(Sharecast News) - Annual profits at Numis Corporation are on course to come in "materially" higher than the prior year, the City stockbroker said on Monday.
Updating on trading ahead of the year end, the Aim-listed firm said revenues for the 12 months to 30 September were expected to be in excess of £150m, compared to £111.6m in 2019, while profits would be "materially higher" than last year's pre-tax profits of £12.4m.
In 2019, Numis was rocked by unfavourable market conditions, causing pre-tax profits to tumble 61% and revenues to fall 18%.
In the current year, however, Numis said its investment banking division had benefited from an increase in both deal volumes and average deal fees, while equities "broadly repeated the strong performance achieved in the first half".
Capital markets had functioned well during the first wave of Covid-19, it also noted, which "more than compensated for an absence of IPOs and subdued M&S volumes".
Alex Hann, chief executive, said: "This has been an extraordinary year for Numis, and our ability to react to unprecedented events with agility and conviction has contributed to a record annual revenue performance.
"Alongside assisting our corporate and institutional clients to navigate the impact of the pandemic, we were able to retain focus on our own strategic priorities. In particular, our private markets revenues have increased again this year and the outlook for this developing business lines is very encouraging."
The update supported the stock, sending it 1% higher by 1030 BST to 296.0p.
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