Numis Corporation

LN: NUM

£279.4m market cap

262p 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 AGM trading update (February) Numis indicated that Corporate Broking and Advisory was performing in line with H218 (which was 26% below H118). Average deal fees were in line with FY18 but the number of transactions was c 25% lower. Within the Equities business, lower trading activity by institutional investors meant that institutional revenue was c 25% lower. The challenging conditions also meant that the trading book generated a marginal loss in the period (for the whole of H118 there was a profit of £4.6m). Positively, research and sales revenue, based on current conversations with clients, is set to match the level of FY18.

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 10.1 N/A
2018A 136.0 30.9 31.6 23.0 11.4 N/A
2019E 124.9 26.0 25.4 18.0 14.6 N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 20/03/2019
Industry outlook

Market trends suggest profits will be lower again this year and, allowing for an improvement in the second half, we estimate a 22% reduction in EPS for FY19. However, Numis reports that the pipeline of opportunities remains strong and the investment in strengthening the franchise should mean that the company 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 20/03/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.0) 7.8 (29.5)
Relative* (3.8) (1.1) (31.0)
52-week high/low 440.0p/221.5p
*% relative to local index
Key management
Andrew Holloway Finance director

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