Final Results

Numis Corporation PLC
06 December 2007

                             Embargoed for release

                          7am Thursday 6 December 2007


                   Numis Corporation Plc Preliminary Results
                      for the year ended 30 September 2007


Numis Corporation Plc ('Numis') today announces preliminary results for the year
ended 30 September 2007. Numis is the holding company of Numis Securities
Limited, the independent investment banking and broking business.


Financial Highlights


   • A very good performance with total revenue up 21% to £87.6m (2006:
    £72.2m).


   • Profit before tax and before non-recurring property costs up 13% to
    £40.3m (2006: £35.8m), profit before tax after non-recurring costs up 9% to
    £38.8m (2006: £35.7m).


   • Basic earnings per share before non-recurring property costs up 13% to
    28.6p (2006: 25.4p).


   • Final dividend of 5.0p per share, making a total of 7.0p per share
    (2006: 5.0p per share) for the year, up 40%.


   • Strong balance sheet with net assets increased by 16% to £109.0m (2006:
    £93.6m) and cash balances by 5% to £78.4m (2006: £74.9m).


   • Total dividend and stock purchase returns to shareholders up 57% to
    £16.2m (2006: £10.3m)

Operational Highlights


   • Voted Leading Brokerage Firm for UK Small Caps in The Thomson Extel 2007
    survey and, for the second year running, achieving first places for
    Research, Trading & Execution and Corporate Access for companies with market
    capitalisation up to £1bn.


   • Institutional sales commissions up 39% to £27.6m from £19.8m


   • £1,182m raised for corporate clients in the period (2006: £1,465m) with
    73% of deals for existing clients.


   • Corporate client base increased to 109 from 101 with average market
    capitalisation also rising to £195m from £154m.


   • Staff revenue productivity per head remains high at £509,000 (2006:
    £498,000) and cost control maintained with pre-bonus expenses 43.1% of
    revenue (2006: 38.3%).


Commenting on the results, Oliver Hemsley, Chief Executive of Numis, said:


'As a result of the £8.8m net profit arising from the IPO of Abbey Protection
Group, profits are currently ahead of those at the beginning of December last
year despite difficult market conditions. Since the year end, we have added 8
new corporate clients and are well placed to increase this during the coming
year. We are determined to grow the business organically in a contracyclical
fashion. We will exploit the volatility in the market to attract clients and
staff to Numis and continue to build our franchise and create long-term value
for our shareholders'.





CHIEF EXECUTIVE'S STATEMENT


We are pleased to report that a very strong performance has delivered another
record year of profits for Numis. For the year ended 30 September 2007 total
revenue was up 21.3% to £87.6m (2006: £72.2m). Profit before tax and before
non-recurring property costs for the year rose to £40.3m (2006: £35.8m).
Underlying earnings per share (before non-recurring property costs) were 28.6p
(2006: 25.4p) while net assets increased to £109.0m (2006: £93.6m) and cash
balances to £78.4m (2006: £74.9m).


2007 has been a very active year for Numis and has seen the business develop
considerably. We have been successful in recruiting some first class people and
our secondary market trading business has grown significantly, both in the UK
and US.  Numis is becoming recognised as a leading investment banking and
broking business serving international investors and companies listed in the UK
.  In recognition of this progress, we have been voted Leading Brokerage Firm
for UK Stocks of less than £1bn market capitalisation in the 2007 Thomson Extel
Survey. We are also making significant progress in larger stocks and now have 7
FTSE 250 corporate clients, as well as having grown significant secondary market
share in many other FTSE 250 companies where we are not broker.


Numis has expanded internationally, further developing our successful business
in the USA and by opening an office in Kazakhstan. We listed the first Central
Asian fund in London raising $250m for investment into Kazakhstan and other
Central Asian countries. We continue to look at opportunities on a global basis
and where appropriate will commit resources to particular regions to develop
both our primary and secondary business.


