TIDMFCAP
RNS Number : 7474D
finnCap Group PLC
01 July 2021
finnCap Group plc ("finnCap" or "the Company")
Preliminary results for the year ended 31 March 2021
Record revenue and profit performance
Financial Highlights
-- Total income up 84% to GBP47.6m (FY20: GBP25.9m)
-- finnCap Capital Markets revenue up 84% to GBP34.5m (FY20: GBP18.7m)
-- finnCap Cavendish revenue up 66% to GBP12.1m (FY20: GBP7.3m)
-- Adjusted PBT(1) of GBP9.6m (FY20: GBP1.6m); PBT of GBP8.4m (FY20: GBP1.2m)
-- Adjusted EPS:(1) 4.80p (FY20: 0.80p); Basic EPS: 4.41p (FY20: 0.49p)
-- Total dividends 1.5p per share (FY20: 0.80p)
-- Cash of GBP20.4m (31 Mar 2020: GBP4.7m)
FY21 Key Achievements and Strategic Development
-- Total deal and advisory fees of GBP33.4m (FY20: GBP16.0m)
-- Completed 76 transactions
o raised GBP723m equity through 36 public market placings and 4 IPOs
o advised on 16 public and private M&A transactions with an aggregate value of c.GBP600m
o debt advisory team delivered over GBP1m revenue raising GBP124m across 9 completed mandates
-- Key hires to support client service and revenue generation:
o ECM: investment in sales, corporate broking and ECM teams to
support increased deal flow and maintain high client service
o Broadening sector expertise: Human Capital Technology,
Consumer M&A, UK Technology and UK M&A; Consumer Equity
Research
o New Sources of Capital: Family Offices and Private Growth Capital fund-raising; and
o Origination function to support our private M&A activity
-- finnCap Analytics established: focused on servicing larger
hedge funds and institutional investors
-- Office move completed: integrating teams to enable them to
deliver best solutions for clients and providing space for future
expansion
ESG - Operating Responsibly
-- Leading on small-cap ESG reporting: developed proprietary
finnCap ESG Scorecard as well as partnership with and investment in
WorldWideGeneration Limited a leading provider of ESG benchmarking
software
-- Sustainability: External audit of our operating carbon
footprint; offset measures implemented and certified as Carbon
Neutral Organisation
-- Education Focus: continued support for charities and
enterprises focused on encouraging entrepreneurship skills and
understanding of business at junior and senior school levels
Current Trading (unaudited)
-- FY22 has started well with revenue ahead of last year
-- Cash at 29 June 2021 was GBP17.2m
-- Deal pipeline remains strong, subject to equity market
conditions, with a number of IPOs and equity fund raisings already
scheduled and the expected completion of a number of private
M&A transactions
-- FY22 outlook: Expect revenue to be in the GBP40-GBP50m range;
staff costs (excluding share-based payments) c.58-62% and non-staff
costs cGBP10m
FY21 and FY22 Dividends
-- Final dividend for FY21 to be paid as a second interim
dividend of 1.0p per share expected in August in advance of AGM in
September. Total dividends for FY21 of 1.5p per share (FY20:
0.80p)
-- Reflecting the strength of the Group's start to FY22 and its
cash resources, dividends payable for FY22 are expected to be no
less than 1.6p per share, in the absence of unforeseeable
circumstances
Commenting on the results, Sam Smith, Chief Executive Officer,
said:
" Our FY21 results are a testament to the great team we have
built over many years, and to our dynamic, collegiate and
smart-thinking culture in delivering our clients' ambitions. In an
extraordinarily complex environment, we completed 76 transactions,
increased total income by over 80% and, importantly, increased our
cash to over GBP20m.
Our stronger results allowed us to accelerate our strategy of
expanding our product suite for growth companies in the second half
making key sector and origination hires, increasing our capability
in our core ECM business and establishing access for clients to new
pools of capital.
FY22 has started well and our pipeline of deals expected to
complete in H1 is strong.
