Numis Corporation PLC (LON:NUM) saw its shares fall on Wednesday as the City broker reported a drop in full-year profit due to increased investment and as it cautioned over increasingly challenging markets ahead.
For the year ended September 30, the AIM-listed firm said its pre-tax profit fell by 17% to £31.6mln, down from £38.3mln a year earlier, although revenue rose by 4.5% to £136.0mln, up from £130.1mln.
READ: Numis Corporation profits climb but no dividend increase
The group said its profit performance was hurt by investment in the business, with administrative expenses up by 12% to £106.4mln as headcount at the firm jumped by 15% during the year.
Numis co-chief executive officers Alex Ham and Ross Mitchinson commented: “Whilst market conditions have become more challenging in the past couple of months, our focus will continue to be on clients, responding to their needs and requirements as we seek to build our investment banking business and become the leading UK equities platform."
The company maintained its final dividend at 6.50p per share final dividend, giving a flat full-year payout of 12.0p per share.
In early morning trading, Numis shares were 25 lower at 271.50p.
In a separate announcement, Numis said long-standing non-executive director Geoffrey Vero will stand down at the firm's annual general meeting on February 5.
It added that Vero will be replaced by Luke Savage, formerly chief financial officer of Standard Life between 2014 and 2018.