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Numis gets third quarter boost from flood of company cash calls

Clients that raised cash in the broker's third quarter included ASOS, Beazley, Ocado, and Unite

Numis Corporation -
Companies have tapped shareholders hard during the crisis

Numis Corporation PLC (LON:NUM), the London-based stockbroking firm, said third-quarter revenue was materially ahead of each of the previous two quarters as companies rushed to raise cash to offset coronavirus fears.

Investment banking and equities trading both delivered strong performances, said the AIM-listed group, Companies raising money buoyed Investment Banking, it added, which more than offset the decline in M&A deals and absence of IPOs.

Average deal fees were also significantly higher during the quarter, Numis said, as some of its larger corporate clients raised cash including ASOS, Beazley, Ocado, and Unite. 

ASOS and Beazley both raised £247mln, Ocado £1bn including a convertible offer, and Unite £300mln.  

Equity trading, meanwhile, saw strong momentum continue from the first half, the broker added.

"Market volumes declined from the elevated highs experienced during the peak of the COVID-19 crisis, but this was more than offset by strong trading gains during the period," Numis said in its Q3 trading update.

 “Revenue for the final quarter of the year will be dependent upon market conditions, which we expect will continue to be influenced, to an extent, by the evolving COVID-19 situation.  

“However, we currently have a good pipeline of transactions, and we expect revenue and profits for the second half will be ahead of the first half,” the firm concluded.

In early trading. Numis shares were 2.6% higher at 320p.

Quick facts: Numis Corporation

Price: 300 GBX

AIM:NUM
Market: AIM
Market Cap: £315.65 m
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