Material upgrades following ‘robust’ H2
In a very positive pre-close trading update, finnCap announced that it has traded ‘materially’ ahead of the Board’s (and our) expectations so far during the second half of its current financial year to the end of March 2021. With evident strength across the Group, the capital markets business performed well in finnCap’s Q3 while, so far in Q4, the M&A team saw the closure of a number of deals accelerate in the run-up to the UK budget. Guidance that revenues will now be in excess of £43m leads us to upgrade our revenue and EBITDA estimates for FY 2021E by 20% and 43% respectively. CEO Sam Smith noted that finnCap had continued to invest in the business during H2 and we believe that its strategy of developing a full suite of products for growth companies will continue to benefit the Group in a sometimes-volatile operating environment.