Numis Corporation

LN: NUM

£246.6m market cap

234.5p last close

Numis is one of the UK’s leading independent corporate advisory and stockbroking groups, offering a full range of research, execution, equity capital markets, corporate broking and advisory services. At the end of March 2019 it had 214 corporate clients.

Investment summary

Numis reported its H119 (to end March) results in May. Trading was affected by the uncertain UK political background and equity market volatility. Compared with H118, overall revenues were down 25% within which investment banking was down 24% and Equities 28%. The adverse background did not stop further growth in the franchise with the corporate client count increasing by a net six companies to 214. A reduction in variable compensation allowed the compensation ratio to be held stable. Even so, underlying operating profit was 58% lower and pre-tax profit was down 64% to £7.1m. Diluted EPS was 5.0p vs 14.6p, while the interim dividend was unchanged at 5.5p.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 130.1 36.0 38.3 25.9 9.1 6.3
2018A 136.0 30.9 31.6 23.0 10.2 5.9
2019E 117.6 19.3 18.1 12.7 18.5 N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 12/09/2019
Industry outlook

The timing and nature of an eventual resolution of the Brexit issue is likely to be a key determinant of a recovery in earnings for Numis and its peers. It does seem plausible that there is a significant level of deferred corporate activity that will eventually be released once confidence returns. Even without this there was evidence in the first half that Numis’s investment in supporting its service delivery was helping to limit the impact of reduced activity levels, especially in equity capital markets.

Last updated on 12/09/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.9 (9.5) (43.5)
Relative* 0.6 (9.7) (43.4)
52-week high/low 422.0p/221.5p
*% relative to local index
Key management
Alexander Ham Co-Chief Executive Officer and Director
Andrew Holloway Finance director
Oliver Helmsley CEO & Founder
Ross Mitchinson Co-Chief Executive Officer and Director

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