27th Sep 2019 08:48
(Alliance News) - Numis Corp PLC on Friday said its current financial year has been "challenging", and it expects to report a mid-to-high teen percentage decline in annual revenue.
The stock was trading 0.8% lower on Friday in London at 239.50 pence a share.
The stockbroker and corporate advisor said the political uncertainty and challenging market conditions which impacted performance in the six months to the end of March have persisted throughout the second half of Numis's current financial year.
Numis expects to report a "reasonable" second-half performance, delivering revenue in line with the first half and slightly behind the comparable period. For the six months to March 31, Numis generated revenue of GBP55.7 million.
This will result in revenue for the full year showing a mid-to-high teen percentage decline, Numis said, compared to the prior year's revenue of GBP136.1 million.
The company noted Investment Banking revenue has been impacted by lower deal volumes, but corporate client number grew to 217 from 210 at the start of the year. The Equities division meanwhile has delivered an improved second half performance, predominantly due to a better trading book performance, Numis noted.
Looking ahead, Numis said it has entered into a lease for new office space and intends to relocate during the second half of its financial 2021. The new office will add GBP3 million to the company's ongoing property costs, it said.
"2019 was a challenging year, characterised by market share gains but depressed activity levels across both Investment Banking and Equities," said Co-Chief Executives Alex Ham and Ross Mitchinson.
They added: "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."
Numis will announce its annual results on December 4.
By Evelina Grecenko; [email protected]
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