Numis posts record H1 revenues amid investment banking surge

Numis said revenues had surged 82.9% to £115.4m in the first half of the trading year, with investment banking revenues improving 123% thanks to a "significant volume" of Covid-19 related equity issuance, while advisory and capital markets revenues grew 72% and 177%, respectively.

Going the other way, corporate retainer revenue dipped 7.6% to £6.3m, principally due to the firm's strategic decision to exit the natural resources sector during 2020 which resulted in a 10% reduction in client numbers.

Equities revenue improved 27.3% to £33.4m, with institutional income coming in 11.1% higher year-on-year at £21.9m and trading revenues shooting up 75.7% to £11.5m.

Pre-tax profits increased 442% to £39.3m and underlying earnings advancing 325% to £38.8m. Earnings pre shares were up 365% at 25.7p.

Cash balances ticked up 2.4% to £97.6m, while net assets shot up 28.2% to £175.3m.

Co-chief executive officers Alex Ham and Ross Mitchinson said: "Our consistent focus on enhancing the firm's capabilities and strengthening our client relationships has contributed to an excellent and broad-based first-half performance. Over the last 12 months, we have generated revenues of more than £200.0m, an outcome we are particularly proud of given the range of expertise and advice demanded by our clients during this period.

"Whilst in the current environment there remains some short-term uncertainty, the business has great momentum, and the pipeline is strong. Execution of our capital markets pipeline will be influenced by equity market conditions but the outlook for the second half is encouraging."

As of 0905 BST, Numis shares were up 3.36% at 404.14p.