We have built a very strong balance sheet which will allow us to take advantage
of current volatile markets. Numis' focus on balance sheet strength and risk
management will allow us to provide an excellent service to institutional and
corporate clients at a time when a number of our competitors are distracted by
current market conditions. We have avoided any direct exposure to the sub-prime
or structured credit markets. Whilst we are not immune from the challenging
stock market conditions we are well positioned to take advantage of current
difficulties and are committed to building the business during a downturn. Now
is the time Numis can attract high quality employees and further build our
client base aided by our strong balance sheet and focus on the equity market.


Corporate Broking and Advisory


After an exceptionally busy first half for our corporate clients, the last
quarter slowed as a result of volatility in market conditions. However, the
number of corporate clients for whom we act has risen to 109 (2006: 101) and
their average market capitalisation has risen to £195m (2006: £154m). As a
result the total market capitalisation of our clients has reached £21.2bn (2006:
£15.7bn).


Our clients raised a total of £1,182m (2006: £1,465m) through 40 transactions
across a broad range of sectors. It is also pleasing to note that over 70% of
these transactions were on behalf of existing clients, reflecting the success of
our corporate clientele, the quality of our service and the strength of our
relationships with them. 2007 has been a very active year on the corporate
advisory side of our business and we have acted in 15 M&A transactions with a
total value of £2.4bn.


Research, Sales and Trading


Our research and execution services are recognised as being exceptional. In this
year's Thomson Extel survey, Numis was rated as the top broker overall for
stocks of less than £1bn market capitalisation. Our research teams were placed
1st in 5 out of 14 research sectors, were ranked in the top 3 in 10 sectors and
were ranked 1st overall. During the last year we have also materially
strengthened our capability in building & construction, engineering, fast moving
consumer goods and speciality financials, with the recruitment of high quality
analysts. We now have a recognised capability in 14 sectors, including aerospace
& defence, building & construction, engineering, fast moving consumer goods,
life sciences, media, metals & mining, new energy & emissions, non-life
insurance, property funds, retail, speciality financials, support services,
technology; and, travel & leisure.


Our execution services have made a major contribution to the development of our
reputation and the growth in institutional commissions. Our execution business
continues to be focused on client facilitation, rather than generating
proprietary trading profits and was rewarded with a 1st place in the Thomson
Extel survey for the second year running. We continue to develop our execution
services and have invested significantly in new technology including algorithmic
and other electronic trading capabilities.


Sales & Trading is an increasingly competitive area with pressure on commission
levels for trades in liquid stocks from electronic trading. However, whilst we
have been developing our electronic trading capability, we will continue to
exploit the market for independent and well researched ideas, combined with high
quality worked execution, to help to improve performance for institutional
investor clients. Our New York office is now a significant contributor to our
institutional commissions and the relationships we are developing in Europe will
add to our institutional activity.


Investment Business


Numis is building a strong track record in investing in exceptional growth
equity opportunities as a natural extension of our core business. Our portfolio
includes stakes in Paternoster, the insurance company set up by Numis and Mark
Wood to purchase closed final salary pension schemes and Abbey Protection, the
legal fees insurance business. From this portfolio we have already had some
notable success in realising value for shareholders, including the exit in 2005
from our investment in comdirect (now known as squaregain) which generated a
profit of £9.3m on an investment of £4.2m.


During the year, we used the strength of our balance sheet to take more minority
investments in companies including, RI3K, the innovative electronic platform for
insurance transactions, RockWell the innovative mature oil field extraction
business; and, Clean Energy Brazil, the ethanol producer. Since the year end we
have crystallised a significant profit through the IPO of Abbey Protection
generating a net profit of £8.8m from the sale of an asset with book value of
£3.0m. We are continuing to make use of our strong balance sheet to make
investments in exceptional growth opportunities. Our ability to identify very
attractive assets and generate exceptional returns is clear and we believe that
exploiting this capability will be an important and growing revenue stream in
the future.


Operations and Financial Review


We continue to invest in highly capable staff in all areas of the business and
in improving our service to clients. During the year our average headcount has
increased from 145 to 172 with revenue per employee of £509,000 (2006:
£498,000). Despite this expansion and a number of infrastructure costs being
borne this year, tight cost control has ensured our expense ratio and margins
remain at acceptable levels - with costs before bonuses and non-recurring
property cost at 43% of revenue (2006: 38%) and profit margins before non
recurring property costs of 46% (2006: 50%).


