Numis sees revenues plunge amid Brexit uncertainty and lower share prices
London-based stockbroker Numis has warned shareholders today that it expects to deliver revenue approximately 26 per cent lower in the first half of 2019 than it did in the same period a year before.
Read more: Numis warns of Brexit hit to trading performance
In a trading statement released this morning the company, which is listed on London’s Alternative Investment Market (Aim), said: “The market environment has been challenging throughout the first half.” It cited the “evolving political outlook”.
The City stockbroker’s statement follows a previous warning in February that Brexit uncertainty and a fall in equities prices were hurting the company’s profits.
It said in February: “The market backdrop has been particularly challenging for our corporate and institutional clients, which has ultimately impacted our trading performance in the first four months of the year.”
Today it said: “UK equity capital market volumes have declined materially during the period.” It also said that its future performance “will likely be influenced by the evolving political outlook and the associated impact on our corporate and institutional clients”.
It added: “Encouragingly, average deal fees have increased compared to the previous six months offsetting the impact of lower deal volumes.”
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“Numis has benefitted from an improvement in trading in recent weeks with a number of investment banking deals having completed in March, including capital markets transactions for Just Group and Randall & Quilter,” it said.
Numis’s half year results, covering the period to 31 March, will be published on 3 May.