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Numis trades higher as it reports record second half revenues and profits

Published: 12:35 02 Oct 2017 BST

finance
Numis helped its clients raise £2.5bn last year

Shares in Numis Corporation PLC (LON:NUM) headed higher on Monday after the City broker reported a “very strong” second half.

Numis said revenues for the six months to 30 September were 38% ahead of those achieved I nthe same period last year, and 47% higher half-on-half.

As a result of the strong finish, full-year revenues are expected to have increased by around 15%, while profits should deliver a similar level of growth.

Record second half

“We are pleased to report that the second half was our best on record in terms of both revenue and operating profit,” said co-chief executives Alex Ham and Ross Mitchinson.

“In addition, we have increased our focus on supporting unquoted companies and playing a key role in developing the capital markets which support them. 

“Our deal pipeline is strong and we remain determined to support ambitious companies of all sizes seeking capital and high quality advice to grow.

The pair added: “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."

'Well-positioned' for introduction of MIFID II

Numis’ corporate broking and advisory (CB&A) business completed 98 transactions in total (2016: 86) and helped to raise £2.5bn for its clients.

Revenue from that side of the business jumped 15% year-on-year, the company said.

Commission in its equities business also increased by 15% thanks in part to “a background of generally positive equity markets”.

Numis added that it is “well-positioned” ahead of the implementation of MiFID II in 2018.

MiFID – or to give it its full name, Markets in Financial Instruments Directive – is the EU framework that covers the organised trading of financial instruments.

A ‘II’ version will come into force from January 2018 and essentially will mean that investment firms will have to pay for sell-side research.

Numis will announce its preliminary results for the year ended 30 September on Wednesday 6 December.

Shares gained 3.5% to 290.5p.

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