Numis Annual Profit And Revenue Rise Despite Low Corporate Activity

LONDON (Alliance News) - Stockbroker and investment bank Numis Corp PLC said Wednesday that, ...

Alliance News 7 December, 2016 | 7:42AM
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LONDON (Alliance News) - Stockbroker and investment bank Numis Corp PLC said Wednesday that, despite lower corporate activity, it was able to boost its profit and revenue in its recently completed financial year.

Numis reported that for its financial year that ended September 30 it made a pretax profit of GBP32.5 million, up 25% from GBP26.1 million the year prior. Revenue for the period was GBP112.3 million, increased by 15% from GBP98.0 million previously.

The company proposed a final dividend of 6.5 pence a share, putting its full-year dividend at 12.0p a share, a 4% hike from 11.5p the prior financial year.

Numis said it saw revenue growth across its business, as its Corporate Broking & Advisory division increased revenue by 14% to GBP73.9 million and the Equities business by 15% to GBP38.4 million.

Numis noted that this growth came despite a 29% drop in equity fundraising across London's Main Market and AIM during the financial year, which it said is partly explained by a "hiatus" in activity around the UK's referendum over European Union membership on June 23. The company said mergers and acquisitions activity also has been "muted", although it expects a pick-up in activity in the coming period.

Trading for the current financial year has been "solid", with 10 capital raises, including two initial public offerings completed to date, said Numis. The company also said its daily revenue within its Equities business is "performing well".

During the financial year, Oliver Hemsley, chief executive and co-founder, was succeeded by Alex Ham and Ross Mitchinson as co-chief executive officers. Numis said the transition "has been seamless".

"Numis generated record revenues in a year when stock-market performance was mixed, and market-wide corporate activity was muted. This demonstrates the robust nature of the business, and is testament to the quality of our people and the strong relationships that we enjoy with both our corporate and institutional clients," said Ham and Mitchinson.

By Adam Clark; adamclark@alliancenews.com

Copyright 2016 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Numis Corp PLC 249.75 GBX 3.10 -
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