Numis H1 revenues comfortably ahead of prior period

Institutional stockbroker Numis expects to report revenue in the region of £110.0m for the first half, representing growth of more than 75% year-on-year and comfortably ahead of its record second-half performance in 2020.

Numis said investment banking revenues had benefited from favourable market conditions and were materially ahead of the first half of 2020, which had been adversely impacted by the initial phase of the Covid-19 pandemic.

While the second half of 2020 was "significantly stronger" due to the volume of Covid-19 related fundraises, revenues for the current six month period were expected to exceed that performance.

"In particular, the positive equity market backdrop has supported an increase in IPO and M&A activity which has more than offset the tapering of fundraising activity for corporate clients," said Numis.

"Our strong track record in equity capital markets and credibility in the digital economy has enabled us to capture a significant share of IPO transactions over this period which has contributed to strong growth in both average deal fees and deal volumes."

The AIM-listed firm added that its equities unit was also expected to deliver revenues ahead of both the comparative period and the second half of the 2020 trading year.

As of 1005 GMT, Numis shares were down 0.40% at 378.0p.