(Alliance News) - Numis Corporation PLC on Friday said that it expects revenue for the full year to fall due to the weak performance of capital markets.
In a trading update, Numis said it expects full year revenue to be GBP144 million, 33% lower compared to its record performance in 2021. This fall was mainly a result of a 39% fall in investment banking revenue due to weaker capital markets trading.
Public and private markets experienced a significant reduction in deal volumes as the uncertain macroeconomic outlook impacted investors, Numis explained.
Its equities revenue will be about 17% lower than last year, with revenue performance in the second half weaker than the first because of lower institutional income.
The company said that, following regulatory approval, its Dublin office is operational and trading with a growing list of EU-based clients, in line with its international strategy.
However, the London-based investment bank reported record advisory revenue as it continues to diversify its business. It noted that it had a strong pipeline and its outlook for mergers and acquisitions revenue remained positive.
Looking forward, the company said it had a strong M&A pipeline and is acting as financial adviser on nine public bids with an average transaction value of more than GBP1.5 billion.
It cautioned that the wider economic and political environment remained highly volatile and that predicting any improvements from the capital markets would be very difficult.
Shares in Numis were trading 2.5% lower at 235.59 pence each on Friday around midday.
By Chris Dorrell; chrisdorrell@alliancenews.com
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