Stockbroker Numis profit slumps, says UK election could hit deals
Adds details on results, background, and shares
Dec 4 (Reuters) - UK stockbroker and corporate adviser Numis Corp NUM.L said on Wednesday that tough market conditions and the upcoming general election would potentially hit deal-making volumes in the short-term, while posting a 61% slump in its annual profit.
The company, listed on London's junior market and with offices in New York, earns from bourse transactions and advising companies on deals.
However, its investment banking unit has been hit by lower deal volumes, while global economic uncertainty and Brexit also took a toll on stock market transactions, hurting the company's equities division - challenges it has repeatedly pointed to.
Pretax profit slumped to 12.4 million pounds ($15.91 million) for the 12 months ended Sept. 30 from 31.6 million pounds last year, with revenue coming in 18% lower at 111.6 million pounds.
"Market conditions and the upcoming general election will likely impact the pipeline of deals in the short-term, but we remain well-positioned to progress our strategy," the company said.
Numis has benefited from many investment banking deals, including capital market transactions for Just Group JUSTJ.L and Randall & Quilter RQIH.L and the merger of Primary Health Properties PHP.L and MedicX.
The company, which has 217 corporate clients, said private market deals have been a bright spot and its overall revenue for the first two months of the new fiscal year was higher than the previous year.
Numis shares were down nearly 2% at 232.5 pence in light trading on Wednesday.
($1 = 0.7794 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Bernard Orr and Sherry Jacob-Phillips)
((Pushkala.A@thomsonreuters.com; Twitter: @pushkala_a; within UK: +44 20 7542 1810, outside UK: +91 80 6749 6633;))
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