We are also pleased with progress on balance sheet management. Our Employee
Benefit Trust ('EBT') has made significant share purchases to cover equity
incentive awards and reduce potential dilution from options. At 30th September
2007 there were 3,258,651 unencumbered shares in the EBT and only 1,881,025
unexercised options (2006: 2,057,579 unencumbered shares and 3,147,025
unexercised options). Total dividend plus EBT stock purchase returns to
shareholders during the year has therefore increased to £16.2m (2006: £10.3m).
However, balance sheet discipline has also been maintained with cash balances
now £78.4m (2006: £74.9m) representing 72% of net assets (2006: 80%).









Dividend and Scrip Alternative


The Board has proposed a final dividend of 5.0p per share (2006: 3.75p),
increasing the total distribution by 40% to 7.0p per share (2006: 5.0p). The
dividend will be payable on 8 February 2008 to all shareholders on the register
at 14 December 2007. Shareholders will be offered the option to receive shares
instead of a cash dividend, the details of which will be explained in a circular
to accompany our Annual Report.


New Offices at Paternoster Square


During the year we moved into 31,000 square feet of new space in the London
Stock Exchange building at 10 Paternoster Square, London EC4. In making this
move we incurred an exceptional cost of £2.2m (2006: £0.2m). This has enabled
controlled expansion of the business into more efficient office space, as well
as raising the profile of the firm, particularly with potential foreign
corporate clients.


Outlook


Numis has a very strong balance sheet, a hard-earned track record, committed
staff with 50% of shares being employee owned and a hunger to build the business
and perform in both favourable and unfavourable market conditions. We recognise
that current market conditions are difficult and the outlook is uncertain.
However, our challenge is to continue to grow the business in a possibly lengthy
downturn. We have achieved this in the past and we believe we can do so again.


As a result of the £8.8m net profit arising from the IPO of Abbey Protection
Group, profits are currently ahead of those at the beginning of December last
year despite difficult market conditions. Since the year end, we have added 8
new corporate clients and are well placed to increase this during the coming
year. We are determined to grow the business organically in a contracyclical
fashion. We will exploit the volatility in the market to attract clients and
staff to Numis and continue to build our franchise and create long-term value
for our shareholders.



Oliver Hemsley

Chief Executive


5th December 2007



Contacts:


Numis Corporation:

Oliver Hemsley, Chief Executive 020 7260 1256
Bill Trent, CFO 020 7260 1333


Brunswick:

Gill Ackers 020 7936 5382

Carole Cable 020 7396 7458



Consolidated Income Statement

For the year ended 30 September 2007


                                                          2007            2006
                                                         £'000           £'000

Revenue                                                 85,694          72,028
Other operating income                                   1,898             181
------------------------                           -------------       ---------
Total revenue                                           87,592          72,209

Administrative expenses                                (51,901)        (40,742)
------------------------                           -------------       ---------
Underlying operating profit                             35,691          31,467

Non-recurring property costs                            (2,196)           (200)
------------------------                           -------------       ---------
Operating profit                                        33,495          31,267

Share of results of associates                           1,469           1,500
Finance income                                           4,121           3,149
Finance costs                                             (285)           (223)
------------------------                           -------------       ---------
Profit before tax                                       38,800          35,693

Taxation                                               (11,169)        (10,233)
------------------------                           -------------       ---------
Profit after tax                                        27,631          25,460
------------------------                           -------------       ---------

Attributable to:
Equity holders of the parent                            27,631          25,460
------------------------                           -------------       ---------

Earnings per share
Basic                                                     27.5p           25.3p
Diluted                                                   26.8p           24.4p
------------------------                           -------------       ---------

Memo - dividends                                        (5,876)         (3,845)
------------------------                           -------------       ---------




