Numis Corporation - Market share gains but no H2 pick-up

Numis’s year-end update confirmed that the low levels of corporate activity seen in the first half persisted through the rest of the year. In these circumstances, matching first half revenues can be seen as a reasonable outcome for H219. FY19 revenue and profit are therefore set to be significantly lower y-o-y, but the franchise remains strong, with positive indicators including increases in corporate client numbers, private market revenues and market share within Equities. The potential for a substantial bounce back in earnings once conditions improve remains in place. In the meantime, reassurance is provided by the strong balance sheet position and continued commitment to developing the franchise.