City broker Numis warned today that Brexit has negatively affected its trading performance in the first four months of the financial year ahead of its annual general meeting (AGM) this afternoon.
Shares were down more than six per cent this morning as the firm revealed it had completed 25 per cent fewer deals compared to the first four months of the previous year.
Institutional income was also around a quarter lower than the same period of the previous year, and the broker’s trading book was “marginally loss-making”, it said.
“Since the start if the financial year, UK equity indices have suffered material declines and the domestic political situation has significantly impacted investor sentiment in the UK,” the company said in a trading update this morning.
“As a result the market backdrop has been particularly challenging for our corporate and institutional clients, which has ultimately impacted our trading performance in the first four months of the year.”
The broker added that it was not “materially impacted” by the first year of Mifid II implementation and does not anticipate a change in the value of payments for its research and sales offering in 2019.
“We have a good pipeline of opportunities, and would expect to see a meaningful increase in revenue, as and when there is greater clarity regarding the UK macro-economic and political landscape,” the company said.