28th Sep 2005 07:03
Numis Corporation PLC28 September 2005 EMBARGOED FOR RELEASE 7:00 am Wednesday 28 September 2005 Numis Corporation Plc ("Numis") PRE-CLOSE PERIOD UPDATE Numis Corporation Plc ("Numis"), the independent stockbroking and investmentbanking business serving mid and small cap companies, today issued a trading update ahead of the close period relating to the year ending 30 September 2005. Expected Results for the Year Ended 30 September 2005 Following an exceptional period of activity amongst its corporate clients, Numisnow expects to exceed current brokers forecasts for the year ended 30 September 2005. In particular, the Board expects revenues to be more than 90 percent upon last year and the Board believes that Profit Before Tax and Exceptional Itemsis now likely to reach £30 million. The Company also expects that, following its successful trading since the half year results and the sale of its interestin Squaregain Limited (formerly known as comdirect), its year-end cash balance will be in excess of £55m. Corporate Broking and Advisory The second half has been a busy period for existing and new corporate clients ofthe group. The number of corporate clients for whom we act has risen to 91 (2004: 73). During the period to date, our clients raised a total of £1,057m (2004: £388m) through 35 (2004: 19) transactions, demonstrating the benefits ofbuilding a diverse corporate client base. It is pleasing to note that over 40% of these funds were raised on behalf of existing clients, reflecting the strength of our corporate clientele and our relationship with institutional investors. Research, Sales and Trading We have continued to expand our research of UK quoted companies. The firm has astrong and recognised capability in more sectors than ever before, including aerospace and defence, building and construction, engineering, environmentalsystems and services, food producers, financials and insurance, leisure, lifesciences, media, mining, motor distributors, oil & gas, retail, support servicesand IT. Our sales and trading activities continue to flourish with commission rising byover 40% over the financial year to date. Although this is an increasingly competitive area, with greater focus on commission levels through electronic trading, there will always be a market for independent, well-researched and well-executed ideas that help to improve performance for our institutional clients. Market making at Numis is focused on client facilitation, rather than generatingproprietary trading profits, and it continues to build market presence and goodwill for Numis, as well as a satisfactory return on capital. We now act as market maker to over 290 stocks. Prospects We continue to make solid progress towards our goal of building Numis into aleading independent corporate broking house serving high quality UK and International mid and small cap companies. With this in mind, we have been strengthening both our corporate broking and corporate finance departments with high quality individuals and teams who wish to work within a growing independentstockbroker where they can participate in the direction and success of the business. The second half of our year has been exceptionally active. However, marketconditions are inherently volatile and we operate in a fiercely competitive industry where competition for clients and talented people is relentless. Our success and future growth depends on market conditions and our ability to continue to attract high quality clients and talented individuals. Therefore weremain cautiously optimistic. However, we are encouraged by the growing interestamongst overseas companies and investors in the UK stock market, a trend from which we expect to benefit in the long term. Enquiries: Oliver Hemsley - Chief Executive 020 7776 1500Bill Trent - Chief Financial Officer 020 7776 1500 Gill Ackers - Brunswick 020 7396 5382 28 September 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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