I would like to express my thanks to our staff for their
outstanding work and their profound resilience during the year. Our
collective resolve and ability to adapt to the unusual conditions
has underpinned our performance and the Group is in a much stronger
financial position to invest in our strategy."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
Contacts
finnCap Group plc Tel: +44 (0) 20 7220 0500
Sam Smith, Chief Executive Officer investor.relations@finncap.com
Richard Snow, Chief Financial Officer
Grant Thornton (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Philip Secrett/Samantha Harrison/George Grainger
Oberon Capital (Joint broker) Tel: +44 (0) 20 3179 5344
Mike Seabrook
finnCap Ltd (Joint Broker) Tel: +44 (0) 20 7220 0500
Rhys Williams / Tim Redfern
Hudson Sandler (PR adviser) Tel: +44 (0) 20 7796 4133
Dan de Belder/Rebekah Chapman
Notes to Editors
About finnCap Group
finnCap Group provides strategic advice, capital raising and
related services to corporate and institutional clients and high
net worth investors including private equity and family offices.
Established in 2007 the Group has built a strong track record in
equity advice and fund-raisings, public and private M&A, debt
arrangement and advice and act as NOMAD for clients listed on AIM
with a particular focus on the technology, life sciences, consumer
and business services sectors.
Notes : (1) Adjusted PBT and EPS are calculated excluding
share-based payments, amortisation of intangible assets from the
acquisition of Cavendish, non-recurring costs, the uplift from the
sale of the Group's stake in PrimaryBid Limited in FY21 and
includes, for EPS, an adjustment to normalise tax. The weighted
average number of shares in issue during the period excludes shares
held by the Group's Employee Benefit Trust.
Investor Presentation
Sam Smith CEO and Richard Snow CFO will provide a live
presentation relating to these preliminary results for the year
ended 31 March 2021 via the Investor Meet Company platform on 1st
Jul 2021 at 4:30pm BST. The presentation is open to all existing
and potential shareholders.
Investors can sign up to Investor Meet Company for free and add
to meet FINNCAP GROUP PLC via:
https://www.investormeetcompany.com/finncap-group-plc/register-investor
Investors who already follow FINNCAP GROUP PLC on the Investor
Meet Company platform will automatically be invited.
Record Results
In the year ended 31 March 2021, we delivered our best-ever
financial results whilst operating in the most complex operating
environment since finnCap was founded. Strong equity market
conditions and the impact of COVID-19 on clients - both positive
and negative - created extraordinary demand for our services and
pressure for our team to deliver.
In FY21 total income was GBP47.6m, up 84% on FY20 (GBP25.9).
Adjusted PBT at GBP9.6m was 6 times higher than in FY20 (GBP1.6m).
Cash was c.GBP20.4m, over four times higher than at the end of the
last financial year.
We have also continued our significant and focused investment in
the business and are therefore in a strategically stronger position
to capture growth opportunities as they arise in the future.
COVID-19 - making remote working work
The COVID-19 pandemic required a rapid response from our team
who redeployed the business to their homes and implemented our
disaster recovery plans flawlessly.
In line with the wider market, we planned for a severe economic
impact and took significant measures to preserve and improve
cashflow. Our actions included cancelling FY20 bonus payments,
pausing dividends, a company-wide staff salary reductions in Q1 and
making limited use of the UK government's furlough and tax deferral
schemes.
Against our initial expectations, activity in the capital
markets was extraordinarily good with wide institutional support
for fundraisings and IPOs by companies with strong investment cases
whether impacted by COVID-19 or not. We have particularly
benefitted from years of strategic investment in research and
investment banking capability in the life sciences and technology
sectors.
By October 2020, the business had reached a point where it no
longer needed to access UK government support schemes and we repaid
all outstanding amounts due to the UK Government and returned all
furlough support payments.
Market Dynamics
Overall equity issuance on AIM was high with c.GBP5.3bn raised
in the year. Our market share was c.13% (fundraisings greater than
GBP5m) reflecting our particular strength and historic investment
in the technology, life sciences and consumer sectors.
The corporate placings and block trade market was busy and fund
managers were highly receptive to:
- investment in COVID-19 related therapies
- providing support for companies impacted by COVID-19 UK
lock-downs; and
- providing funds to support strong growth-led investment
cases
Retail investors also returned to the equity markets, providing
increased liquidity and a further source of capital. The increased
liquidity and restored valuations also spurred on the IPO market
adding new companies and life to AIM.
The M&A market was altogether more volatile with the
COVID-19 uncertainty significantly impacting buyer confidence at
the start of the year. However, stronger equity markets and the
impact of owners' concerns about potentially adverse changes to
capital gains tax created much increased activity towards the year
end.
