21 June 2022

finnCap Group PLC ("finnCap", "Company" or the "Group")

Sam Smith to pass on baton after 24 successful years of leadership at finnCap

Proposed New CEO and appointment of new Directors

Notification of Results Date

After 24 years leading the finnCap business, Sam Smith, CEO, has announced her intention to step back from the CEO role in the autumn this year and move into an advisory role in the Group.

In 1998, Sam established a corporate finance business for JM Finn & Co. Ltd and led a MBO of this business in 2007.  Under her leadership, she and her team have grown the finnCap business into a leadership position as a NOMAD and broker to AIM companies having executed its IPO and acquisition of Cavendish Corporate Finance LLP ("Cavendish") in 2018.

The IPO and acquisition of Cavendish enabled the Group to pursue a strategy of revenue diversification and, alongside its original equity capital markets service, the Group now offers private and plc M&A advice services and has established debt advisory and private capital teams.  In May, it made its first move outside of financial services with its acquisition of a 50% stake in Energise Ltd, an ESG related sustainability consultancy.

In 2022, finnCap generated revenues c.£52m - over ten times more than the finnCap business generated in its first full year of operation.

Board Changes

Sam Smith will step down as CEO and as a director on 1 September 2022 and, in light of her knowledge and experience, she will remain as an adviser to the new leadership team and Energise.

The Board of finnCap also announces that John Farrugia, Managing Partner of finnCap Cavendish, the Group's M&A advisory business, will become a director of the Company following completion of the required AIM regulatory due diligence.  John will be appointed CEO Designate and, following FCA approval, will become CEO after Sam's departure.

John Farrugia became Managing Partner of finnCap Cavendish and joined the Group's executive committee in November 2020.  He has over 20 years' experience in investment banking, primarily within mergers and acquisitions.

In addition to the above, the Board also intends to appoint Geoff Nash, a founding shareholder and key member of the 2007 MBO, as a director of the Group.  Geoff is a senior leader in the ECM business and his appointment establishes a balanced and appropriate Board structure that reflects the two key business within the Group.  This appointment is also subject to completion of the required AIM regulatory due diligence.

Notification of Results Date

finnCap will issue its results for the year ended 31 March 2022 on 14^th July 2022.

Robert Lister, Chairman, said:

"Our thanks go to Sam for her leadership and guidance for finnCap over the past 24 years; we now look to the future and to working with her in an advisory capacity.  I am very pleased to confirm that John Farrugia, currently the Managing Partner of finnCap Cavendish, is going to be appointed as CEO Designate.  We also are pleased that Geoff Nash is joining the Board to ensure that it has direct access to insight on the capital markets industry and will represent the capital markets team.  He has been in the finnCap business for over 16 years having joined two years prior to the MBO. We look forward to welcoming both of them to the Board and working with them in the future."

Sam Smith, CEO said:

"After 24 years building finnCap into a leading advisory business for the mid-market, the completion of the integration of our excellent M&A division, finnCap Cavendish, and our expansion into other advisory services with our recent investment into Energise, an exciting sustainability consultancy, it is now time for me to step back.

After two record years of financial performance, I am delighted to be able to begin a handover process to John Farrugia our incoming CEO Designate. I have worked with him since our acquisition of Cavendish in 2018 and I know that in this role he can grow finnCap to the next stage.  As an adviser to him and his team, I will help them deliver a successful management transition and prepare for the growth opportunities ahead.  I will also remain as an adviser to Energise with to help it drive growth in this exciting new business area. 

It is an exciting time for workplace culture, ESG and diversity and Inclusion and I am looking forward to focusing on a non-executive career to champion these issues which I passionately believe in.

We have a truly great business with some amazing people, that I have loved working with and I am delighted to leave it in their very capable hands."

John Farrugia, CEO Designate said:

"I am looking forward to stepping into the role of CEO Designate, and we will now start the handover process to ensure a smooth transition. What has been achieved over the past 24 years under Sam's leadership has been truly remarkable and I am delighted to be entrusted with the leadership of the Group and continue developing the business over the foreseeable future.

We have built an exceptional financial services business providing a range of financial products and services which are unrivalled in the market in which we operate. I look forward to working alongside the dedicated and hardworking colleagues across the Group over the years to come."

Contacts:

finnCap Group plc                                                              Tel: +44 (0) 20 7220 0500

Sam Smith, Chief Executive Officer

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

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About finnCap

finnCap Group is a leading advisory firm for the business of tomorrow. The sector specialist service offering ranges from ECM and IPO, to Plc strategic advisory, debt advisory, M&A and private growth capital. finnCap Group comprises finnCap Capital Markets, finnCap Cavendish as a market-leading strategic M&A firm and has a global reach through its membership of Oaklins. 

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