Record year for NUM after winning No 1 Small & Mid Cap Brokerage for the 4th year in a row
Companies: Numis Corporation Plc
Corporate advisor and stockbroker Numis Corporation Plc released its preliminary results on Wednesday, showing solid growth in revenue, pre-tax profits, and earnings.
The AIM-listed firm recorded the highest revenues in its 26-year history, beating FY15 by 15% at £112.3m. Numis performed well across the business, with Equities increasing revenue 15%, and Corporate Broking and Advisory increasing revenue by 14%:
"The strong performance within Equities was driven by our continued focus on offering best-in-class research, sales and execution services. This was recognised in the Thomson Reuters Extel survey, in which we were ranked No 1 UK Small & Mid Cap Brokerage Firm for the 4th year in a row."
The Group reported pre-tax profits of £32.5m, including nearly £4m from its investment portfolio, leading to a 21% increase in EPS and a modest 4% boost to its total dividend.
Cash generation continued to be strong, and Numis ended the year with £89m in the bank.
Co-CEOs Alex Ham and Ross Mitchinson said in a year that saw mixed performance on the stock market and muted market-wide corporate activity, Numis had generated record revenues, demonstrating the robust nature of the business:
"... [it is] testament to the quality of our people and the strong relationships that we enjoy with both our corporate and institutional clients. Numis has built an excellent franchise and we are excited to be leading the firm to the next level."
Numis has kicked off the new financial year well, with solid trading to date, 10 capital raising transactions including 2 IPO's already conducted, and daily revenues within Equities performing well.
NUM opened up c.2% in early trading and currently trades on a P/E multiple of 10.52x, slightly below the sector average of 13.