Numis counts profits after becoming London's number-one broker
Numis Corporation
343.00p
16:44 13/10/23
Full-year profits from Numis Corporation were lifted 18% as the small- and mid-cap stockbroker enjoyed a strong second half and became the number-one firm in London by number of listed clients.
Financial Services
14,075.11
17:09 19/04/24
FTSE AIM 100
3,595.66
17:08 19/04/24
FTSE AIM 50
3,943.93
17:08 19/04/24
FTSE AIM All-Share
745.67
17:08 19/04/24
Record revenues were generated in both the equities and corporate broking & advisory businesses, to lift total turnover 16% to £130.1m.
Corporate broking arm Numis Securities, with 202 clients, now has the highest number of stock market clients in the City, according to the third-quarter survey from Adviser Rankings, to become the first firm to overtake JP Morgan Cazenove since the late 1980s. This helped the corporate broking & advisory business lift revenue 15% to £85.3m, with equities revenue up 17% to £44.8m.
Profit before tax of £38.3m benefited from £3.4m of net gains from a strategic investment portfolio. Earnings per share increased 17% to 27.4p as £22.9m of the £43.4m cash generated from operating activities was spent on share repurchases, with a total dividend for the year held at 12.0p.
Directors have pledged to pay a "stable" dividend and re-invest cash in the company, including "selective growth opportunities" and returning excess cash to shareholders "subject to capital and liquidity requirements and market outlook".
Co-chief executives Alex Ham and Ross Mitchinson, appointed last year as founder Oliver Hemsley stepped down, said the second half was strong thanks in part to a return of M&A activity in the corporate client base which prompted good volumes of both advisory and capital raising mandates.
"Our deal pipeline is strong and we remain determined to support ambitious companies of all sizes seeking capital and high quality advice to grow, whilst simultaneously investing in our people, platform and relationships."
They added that trading in the new financial year has "started well and gives us confidence as we head into 2018".
So far, Numis has completed 11 fundraisings in the new year, a number of M&A transactions and reported that revenue from the equities business was ahead of the 2017 daily run-rate.