Finncap Share Discussion Threads

[boadicea] 28/4/2022 15:14

I don't understand where 'Electrify' fit into the picture -
"It is expected that, until any exercise of its option, finnCap will account for Electrify under the equity method of accounting."
... or should it read 'Energise' which might make some sense. (The curse of the spell-checker strikes again?)

[lennonsalive] 28/4/2022 07:49

I don't understand this acquisition. Doesn't seem like a good investment and a way to issue more shares in finncap

[boadicea] 14/4/2022 13:04

Market response presumably indicates that the Capital markets income is given a higher valuation than the Cavendish contribution to revenue.

[spann_703] 14/4/2022 09:01

Another decent year, but interesting to compare the wording with the very similarly phrased update from last year:

"I look forward to announcing our full year results in July"

Whereas last April there was:

"Our pipeline for Q1 is healthy and I look forward to announcing our full year results in July."

So no outlook this time.

[lennonsalive] 10/3/2022 13:43

Always the same here with FCAP, up on news and then a drop.

[eyesofblue] 10/3/2022 07:11

finnCap Group PLC

Trading Update

FY 22 Revenues to exceed £45-£50m guidance range



finnCap Group PLC ("finnCap" or the "Company" or the "Group"), a leading provider of strategic advisory and capital raising services to growth companies, is pleased to confirm that unaudited revenue for the year to date has now exceeded the top end of its £45-£50m guidance range.

Sam Smith, CEO commented:

"With further potential deals to close, the Group is set to deliver record revenue for FY22. We have seen the real benefits of diversifying our products and customer base with a particularly good performance in ECM in complex markets and another strong half year in M&A."

[eyesofblue] 03/3/2022 06:34

Almost missed this yesterday. Obviously not significant enough for an RNS?

hxxps://www.finextra.com/pressarticle/91700/finncap-cavendish-advises-on-the-sale-of-bokus-identity-division-to-twilio

[eyesofblue] 03/3/2022 06:33

Almost missed this yesterday. Obviously not significant enough for an RNS?

hxxps://www.finextra.com/pressarticle/91700/finncap-cavendish-advises-on-the-sale-of-bokus-identity-division-to-twilio

[lennonsalive] 24/2/2022 19:38

Its Tom all over, he throws lots of darts at the board and some will hit, many won't

[dangersimpson2] 24/2/2022 17:42

Although we can be fairly sure they will beat on revenue for FY22, we don't really have any idea what costs will be. However, higher staff costs are often in the form of bonuses and for that they have to close deals. In the recent market strength, then finnCap hasn't been paying out all their extra revenue as staff costs, unlike, say Cenkos.

So that argument doesn't really stack up, Pell Hunt warned due to a lack of revenue, not excessive costs. Even more daft is the idea that they are going to have to pay more for staff in an environment where all the brokers are struggling for revenue - who is going to poach them?

[lennonsalive] 23/2/2022 21:15

Tom Winnifred has an article on his site about Peel Hunt and mentions Finncap. His thoughts are of a profit warning and a loss due to staff costs.

[dangersimpson2] 23/2/2022 12:08

This will be read through from Peel Hunt's profit warning today. Although it really shouldn't be a surprise to investors that ECM will have been weak.

FCAP have a higher proportion of M&A which will mean they are less affected, at least in the short term. The known transactions still suggest that FCAP are more likely to beat FY22 estimates than miss, although I am expecting the FY23 outlook to be for weaker performance unless market sentiment improves between now and then.

This is illiquid though, so any trades each way will exaggerate the moves.

[lennonsalive] 23/2/2022 11:51

So a drop under 30, presume this is sells on low volumes and no buyers.

[dangersimpson2] 18/2/2022 00:37

If you tally up the transactions in H2 then they are pretty much nailed on to beat FY expectations, at least on revenue. There’s a risk that the outlook may not be great for ECM given the current small cap weakness. But M&A likely to continue to have momentum and the new ESG reporting may start to be material going forwards given the clear focus of all listed company boards at the moment.

