Numis expects to report year-on-year revenue and profits growth despite IPO volume plunging in UK and globally
Initial public offerings (IPOs) are helping Numis Corporation grow revenue and profits.
In a trading update, the company said it expects to report year-on-year growth in the six months to 31 March 2016.
Numis said issuance activity has remained strong during the period and that it has completed 27 equity transactions, including 10 IPOs, so far this financial year.
Numis also said it has a number of corporate transactions due to complete in April and beyond.
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This is despite the fact 2016 IPO volume has dropped both globally and in the UK in 2016.
The global market has plunged to its lowest year-to-date level since 2009. Between 1 January and 29 March, the volume was $13.2bn, down 67 per cent on the same period in 2015.
And, after reaching record levels in last year, London's IPO market for the first quarter of this year slumped to £1.6bn – down from $4bn during the last quarter of 2015.
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In its full-year results to the end of September 2015, Numis reported group revenue was up six per cent, from £92.9m to £98m. Its pre-tax profits, meanwhile, were up seven per cent to £26.1m.
In a trading update today, the company said: “Numis is… expected to report revenue and profits above the first half of last year when half year results for the six months ending 31 March 2016.”
Just before 1pm today, Numis's share price had dropped around one per cent to 199.34p.