Note: the impact on profit before tax of the non-recurring property costs is
£1.54m (2006: £0.14m), after allowing for the staff bonus allocation and the
profit before tax before non-recurring costs is therefore £40.34m (£35.83m)



Consolidated Balance Sheet

At 30 September 2007

 
                                                            2007          2006
                                                           £'000         £'000
Non current assets
Property, plant and equipment                              3,238         1,388
Intangible assets                                            382           414
Associates                                                 3,063         2,209
Derivative financial instruments                           1,071         1,606
Deferred tax                                               1,840         2,904
-------------------------                               ----------      --------
                                                           9,594         8,521
Current assets
Trade and other receivables                              155,355       148,318
Trading investments                                       38,106        24,196
Stock borrowing collateral                                 8,605         8,059
Derivative financial instruments                           4,000         1,066
Cash and cash equivalents                                 78,397        74,899
-------------------------                               ----------      --------
                                                         284,463       256,538
Current liabilities
Trade and other payables                                (169,089)     (160,307)
Financial liabilities                                     (8,237)       (5,424)
Provisions                                                (2,377)         (200)
Current income tax                                        (3,391)       (2,350)
-------------------------                               ----------      --------
                                                        (183,094)     (168,281)

Net current assets                                       101,369        88,257
-------------------------                               ----------      --------

Non current liabilities
Provisions                                                (1,927)       (3,207)
-------------------------                               ----------      --------
Net assets                                               109,036        93,571
-------------------------                               ----------      --------

Equity
Share capital                                              5,324         5,295
Share premium account                                     22,376        20,727
Capital reserve                                              294            68
Retained profits                                          81,042        67,481
                           
-------------------------                               ----------      --------

Equity attributable to equity holders of the parent      109,036        93,571
-------------------------                               ----------      --------





Consolidated Statement of Changes in Equity

For the year ended 30 September 2007




                 Share Capital  Share Premium  Capital Reserve  Retained   Total
                                                                 Profits
                      £'000          £'000            £'000     £'000     £'000

Attributable 
to equity
holders of the
parent at 1
October 2006          5,295         20,727               68    67,481    93,571

New shares               29          1,649                                1,678
Profit after
tax                                                            27,631    27,631
Dividends paid                                                 (5,876)   (5,876)
Net deferred
tax on items
recognised in
equity                                                           (233)     (233)
Net current
tax on items
recognised in
equity                                                            333       333
Exchange
differences on
translation of
foreign
operations                                              125                 125
Movement in
respect of
employee share
plans                                                   101    (8,118)   (8,017)
Other                                                            (176)     (176)
-----------------    -------       --------         --------  --------  --------
Attributable
to equity
holders of the
parent at 30
September 2007        5,324         22,376              294    81,042   109,036
-----------------    -------       --------         --------  --------  --------



Attributable to equity
holders of the parent at
1 October 2005             5,258     19,341          -     51,620     76,219

New shares                    37      1,386                            1,423
Profit after tax                                           25,460     25,460
Dividends paid                                             (3,845)    (3,845)
Net deferred tax on
items recognised in
equity                                                       (516)      (516)
Exchange differences on
translation of foreign
operations                                          68                    68
Movement in respect of
employee share plans                                       (5,238)    (5,238)
---------------------      -------   --------   --------   --------    -------
Attributable to equity
holders of the parent at
30 September 2006          5,295     20,727         68     67,481     93,571
---------------------      -------   --------   --------   --------    -------

Consolidated Cash Flow Statement

For the year ended 30 September 2007



                                                           2007            2006
                                                          £'000           £'000
Cash flows from operating activities                     26,024          36,230
Interest paid                                              (285)            (41)
Taxation paid                                            (9,139)        (14,009)
---------------------------                             ---------       --------
Net cash from operating activities                       16,600          22,180

Investing activities
Purchase of property, plant and equipment                (3,097)           (805)
Purchase of intangible assets                              (197)           (306)
Interest received                                         4,121           3,149
Dividends received from associate                           614             150
---------------------------                             ---------       --------
Net cash from/(used in) investing activities              1,441           2,188

