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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

Political uncertainty rains over Numis’s parade

The broker has previously blamed Brexit for the unfavourable market conditions

Numis Corporation PLC (LON:NUM) shares dipped 2.69% to 235p mid-morning as political turmoil keeps stock markets under the weather.

The stockbroker is expecting revenues to fall by nearly a fifth and to report a “somewhat greater fall” in profit for the year to September.

READ: Numis blames Brexit uncertainty for plunge in profits

First-half profits slumped 64% to £7.1mln with revenue down 25% at £55.7mln.

The unfavourable UK conditions were offset by growth in private market business, such as the raise of £374mln (US$460mln) for Swedish fintech business Klarna.

Numis added the challenging market was also allowing it to expand the corporate client base, which grew from 210 to 217.

A head office relocation is scheduled for the second half of 2021 as the broker's headcount has doubled over the past decade and this will add £3mln to property costs.

“Whilst prevailing market conditions are difficult, we have a very strong balance sheet and exceptional people serving an enviable list of retained corporate clients and high-quality institutions,” said co-chief executive Alex Ham.

“We are well-positioned to continue to capture greater market share and we will continue to focus on executing our long-term strategy to build a more diversified investment banking business.”

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