Head Group
-- Avicenna Holdings - sale to Juno Health
-- Lay & Wheeler - advised Naked Wines Plc on its sale Coterie Limited
-- Star Professional - sale to IRIS Software Group
-- Falcon Green - sale of a minority stake to two private business investors
-- AltoDigital Holdings - sale to Xerox.
Administrative expenses
Costs increased as a result of the longer duration of the
financial period, the cost base assumed from the acquisition of
Cavendish, and the additional costs of being a public company
throughout the period.
The average operating cost per employee reduced to GBP175k
(FY19: GBP191k) primarily as a result of lower bonus payments.
Average staff costs per employee reduced by 15% to GBP115k (FY19:
GBP136k). Staff costs to revenue were broadly stable at 62% (FY19:
59%). Non staff operating cost per employee increased by 10% to
GBP60k partly as the result of the transition to being a listed
company. However, cost action decisions taken during Q4 reduced our
quarterly cost run rate and we currently expect that operating
costs excluding variable compensation and non-recurring costs
(primarily redundancy and property move) in FY21 to be roughly 10%
below FY20.
Capital and liquidity
The Group's cash and cash equivalents, net of borrowings, did
not change over the period at GBP4.7m.
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. 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.
COVID-19 Response and Dividend
At the time of its admission, we set a dividend policy
reflecting the historic performance of each business, the
expectation of future cash flow generation and long-term earnings
potential of the Group. During FY19 the Group made dividend
payments of GBP1.2m.
The COVID-19 pandemic required a rapid response and, reflecting
the expectation of a severe economic impact, it appeared only
sensible to preserve cash resources as a buffer against future
developments.
To reduce cost, we implemented a 3-month voluntary and
Group-wide reduction in salaries and directors' remuneration,
deferred recruiting and reduced discretionary expenditure. In
addition, we have made limited redundancies and staff furloughs.
Alongside this, we also took the difficult decision to not pay any
further dividends relating to the year ended 31 March 2020.
The Board recognises the importance of income to its
shareholders, and is keen to reinstate the dividend, but will only
do so when the operating environment is more certain and the
visibility of revenue becomes clearer.
We will review our position again in November with our interim
results. We further recognise our employees' and directors'
contribution to the firm's financial resilience in these testing
times.
Current trading and outlook
In the 3 months to 30 June 2020, the Group recorded turnover
(unaudited) of GBP9.8m (Q119: GBP6.5m), up by 51% and the best
quarter on record.
Our ECM division has benefitted from a number of equity fund
raisings by clients to invest in COVID-19 related activities,
support balance sheets and to accelerate investment. Alongside this
we have completed a number of public M&A transactions,
experienced favourable market-making conditions and continued to
win clients.
In the M&A division transactions have continued to complete
and our team has continued to win new mandates, although several
transactions we expected to close in the first quarter have been
delayed as a result of COVID-19.
The trading performance, combined with the actions taken to
protect the business during the initial stage of the COVID-19
pandemic, led to an increase in cash at 30 June to GBP8.5m(4) .
This level of liquidity is substantially in excess of our capital
requirements and provides an excellent platform as we look to an
uncertain future.
In September, the Group will move into its new premises at 1
Bartholomew Close which will enable us to operate and leverage our
two brands from a single base and to share best practice, cross
sell and win new clients. The GBP1.8m fit out cost will be financed
by our 5-year loan announced in May. We expect to record c.GBP800k
as a non-recurring cost in H121 as a result of having overlapping
properties. Given the long rent-free period for 1 Bartholomew Close
the cash impact is very substantially lower.
Whilst we have experienced a good start to the year and have a
good pipeline of deals for the next few months, the fact remains
that the outlook is uncertain and we therefore remain cautious
about the prospects for the year and particularly the trading
period post September.
Regardless, we will continue to drive our strategy and, as the
result of our actions in March and a strong Q1 performance, we have
a more resilient balance sheet to capture the opportunities that
arise in the post COVID-19 period as we service the needs of
ambitious growing companies.
Sam Smith
Chief Executive Officer
7 July 2020
Consolidated Statement of Comprehensive Income
Year ended Period ended
31 March 2020 31 March 2019
Notes GBP'000 GBP'000
Revenue 2 26,006 24,516
Other operating income (115) 14
------------------------------------------ ------- ------------ ---------------
Total income 25,891 24,530
Administrative expenses 3 (24,522) (20,264)
------------------------------------------ ------- ------------ ---------------
Operating profit before non-recurring
items 1,369 4,266
Non-recurring items (188) (1,095)
Operating profit 1,181 3,171
Finance income 26 28
Finance charge (24) -
----------------------------------------- -------
Profit before taxation 1,183 3,199
Taxation (411) (875)
Profit attributable to equity
shareholders 772 2,324
-------------------------------------------- ------- ------------ ---------------
Total comprehensive income for
the year 772 2,324
-------------------------------------------- ------- ------------ ---------------
Earnings per share
(pence)
Basic 4 0.49 1.85
Diluted 4 0.46 1.65
There are no items of other comprehensive income.
