LONDON (Alliance News) - Broker Numis Corp PLC held its annual dividend Wednesday as profit fell on increased investment despite revenue rising, and as it cautioned of increasingly challenging markets ahead.
For the year ended September, pretax profit narrowed 17% to GBP31.6 million from GBP38.3 million the year prior. This was despite revenue rising 4.5% to GBP136.0 million from GBP130.1 million the year before.
Profit performance was hurt by investment in the business. Administrative expenses rose 12% to GBP106.4 million from GBP95.4 million the year prior after headcount at the firm jumped 15% during the year. The number of corporate clients grew to 210 from 202 the year prior, including 49 firms in the FTSE 350.
"We are pleased to report another year of record revenue alongside making substantial strategic progress toward our ambition of building the investment bank of a generation," Numis Co-Chief Executive Officers Alex Ham and Ross Mitchinson said.
"This has been a year of investment in people which, whilst impacting profitability, has strengthened our competitive position, expanded the range of services available to our clients and enhanced the overall quality of the Numis platform," Ham and Mitchinson added.
Numis proposed a 6.50 pence per share final dividend, flat on the year prior. For the full year, the dividend was also flat at 12.0 pence per share. During the year, the firm also acquired GBP16.3 million worth of shares through buybacks.
"Whilst market conditions have become more challenging in the past couple of months, our focus will continue to be on clients, responding to their needs and requirements as we seek to build our investment banking business and become the leading UK equities platform," Ham and Mitchinson continued.
In a separate announcement on Wednesday, Numis confirmed long-standing Non-Executive Director Geoffrey Vero will stand down at the firm's annual general meeting on February 5. Vero - a non-exec at Numis for 15 years - will be replaced by Luke Savage.
Savage was formerly chief financial officer of Standard Life PLC - now part of Standard Life Aberdeen PLC - between 2014 and 2018 and also held the same role at insurance market Lloyd's of London Corp between 2004 and 2014.
"Luke's extensive experience across the financial services industry and his attributes are ideally suited to Numis and will complement the range of skills of the existing board members," Numis Chairman Alan Carruthers said. "We are looking forward to working with Luke as Numis continues to progress its growth ambitions."
Shares in Numis were 2.0% lower at 271.50 pence on Wednesday.
