Numis’s annual profit doubled as the investment bank gained from UK initial public offerings but it warned markets were more uncertain in the current financial year.
Pretax profit for the year to the end of September rose to £74.2m from £37.1m a year earlier as revenue increased 39% to £215.6m.
The company proposed a final dividend of 8p a share, taking the annual payout to 13.5p – up 12.5%. Numis said this “rebased” dividend would give it flexibility to invest while providing consistent shareholder returns.
Revenue was boosted by a 53% increase to £154.9m at the investment banking division. The company said it benefited from an increase in UK IPOs and mergers as well as a recovery in equity markets.
Numis said revenue during the first two months of the current year was broadly in line with the second half with six IPOs completed. But it warned that sentiment had weakened.
Co-chief executive Alex Ham said: “Our pipeline of deals continues to be strong, featuring ambitious growth businesses looking to access equity financing. In addition, the UK M&A and global private markets continue to be active.
“However, supply chain challenges and inflation fears have certainly had an impact on investor sentiment toward the UK in recent weeks. As a result, execution of our capital markets pipeline, including IPOs, may be subject to greater uncertainty during the first half.”
Numis shares dipped 0.95% to 327.85p at 08:46 GMT.