Financing activities
Proceeds from issue of share capital                          -             130
Purchase of shares by EBT                               (10,345)         (6,508)
Dividends paid                                           (4,198)         (2,642)
---------------------------                             ---------       --------
Net cash (used in)/from financing activities            (14,543)         (9,020)
---------------------------                             ---------       --------
Net movement in cash and cash equivalents                 3,498          15,348
---------------------------                             ---------       --------

Opening cash and cash equivalents                        74,899          59,551
Net movement in cash and cash equivalents                 3,498          15,348
---------------------------                             ---------       --------
Closing cash and cash equivalents                        78,397          74,899
---------------------------                             ---------       --------



The principal accounting policies applied in the preparation of these
consolidated financial statements are described below. These policies have been
consistently applied to the years presented.


(a) Basis of preparation


The Group's consolidated financial information contained within these financial
statements has been prepared for the first time in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the European Union.


The Group has applied IFRS for the year ended 30 September 2007 with one year of
comparative figures under IFRS as adopted by the EU. Figures presented are in
thousands sterling. In preparing these consolidated financial statements, the
Group has elected to take advantage of certain transitional provisions within
IFRS 1 'First-time adoption of International Financial Reporting Standards'
('IFRS 1') which offer exemptions from presenting comparative information in
accordance with IFRS. The most significant optional exemptions available and
taken advantage of by the Group are as follows:

• IFRS 2 'Share Based Payments' ('IFRS 2'); In accordance with IFRS 1,
the new standard has been applied only to share options and equity instruments
granted after 7th November 2002 that have not vested by 1st October 2005.


• IAS 21 'The Effects of Changes in Foreign Exchange Rates' ('IAS 21');
In accordance with IFRS 1, cumulative translation differences arising on the
Group's net investment in foreign operations are assumed to be zero at the date
of transition


The financial statements are prepared under the historical cost convention with
the exception of financial instruments which are stated in accordance with IAS
39 Financial Instruments: Recognition and Measurement. The preparation of
financial statements in conformity with generally accepted accounting principles
requires the use of estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Although
these estimates are based on management's best knowledge of the amount, event or
actions, actual results ultimately may differ from those of estimates.


(b) Basis of consolidation


The Group's financial statements consolidate the financial statements of the
Company and all its subsidiary undertakings. The results of subsidiaries
acquired are consolidated from the date on which control passed. Acquisitions
are accounted for under the acquisition method. Goodwill represents any excess
of the fair value of the consideration given over the fair value of the
identifiable assets and liabilities acquired. If the fair value of the
consideration is less than the fair value of identifiable assets and liabilities
acquired, the difference is recognised directly in the income statement.
Goodwill arising prior to 30 September 1998 remains eliminated against reserves;
no goodwill has arisen on acquisitions since that date. As permitted by IFRS 1,
the Group has chosen not to restate under IFRS, business combinations that took
place prior to 1 October 2005, the date of transition to IFRS. All intra-group
transactions are eliminated on consolidation.





(c) Revenue Recognition


The Group follows the principles of IAS 18, 'Revenue Recognition', in
determining appropriate revenue recognition policies. In principle, therefore,
revenue is recognised to the extent that it is probable that the economic
benefits associated with the transaction will flow into the Group.

Revenue comprises institutional commission and net dealing profit or loss,
corporate broking retainers, deal fees and placing commissions.

Institutional commissions are recognised on trade dates. Net institutional
trading profit or loss is the realised and unrealised profits and losses from
trading investments and short positions on a trade date basis.


Corporate retainers are recognised on an accruals basis. Deal fees and placing
commissions are only recognised once there is an absolute contractual
entitlement for Numis to receive them.


(d) Segment Reporting


Business segments are distinguishable components of the group that provide
products or services that are subject to risks and rewards that are different to
those of other business segments. Geographical segments provide products or
services within a particular economic environment that is subject to risks and
rewards that are different to those of components operating in economic
environments. Numis operates a single integrated business and, although there
are different revenue types (the contributions from which are separately
disclosed), there is no meaningful segmentation of profits, assets, liabilities
or net assets.