Strong Divisional Performance
finnCap Capital Markets generated GBP34.5m of revenue up 84% on
last year (GBP18.7m). Deal fees exceeded GBP20m for the first time
and there was a strong contribution from sales and trading.
Retainers - Total fees from retainers in the period were stable
at GBP6.4m (FY 20: GBP6.5m) and client numbers declined slightly to
119. In an environment where winning new clients has been
challenging - due to the move to working from home and continuing
client loss through delisting and takeover - we considered a
broadly stable client count to be a good outcome.
Transactions - Total fees received from transactions in the
period were GBP21.3m (FY20: GBP8.6m).
In the year, finnCap Capital Markets executed 64 transactions,
including raising over GBP720m across 33 equity fundraisings for
listed clients and four IPOs.
Notable deals included:
Life sciences : Synairgen (GBP94m - 2 deals); Avacta (GBP53m - 2
deals); Evgen Pharma (GBP11m) Destiny Pharma (GBP9.5m); and Open
Orphan (GBP12m)
Technology: Argo BlockChain (GBP26.8m); Ideagen (GBP48.7m);
RedCentric (GBP38.5m); Sopheon (GBP10m); Quartix (GBP28.9m); and
Xeros Technology (GBP14m - 2 deals)
Other key deals: K3 Capital (GBP30.5m); Revolution Bars
(GBP15m); and Surface Transforms (GBP19.7m)
IPOs : Dye and Durham - (deal size GBP100m); Elixxir
International (GBP25m); fonix Mobile (GBP45m) and Parsley Box
(GBP17m).
PLC M&A : GBP83m acquisition of Castleton Technology PLC by
MRI Software LLC; GBP79m acquisition of HWSI Realisation Fund
Limited by Cubbitt Trade Holdings Limited; GBP19m acquisition of
HML Holdings PLC by Harwood Capital LLP; the GBP23m mandatory offer
by Waterford Finance & Investment Limited for Gulfsands
Petroleum PLC; and the GBP30m acquisition of IndigoVision Group plc
by Motorola Solutions, Inc.
The debt advisory team, which works across both finnCap Capital
Markets and finnCap Cavendish, completed 9 mandates raising GBP124m
and billed over GBP1m for the first time.
Trading - Trading revenues were GBP6.7m (FY 20: GBP3.6m).The
team provided critical liquidity to our corporate and institutional
clients during a volatile trading period and benefited from
increased corporate activity across the equity capital markets and
the return of substantial retail demand to the AIM market.
In Q122 finnCap Capital Markets has continued to be highly
active with equity placings in particular the GBP60m secondary
placing of c.25% of Best of the Best plc in April. The pipeline
looks good with a number of IPOs expected for H2.
finnCap Cavendish experienced an M&A market that was
impacted significantly by COVID-19 - initially reducing buyer and
seller confidence and the availability of M&A financing. As
capital markets recovered and funding and confidence concerns
eased, we saw a significant increase in activity with a rush to
complete multiple deals in March 2021 due to the perceived
uncertainty around the impact of the UK budget.
finnCap Cavendish generated revenues of GBP12.1m, up 66% on FY
20 (GBP7.3m). In total, it closed 11 private M&A transactions
with an aggregate value of over GBP340m and with a much stronger
performance in H2.
Key deals included: the sale of Caselines to Thomson Reuters,
the sale of Systal to Inflexion and the sale of a stake in Margaret
Dabbs to an Asian Trade investor.
Activity levels remained good in finnCap Cavendish. In Q1 22 we
completed three deals in the human capital technology sector where
a new sector head was hired in mid FY21, and we strengthened our
Consumer team by hiring a new sector head and an M&A focused
director. The deal pipeline is stronger than at this time last year
with three deals currently awaiting regulatory approval.
Strategic Development
We continued to invest in our strategy - particularly in the
second half, when it became clear that business activity and
financial performance would continue to be strong.
We have made selective sector/product hires across:
-- Investment Banking: Human Capital Technology, Consumer M&A, UK Technology and UK M&A;
-- Consumer Equity Research;
-- Family Offices and private growth capital fund-raising; and
-- an origination/lead generation function to primarily support our M&A efforts
We also strengthened our equity sales, corporate broking and ECM
teams to ensure we have the capacity to service the needs of our
client base both now and as we grow.
