Numis sees first-half revenue rising 10%; has 'strong' liquidity position

Mon, 30th Mar 2020

Broking house Numis said it expected to report a 10% rise in first-half revenue, as weakness in its investment banking division was more than offset by strength in equities trading. In a trading update for the six months through March, Numis said the window available to execute transactions during the first half was limited, resulting in subdued investment banking deal volumes. The pressure, however, was partially offset by an increase in the company's average fee, resulting in an overall investment banking result marginally below the comparable period. Equities delivered a 'materially stronger' performance, benefiting from an improvement in activity levels subsequent to the UK general election, sustained through the current bout of market volatility. With regards to Covid-19, Numis said it had implemented remote working capabilities, which had enabled it to continue servicing clients. 'Whilst it is too early to predict the timing of a recovery in our investment banking pipeline, we are committed to supporting our corporate clients as they consider any actions they may implement to insulate and protect their businesses amid such uncertainty,' Numis said. The company said it had a 'strong liquidity and capital position'. 'Due to the ongoing Covid-19 situation and in view of recent regulatory communications regarding financial reporting, the announcement date of Numis' half year results for the six months ending 31 March 2020 will be confirmed in due course,' it added. Story provided by StockMarketWire.com

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