(e) Property, plant and equipment


Property, plant and equipment are stated at cost less accumulated depreciation
and any impairment losses. Depreciation is provided for on a straight line basis
at the following rates:


Office and computer equipment 3 years

Motor vehicles 4 years

Furniture and fittings 5 years


Leasehold improvements are depreciated on a straight line basis over the term of
the lease or estimated useful economic life whichever is the shorter.


(f) Intangible assets


Acquired computer software licences are capitalised where it is probable that
future economic benefits that are attributable to the asset will flow to the
Group and the cost of the assets can be reliably measured. Software is stated at
cost, including those costs incurred to bring to use the specific software, less
amortisation and provisions for impairment, if any. Costs are amortised on a
straight line basis over the estimated useful life of the software.


Costs associated with maintaining or developing the software are recognised as
an expense when incurred.





(g) Impairment of assets


The carrying value of property, plant and equipment and intangibles is reviewed
for impairment when events or changes in circumstance indicate the carrying
value may be impaired. If such an indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of impairment loss.


(h) Investment in associates


Associates comprise those undertakings, not being subsidiary undertakings, which
carry out related activities and where the Group is in a position to exercise
significant influence, but not control or joint control, through participation
in the financial and operating policy decisions of the investee.


In the Group's financial statements, investments in associated undertakings are
accounted for using the equity method. The consolidated income statement
includes the Group's share of these associated undertakings' profits less losses
and the Group's share of net assets is shown in the consolidated balance sheet.


(i) Financial assets and liabilities


Trading investments and Financial liabilities represent proprietary trading,
market making positions and other investments held for resale in the near term
and are stated at fair value. Gains and losses arising from the changes in fair
value are taken to the income statement.


For trading investments and financial liabilities which are quoted in active
markets, fair values are determined by reference to the current quoted bid/offer
price, with financial assets marked at the bid price and financial liabilities
marked at the offer price. Where independent prices are not available, fair
values may be determined using valuation techniques with reference to observable
market data. These may include comparison to similar instruments where
observable prices exist, discounted cash flow analysis and other valuation
techniques commonly used by market participants. Where there is no active market
and the range of reasonable fair values is significant and cannot be made
reliably then such positions are held at cost less impairment loss.

The Group makes an assessment at each balance sheet date as to whether there is
any objective evidence of impairment, being any circumstance where an adverse
impact on estimated future cash flows of the financial asset or group of assets
can be reliably estimated.


(j) Derivatives


The Group utilises forward exchange contracts to manage the exchange risk on
actual transactions related to amounts receivable, denominated in a currency
other than the functional currency of the business. The Group has not sought to
apply the hedging requirements of IAS 39.


The Group's forward exchange contracts do not subject the Group to risk from
exchange rate movements because the gains and losses on such contracts offset
losses and gains, respectively, on the underlying foreign currency transactions
to which they relate. The forward contracts and related amounts receivable are
recorded at fair value at each period end. Fair value is estimated using the
settlement rates prevailing at the period end.


All gains and losses resulting from the settlement of the contracts are recorded
within Finance Income Costs in the income statement.


The Group does not enter into forward exchange contracts for the purpose of
hedging anticipated transactions.


Equity options and warrants are initially accounted for and measured at fair
value on the date the Group becomes a party to the contractual provisions of the
derivative contract and subsequently measured at fair value. The gain or loss on
re-measurement is taken to the income statement within net trading income. Fair
values are obtained from quoted prices prevailing in active markets, including
recent market transactions and valuation techniques including discounted cash
flow models and option pricing models as appropriate. All derivatives are
included in assets when their fair value is positive and liabilities when their
fair value is negative.


(k) Deferred Tax


Deferred tax is provided in full, using the liability method, on all taxable and
deductible temporary differences at the balance sheet date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting
purposes.


Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realised or the liability is
settled, based on tax rates that have been enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognised to the extent that it
is probable that future taxable profit will be available against which the
deductible temporary differences can be utilised.


