LONDON (Alliance News) - Numis Corp PLC on Friday said it expects its profit for the year ending September to be lower than the previous year due staff costs being "materially" higher.
Shares in Numis were down 6.7% at 348.96 pence each.
The stockbroker and investment bank said it has experienced an "unprecedented" period of senior-level hiring, which has led to a 16% increase in headcount and which will result in lower profits for the year.
Numis said its trading performance was "good" but revenue in the second half did not match a "particularly strong" first half, resulting in it expecting revenue to increase by about 3%.
Lower average fees and the timing of deals in its Corporate Broking & Advisory division hurt the second half, the firm said.
In financial year 2017, Numis' revenue was GBP130.1 million, which made up the bulk of its total income of GBP133.5 million. The company's pretax profit in 2017 was GBP38.3 million.
Numis said its Equities division performed "well" and is expected to deliver revenue ahead of the prior year. What's more, the company said it is "encouraged" by the Equities division's performance amid the introduction of MiFID II regulations, which affect how research is paid for.
Numis will announce its preliminary results for the year ending September on December 5.
Co-Chief Executive Officers Alex Ham and Ross Mitchinson said: "Investment in talented individuals across the business has been a key priority during the year as we seek to strengthen and diversify the business for the future. Our track record and reputation has been a significant factor in our ability to attract highly respected individuals to the business.
"We believe Numis is very well positioned to capture further market share in the near term. Whilst deal related revenue was lower in the second half, our pipeline for the coming months is very strong and we are excited about the prospects for the business as we approach 2019."