In Sales and Trading, we established a new team to service a new
group of institutional investors. This team, finnCap Analytics,
offers analysis of market trends and events and execution services
predominantly around large cap equities. Activity began in April
2021 and will, over time, grow our secondary commission business
and establish relationships with the larger institutions and hedge
funds that will be increasingly important to our growing corporate
clients.
Our debt advisory business broke the GBP1m revenue threshold for
the first time and its pipeline of business, now sourced from a
wide range of situations across PE, M&A team and our ECM
clients, is good.
Finally, in September 2020, the Group occupied its new offices
at One Bartholomew Close having completed a COVID-19 compliant fit
out, successfully co-locating all parts of the Group. Alongside
this co-location, in order to further align our team, substantially
all Cavendish partners moved across to the Group's discretionary
bonus plan - giving up the deal specific bonus arrangements
historically used in Cavendish with an accompanying normalisation
of salaries. This is an important change encouraging team behaviour
and the best client service.
Whilst we have endured another UK lockdown since our move,
during the period that we could work together we have seen clear
signs of the synergies obtainable from all parts of our business
being in the same environment. The move has allowed staff to
co-operate and find the best solutions for clients - a key factor
that underpinned our decision to find new offices that would enable
us both to co-locate and also provide space for future headcount
growth.
In late 2020 we began to review potential M&A opportunities
including business services sectors and specific companies that
might form part of a third leg of the finnCap group, so expanding
our business potentially beyond its core financial services
offering.
Administrative expenses and FY22 costs expectations
Administrative costs increased by 53% over FY20 reflecting a
substantially higher discretionary bonus accrual arising from the
Group's strong financial performance. Despite higher discretionary
pay, staff costs as a percentage of revenue decreased to 60% from
62% last year, and remains in line or below our peer group.
Non-employee costs per staff member - a key efficiency measure -
have increased by GBP10k to GBP70k. This increase is caused by a
significant introductory fee paid to a third-party in connection
with an M&A transaction in H1; higher sales trading transaction
costs; and an increase in property costs, following our office
move. Other cost increases were partly offset by reduced travel and
marketing spend during the COVID-19 lockdowns.
Looking forward to FY22, we expect our staff compensation to
revenue ratio (excluding equity-based compensation) to remain in
the 58-62% range. Non-employee costs are expected to remain broadly
stable at c.GBP10m. Although our non-employee costs have risen on
an underlying basis - reflecting our investment in the IT and
related trading expenses for finnCap Analytics and the higher cost
of our new offices which provides substantial space for our future
growth - in FY21 we incurred the significant third-party
introductory fee, referred to above, and a higher holiday pay
accrual which is not expected to recur in FY22.
Non-recurring items
In September, the Group occupied its new offices at One
Bartholomew Close having completed a COVID-19 compliant fit out. We
have treated the new lease and related costs of c.GBP0.8m (being
interest and depreciation under IFRS 16), for the overlap period
until occupation in August, as a non-recurring item. In addition,
the Group incurred GBP0.1m of moving costs and c.GBP0.1m of
redundancy settlements. There were no non-recurring items in H2
21.
Capital and liquidity
The Group's cash position improved substantially to GBP20.4m
from GBP4.7m at 31 March 2020 as a result of the strong revenue
performance and careful cost control. The significant working
capital inflow is substantially driven by the payment to employees
and related payroll taxes for the FY21 discretionary bonus after
the year end.
Cash is stated before the balance of the GBP1.55m fit-out loan
which will be repaid over the next 5 years. The capital expenditure
on fit-out was c.GBP1.9m has been capitalised and will be
substantially written off over the life of the 10 years lease.
Dilapidations/make-good payments for the Group's previous
properties were from a profit perspective almost entirely covered
by historic provisions.
In October, the Group accepted a cash offer for 70% of its
holding in PrimaryBid Limited. In April 2021, after the year end,
we received GBP708k in cash. The profit from this sale and the
increased value of our remaining stake are recorded within other
income as a mark-to-market adjustment.
In December we made a GBP150k investment, as part of a larger
fundraising, in WorldWideGeneration Limited ("WWG") to support this
innovative ESG Governance software start-up as it moves from its
build to commercialising phase.
