Finncap Share Discussion Threads

[lennonsalive] 22/12/2021 11:10

Next stop 20

[lennonsalive] 16/12/2021 16:24

Small caps slaughtered this year

[empoggio] 11/12/2021 10:10

Post dividend blues!

[lennonsalive] 10/12/2021 10:59

Looking at chart are back at support level.

[lennonsalive] 08/12/2021 16:18

Staff given share options, some sold back to the company £800k and the rest locked in for 12 months

[lennonsalive] 08/12/2021 16:10

Sneak blinders

[farnesbarnes] 08/12/2021 16:07

4pm RNS - great

[lennonsalive] 08/12/2021 15:38

Good company and results. However drops on up days on the markets

[farnesbarnes] 19/11/2021 12:55

Small Caps Life today:

finnCap (FCAP.L) - Interim Results
These results were largely known since revenue was announced in the trading statement and costs tend to be roughly proportional to revenue. Adjusted EPS comes in at 3.54p for the half-year, cementing this as one of the cheapest shares on the market on earnings. Although, we would typically not adjust out share-based payments since these are a real cost borne by shareholders.
Management are of the view that fully diluted EPS is a better measure of the true performance than applying IFRS2 to calculate share-based payments. This means that 3.17p fully diluted but adjusted EPS is probably a reasonable figure to take. So still cheap.
The increase in cash is not as large as the earnings due to deals completed towards the end of the period ending up in receivables:
Cash balances: £22.6m at 30 September 2021 (31 Mar 2021: £20.4m)
To get a better feel of this, Mark dusts off his trusty friend: shareholders cash. This is cash - debt + NWC (if it is negative) - any provisions. Although finnCap has a requirement to hold regulatory capital, movements in shareholders cash give a good feel for how value has accrued to shareholders in the period. In finnCap's case, we will include in the NWC longer-term financial assets and liabilities plus tax owed since these real assets and liabilities.
"Shareholders cash" has gone from £8.5m on 30th September 2020, to £12.0m on 31st March 2021 to £18.5m in these results to 30th September 2021. This makes net cash about 1/3rd of the current market cap.
On top of this a £0.8m dividend was paid in H2 last year, and £1.6m during this period so the last 12 months has generated £12.4m of value net to shareholders. In addition, they said in the InvestorMeetCompany presentation that the current cash balance is considerably higher at the moment vs period end.
A further increase in dividend guidance has been given with these results:
Given the strong financial performance so far in FY22 and the Group's much improved balance sheet position, the directors intend to pay an interim dividend of 0.6p per share, a rise of 20% on last year.
In addition, following the upgrade in our revenue guidance range, the Board has increased its dividend payment intention for FY22 to a total of 1.75p per share (subject to unforeseen circumstances).
This is about a 4.7% dividend yield. Clearly, they could afford to pay much more, but priorities are for growing the business in the short term:
In addition to our equity sales and trading team hires, we have also hired junior execution team members in both Capital Markets and M&A to ensure we have the capacity to service the future needs of our clients...
We continue to review potential M&A opportunities. We are currently focusing on ESG related consultancies with established track records and repeatable revenue as part of our strategy to broaden our range of strategic advisory to the C-suite and expanding our business potentially beyond its core financial services offering.
In terms of outlook, finnCap retain their guidance:
revenue expected to be in the £45-£50m range; staff costs (excluding share-based payments) c.58-62% and non-staff costs c.£10m.
Broker Progressive have made a very minor upgrade to their forecasts:
We have increased our revenue forecast for the current year by 2% to £48.5m, based on a positive trading outlook.


