Numis Corporation PLC (LON:NUM), the mid-market stockbroker and investment bank, said revenue has been “materially” ahead of expectations in recent months of the current financial period and it expects activity to increase as the year goes on.
In a trading update, the firm said that, although financial markets saw a “pause” in the run-up to the election, there had been a “material increase” in average deal fees in the investment banking business in the four months to 31 January compared to a year earlier.
Investment banking transaction volumes have been flat year-on-year but are expected to pick up as the year progresses, Numis added in the statement ahead of its annual shareholder meeting.
It noted that private markets transactions have “delivered a meaningful contribution” to investment banking revenues in the first four months of the financial year, boosted by the completion of a number of transactions for both UK and international companies.
“Very strong” trading was reported at Numis’s smaller Equities arm, with revenues said to be “significantly ahead” of last year, with increased market activity since the election driving an increase in institutional income.
With four months of the year having passed, the company expects payments for equity research and sales for the full year to be broadly in line with the prior year.
“We remain focused on executing our strategic objectives and establishing Numis as a diversified investment banking business,” the company's board said, adding that it felt “well placed to capitalise on an improvement in market conditions and deliver revenue and profit growth”.