Numis Corporation

LN: NUM

£275m market cap

258.5p 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 September 2018 it had 210 corporate clients.

Investment summary

In its H119 trading update Numis unsurprisingly reported that the weak equity market in the last quarter of 2018 and the continuing political impasse over Brexit cast a pall over first-half capital market activity. This resulted in a 26% reduction in group revenues vs a strong H118. Positively, against a much reduced level of transactions in the market, Numis gained market share and benefited from higher average deal fees. It also saw a pick-up in transactions in March.

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 10.0 7.0
2018A 136.0 30.9 31.6 23.0 11.2 6.5
2019E 119.7 22.9 22.3 15.8 16.4 12.0
2020E N/A N/A N/A N/A N/A N/A
Last updated on 25/04/2019
Industry outlook

Looking at our FY19 estimate, H119 corporate broking and advisory revenues matched the H218 level, slightly ahead of our estimate, so we have maintained out divisional estimate but trimmed our equities forecast. At a group level our revenue estimate was reduced by 4% feeding through to a 12% EPS reduction. The pipeline of opportunities remains strong and investment during FY18 to support the franchise is positive for longer-term growth and diversity of income. H119 results are due 3 May.

Last updated on 25/04/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.0 (2.1) (34.0)
Relative* (1.9) (9.9) (34.2)
52-week high/low 440.0p/221.5p
*% relative to local index
Key management
Andrew Holloway Finance director

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