A marked improvement in trading conditions pushed annual profits sharply higher at investment bank and stockbroker Numis Corporation (NUM). Institutional commission and trading revenue rose to a record high, up by a half from the previous year at £37.2m, while income from corporate and issuance transactions jumped by three-quarters to £33.5m.
Numis managed to complete seven initial public offerings (IPOs), 31 secondary market equity placings and five retail bond offerings, meaning total funds raised for its clients jumped from £717m to a record £2.2bn. Notable deals included IPOs for Crest Nicholson (CRST), esure (ESUR) and Foxtons (FOXT), and retail bond issuances for Workspace (WKP), Helical Bar (HLCL) and St Modwen (SMP). Corporate client numbers grew by 28 to 156, helping push up retainer fees by 13 per cent to an annual run rate of just under £8m, and Numis also secured its biggest ever broking client by market capitalisation after being appointed joint broker to Daily Mail & General Trust (DMGT).
Inevitably, salary payments rose and contributed to a 21 per cent increase in administrative expenses to £59.2m, but Numis retained a strong balance sheet, with cash balances doubling - that's mainly due to strong cash inflows, which included a £12m realisation on the group's investment portfolio, the valuation of which consequently fell to £10.5m. Trading since the year end has continued to improve, and the deal pipeline is building strongly.
| NUMIS CORPORATION (NUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 298p | MARKET VALUE: | £344m | |
| TOUCH: | 291-298p | 12-MONTH HIGH: | 316p | LOW: 114p |
| DIVIDEND YIELD: | 3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 92p | NET CASH: | £71.2m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 47.5 | -10.5 | -8.40 | 8.00 |
| 2010 | 51.9 | 0.18 | -0.10 | 8.00 |
| 2011 | 54.2 | 0.18 | -0.70 | 8.00 |
| 2012 | 50.1 | 4.15 | 3.20 | 8.00 |
| 2013 | 77.7 | 22.6 | 16.9 | 9.00 |
| % change | +55 | +445 | +428 | +13 |
Ex-div: 11 Dec Payment: 14 Feb | ||||
