Stockbroking and investment banking firm, Numis Corporation, has been battered by declines in equity fundraising activity and secondary trading, but a bullish update has given investors confidence in the firm's business case.
Total revenues for the six months to the end of March were £23.3m versus £26.5m in the corresponding period of 2011.
Operating losses widened from £202,000 last year to £1.295m in the current period. The loss before tax came in at £1.135m against a profit of £1000 at the same stage last year.
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The interim dividend has been maintained at 4p.
Many of Numis's clients are small cap or AIM listed companies, but as the firm points out "equity funds raised on AIM and the main market combined totalled just £4.5bn during our first half compared to £17.2bn during our first half of 2011."
In other words, it's tough out there, but Numis says it has seen a "discernable improvement in the pipeline of corporate deals". The Chief Executive, Oliver Hemsley, argues: "Difficult market conditions mean that consolidation is finally occurring in a market populated by far too many brokers and many large banks are cutting back significantly in areas where we compete. Ultimately these challenges will lead to Numis emerging as a premier and very profitable player when market conditions improve."
Investors appear to have taken him at his word, by 10:05 the stock had risen 14.2%.
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