8th Dec 2022 12:43
(Alliance News) - Numis Corp PLC on Thursday saw its full-year profit and revenue drop, as it suffered from the challenging environment in capital markets.
In the year to September 30, the London-based investment bank reported a pretax profit plummet of 72% to GBP20.9 million, from GBP74.2 million a year prior.
Revenue fell 33% to GBP144.2 million from GBP215.6 million last year.
"Staying focused on our longstanding strategic priorities has enabled us to navigate the significant challenges of the year and demonstrate the growing resilience of our business and its ability to continue to deliver value for our shareholders through dividends and buy-backs," said Co-Chief Executive Officers Alex Ham and Ross Mitchinson.
Nevertheless, Numis' investment banking revenue dropped 39% to GBP94.2 million from GBP154.9 million last year, which the company noted was a record performance. This came as a 62% fall in capital markets revenue offset a 26% increase in advisory revenue.
Numis said that "the IPO market effectively closed after the first quarter and equity issuance by clients declined significantly as market turbulence impeded corporate growth strategies".
In equities, revenue fell to GBP50.1 million from GBP60.7 million, which the company described as "resilient".
Institutional income dropped 8.9% to GBP37.3 million, while trading income dropped 35% to GBP12.8 million.
Looking ahead, Numis said that the capital market outlook remains "challenging", with deal volumes still subdued and "unfavourable conditions persisting".
It warned that "market uncertainty and macro-economic conditions are likely to affect the investment banking industry for some time".
However, Ham and Mitchinson remained confident: "We benefit from a strong balance sheet and a long track record of growing the business through market cycles. We remain focused on delivering robust shareholder returns and executing our clear strategic plan which will include taking advantage of opportunities to enhance our capabilities during this period of market uncertainty."
The bank paid a final dividend of 7.5 pence per share, making a full year dividend of 13.5p, consistent with last year.
Shares in Numis were trading 0.3% lower at 183.00 pence each in London on Thursday afternoon.
By Chris Dorrell, Alliance News reporter
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