This means that progressive are forecasting 0.95p of adjusted EPS for H2. £48.5m Revenue implies that they do £16.8m for H2.
On Cavendish they say:
Activity levels are now lower than in H1, but the finnCap Cavendish team has already completed a further two deals since the half year end and we expect the team to deliver a good full year result with revenue above £20m.
So that is more than £3.9m for H2, but seems a very low bar, and would be one of the lowest Cavendish half-years since listing. Interestingly, on the IMC presentation, they say that they typically have 1-year visibility on these deals and the pipeline out into the future is also strong.
On transactions:
Overall, market volumes and activity have decreased during H1 but the sales and trading team delivered revenue ahead of last year benefitting from one very significant sell down and the first contribution from the finnCap Analytics team.
On ECM overall:
After experiencing very high client activity last year, in our strongest sectors, delivering H2 revenue at levels similar to H1 would be an excellent outcome for the Capital Markets team.
So it sounds like H1's £15.6m ECM revenue is their target but likely to come up a bit short. Still, that would easily beat Progressive's forecast revenue. Management say that they aren’t sandbagging with their current guidance, but they know the importance of hitting market forecasts, so there is still a chance they plan to underpromise & over-deliver.
Although in our analysis on here we have tended to focus on short term trading, one thing the management was keen to point out was their ability to grow whatever the market conditions. Saying "we are a long-term growth play".


Their strategy is to build a very different financial services business. They have recruited 30 people this year and said in the IMC presentation “we are a great place to work....well ahead of competitors as a good place to work” which is key to talent retention. They have plenty of interesting, good value M&A opportunities too, but it is not in the strategy to buy competitors due to the difficulty in adapting cultures.

If they can deliver on their long-term growth ambitions, then the current rating looks much too low for a growth business.

[ramridge] 18/11/2021 09:55

Yes, H1 performance is great. The muted market reaction may be put down to this bit from the outlook statement:

"
The equity market is quieter in terms of trading volumes than at this time last year. The issuance market remains solid although, with higher institutional sensitivity to valuations, getting deals done is comparatively more difficult. Activity in the M&A market remains favourable, although we do not expect to match the H1 revenue performance in H2.
"

In other words, overall don't expect H2 to be as good as H1.

But IMO they only need to do average in H2 to beat Broker forecasts.

Maybe by tomorrow the penny will drop and the share price will start heading north?

[lennonsalive] 18/11/2021 09:11

I don't understand why this is unloved, cracking results

[molatovkid] 18/11/2021 08:06

Great results.

[tole] 18/11/2021 07:37

Progressive update on interimsEquity Research Alert - finnCap Group PLCRecord H1 performance and positive outlookfinnCap's impressive H1 performance has enabled it to invest in the business, whilst further strengthening its cash position to £22.6m. Balance sheet strength and an encouraging outlook underpin improved dividend guidance to 1.75p per share for the current year – a prospective 4.8% gross yield. The strong performance and cash position provides further options for organic and inorganic growth. Management has reiterated revenue guidance of £45-50m for FY 2022. We have increased our revenue forecast for the current year by 2% to £48.5m, based on a positive trading outlook.

[riviera1069] 15/11/2021 14:27

Interims in 3 days then. Hopefully something will give us a bit of movement in the share price

[davidosh] 11/10/2021 16:09

Just to let shareholders and prospective investors know that Cerillion, Robert Walters and FinnCap will be featured on BASH session at the Mello Monday webinar event tonight, Monday 11th October at 6:00pm-9:30pm. There will be over 400 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.
Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.


The Programme is as follows:

6.00 pm Mello welcome and news
6.05 pm Company presentation by Inspiration Healthcare
6.35 pm David Stredder interviews David Cicurel, CEO of Judges Scientific
7.10 pm Company presentation by Frenkel Topping
7.50 pm Michael Taylor book review
8.00 pm Company presentation by eEnergy
8.30 pm Mello BASH

[riviera1069] 04/10/2021 08:40

We did all know that indeed. Really surprised with the share price over the last 6 months though. Should be well north of 50p prior to today's RNS

[tole] 04/10/2021 07:27

Progressive update out.Very strong first half revenue confirmedFollowing its positive AGM trading update on 23 September, finnCap has delivered its promised update on revenue for the six months to the end of September 2021. With a further four M&A deals closing between those two dates, H1 2022E revenue is £31.8m, up 55% on the prior year comparator of £20.5m. The Group has raised the lower end of its guidance range for full year revenue by £5m to between £45m and £50m. The most striking performance in H1 is that of finnCap Cavendish which has reported revenue of £16.2m in the half year compared to £4.2m in H1 2021 in a vibrant M&A market. Risks to our upgraded numbers remain firmly on the upside.

