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Numis Corp PLC said on Friday its first half performance was hurt by tricky macroeconomic conditions against a record comparator a year prior.
For its half-year ended March 31, the London-based investment bank noted ‘elevated volatility’ and ‘cautious investor sentiment’ in the market over the period.
Revenue dropped 36% year-on-year to £74.2 million from £115.4 million and pretax profit tumbled 66% to £13.4 million from £39.3 million.
Investment banking revenue dropped 41% to £48.0 million, against a record performance the previous year, led by a 61% decline in Capital Markets. Numis noted an absence of large equity capital market transactions, which led to average fees falling during the period.
Equities revenue fell 22% to £26.1 million, compared to an ‘exceptionally active’ period the year before. Institutional income outperformed the second half of financial 2021, it noted.
Brexit-related restrictions have hit its ability to engage with EU based institutions, Numis said, and it plans to re-establish those relationships via its Dublin office.
Numis declared an interim dividend of 6.0 pence per share, increased from 5.5p in the first half of financial 2021.
Shares in Numis were down 3.5% to 231.50 pence each in London on Friday morning.
Capital Markets activity since the period has recovered somewhat, and Equities continue to perform in the line with the first half run-rate, the firm said.
‘However, investor confidence remains relatively fragile given continued inflation concerns and geo-political uncertainty and therefore the capital markets outlook remains difficult to predict,’ said Co-Chief Executive Officers Alex Ham and Ross Mitchinson.
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