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finnCap Group PLC on Tuesday reported a swing to half-year loss, citing economic uncertainty and rising interest rates.
Shares were down 7.6% at 13.78 pence each on Tuesday in London.
For the six months that ended on September 30, the London-based stockbroker swung to a pretax loss of £2.6 million from a profit of £6.3 million the year before. Operating loss was £2.3 million, compared to a profit of £6.5 million.
Revenue fell 48% to £16.4 million from £31.7 million.
‘Since the invasion of Ukraine, a combination of economic uncertainty, sharply rising inflation and rising interest rates have hit investor confidence and the volume of UK equity issuance - our key driver of equity capital markets revenues - which has fallen substantially from recent, record levels’, the company noted.
Chief Executive Officer John Farrugia said: ‘Today’s results demonstrate the resilience of our diversified business model and that our strategy of building a broader-based financial advisory firm has benefitted us during this sharp downturn. Given the uncertain operating environment, no interim dividend will be paid and we will make a decision on a final dividend for [financial 2023] once we have completed the year and have greater clarity on the outlook for the business and our industry in 2023.’
finnCap did not declare a interim dividend.
Looking ahead, finnCap said the third quarter trading remains in line with full year expectations.
By Xindi Wei, Alliance News reporter
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