A stronger liquidity position and the longer-term financing of
our office move means that the Group is better able to withstand
challenging operating conditions, to support dividend payments to
shareholders as we grow profits and also positions us to make
further strategic investment over time.
Operating Responsibly
finnCap has always focused on operating responsibly and engaging
actively with its key stakeholders and the wider community, in
particular around youth entrepreneurship.
Environmental, social and governance (ESG) issues are finally
becoming mainstream and of clear relevance to providers of capital,
customers and colleagues alike.
We were pleased to invest in WWG, a leading ESG Governance
software provider and also entered into a commercial partnership to
assist in growing its client base by offering its service to our
clients on a one-year free trial basis. We also use this product
and its benchmark scores for finnCap are set out in the section of
this report called Operating responsibly - our approach to ESG.
Together with our partnership with WWG we continued to show
leadership in the governance and measurement around ESG with the
creation of our own finnCap ESG Scorecard to give small cap clients
the ability to take their first formal steps around ESG
reporting.
We have also hosted client education events around ESG,
targeting NEDs and executives and investors focused on ESG
reporting.
During FY21 we introduced a Volunteer Day programme which allows
employees to donate two days each year of their time to a chosen
charity or good cause without loss of pay.
After the year end, in May we entered into a partnership with
YourGamePlan to create free online training focused on
entrepreneurship, and a UK wide initiative to discover some of the
UK's brightest young entrepreneurial talent. The first initiative,
Your Side Hustle is open to 14-18 year olds who already have a side
hustle (part time job) or an amazing business idea with a GBP10,000
prize fund for the winners to help grow their business.
Rewarding Shareholders
The Board recognises the importance of income to its
shareholders and appreciated the support it received from
shareholders for its cancellation of the final dividend for FY 20.
This, in conjunction with the comparable contribution made by
employees from the cancellation of the FY20 discretionary bonus
plan, and the benefit of staff-wide salary cuts in Q1,
substantially improved our financial position as we entered the
pandemic.
Given the strong financial performance in FY21 and the improved
balance sheet position of the Group, the Directors intend to pay a
second interim dividend of 1.0p per share bringing a total dividend
for FY21 to 1.5p ahead of our commitment at the time of our
IPO.
Using a second interim dividend allows the Board to make a
dividend payment ahead of the AGM in September and to spread
dividends more evenly across the financial year. There will,
accordingly, be no further dividend paid in respect of FY21.
Dividend payment dates will be announced later this month.
Q1 Trading and Outlook
The financial year has started well with revenue ahead of last
year. Our ECM division has continued to raise equity and execute
block trades for clients and, alongside this, we have exchanged on
several private M&A transaction which are subject to regulatory
approval and expected to close in H1. Sales and trading activity
has been good and was supported by the first contributions from the
finnCap Analytics team which commenced activity in April.
Cash at 29 June was GBP17.2m reflecting the payment of staff
discretionary bonuses post year end offset by the continued strong
trading performance and receipt of funds from the sale of 70% of
our stake in Primary Bid plc.
Although it is still early in the year, our pipeline of business
is good, including several potential IPOs and M&A deals. Our
results will be influenced by the market's continuing receptiveness
to new equity issuance and IPOs, however, we currently look set to
have another strong performance in FY22 and expect revenue for FY22
to be in the GBP40-GBP50m range.
In recognition of the significant progress the group has made to
drive growth from its strategy, and our strong capital and cash
position, in the absence of unforeseen circumstances, the Board has
committed to declare aggregate dividends of at least 1.6p per share
for FY22 given the significantly strengthened balance sheet and in
line with our intention to hold minimum cash reserves (post
liabilities) of at least GBP10m.
Sam Smith
Chief Executive Officer
1 July 2021
Financial Statements
Consolidated Statement of Comprehensive Income
Year ended Year ended
31 March 31 March
2021 2020
(unaudited) (audited)
GBP'000 GBP'000
Revenue 46,629 26,006
Other operating income 926 (115)
---------------------------------------- ------------ -----------
Total income 47,555 25,891
Administrative expenses (37,628) (24,522)
---------------------------------------- ------------ -----------
Operating profit before non-recurring
items 9,927 1,369
Non-recurring items (1,047) (188)
---------------------------------------- ------------ -----------
Operating profit 8,880 1,181
Finance income 16 26
Finance charge (519) (24)
---------------------------------------- ------------ -----------
Profit before taxation 8,377 1,183
Taxation (1,346) (411)
---------------------------------------- ------------ -----------
Profit attributable to equity
shareholders 7,031 772
---------------------------------------- ------------ -----------
Total comprehensive income for
the year 7,031 772
---------------------------------------- ------------ -----------
Earnings per share (pence)
Basic 4.41 0.49
Diluted 4.24 0.46
There are no items of other comprehensive income.
