Numis upbeat despite falling to yearly loss
INVESTMENT bank and stockbroker Numis yesterday reported a slip into the red last year due to the credit crunch, but said its new financial year had got off to an “excellent” start.
Numis racked up £14.7m of investment losses and charges in the year to 30 September, leading to a statutory pre-tax loss of £10.5m versus a profit of £16.1m a year ago.
The group had a tough first half after the collapse of investment bank Lehman Brothers and the ensuing hiatus in market activity and lending.
However, a return of confidence in the second six months boosted trading.
Chief executive Oliver Hemsley said: “We are encouraged by the improved market conditions during the second half.
“Our focus on maintaining a strong balance sheet has allowed us to build our franchise even through the most difficult market conditions experienced during the early part of the year.
“Our pipeline of transactions looks healthy and we are confident, markets permitting, that the business should perform well in the future.”
Numis has 122 corporate clients with an average market capitalisation of more than £200m, higher than it was at the market peak in 2007. Combined institutional commission and trading revenues rose six per cent.
The group’s focus on cost-cutting and keeping a strong balance sheet was helping it weather the downturn, Hemsley said.
It had also made an excellent start to its new financial year, raising £353m of equity funds for corporate customers.
Adjusted pre-tax profit halved to £4.2m against £8.4m previously on a slight fall in revenues to £47.5m from £50.7m beforehand.
The group’s balance sheet comprised net assets of £113.8m against £118.4m a year ago.
Numis raised its final dividend by 10 per cent to 5.5p.