Numis profits leaps to 442%

 

Numis, booming city broker triggers hefty bonuses for bankers and shareholders who include Lord Michael Spencer and Danish retail billionaire Andres Holch Povlsen.

Numis  based near St Paul’s is moving to Gresham Street in the City. Their half year revenue jumped 83 per cen to £115million with profits up 442 per cent at £39million.

Staff costs of £55million for six months spread over 287 staff suggesting average pay of nearly £400, 000 at the bank.

Average revenue   per head is over  £800. 000. The top deal makers  including co-chief executives  Alex Ham, 38 and Ross Mitchinson 43 will make millions.

 

Ham and Mitchinson have steered Numis from a small cap broker to serious player competing for deals with the biggest investment banks. They have floated Moonpig, Bytes and raised money for Klarma and Cazoo and many others.

The asset management of Numis stands at £1.3 billion.

Lord Spencer own 6 per cent and Holch Povlsen  also a big investor in Asos has 22 per cent.

The shares have  soared from 273p a year ago – today they rose 8p to 399p.

Numis has picked Dublin for its new EU office to target European clients cut off by Brexit rules. Numis aid mergers and acquisitions had also started to recover, driven by domestic and international buyers identifying attractive investment opportunities as the economic impact of the pandemic on the UK market eased.  The broker is also advising property group St Modwen on a £1.3bn takeover approach from Blackstone announced on Friday morning.

Numis has relied on reverse solicitation in effect, requiring EU clients to approach the broker for help.

Mitchinson said EU regulators were being “tough but fair” about requirements on opening the office, “ they want to see a well-capitalised business”.

The average market capitalisation of its clients has almost doubled, in part owing to the rebound in the FTSE and a focus on “growth stock” clients such as Asos and Ocado. However, Numis stopped working for businesses in the natural resources sector last year- partly owing to environmental, social and governance concerns about mining and oil – as these also tended to be smaller clients.