Stockbroker reports revenues from core activities have reached record levels
Companies: Numis Corporation Plc
Numis (AIM: NUM), one of the leading UK stockbrokers, has released an encouraging trading update ahead of FY Results, expected in early December. Revenue from core activities has reached record levels, with a healthy increase in both main divisions.
Primary-related activities reached record levels with revenue generated through corporate advisory and equity issuance activities rising 15% year-on-year.
"Numis completed a further 19 equity raises, including 3 IPOs. This brings the total number of equity deals in which we acted to 46 for the year with funds raised just below £1.9 billion."
This is an impressive achievement given the uncertainty caused by the Brexit vote during the period.
The list of corporate clients also grew over the period with a net increase of 15 which brings total corporate clients up to 198. This is an important number for a stockbroker because the corporate clients provide much needed recurring revenue through annual broker fees, as well as the prospect of further boosts to income through future corporate activity.
Trading, sales and research services delivered 13% higher revenues than the prior period:
"Our equity sales, research and execution activities also performed well during the year, increasing combined institutional commission and trading revenues by 13% year-on-year."
The current co-CEO's Alex Ham and Ross Mitchinson, commented:
"...the business continued to perform well during our second half despite the market-wide impact on equity issuance following the Brexit vote.
Our current deal pipeline is encouraging and we remain determined to support UK companies of all sizes seeking capital to grow, whilst simultaneously building long-term relationships with companies and investors."
Shares are up over 4% in early trading as investors welcome the healthy growth across the business.