(Alliance News) - Numis Corp PLC said Monday it expects its first half revenue to be 10% higher year on year.
Shares in the stockbroker were 13% higher in London on Monday afternoon at 234.00 pence each.
In the six months to March 31, 2019, Numis reported pretax profit of GBP7.1 million on revenue of GBP55.7 million.
"The six month trading period commenced during a period of elevated political uncertainty and ended with global markets suffering significant declines in reaction to the Covid-19 pandemic. The window available to execute transactions during the first half was therefore limited, resulting in subdued Investment Banking deal volumes for the period although this was partially offset by an increase in our average fee. As such, Investment Banking revenues are expected to be marginally below the comparable period," Numis said.
The broker said, however, its Equities unit delivered a "materially" stronger performance in the period, which more than offset the decline in Investment Banking.
Execution revenue was boosted by increased activity levels before the UK General Election, which has continued through the current market volatility, Numis said.
Numis also noted its trading book has performed materially ahead of the year before.
The company continued: "We are working closely with our corporate clients to assess the impact of Covid-19, and the unprecedented disruption that many of them are currently experiencing. Whilst it is too early to predict the timing of a recovery in our Investment Banking pipeline, we are committed to supporting our corporate clients as they consider any actions they may implement to insulate and protect their businesses amid such uncertainty."
Numis said it has a "strong" liquidity and capital position.
"We believe that now, more than ever, our balance sheet strength, market expertise and our long term partnership approach, ensure we are well positioned to provide broad support to our corporate and institutional clients during these unprecedented times," Numis added.
By Paul McGowan; paulmcgowan@alliancenews.com
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