Numis Corporation

LN: NUM

£404.1m market cap

375p last close

Numis is one of the UK’s leading independent investment banking groups, offering a full range of research, execution, equity capital markets, corporate broking and advisory services. It employs c 290 staff in offices in London and New York.

Investment summary

Numis’s update for H121 (to end March) reported continued very strong trading across the group. A 75% revenue increase to c £110m is expected. Investment Banking revenue is expected to be ahead of the high level achieved in H220, with increased IPO and M&A activity more than offsetting the tailing-off of COVID-19-related fund-raising for clients. Activity has tended to focus on those areas benefiting from changes accelerated by the pandemic evidencing Numis’s credibility in the digital economy. Equities is also expected to generate revenue ahead of H220, helped by increased market share, activity levels and strong gains on the trading book.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 111.6 15.3 12.4 8.1 46.3 N/A
2020A 154.9 39.6 37.1 26.7 14.0 N/A
2021E 185.0 57.3 52.4 36.7 10.2 N/A
2022E N/A N/A N/A N/A N/A N/A
Industry outlook

Reflecting the first half revenue guidance, we increased our FY21 revenue forecast by 14% to £185m cautiously assuming a normalisation of activity at some point in the second half (revenue assumed of c £75m). The outcome could be higher if current activity levels are maintained but the potential upside must be balanced against the considerable uncertainties surrounding the market and economic background. Operational gearing means that our FY21 pre-tax profit estimate was increased by 40% to £52.4m.

Last updated on 05/05/2021
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Sector
Financials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (0.5) 11.3 40.5
Relative* (4.6) 2.9 12.9
52-week high/low 391.0p/273.5p
*% 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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