Numis flags fall in revenue amid tough trading conditions

Numis Corporation updated the market on its trading on Friday, ahead of the end of its six month period ending 31 March, reporting that despite the political situation remaining uncertain, it had benefited from an improvement in trading in recent weeks with a number of investment banking deals completing in March.

The AIM-traded firm said those transactions included capital markets transactions for Just Group and Randall & Quilter, and the merger of Primary Health Properties and MedicX.

However, as the company had indicated in its annual general meeting statement on 5 February, the market environment had been “challenging” throughout the first half, and as a result, Numis expected to deliver revenue around 26% lower than the first half of the prior year.

“Although UK Equity capital market volumes have declined materially during the period, Numis has achieved strong market share gains underpinning its corporate broking and advisory revenues which are expected to be in line with the second half of the prior year,” the board said in its statement.

“Encouragingly, average deal fees have increased compared to the previous six months offsetting the impact of lower deal volumes.

“Equities revenues are lower than the comparative period reflecting depressed activity levels and the prevailing investor sentiment toward the UK.”

Numis said it was continuing to focus on the execution of its strategy and delivering market share gains in all market environments.

Its pipeline jad grown in recent weeks, with a “notable” increase in merger and acquisition opportunities.

Notwithstanding the improvement in trading in recent weeks, the board said execution of its pipeline would likely be influenced by the evolving political outlook and the associated impact on its corporate and institutional clients.

“The announcement of Numis' half year results for the six months ending 31 March will be made on 3 May,” the directors confirmed.