Numis Corporation PLC (AIM:NUM), the UK investment bank that has agreed to be taken over by Deutsche Bank, has revealed the full extent of the headwinds it has been up against as the equity markets turned choppy.
Revenues for the six months ended March 31, 2023, fell by 14% to £63.8mln, while pre-tax profits slid by 55% to £6mln.
Within that, income from investment banking, capital markets and equities fell 12%, 52%, and 17% respectively.
A 40% spike in advisory business failed to offset the overall decline that occurred against the backdrop of rising prices and growing political uncertainty, which in turn has hit the markets for IPOs and secondary fundraisers.
"Whilst capital markets volumes are likely to remain relatively low over the near term, we have started to see emerging indications that the second half may see relatively better conditions. Irrespective of the market environment, the financial position of the group remains resilient and our capital position strong," said Numis joint CEOs Alex Ham and Ross Mitchinson in the results statement.
Under the terms of the £410mln Deutsche Bank takeover, Numis investors will receive a 6p interim dividend.