Numis (NUM) pushed revenue to a record high in the year to September, although underlying profits were lower as the broker ploughed more funds back into the business. Most of this went on increasing the headcount, which at the year-end stood 16.2 per cent higher than a year earlier.
For the most part, volatility levels were subdued, which supported equity issuance. And while the number of deals completed fell by 7 per cent, revenue from the corporate broking and advisory side grew by 4 per cent, spearheaded by a 20.8 per cent jump in advisory fee income. However, winning business in an increasingly competitive and volatile market will be more of a challenge in the coming year, although Numis hopes to counter the effects by attracting new clients and focusing on higher-value transactions.
Less primary issuance is expected in the coming year, but the broker is now much less reliant on generating income from IPOs, and is instead increasing its product offering in order to attract more clients and increase fee income. Corporate client numbers rose to 210, generating recurring revenue from retainer fees of £12.4m, up from £11.6m. Investment income halved to £1.7m following a decision to close its asset management business, where the performance was not seen as strong enough to invest in marketing the fund.
| NUMIS CORPORATION (NUM) | ||||
| ORD PRICE: | 271p | MARKET VALUE: | £286m | |
| TOUCH: | 271-278.5p | 12-MONTH HIGH: | 449p | LOW: 265p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 136p | NET CASH | £112m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 92.9 | 24.4 | 18.7 | 10.5 |
| 2015 | 98.0 | 21.5 | 19.5 | 11.5 |
| 2016 | 112 | 32.5 | 23.5 | 12.0 |
| 2017 | 130 | 38.3 | 27.4 | 12.0 |
| 2018 | 136 | 31.6 | 25.1 | 12.0 |
| % change | +5 | -17 | -8 | - |
| Ex-div: | 13 Dec | |||
| Payment: | 08 Feb |
