Takeovers, mergers and new stock market floats boosted stockbroker Numis Corporation Plc (LON:NUM) which says it expects to report a 75% rise in revenues for the six-month period ending March 31 2021.
The broker highlighted that its trading has been “comfortably ahead” of what had previously been a company-record performance in its second half of 2020.
“Investment banking revenues have benefited from favourable market conditions and are materially ahead of the first half of FY20 which was adversely impacted by the initial phase of the pandemic,” the company said in a statement," Numis said.
“The investment banking performance in the second half of FY20 was significantly stronger due to the volume of COVID-19 related fundraises, however revenues for the current six month period will exceed that performance, highlighting the strength of our investment banking platform.”
“In particular, the positive equity market backdrop has supported an increase in IPO and M&A activity which has more than offset the tapering of fund raising activity for corporate clients.”
Numis, meanwhile, also told investors that its equities division is also expected to show performance ahead of its comparatives (versus the preceding period and year-on-year), as commissions from institutional clients have been boosted due to market share gains and higher activity levels.
The broker’s trading book delivered particularly strong and consistent gains, it added.
Looking ahead Numis anticipates more IPO and M&A activity in the second half of its financial year, and it also highlighted “strong traction” in private markets where it describes its clients as “some of the leading global technology disruptors.”
At the same time, the broker said engagement levels with the institutional clients remain at company-record levels.