[km18] 17/2/2022 17:54

...from last year...

finnCap Group plc published a trading statement ahead of today’s AGM. Trading has been strong and is slightly ahead of prior expectations for £40-£50m FY22 revenues. And there are significant, incremental M&A deals to potentially close before the end of the year. The update points to  significant revenue and earnings beats in FY22 – current consensus is for £44m FY22 revenues and £7m net profit. Top-line and bottom-line growth rates will remain pretty robust, revenues, profits and EPS are running at 5-year CAGRs in the 20%-25% range. Meanwhile, valuation is still very attractive, forward PE ratio of just 6.6, PS ratio only a fraction over 1. And the company also has a high quality balance sheet, cash over £20m, net debt negative at -£5.1m. All that is missing is momentum. BUY....from WealthOracleAM

[boadicea] 11/2/2022 14:38

I have frequently seen shares bought at below quoted mid-price but not often seen them bought at the bid price as can be done with FCAP today.
While one's tempted to think that's a bargain, I fear (wearing my Dr Doom hat) that it may presage a dump waiting to show in delayed trades or at least a severe overhang and general fear of an imminent business slump..

This particular market sector has some of the lowest rated stocks, NUM being another one anticipating doom tomorrow.

[eyesofblue] 10/2/2022 11:56

The Fool isn’t very well regarded these days, it’s gone a little trashy, but I do agree with their summary about FinnCap.

Incidentally, there will most likely be a trading update in three weeks’ time. These have tended to be extremely positive affairs so anyone thinking about investing or adding here might want to work around this. I.e another positive update might raise the share price Or vice versa.

In 2020 it was 27th Feb and in 2021 it was the first few days of March. They are always really predictable/punctual with their reporting and updates, unlike many other AIM companies.

Not a recommendation of course.

[tole] 17/1/2022 17:17

https://www.fool.co.uk/2022/01/17/2-dirt-cheap-shares-to-buy-for-2022/Another good prospectThe next company is finnCap (LSE: FCAP), a financial services company specialising in corporate finance, and mergers and acquisitions (M&A). It's much smaller than Halfords, with only a £60m market cap as I write today. The share price has rocketed 53% over one year though, as the M&A and initial public offering (IPO) markets have been extremely active.The recent interim results showed revenue increasing by 55%, which was a record performance for the company. The deal pipeline for IPOs and M&A transactions was said to be remaining strong too.This is all great. But if I buy the shares today, I'd be earning a cut of future profits. So, the bigger question is, can the record performance continue?I think the prospects look good. According to a survey conducted by Ansarada, M&A deals in the UK are expected to rise in 2022. The IPO market has also recently been given a boost by the Financial Conduct Authority, the UK's financial regulator. The rule changes should encourage businesses to list in the UK at an earlier stage. This is a prime target market for finnCap, and should boost future IPO activity.The shares are only trading on a forward P/E ratio of 8 as I write today. I view this as a dirt-cheap valuation for the potential growth ahead.The biggest risk for finnCap as I see it is a stock market crash, possibly due to a new strain of Covid. This is highly likely to reduce corporate financing activity. But on balance, I would buy finnCap shares today

[boadicea] 29/12/2021 16:26

It can also be what happens when an executor is asked (or decides) to liquidate a portfolio - particularly one in which they may have no interest

[masurenguy] 28/12/2021 10:12

Ref post #93. There are no institutional shareholders with a stake above the 3.0% reporting threshold. The main shareholders are private investors including just one director, Sam Smith. Moulton, Murria and Leigh are former directors who all resigned over the past 12 months. Apart from Smith no other director has a holding above the reporting threshold. Directors Smith, Hayward, Andrews and Snow collectively also have holdings within the Employee Benefit Trust (EBT) of 3,65,714 shares or just over 27% of the EBT total holding

Main Shareholders December 2021
Jon Moulton: 20,022,854. 11.30%
Vin Murria: 18,592,698. 10.49%
Baron Leigh: 16,327,892. 9.22%
Sam Smith: 16,144,286. 9.11%
EB Trust: 13,337,507. 7.53%
Geoff Nash: 7,132,626. 4.01%
Mark Tubby: 5,369,763. 3.02%
Sub Total: 96,927,626. 54.68%

Current holdings by other directors under the reporting threshold include Andrews and Hayward who hold 2.8% & 2.2% respectively, plus Snow, Hogarth and Firth who each hold 0.2% and Lister with 0.1%. Total director holdings, including Smith, currently constitute 14.8% of the shares in issue.

As at November 2021, 80.02% of the issued share capital was considered not to be in public hands.

[farmers son] 22/12/2021 12:51

to my mind about half the market cap is cash, the other half is about 3-4 years of earnings, and there's no debt. given the pipeline is good and costs are proportional to revenue, this is one of the cheapest offerings out there.

risk/reward is very attractive, but small cap liquidity a nightmare

[mozy123] 22/12/2021 12:38

Anyone got an updated sharholder register? How much stock to directors hold?

[riviera1069] 22/12/2021 11:13

It seems very likely mate.