Numis posts a more than 60% decline in pre-tax profits

UK stockbroker Numis (LON:NUM) reported a 64% drop in pre-tax profits for the first half of the financial year, driven by slow trade in stock markets, a fall in the number of deals and a loss on a share issue.

For the 6-months ended 31st March 2019, pre-tax profits declined to £7.1 million, partly due to a decline in the valuation of companies in its investment portfolio, including mattress company Simba Sleep.

Revenue declined by a better than expected 25%, to £56 million. The decline was biggest for its trading business, dropping by 91% to £0.4 million, after investors unexpectedly rejected Kier’s emergency capital raising, to which Numis was left with a £3.1 million loss on the underwriting of the deal.

Numis shares ended the day down by 0.38%, at 264.50p.