For the four month period ended 31 January 2020, institutional stockbroker and corporate advisor Numis Corp (LON:NUM) posted strong results, with performance ahead of the comparable period the year before.
Revenue was in line with management expectations. Despite the pause in corporate activity caused by the General Election, Investment Banking revenues were materially ahead of the prior year based on a material increase in average deal fees.
The company added that while transaction volumes for the year-to-date remain broadly in line with the previous year, they expected activity to pick up as the year progressed.
The real highlight came with the Group’s equities trading, which was ‘significantly ahead of the comparable period’. Strong market activity post General Election saw the company’s Institutional Income and trading book deliver consistently during the four month period.
Numis added that following its recent engagement with institutions, it thought its payments for Research and Sales for the full-year would be broadly in line with expectations.
Numis looks ahead
Discussing its strategy and outlook, the company’s statement read:
“We remain focused on executing our strategic objectives and establishing Numis as a diversified investment banking business. Private markets transactions have delivered a meaningful contribution to our Investment Banking revenues since the start of the financial year following the completion of a number of transactions for both UK and international companies. In addition our Equities business has now launched an electronic trading product which is targeted at capturing incremental revenue from new and existing clients, as well as enhancing our execution capabilities beyond UK Equities.”
“Our investment across the business over recent years alongside our strong corporate client base assists in ensuring Numis is well placed to capitalise on an improvement in market conditions and deliver revenue and profit growth.”
Investor notes
Following the update, the company’s shares dipped 1.38% or 4.00p to 285.00p per share 04/02/20 16:35 GMT. The Group’s p/e ratio stands at 32.84, their dividend yield is moderate at 4.15%.