(l) Stock borrowing collateral


The Group enters stock borrowing arrangements with certain institutions which
are entered into on a collateralised basis with securities or cash advanced or
received as collateral. Under such arrangements a security is purchased with a
commitment to return it at a future date at an agreed price. The securities
purchased are not recognised on the balance sheet and the transaction is treated
as a secured loan made for the purchase price. Where cash has been used to
effect the purchase, the purchase is recorded as a pledged asset on the balance
sheet. Where assets have been pledged as security these remain within trading
investments and the value of security pledged disclosed separately accept in the
case of short-term highly liquid assets with an original maturity of 3 months or
less which are reported within cash and cash equivalents with the value of
security pledged disclosed separately.


(m) Trade and other receivables


Trade and other receivables are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts. Client, broker and
other counterparty balances represent unsettled sold securities transactions and
are recognised on a trade date basis. All such balances are shown gross.







(n) Trade and other payables


Trade and other payables are stated at their nominal value. The Group accrues
for all goods and services consumed but as yet unbilled at amounts representing
management's best estimate of fair value.

Client, broker and other counterparty balances represent unsettled purchased
securities transactions and are recognised on a trade date basis. All balances
are shown gross.


(o) Cash and cash equivalents


Cash and cash equivalents includes cash in hand, deposits held at call with
banks and other short-term highly liquid investments with an original maturity
of 3 months or less.


(p) Provisions


Provisions are recognised for present obligations arising as consequences of
past events where it is probable that a transfer of economic benefit will be
necessary to settle the obligation and it can be reliably estimated. Provisions
believed to relate to periods greater than twelve months are discounted to the
net present value using an effective discount rate that reliably calculates the
present value of the future obligation.


Contingent liabilities are possible obligations whose existence will be
confirmed only by uncertain future events or present obligations where the
transfer of economic benefit is uncertain or cannot be reliably measured.
Contingent liabilities are not recognised in the financial statements; however
they are disclosed unless their likely occurrence is remote.


(q) Clients' deposits


All money held on behalf of clients has been excluded from the balances of cash
at bank and in hand and amounts due to clients, brokers and other
counterparties. Client money is not held directly, but is placed on deposit in
segregated designated accounts with a bank.


(r) Pension costs


The Group has a Group Personal Pension Plan and death in service benefits that
are available to full-time employees of the Group over the age of 18 who have
served the Group for at least 3 months. The plan is a defined contribution
scheme; costs of the scheme are charged to the income statement in the year in
which they arise.


(s) Operating leases


Rentals under operating leases are charged to the income statement on a
straight-line basis over the lease term even if the payments are not made on
such a basis. Lease incentive received are recognised in the income statement as
an integral part of the total lease expense.


(t) Foreign currencies


In individual entities, transactions denominated in foreign currencies are
translated into the functional currency at the rates of exchange prevailing on
the dates of the transactions. At each balance sheet date, monetary assets and
liabilities that are denominated in foreign currencies are retranslated at rates
prevailing on the balance sheet date. Exchange differences are taken to the
income statement, except for exchange differences arising on non-monetary assets
and liabilities where the changes in fair value are taken directly to reserves.
Non-monetary assets and liabilities carried at fair value that are denominated
in foreign currencies are translated at the rates prevailing at the date when
the fair value was determined.


On consolidation, the results of overseas businesses are translated into the
presentational currency of the group at the average exchange rates for the
period where these approximate to the rate at the date of transaction. Assets
and liabilities of overseas businesses are translated into the presentational
currency of the Group at the exchange rate prevailing at the balance sheet date.
Exchange differences arising are classified as a separate component within
equity. Cumulative translation differences arising after the transition to IFRS
are taken to the income statement on disposal of the net investment.


(u) Taxation


Taxation on the profit for the year comprises both current and deferred tax as
well as adjustments in respect of prior years. Taxation is charged or credited
to the income statement, except when it relates to items charged or credited
directly to equity, in which case the tax is also included within equity.


