Numis full-year profits up 87 per cent as it adds new clients and capabilities

INVESTMENT banker and broker Numis has strengthened its position, reporting improved profits as well as growing its client portfolio, it reported in its full-year results yesterday.

Operating revenues rose nine per cent to £51.9m, from £47.5m the previous year, and profit before tax grew 87 per cent to £7.9m from £4.2m, excluding one-off charges relating to its employee share scheme.

Numis has focused on strengthening the business by recruiting new teams, adding new capabilities and, crucially, growing its client base. It brought 29 new clients on board this year, taking the total to 133 and its stable of FTSE 250 clients to 26, chief executive Oliver Hemsley said.

The firm has also conducted major flotations such as Betfair, Ocado and Better Capital, he said. It assisted clients in raising £1.3bn in equity funds in the past year, 67 per cent more than the previous year.

“We have managed to attract a lot of very good quality clients,” Hemsley said.
Numis has strengthened its balance sheet, reporting net assets of £106.7m with £58.2m cash and collateral, and it lowered costs by seven per cent on the previous year.

Hemsley said he anticipates more M&A activity in 2011 and growing demand for non-bank lending from companies. “Banks will be curtailed in their ability to lend to corporate clients, so we think there will be significant opportunities,” he said.