City broker Numis reported falling revenues and profits today, as London’s faltering flotation market hit the firm.
But chief executives Alex Ham and Ross Mitchinson told City A.M. their initial public offering (IPO) pipeline is strengthening, and predicted an improved second half.
Numis also today announced its founder and former chief executive, Oliver Hemsley, would be stepping down from its board with immediate effect.
Numis’ revenue for the six months to 31 March was £52.4m, down eight per cent year-on-year.
The broker’s pre-tax profits, meanwhile, came in at £10.5m, down 38 per cent from £16.8m.
However, the firm kept its interim dividend flat at 5.5p.
Its shares dropped by as much as six per cent in early-morning trading, before recovering to a more modest drop for the day. At the time of writing, shares were down 1.5 per cent to 274p.
“We definitely don’t think the IPO market is shut or heading towards a close,” Ham told City A.M. “And, if anything… investors definitely seem to be supportive of the right companies coming to the market [and this] should help breed confidence for issuers considering going public.”
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Ham and Mitchinson said in a statement:
Numis delivered a creditable performance when viewed against record revenue generation in the comparable prior period and muted primary issuance market-wide. The business remains focussed on servicing its high quality corporate client base whilst, at the same time, expanding the franchise into supporting unquoted as well as quoted companies.
We believe our ability to nurture relationships with entrepreneurs and business leaders ranging from first fund-raisers through to stock market IPO candidates and into FTSE 100 market leaders gives us a unique insight into the UK's most exciting businesses. When coupled with the strong relationships we enjoy with our institutional clients, this provides an excellent platform from which to further develop and build the business.