STOCKBROKER Numis yesterday forecast a 20 per cent increase in revenues for the second half of the year compared to the first half, bucked up by an increase in deal related income from equity transactions and M&A deals.
The firm, which focuses on small to mid-cap clients, said overall revenues for the six months ending 30 September are expected to be in line with last year’s numbers for the same period.
This is despite a 20 per cent fall in second half combined institutional commission and trading revenues, as secondary volumes across the market plummeted.
Chief executive Oliver Hemsley said: “As a strong and well capitalised broker and adviser, we are taking the opportunity of industry dislocations to attract high quality corporate clients and staff to Numis.”
The broker, which is listed on FTSE’s Aim index, has managed to offset the poor numbers from commission and trading revenues by boosting revenue from deal making.
It gained increased revenue from ten equity transactions in the second half of the year, including three initial public offerings for firms, and what it called a “steady flow” of M&A activity. The firm has also established a foothold in the fast-growing retail bond market.