Stockbroker Numis reports record profits after bounceback in second half

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Aim-listed stockbroker Numis has announced record revenues and profits in the second half of its trading year as transaction activity increased.

Full-year revenue in the year ending on 30 September rose by 15 per cent compared to the previous year, Numis reported in a trading update delivered ahead of full results in December.

The record second-half revenues came after a weaker period, with revenues up 47 per cent compared to the first half and up 38 per cent on the second half of 2016.

Read more: Numis steals the crown of top City stockbroker from JP Morgan Cazenove

In the trading update co-chief executive officers Alex Ham and Ross Mitchinson said: “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.”

Numis’s corporate broking and advisory business completed 98 transactions over the year, compared to 86 in 2016, including equity fundraising totalling £2.5bn, a jump of almost 40 per cent on 2016.

Numis has been rapidly adding to its client list: last month it knocked JP Morgan Cazenove off the top spot of City stockbrokers by client numbers for the first time since data firm Adviser Rankings started tracking the relationships.

Smaller brokers have benefited in recent months from larger banks’ moves towards the top end of the market, although economic uncertainty in the UK has also restricted firms’ efforts to raise funds.

Numis remains confident of its prospects for the coming year, Ham and Mitchison said: “Whilst we cannot predict the direction of the market or the health of the equity issuance environment, there is good momentum in the business and we look forward to the future with confidence.”

The co-chiefs added they have increased their focus on “supporting unquoted companies” in capital markets.

Shares rose by more than 3.5 per cent at the time of writing.

Read more: Numis bosses confident of IPO pick-up despite market struggles hitting broker's profits

Full story: Stockbroker Numis reports record profits after bounceback in second half: City A.M.

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