All results derive from continuing operations.
Consolidated Statement of Financial Position
31 March 31 March
2021 2020
(unaudited) (audited)
GBP'000 GBP'000
Non-current assets
Property, plant, and equipment 14,589 635
Intangible assets 13,413 13,533
Financial assets held at fair
value 1,685 393
Deferred tax asset 888 171
------------------------------------ ------------ ----------
Total non-current assets 30,575 14,732
------------------------------------ ------------ ----------
Current assets
Trade and other receivables 7,782 9,037
Current assets held at fair value - 431
Cash and cash equivalents 20,434 4,695
------------------------------------ ------------ ----------
Total current assets 28,216 14,163
------------------------------------ ------------ ----------
Total assets 58,791 28,895
------------------------------------ ------------ ----------
Non-current liabilities
Trade and other payables 12,548 -
Borrowings 1,207 -
Provisions 95 40
------------------------------------ ------------ ----------
Total Non-current liabilities 13,850 40
------------------------------------ ------------ ----------
Current liabilities
Trade and other payables 15,478 8,469
Current liabilities held at fair -
value 72
Corporation taxation 748 64
Borrowings 343 -
----------------------------------- ------------ ----------
Total current liabilities 16,641 8,533
------------------------------------ ------------ ----------
Equity
Share capital 1,737 1,697
Share premium 956 616
Own shares held (1,726) (1,636)
Merger relief reserve 10,482 10,482
Share based payments reserve 1,132 388
Retained earnings 15,719 8,775
------------------------------------ ------------ ----------
Total equity 28,300 20,322
------------------------------------ ------------ ----------
Total equity and liabilities 58,791 28,895
------------------------------------ ------------ ----------
Consolidated Statement of Cashflows
Year ended Year ended
31 March 31 March
2021 2020
(unaudited) (audited)
GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 8,377 1,183
Adjustments for:
Depreciation 1,957 948
Amortisation of intangible assets 120 79
Finance income (16) (26)
Finance charge 519 -
Share based payments charge 744 110
Net fair value (gain)/loss recognised
in profit or loss (926) 115
Payments received for non-cash
assets (237) (275)
-------------------------------------------- ------------ -----------
10,538 2,134
Working capital movements:
Change in trade and other receivables 1,255 (495)
Change in trade and other payables 6,050 173
Change in provisions 55 (23)
-------------------------------------------- ------------ -----------
Cash generated from operations 17,898 1,789
Net receipts for current asset
held at fair value 503 680
Tax paid (662) (845)
-------------------------------------------- ------------ -----------
Net cashflow generated from operating
activities 17,739 1,624
-------------------------------------------- ------------ -----------
Purchase of property, plant and
equipment (2,042) (262)
Purchase of intangible assets - (9)
Proceeds on sale of investments 20 508
Interest received 16 26
-------------------------------------------- ------------ -----------
Net cashflow generated from investing
activities (2,006) 263
-------------------------------------------- ------------ -----------
Equity dividends paid (804) (1,218)
Proceeds from exercise of options 380 50
Purchase of own shares (90) -
Interest paid (46) -
Lease liability payments (984) (683)
1,550 -
Proceeds from borrowings -
------------------------------------------- ------------ -----------
Net cashflow generated from financing
activities 6 (1,851)
-------------------------------------------- ------------ -----------
Net increase in cash and cash
equivalents 15,739 36
Cash and cash equivalents at
beginning of year 4,695 4,659
-------------------------------------------- ------------ -----------
Cash and cash equivalents at
end of year 20,434 4,695
-------------------------------------------- ------------ -----------
Consolidated Statement of Changes in Equity
Share
Own Merger based
Share Share shares relief payments Retained Total
capital premium held reserve reserve earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
31 March 2019 1,688 575 (1,636) 10,482 292 9,534 20,935
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
Total comprehensive
income for the period - - - - - 772 772
Transactions with
owners:
Share-based payments
charge - - - - 110 - 110
Implementation of
IFRS16 - - - - - (70) (70)
Deferred tax on
share-based payments - - - - - (257) (257)
Dividends - - - - - (1,218) (1,218)
Share options exercised 9 41 - - (14) 14 50
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
9 41 - - 96 (1,531) (1,385)
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
31 March 2020 1,697 616 (1,636) 10,482 388 8,775 20,322
