8th Feb 2022 10:04
(Alliance News) -Â Shares in Numis Corp PLC slipped on Tuesday after it revealed a slower start to its second quarter amid damped risk appetite among investors concerned by surging inflation and rising interest rates.
Shares in Numis were down 3.7% at 286.00 pence in London on Tuesday.
Revenue for the first quarter ended December 31 was in line with the strong second half performance seen in the last financial year. The London-based stockbroker and investment bank flagged continued momentum in its M&A and Growth Capital Solutions businesses as helping to offset shrinking IPO revenue.
During the period Numis acted on its first US initial public offering and continued to work towards establishing an EU presence through its Dublin office.
The Equities business delivered a "consistent" performance and should benefit from any increase in market volatility, the firm added.
However, Numis said: "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."
This pipeline gives the firm confidence in the full year, it said.
"Whilst market conditions will always influence our financial performance in the short term, we remain committed to our long-term strategy of building a broader, more diversified and resilient investment banking business," Numis added.
By Lucy Heming;Â [email protected]
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