finnCap Group plc
Visit finnCap Group plc
Description
finnCap is a financial services group focused on providing a full-service offering to its target client base of ambitious growth companies. finnCap was admitted to AIM in December 2018, acquiring Cavendish Corporate Finance in the process. The addition of the noted sell-side M&A business brought added scale, significant complementary expertise and the opportunity to pursue considerable revenue synergies both in terms of cross-referrals and expansion of services.
Company Presentations
Our view
finnCap Group offers an expanding suite of services to companies with strong growth ambitions. It is exploiting opportunities for accessing new revenue sources and enhancing the growth prospects of the enlarged business. We think that its more diverse revenue base should add further resilience and improve visibility. As an overarching theme, we note the management team’s consistent and focused approach to growing finnCap Group and advancing the brand while diversifying its sources of revenue.
Financial Summary
Year end: March (£m unless shown)
| 2019 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| Revenue | 24.5 | 25.9 | 46.6 | ||
| Adj EBITDA | 4.7 | 2.6 | 11.7 | ||
| Fully Adj PBT | 4.4 | 1.6 | 9.4 | ||
| Fully Adj Dil. EPS (p) | 2.6 | 0.8 | 4.4 |
Profit & Loss
Year end: March (£m unless shown)
| 2019 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| Revenue | 24.5 | 25.9 | 46.6 | ||
| Adj EBITDA | 4.7 | 2.6 | 11.7 | ||
| Adj EBIT | 4.4 | 1.6 | 10.0 | ||
| Reported PBT | 3.2 | 1.2 | 8.4 | ||
| Fully Adj PBT | 4.4 | 1.6 | 9.4 | ||
| NOPAT | 4.4 | 1.3 | 8.0 | ||
| Reported Dil. EPS (p) | 1.7 | 0.6 | 3.9 | ||
| Fully Adj Dil. EPS (p) | 2.6 | 0.8 | 4.4 | ||
| Dividend per share (p) | 0.2 | 0.4 | 1.0 |
Cash Flow & Balance Sheet
Year end: March (£m unless shown)
| 2019 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| Operating cash flow | 3.6 | 2.5 | 16.7 | ||
| Free Cash flow | 1.0 | 0.7 | 12.5 | ||
| FCF per share (p) | 0.8 | 0.4 | 7.8 | ||
| Acquisitions | (3.6) | 0.0 | 0.0 | ||
| Disposals | 0.0 | 0.0 | 0.0 | ||
| Shares issued | 3.5 | 0.1 | 0.0 | ||
| Net cash flow | 0.9 | 0.0 | 11.2 | ||
| Overdrafts / borrowings | 0.0 | 0.0 | (1.5) | ||
| Cash & equivalents | 4.7 | 4.7 | 15.9 | ||
| Net (Debt)/Cash | 4.7 | 4.7 | 14.4 |
Nav & Returns
Year end: March (£m unless shown)
| 2019 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| Net asset value | 20.9 | 20.3 | 24.5 | ||
| NAV/share (p) | 12.4 | 12.0 | 14.1 | ||
| Net Tangible Asset Value | 7.3 | 6.8 | 11.1 | ||
| NTAV/share (p) | 4.3 | 4.0 | 6.4 | ||
| Average equity | 14.1 | 20.6 | 23.3 | ||
| Post-tax ROE (%) | 16% | 5% | 29% |
Metrics
Year end: March (£m unless shown)
| 2019 | 2020 | 2021 | |||
|---|---|---|---|---|---|
| Revenue growth | 10.8% | 5.5% | 80.0% | ||
| Adj EBITDA growth | 39.1% | (45.2)% | 356.2% | ||
| Adj EBIT growth | 41.1% | (63.8)% | 522.7% | ||
| Adj PBT growth | 40.8% | (64.1)% | 494.1% | ||
| Adj EPS growth | 19.0% | (70.4)% | 474.8% | ||
| Dividend growth | N/A | 93.2% | 150.0% | ||
| Adj EBIT margins | 18.0% | 6.2% | 21.4% |