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
Total comprehensive
income for the period
(unaudited) - - - - - 7,031 7,031
Transactions with
owners:
Share based payments
charge (unaudited) - - - - 744 - 744
Deferred tax on
share-based payments
(unaudited) - - - - - 717 717
Purchase of own
shares (unaudited) - - (90) - - - (90)
Dividends (unaudited) - - - - - (804) (804)
Share options exercised
(unaudited) 40 340 - - - - 380
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
40 340 - - 819 (87) 947
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
31 March 2021 (unaudited) 1,737 956 (1,726) 10,482 1,132 15,719 28,300
----------------------------- --------- --------- -------- --------- ---------- ---------- --------
Notes to the consolidated financial statements
1. Accounting policies
a. Basis of preparation
These consolidated Financial Statements contain information
about the Group and have been prepared on a historical cost basis
except for certain Financial Instruments which are carried at fair
value. Amounts are rounded to the nearest thousand, unless
otherwise stated and are presented in pounds sterling, which is the
currency of the primary economic environment in which the Group
operates.
These consolidated Financial Statements have been prepared in
accordance with International Accounting Standards, in conformity
with the requirements of the Companies Act 2006 and those parts of
the Companies Act 2006 applicable to companies reporting under
International Financial Reporting Standards.
The preparation of Financial Statements in compliance with
adopted IFRS requires the use of certain critical accounting
estimates. It also requires Group management to exercise judgement
in applying the Group's accounting policies.
The consolidated financial information contained within these
financial statements is unaudited and does not constitute statutory
accounts within the meaning of Section 434 of the Companies Act
2006. The annual report and accounts for the year ended 31 March
2021 is expected to be filed with the Registrar of Companies and
posted to Shareholders in July. Further copies will be available
from the Company Secretary at the Company's registered office and
on the Company's web-site www.finncap.com.
b. Basis of consolidation
The Group's consolidated financial statements include the
financial statements of the Company and all its subsidiaries.
Subsidiaries are entities over which the Group has control if all
three of the following elements are present: power over the
investee, exposure to variable returns from the investee and the
ability of the investor to use its power to affect those variable
returns. Subsidiaries are fully consolidated from the date on which
control is established and de-consolidated on the date that control
ceases.
The acquisition method of accounting is used for the acquisition
of subsidiaries. Transactions and balances between members of the
Group are eliminated on consolidation and consistent accounting
policies are used throughout the Group for the purposes of
consolidation.
c. Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Chairman's Statement. The Strategic Report and
Directors' Report describe the financial position of the Group; the
Group's objectives, policies and processes for managing its
capital; its financial risk management objectives; and its exposure
to credit risk and liquidity risk.
The Directors believe that the company has adequate resources to
continue trading for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing the Annual
Report and Accounts.
2. Dividends
Year ended Year ended
31 March 2021 31 March 2020
GBP'000 GBP'000
Dividends proposed and paid during
the year 804 1,218
-------------------------------------- -------------- --------------
Dividends per share 0.50p 0.78p
-------------------------------------- -------------- --------------
Dividends are declared at the discretion of the Board.
3. Post balance sheet events
In April 2021, the Group received GBP708k in cash from the part
sale of its holding in PrimaryBid Limited.
4. Market abuse regulation (MAR) disclosure
Certain information contained in this announcement would have
been deemed to be inside information for the purposes of article 7
of Regulation (EU) No 596/2014 until the release of this
announcement.
5. Website publication
The full financial statements are included in our annual report,
which will be published on the Company's website in accordance with
legislation in the United Kingdom governing the preparation and
dissemination of Financial Statements, which may vary from
legislation in other jurisdictions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
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(END) Dow Jones Newswires
July 01, 2021 02:00 ET (06:00 GMT)
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