Diversified businesses produce resilient performance
finnCap has reported interim numbers to the end of September 2019 in line with October’s trading update – albeit that PBT of £1.4 million is a touch ahead of the number mooted in that announcement. A change in year end and the acquisition of Cavendish in December 2018 render comparison with the prior year somewhat redundant. However, as we noted in October, given the headwinds in certain markets – notably Equity Capital Markets (ECM) – this is a resilient performance, in our view. It serves to exemplify the growing proportion of revenues which finnCap now earns from outside ECM. Management has taken a pragmatic view on the prospects for the rest of the current financial year in citing the influences of external factors while emphasising the benefits of the Group’s diversified set of businesses. On that point, we note the early success in securing synergistic mandate wins as the enlarged group explores cross selling opportunities.