LONDON (Alliance News) - Numis Corp on Friday reiterated its guidance for a 26% decline in interim revenue amid lower volumes in the UK equity market.
In February at its annual general meeting, the stockbroker warned that the market environment in its half-year ending Sunday has been difficult, leading to the decline in revenue.
For its six months ended February 2018, Numis posted revenue of GBP74.1 million, 41% higher year-on-year.
Despite this, Numis said trading has improved in recent weeks due to a number of investment banking deals completed in March, especially placings for Just Group PLC and Randall & Quilter Investment Holdings Ltd.
Retirement financial services firm Just Group raised GBP80 million in a share placing, as well as GBP300 million in a debt offering, while insurance underwriting manager Randall & Quilter raised GBP107 million in an equity placing and open offer.
"Numis has achieved strong market share gains underpinning its Corporate Broking & Advisory revenues which are expected to be in line with the second half of the prior year," said Numis.
"Encouragingly, average deal fees have increased compared to the previous six months offsetting the impact of lower deal volumes. Equities revenues are lower than the comparative period reflecting depressed activity levels and the prevailing investor sentiment toward the UK."
Numis said it pipeline has grown in recent weeks, with a "notable" increase in M&A opportunities.
Numis will report results for the recent six-month period on May 3. Shares were 0.2% higher on Friday morning at 255.50 pence each.