Numis Corporation (AIM:NUM) PLC said it has seen a slower start to its second quarter, as investor risk appetite and capital markets activity declined amid inflation and interest rate concerns, but that it is confident for the full year.
The stockbroker and corporate finance group released a trading update for the four months to end January 2022 ahead of its annual general meeting at 12.30pm today.
It said revenue for the first quarter to end December 2021 was in line with the strong second half performance of FY21.
An ongoing investment in strengthening its product capabilities underpinned Investment Banking revenues in the period. While continued momentum in mergers and acquisitions and Growth Capital Solutions, Numis' private markets business, largely offset lower revenues from initial public offerings (IPOs). The Equities business delivered a consistent performance and is well placed to benefit from any increase in market volatility, it said.
During the period, the group acted on its first US IPO and said it continues to make progress toward establishing an EU presence through its Dublin office which will enable it to target further revenue opportunities outside the UK.
“However, mounting inflation and interest rate concerns have impacted broader equity markets in recent weeks, with a reduction in investor risk appetite and capital markets activity. As such, we have had a slower start to our second quarter, albeit our pipeline and outlook for the second half across both M&A and Capital Markets is encouraging, and gives us confidence in the outcome for the full year,” it said in the trading statement.