Numis Corporation - Trading Update
05/07/2023 07:00
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RNS Number : 9740E Numis Corporation PLC 05 July 2023
Numis Corporation Plc ("Numis")
Trading Update
Numis, the international investment bank, today issues a trading update in
respect of the three-month period ended 30 June 2023.
Key highlights:
· Q3 total revenue was below the first half run-rate reflecting a
deteriorating market backdrop across the investment banking industry
· M&A revenues remain strong despite more challenging financing
markets, however capital markets revenues were impacted by cyclically low deal
volumes
· Market conditions are expected to remain difficult through the
remainder of FY23
· Acquisition by Deutsche Bank AG expected to complete during the
final quarter of this calendar year
M&A revenue growth partially offsets subdued capital markets
The enhancement of our strategic advisory capability continues to provide
greater resilience to our investment banking revenues. Year to date M&A
revenues are ahead of the FY 22 comparative period notwithstanding that
financing markets have become more challenging in recent months.
However, the M&A revenue performance continues to be offset by weaker year
to date capital markets revenues which are materially below the FY22
comparative period. Macro-economic concerns have resulted in a prolonged
period of exceptionally low deal volumes across the market and the effective
closure of the IPO market.
Equities impacted by weak investor sentiment
Equities revenues for Q3 were below the first half run-rate reflecting the
cautious UK investor sentiment. Both commissions and trading gains were lower
as equity markets were subdued, and UK-focused institutional investors
continued to experience outflows.
Outlook
We expect macro-economic concerns to persist and restrict deal volumes across
all investment banking products in the final quarter of FY23, however our
balance sheet position remains strong with both liquidity and capital
positions providing a stable foundation to the business. We remain focused on
growing the corporate client base, engaging with all our clients across the
business, and building the pipeline to ensure we are well positioned for
further growth when market conditions improve, and deal volumes recover.
Following the receipt of shareholder approval, the acquisition of Numis by
Deutsche Bank AG remains subject to various regulatory approvals and is
expected to complete during the final quarter of this calendar year.
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018.
Contacts
Numis:
Noreen Biddle-Shah, Head of Communications 020 7260 1441
FTI Consulting LLP:
Edward Bridges 07768 216607
Daisy Hall 07807 298568
Grant Thornton UK LLP (Nominated Adviser):
Philip Secrett 020 7728 2578
Harrison Clarke 020 7184 4384
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