| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.27 | 274 |
| Intrinsic value (DCF) | 4.44 | -58 |
| Graham-Dodd Method | 0.00 | -100 |
| Graham Formula | 0.05 | -100 |
Cavendish Financial plc (formerly finnCap Group plc) is a London-based financial services firm specializing in investment banking and capital markets solutions for growth companies in the UK. Operating in sectors such as technology, consumer, life sciences, and industrials, Cavendish provides a comprehensive suite of services, including equities research, capital raising (IPOs, placings, rights issues), M&A advisory, debt arrangement, and corporate broking. The firm serves listed and private companies, institutional investors, private equity funds, and family offices. Renamed in 2023, Cavendish has built a reputation as a nimble advisor to SMEs and mid-market firms, differentiating itself through sector expertise and a client-centric approach. Despite macroeconomic headwinds, the company remains a key player in UK small-cap finance, leveraging its strong relationships and execution capabilities.
Cavendish Financial presents a high-risk, high-reward proposition for investors. With a market cap of ~£36.6M (GBp) and negative net income (£-3.5M in FY2024), the company is exposed to cyclicality in UK small-cap activity. However, its diversified service mix (corporate broking, M&A, capital raising) and focus on growth sectors (tech, life sciences) offer upside if market conditions improve. A beta of 1.2 indicates higher volatility than the broader market. Positives include £20.7M in cash reserves and a modest dividend (0.55p/share), but £12.3M in debt and reliance on UK transaction volumes pose risks. Attractive for investors bullish on a UK small-cap revival.
Cavendish Financial competes in the crowded UK mid-market investment banking space by emphasizing sector specialization (notably tech and life sciences) and hands-on service for growth companies. Its competitive edge lies in its dual role as both corporate broker/NOMAD and advisory firm—a combination that fosters long-term client relationships. Unlike bulge-bracket banks, Cavendish focuses exclusively on the UK SME segment, offering tailored solutions without conflicts from larger institutional mandates. However, its scale limitations (~£48M revenue) restrict its ability to compete for mega-deals against global players. The 2023 rebranding to 'Cavendish' (from finnCap) appears aimed at elevating its profile, but execution risks remain. Competitors range from larger UK-focused firms like Numis to boutiques with similar sector niches. Cavendish's profitability challenges (-7.4% net margin) highlight pricing pressure in the segment, though its strong cash position provides runway for strategic hires or acquisitions.