30 Mar 2020 07:00
Numis Corporation Plc ("Numis")
Trading Update
Numis Corporation Plc ("Numis") is today issuing a trading update in respect of the six month period ending 31 March 2020.
Numis is expected to report revenue approximately 10% higher than the first half of the prior year. 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.
Equities delivered a materially stronger performance, more than offsetting the Investment Banking revenue decline. Execution revenues benefited from an improvement in activity levels subsequent to the UK General Election; this has been sustained through the current market volatility experienced in recent weeks. In addition our trading book performance has been strong across the period delivering gains materially ahead of the prior period.
Operationally we responded to COVID-19 promptly and successfully implemented comprehensive remote working capability which has enabled us to ensure both the safeguarding of our staff and the ability to continue servicing our clients across the business throughout this period of uncertainty.
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 benefits from a strong liquidity and capital position. Our cash balance is currently higher than the position reported at year end, in addition we have an undrawn, committed credit facility of £35m. 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.
Due to the ongoing COVID-19 situation and in view of recent regulatory communications regarding financial reporting, the announcement date of Numis' half year results for the six months ending 31 March 2020 will be confirmed in due course.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014
Contacts:
Numis Corporation:
Alex Ham & Ross Mitchinson, Co-Chief Executives 020 7260 1245
Andrew Holloway, Chief Financial Officer 020 7260 1266
Brunswick:
Nick Cosgrove 020 7404 5959
Simone Selzer 020 7404 5959
Grant Thornton UK LLP (Nominated Adviser):Philip Secrett 020 7728 2578
Harrison Clarke 020 7865 2411
Niall McDonald 020 7728 2347
Notes for Editors
Numis is a leading independent investment banking group offering a full range of research, execution, corporate broking and advisory services to companies and their investors. Numis is listed on AIM, and employs approximately 280 staff in London and New York.