All results derive from continuing operations.
Consolidated Statement of Financial Position
31 March 31 March
2020 2019
GBP'000 GBP'000
Non-current
assets
Property, plant and equipment 635 487
Intangible
assets 13,533 13,644
Financial assets held at
fair value 393 691
Deferred tax
asset 171 428
Total non-current
assets 14,732 15,250
---------------------------------- ---------- ----------
Current assets
Trade and other receivables 9,037 8,541
Current assets held at fair
value 431 1,111
Cash and cash equivalents 4,695 4,659
Total current
assets 14,163 14,311
--------------------------------- ---------- ----------
Total assets 28,895 29,561
--------------------------------- ---------- ----------
Non-Current liabilities
Provisions 40 63
--------------------------------- ---------- ----------
Current liabilities
Trade and other payables 8,469 8,065
Corporation taxation 64 498
Borrowings - -
Total current liabilities 8,533 8,563
---------------------------------- ---------- ----------
Equity
Share capital 1,697 1,688
Share premium 616 575
Capital redemption
reserve - -
Own shares
held (1,636) (1,636)
EBT reserve - -
Merger relief reserve 10,482 10,482
Share based payments reserve 388 292
Retained earnings 8,775 9,534
---------- ----------
Total equity 20,322 20,935
--------------------------------- ---------- ----------
Total equity and liabilities 28,895 29,561
---------------------------------- ---------- ----------
Consolidated Statement of Cashflows
Year ended Period ended
31 March 31 March
2020 2019
GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 1,183 3,199
Adjustments for:
Depreciation 948 242
Amortisation of intangible assets 79 56
Finance income (26) (28)
Share based payments charge 110 100
Net fair value gains recognised
in profit or loss 115 (155)
Payments received of non-cash assets (275) (218)
2,134 3,196
Changes in working capital:
Decrease/increase in trade and
other receivables (495) 778
Increase in trade and other payables 173 109
Decrease in provisions (23) (10)
Cash generated from operations 1,789 4,073
Net cash receipts /payments for current
asset investments
held at fair value through profit
or loss 680 (465)
Tax paid (845) (796)
Net cash inflow from operating
activities 1,624 2,812
-------------------------------------------- ------------ --------------
Cash flows from investing activities
Acquisition of subsidiaries, net
of cash acquired - (3,592)
Purchase of property, plant and
equipment (262) (249)
Purchase of intangible assets (9) (30)
Proceeds on sale of investments 508 70
Interest received 26 28
Net cash (outflow)/inflow from
investing activities 263 (3,773)
-------------------------------------------- ------------ --------------
Cash flows from financing activities
Purchase of own shares by EBT - (1,260)
Sale of own share by EBT - 693
Equity dividends paid (1,218) (1,635)
Proceeds from the issue of new
shares net of costs - 3,665
Proceeds from exercise of options 50 375
Lease liability payments (683) -
Proceeds from borrowings - (739)
Net cash outflow from financing
activities (1,851) 1,099
-------------------------------------------- ------------ --------------
Net increase/(decrease) in cash and cash
equivalents 36 138
Cash and cash equivalents at beginning
of year 4,659 4,521
Cash and cash equivalents at end
of year 4,695 4,659
-------------------------------------------- ------------ --------------
Consolidated Statement of Changes in Equity
Capital Own Merger Share Based
Share Share Redemption Shares EBT Relief Payment Retained Total
Capital Premium Reserve Held Reserve Reserve Reserve Earnings Equity
Group 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 - - - - 54 - - 2,270 2,324
Transactions with
owners:
Transfer of own
shares - - - (960) - - - - (960)
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 - - - - - - 100 - 100
Deferred tax on
share based
payments - - - - - - - 378 378
Dividends - - - - - - - (1,635) (1,635)
Share options
exercised 40 335 - - - - (55) 55 375
508 (193) (452) (960) - 10,482 45 1,846 11,276
-------------------- -------- -------- ----------- -------- -------- -------- ------------ --------- --------
Balance at 31 March
2019 1,688 575 - (1,636) - 10,482 292 9,534 20,935
-------------------- -------- -------- ----------- -------- -------- -------- ------------ --------- --------
Total comprehensive
income
for the period - - - - - - - 772 772
Transactions with
owners:
Share based
payments charge - - - - - - 110 - 110
Implementation of
IFRS16 (70) (70)
Deferred tax on
share based
payments - - - - - - - (257) (257)
Dividends - - - - - - - (1,218) (1,218)
Share options
exercised 9 41 - - - - (14) 14 50
9 41 - - - - 96 (1,531) (1,385)
-------------------- -------- -------- ----------- -------- -------- -------- ------------ --------- --------
Balance at 31 March
2020 1,697 616 - (1,636) - 10,482 388 8,775 20,322
-------------------- -------- -------- ----------- -------- -------- -------- ------------ --------- --------
Notes to the Financial Statements for the 12 months ended 31
March 2020
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 1 Bartholomew Close, London, EC1A 7BL,
United Kingdom. The registered company number is 11540126. The
Company is listed on the AIM market of the London Stock
Exchange.
