(Sharecast News) - Stockbroker Numis said on Thursday that full-year revenues and pre-tax profits had fallen amid a "challenging" capital markets environment.
Numis stated revenues had dropped 33.1% year-on-year to £144.2m, down from the group's record performance in 2021 as market conditions deteriorated from "highly supportive levels".
Capital markets revenues were down 62% as UK equity capital market volumes dropped to a 10-year low, while investment banking revenues declined 39%.
Pre-tax profits tumbled 71.9% to £20.9m, reflecting operational gearing in the business, while earnings per share slumped 75.8% to 11.9p.
Cash slipped 21.2% to £105.7m, operating margins contracted 17.4 basis points to 14.2% and net assets remained broadly flat year-on-year at £185.2m.
Looking forward, Numis stated the capital markets outlook remained "challenging", with deal volumes remaining "subdued" and unfavourable conditions persisting as the market digests the impact of sustained inflation and higher interest rates.
"However, momentum in our M&A business has been maintained in FY23 with a strong near-term pipeline of transactions due to complete in the first half of the year. Our equities business has benefited from an improved financial performance in the first two months of FY23, driven by strong trading gains," said Numis.
As of 0830 GMT, Numis shares were down 2.40% at 179.20p.
Reporting by Iain Gilbert at Sharecast.com