Numis Corporation plc (LON:NUM) shares fell after the broker reported a 38% drop in half year pre-tax profits to £10.5mln and announced its founder was stepping down from the board.
Shares declined 1.17% to 275.0p at midday.
Oliver Hemsley, the company’s founder and former chief executive, will leave the board with immediate effect but will continue to be an adviser to the business for the next 12 months. Hemsley handed over the chief executive role to Alex Ham and Ross Mitchinson last September.
In a statement, the joint chief executives said: “The board is enormously grateful to Oliver for everything he has done for Numis. He founded the business in the early 1990s, and led the business as CEO for over 25 years. His leadership, energy and drive have been invaluable to its success and we are delighted that he will remain with the Company in an advisory capacity.”
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Alongside the announcement, the company posted an 8% decrease in total revenue to £52.4mln in the six months to 31 March.
However, Numis stressed that the drop in revenue was set against record highs the same period a year ago.
Corporate broking and advisory revenues fell 26% to £29mln and the group completed just two initial public offerings in the period, compared to 10 the same period a year ago.
Revenue in the equities division, on the other hand, rose 31% to £23.4mln.
Numis left its interim dividend unchanged at 5.5p.
The results and the departure of Hemsley come as broking houses tackle falling commission rates and prepare for upcoming regulatory changes.