[molatovkid] 04/10/2021 07:27

RNS out! Fincapp flying....but we all knew that didn't we !!??

[tole] 02/10/2021 14:10

https://www.fool.co.uk/investing/2021/10/02/3-penny-stocks-with-explosive-growth-potential/Wealth management demandAnother company I would buy for my portfolio of penny stocks is the financial services group Finncap (LSE: FCAP). With a market capitalisation of £62m at the time of writing, this is a tiny business. That may deter some investors from buying the stock. Still, I am excited by its potential. It is currently benefiting from rising demand for its services. In June it reported that revenues for the full-year would be between £40m to £50m.A few weeks ago, management upgraded this forecast, saying revenues will be "slightly above the top end of these full-year revenue expectations." Finncap's cash balance is also expanding. It stood at £17.2m at the end of the first quarter and has continued to grow. This is why I think this company would fit nicely into my portfolio of penny stocks with explosive growth potential.

[tole] 29/9/2021 20:44

https://www.fool.co.uk/investing/2021/09/29/this-little-growth-stock-could-be-a-big-winner-in-the-long-run/This little growth stock could be a big winner in the long runAndy Ross | Wednesday, 29th September, 2021 | More on: FCAP SLPWith a market cap of just over £60m, finnCap (LSE: FCAP) is one of the smaller shares listed on the UK stock market. Yet it could be a superb little growth stock, combining capital growth with income, which I think is a very powerful combination.The group focuses on providing financial services services to quite a number of listed companies, but also privately-held growth companies. Its activities include corporate finance and broking, equity sales, agency trading and market-making and research. So it's a financial services company. Apart from its small market capitalisation, which gives it plenty of headroom to grow into a much larger company, I really like finnCap's financials. They indicate to me a stock that has serious growth potential.The group has a three-year compound annual growth rate (CAGR) for sales of 29%. This is important because, as an investor, I want to know that demand for a company's products/services is continuously increasing. A company growing sales should, if it keeps control of costs, be able to make more profit. The figure is impressive and could underpin future growth and share price appreciation.FinnCap also has a strong operating margin, which has jumped to 18.7% from 4.6%. That was lower than the pandemic but the margin now is also higher than in 2019. Return on equity has also improved a lot in the last three years to 29%. It was 16.4% in 2019. These percentages to me indicate a quality business that's well positioned for long-term growth.The dividend yield of 4.2%, which this year is covered nearly three times by earnings is a massive bonus. The shares are also pretty cheap on a price-to-earnings (P/E) ratio of under eight.But arguably, for a 'growth company', the historical revenue rise has been fairly pedestrian and so it would be good to see revenues really pick up. Potentially, if there's a slowdown in the IPO market, finnCap could be hit. It's also pretty reliant on the UK for making money, which presents country-specific risk. And there are risks associated with finnCap's expansion, such as costs going up and a change to its company culture.Overall though, I have to say the growth and income from a UK small-cap share like this appeals to me and I'll consider buying the shares.

[techtrader5] 25/9/2021 15:04

Bulletin board heroes

[big7ime] 24/9/2021 17:25

Disagree, treble bottom extremely bullish considering income beat

[rocketblast] 24/9/2021 10:34

FINNCAP HAVE LOWER LOWS LOWER HIGHS. Classic chart to test Lower Low 30p or less. Risky at this level so waiit and see next Lower Low tested.

[molatovkid] 23/9/2021 07:37

RNS out - everything going well. Should be another year of out performance hopefully.