2023 Interim Results
5 May 2023: Numis Corporation Plc (Numis) today announces unaudited interim results for the period ended 31 March 2023.
Alex Ham and Ross Mitchinson, Co-Chief Executive Officers at Numis, said:
"We are pleased that our business continues to perform resiliently despite the persistence of the unfavourable market conditions that have been a feature of the investment banking sector for the past 12 months or so. Diversification has been the foundation of our comparative resilience throughout this down cycle and this has been demonstrated by record revenues in our advisory business. This diversity also allows for us to maintain a focus on total shareholder returns through cycles with the interim dividend maintained at 6.0p per share."
"Whilst capital markets volumes are likely to remain relatively low over the near term, we have started to see emerging indications that the second half may see relatively better conditions. Irrespective of the market environment, the financial position of the Group remains resilient and our capital position strong."
· Revenue of £63.8m, down 14% compared to prior period as market activity remained subdued
· Profit Before Tax (PBT) of £6.0m, down 55%, due to the operational gearing in the business
· Investment banking revenues declined 12% as low capital markets activity was partially offset by record performance in our advisory business
o Advisory revenues up 40% year-on-year, with average fees up 204% compared to H1 FY22 and we are starting to build a broader pipeline of M&A transactions
o Capital markets revenues down 52% as UK ECM volumes dropped to a 10-year low
· Equities revenues down 17% as weak Q2 trading performance offset market share gains
· Resilient shareholder returns; interim dividend of 6.0p consistent with the prior year, and a further £4.4m spent on share repurchases
· Balance sheet position remains robust; strong liquidity and capital positions maintained despite prolonged period of unfavourable conditions
· On 28 April the Board of Numis and the Management Board of Deutsche Bank AG announced that they have reached agreement on the terms of a recommended all-cash offer by Deutsche Bank AG for the entire issued and to be issued share capital of Numis. Further details relating to the timetable of the Offer will be announced in due course.
General macro-economic sentiment continues to weigh on the outlook for the investment banking industry. Against that backdrop, our advisory business continues to perform well and has good pipeline of both buy-side and sell-side mandates for a range of clients reflecting our growing reputation in M&A and our progress in creating a proposition that delivers through market cyclicality. Capital markets volumes are likely to remain relatively low. However, there are some emerging indications that the historic lows we have recently experienced may give way to better conditions in the second half.