1. Basis of Preparation and Relevant Accounting Policies
a. Basis of Preparation
The financial information set out in this announcement (the
"Preliminary Financial Statements") does not constitute the
Company's statutory accounts for the period ended 31 March 2020 (or
the period ended 31 March 2019) under the meaning of Section 434
the Companies Act 2006 but is derived from those accounts.
Statutory accounts for the period ended 31 March 2020 have been
reported on by the Company's independent auditors, BDO LLP (the
"Independent Auditors"). The Independent Auditors' Reports on the
Annual Report and Financial Statements for the period ended 31
March 2020 were unmodified, did not draw attention to any matters
by way of emphasis and did not contain a statement under 498(2) or
498(3) of the Companies Act 2006. The statutory accounts will be
available at www.finncap.com and will be delivered to the Registrar
of Companies in due course.
The Preliminary Financial Statements comparatives for FY19
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 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.
These consolidated Preliminary 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 Preliminary 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
Preliminary Financial Statements have been applied on a consistent
basis with those used in the statutory accounts for the year ended
31 March 2020.
b. Basis of Consolidation
The Group's consolidated financial statements include the
financial statements of the Company and all its subsidiaries.
Subsidiaries are entities over which the Group has control if all
three of the following elements are present: power over the
investee, exposure to variable returns from the investee and the
ability of the investor to use its power to affect those variable
returns. Subsidiaries are fully consolidated from the date on which
control is established and de-consolidated on the date that control
ceases.
The acquisition method of accounting is used for the acquisition
of subsidiaries. Transactions and balances between members of the
Group are eliminated on consolidation and consistent accounting
policies are used throughout the Group for the purposes of
consolidation.
The share for share acquisition of finnCap Ltd by finnCap Group
plc was a corporate reorganisation to facilitate the IPO on AIM and
the subsequent purchase of Cavendish. As this was not a business
combination, merger accounting principles have been applied.
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
Preliminary Financial Statements.
IFRS16
The Group has applied the modified retrospective approach to the
two existing property leases. As such, an asset and liability were
created on the 1st April 2019 and the comparative figures have not
been restated. The right of use asset and lease liability have been
calculated as the net present value of the remaining lease payments
discounted at the incremental borrowing rate of 3.0%. As a result
of this change the group, has also derecognised a rent-free period
accrual and adjusted retained earnings brought forward upon
creation of the IFRS 16 assets and liabilities.
At 1 April 2019, a right-of-use asset of GBP850k was recognised
and lease liability of GBP1,074k. FY20 includes depreciation of
GBP600k 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
be subject to similar economic 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, although several of its corporate and
institutional investors and clients are situated overseas. All
assets of the Group reside in the UK.
Year ended Period ended
31 March 2020 31 March 2019
GBP'000 GBP'000
Revenues
Retainers 6,471 5,922
Transactions 8,642 11,950
Corporate advisory and broking 15,113 17,872
M&A advisory 7,326 3,229
Institutional Stockbroking 3,567 3,415
Total Revenue 26,006 24,516
---------------------------------- -------------- --------------
3. Expenses by Nature
12 months 11 months
ended ended
31 March 2020 31 March 2019
Audited
GBP'000 GBP'000
Employee benefit
expense 16,095 14,451
Non-employee
costs 8,427 5,813
Total administrative
expenses 24,522 20,264
------------------------ --- -------------- --------------
Average number of
employees 140 106
------------------------ --- -------------- --------------
4. Earnings per share
Year ended Period ended
31 March 2020 31 March 2019
GBP'000 GBP'000
Earnings (GBP'000)
Earnings for the purposes of basic
and diluted earnings
per share being profit for the
year attributable to
equity shareholders 772 2,324
Number of shares
Weighted average number of shares
for the purposes
of basic earnings per share 157,093,604 125,845,121
-------------- --------------
Weighted average dilutive effect
of conditional share
awards 9,553,641 14,927,048
-------------- --------------
Weighted average number of shares
for the purposes
of diluted earnings per share 166,647,245 140,772,169
------------------------------------- -------------- --------------
Profit per ordinary share (pence)
Basic profit per ordinary share 0.49 1.85
Diluted profit per ordinary
share 0.46 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 year ended 31 March 2020 is
reported after charging the non-recurring costs from restructuring
costs, which equate to 0.12p 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
Year ended Period ended
31 March 2020 31 March 2019
GBP'000 GBP'000
Dividends proposed and paid
during the year 1,218 1,635
------------------------------- -------------- --------------
Dividends per share 0.78p 1.38p
6. Balance Sheet items
i) Plant, property and equipment
See IFRS16 disclosure above
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) 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.
vi) 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.
END
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