Numis Corporation PLC (LON:NUM) said it is taking on more staff to cope with a boom in private company funding in the UK that is even outstripping its IPO business.
Revenues in its latest quarter to end June 2021 eased slightly from the first half of the year but at more than £50mln still remained strong and above the comparative period a year ago that was buoyed by Coronavirus (COVID-19) fundings.
“Overall, year to date deal volumes and average deal fees are materially ahead of the comparative period,” the stockbroker and corporate finance group said in a trading update.
“Whilst we have seen a strong contribution from IPOs in the quarter, M&A advisory and Growth Capital Solutions for private companies continue to deliver strong momentum.
“We believe these areas in particular offer significant opportunity to expand and improve the quality of our deal flow.”
Investment banking is going well across all areas, it added. Equities volumes and activity levels declined slightly relative to the very strong second quarter, though Numis said it gained market share while its own trading book did well.
“Whilst early in its development, we believe there is also a clear opportunity to expand our Equity Capital Markets offering outside the UK,” Numis added.
The broker said although it expects a seasonal dip in deal volumes over the summer, the pipeline for the remainder of the year and into next, remains "very strong".
“Following the very strong trading over the first nine months, we look forward to reporting a record performance for the full year.”