Numis Corporation

LN: NUM

£303.5m market cap

291p 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 30 September 2019 it had 217 corporate clients.

Investment summary

Reflecting market conditions and as signalled in its year-end update, Numis’s FY19 results (announced in December) showed revenues down 18% on the prior year. Costs were controlled with total costs down 8% but even so PBT was down 61% at £12.4m partly due to valuation write-downs on the investment portfolio (£2.2m). The dividend was held at 12p and the balance sheet remains strong with no debt and cash of £84m. Importantly, Numis has continued to build its franchise as evidenced by a continue increase in its corporate client count (+7 to 217). The company noted that it has made market share gains in equities and that research payments have been resilient against a tough background.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 136.0 30.9 31.6 23.0 12.4 N/A
2019A 111.6 15.3 12.4 8.1 35.2 N/A
2020E 125.5 21.7 21.1 15.1 18.9 N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

The nature of the UK’s trade deal with Europe and other macro uncertainties remain in play but post election there is more clarity on the domestic political background. Numis is well-placed to benefit from this and a potential revival in investor and corporate confidence.

Last updated on 17/02/2020
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.7) 19.0 8.0
Relative* 2.7 16.6 3.6
52-week high/low 306.0p/212.0p
*% 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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