News Column

Numis Pretax Profit Almost Doubles In Half Year On IPO Wave

May 7, 2014

Samuel Agini

LONDON (Alliance News) - Numis Corporation PLC Wednesday said its first-half pretax profit almost doubled as it benefited from helping a number of companies launch initial public offerings on the London Stock Exchange and added to its list of corporate clients.

In a statement, the investment bank and stockbroker said pretax profit increased to GBP16.7 million in the six months ended March 31, from GBP9.0 million for the corresponding six months a year earlier. Revenue increased to GBP51.5 million from GBP32.4 million. Administrative expenses increased to GBP34.9 million from GBP26.5 million.

"The equity market has been resilient, and there is a marked increase in the number of high-quality companies seeking to access capital through an IPO in London. This increased activity, together with our existing corporate clients gaining in confidence, is feeding through to our results and the wider economy," Chief Executive Oliver Hemsley said in a statement.

During the reporting period Numis worked on IPOs for AO World PLC, McColl's Retail Group PLC, Arrow Global Group PLC, TwentyFour Income Fund Ltd and Custodian REIT PLC, while it also helped a number of already-listed companies to raise GBP1.1 billion of equity finance in secondary offerings, 6.6% of the total equity fundraising on the London Stock Exchange during the period.

Numis said added 16 new corporate clients during the period, bringing the total to 165 companies, an increase from 156 in September.

"Our second half has started well with the successful completion of IPOs for Brit, Polypipe Group and Cambian Group. Our deal pipeline remains strong and our market share in secondary institutional flow along with corporate issuance and transaction activity is improving," Hemsley said.

Numis increased its interim dividend by 25% to 5.00 pence a share.

Numis shares were Wednesday quoted at 289.82 pence, down 2.7%.

Independent AIM-focused broker finnCap also said Wednesday that it had benefited from the increase in corporate activity on the London market, with operating profit increasing to GBP5.0 million in the year ended April 30 from GBP2.6 million a year earlier. Revenue increased by GBP4.1 million to GBP15.5 million on the back of stronger corporate fees and trading revenues, finnCap said.

finnCap was recently admitted to the Financial Conduct Authority's list of sponsors, allowing it to work for listed companies on both AIM and the London main market.

In its most recently ended financial year, finnCap said it helped to raise GBP240.0 million, with 60 completed transactions, including three IPOs.

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Source: Alliance News