Numis Corporation (LON:NUM ) said revenue for its third quarter to 30 June 2020 was materially ahead of each of the first two quarters of the financial year as more companies turned to capital raisings.
The stockbroking firm said investment banking had benefited from increased capital markets transaction volumes, which more than offset the decline in M&A deals and the prevalent absence of IPOs.
Average deal fees were ‘significantly higher’ during the quarter as Numis completed capital raisings for some of its larger corporate clients such as ASOS, Beazley, Ocado, and Unite.
Shares in Numis Corporation were trading 1.84% higher at 317.75p on Friday morning.
The group said equity trading maintained the positive momentum achieved in the first half.
While market volumes declined from the elevated highs experienced during the peak of the COVID-19 crisis, this was more than offset by strong trading gains during the period, it said.
Numis said revenue for the final quarter of the year will be dependent upon market conditions which it expects will continue to be influenced, to an extent, by the COVID-19 situation.
“However, we currently have a good pipeline of transactions, and we expect revenue and profits for the second half will be ahead of the first half,” the group added in the update.
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