Numis Corporation

LN: NUM

£272.7m market cap

255p 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 September 2018 it had 210 corporate clients.

Investment summary

Unsurprisingly, Numis’s AGM update highlights the difficult macro and equity market background in the first four months of the company’s financial year. Corporate transactions, equity issuance and investor activity are all subdued. The trading book has also suffered in these conditions. A positive indicator of the continuing strength of the franchise is that research and sales income are on track to be maintained. Our estimates are unchanged, although we note this would require a stronger second half than we originally assumed.

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 9.8 N/A
2018A 136.0 30.9 31.6 23.0 11.1 N/A
2019E 124.9 26.0 25.4 18.0 14.2 N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 21/02/2019
Industry outlook

Recent market trends suggest profits could be lower again this year and we reduced our estimate accordingly with a 30% reduction in EPS. Looking beyond this, the investment in strengthening the franchise should mean that Numis is well placed to achieve further significant growth through market cycles with a larger and higher quality corporate franchise and more diverse revenue streams.

Last updated on 21/02/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 5.4 (10.5) (23.9)
Relative* 2.6 (12.2) (22.4)
52-week high/low 440.0p/221.5p
*% relative to local index
Key management
Andrew Holloway Finance director

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