Numis Corporation PLC Trading Update (8779N)
27 Septiembre 2019 - 1:01AM
UK Regulatory
TIDMNUM
RNS Number : 8779N
Numis Corporation PLC
27 September 2019
Numis Corporation Plc ("Numis")
Trading Update
Embargoed for release 7.00 am, 27 September 2019
Friday 27 September 2019 at 7.00am: Numis Corporation Plc
("Numis") is today issuing a trading update in respect of the year
ending 30 September 2019.
The political uncertainty and challenging market conditions
which impacted our first half performance have persisted throughout
the second half of the financial year. UK equity capital markets
volumes and trading activity in UK equities have both declined
significantly compared to the prior year. Against this unfavourable
market backdrop, Numis expects to report a reasonable second half
performance delivering revenues in line with the first half and
slightly behind the comparable period. This will result in reported
revenues for the full year showing a mid to high teens percentage
decline compared to the prior year, and a somewhat greater fall in
profit given the operational gearing inherent in the business.
Investment Banking revenues have been impacted by lower deal
volumes, particularly at the larger end of the transaction size
range. Challenging market conditions often present opportunities to
expand our corporate client base and we continue to add high
quality companies to our list. We currently have 217 corporate
clients, up from 210 at the start of the year.
Whilst public market deal flow has been subdued we have made
good progress growing our private markets presence, including
raising $460m for Swedish fintech business Klarna at a valuation of
$5.5bn. The increase in revenue attributable to private markets
transactions has partially offset the significant decline in UK
listed capital markets activities. We will continue to target the
revenue opportunities generated by the growing allocation of
institutional capital to private markets activity.
Equities has reported an improved second half performance
predominantly due to a better trading book performance. Execution
revenues and research payments have remained consistent with the
levels achieved in the first half, which suggests we have gained
market share against a market which contracted over the period.
Our headcount is broadly flat compared to the prior year-end as
we responded to the prevailing market uncertainty by focusing on
efficiency and productivity gains, however, our longer term growth
plans and strategy remain unchanged. We are pleased to confirm we
have entered into a lease for new office space given the upcoming
expiry of our current lease. We intend to relocate during the
second half of FY21 and expect the new office will give rise to an
increase of approximately GBP3m to our ongoing property costs,
including the impact of IFRS 16, commencing FY21.
Numis will announce preliminary results for the year ending 30
September 2019 on Wednesday 4 December 2019.
Alex Ham and Ross Mitchinson, Co-Chief Executive Officers
said:
"2019 was a challenging year, characterised by market share
gains but depressed activity levels across both Investment Banking
and Equities. The office move is indicative of our long term
ambitions for the business. Over the past 13 years in our existing
office we have doubled headcount, doubled the corporate client list
and seen the average market capitalisation of that client base
increase by a multiple of five. 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. 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."
27 September 2019
END
Contacts
Numis
Alex Ham and Ross Mitchinson, Co-CEOs 020 7260 1245
Andrew Holloway, CFO 020 7260 1266
Brunswick (Public Relations Adviser):
Nick Cosgrove 020 7404 5959
Simone Selzer 020 7404 5959
Grant Thornton UK LLP (Nominated Adviser):
Philip Secrett 020 7728 2578
Jen Clarke 020 7865 2411
Harrison J Clarke 020 7184 4384
Notes for Editors
Numis is a leading independent investment banking group offering
a full range of research, execution, corporate broking and advisory
services to companies and their investors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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