Current tax is the expected tax payable on the taxable income for the period,
using tax rates enacted, or substantially enacted by the balance sheet date.


v) Employee share ownership plans


The Group has two Employee Share Ownership Plans ('ESOP') providing an equity
share incentive scheme for UK and US employees respectively. The UK ESOP
encompasses a Long Term Incentive Plan ('LTIP'), and discretionary option
awards. The US Restricted Share Plan ('USRSP') mirrors the terms of the LTIP. An
ESOP Trust established by the Group acquires ordinary shares in the Company to
be held on trust for the benefit of, and ultimately distributed to, employees
either on the exercise of share options or other remuneration arrangements.


In the case of equity settled awards, the cost of share awards made under
employee share ownership plans, as measured by the fair value of awards at the
date of granting, are taken to the income statement over the vesting period (if
any), and disclosed under staff costs with a corresponding increase in equity.
No expense is recognised in respect of option awards granted before 7th November
2002 or which have vested before 1st October 2005.


In the case of cash settled awards, the cost of share awards made under employee
share ownership plans, as measured by the fair value of awards at the date of
granting, are taken to the income statement over the vesting period with a
corresponding increase in provisions representing the cash obligation. At each
subsequent accounting date the fair value of the obligation is re-assessed with
reference to the underlying share price and the provision adjusted accordingly.


The cost of shares acquired by the ESOP trust are deducted as an adjustment to
equity. Gains and losses arising on ESOP related transactions are taken directly
to equity.





(w) Dividends


Dividends payable are recognised when the dividend is paid or approved by
shareholders.



Selected notes to the financial statements


1. Reconciliation of UK GAAP to IFRS



The differences between IFRS and UK GAAP which affect the Group are described in
the 'Impact of International Financial Reporting Standards' presentation dated 2
May 2007 which can be found on our website (http://www.numiscorp.com).


Set out below is a summary of the reconciliation from UK GAAP to IFRS of the
opening Equity as at 1 October 2005, the Equity as at 30 September 2006 and the
Profit before Tax for the year ended 30 September 2006.


Equity

                                                   30 September        1 October
                                                         2006             2005
                                                        £'000            £'000

Reported under UK GAAP                                 91,689           73,326
Opening equity adjustment                               2,893
Financial instruments IAS 39                             (675)           1,464
Employee benefits IAS 19                                   10               37
Share based payments IFRS 2                               170           (1,314)
Tax IAS 12                                               (516)           2,706
------------------------                           ------------        ---------
Reported under IFRS                                    93,571           76,219
------------------------                           ------------        ---------



Profit before Tax

                                                                          2006
                                                                         £'000
Profit before tax for the period under UK GAAP                          37,206
Financial instruments IAS 39                                              (965)
Associate IAS 28                                                          (665)
Employee benefits IAS 19                                                    15
Share based payments IFRS 2                                                170
Foreign exchange IAS 21                                                    (68)
---------------------------                                          -----------
Reported under IFRS                                                     35,693
---------------------------                                          -----------







2. Revenue


                                                       2007               2006
                                                      £'000              £'000
Net trading gains / (losses)                          5,145             (2,277)
Institutional commissions                            27,645             19,833
Corporate retainers                                   3,830              3,464
Deal fees                                            15,461              8,980
Placing commissions                                  33,613             42,028
------------------------                          -----------         ----------
                                                     85,694             72,028
------------------------                          -----------         ----------



3. Employee Costs


                                                           2007           2006
                                                          £'000          £'000

Wages and salaries                                       14,000         11,467
Bonuses                                                  14,145         13,050
Social security costs                                     3,896          2,639
Compensation for loss of office                              53            214
Other pension costs                                         511            507
LTIP award costs                                          1,200            839
----------------------                           ----------------      ---------
                                                         33,805         28,716
----------------------                           ----------------      ---------



4. Employee Numbers

                                                        2007              2006
                                                        Number            Number
Average for the year
Professional                                             128               112
Administration                                            44                33
----------------------                          --------------         ---------
                                                         172               145
             
----------------------                          --------------         ---------
At the year end                                          186               165
----------------------                          --------------         ---------



5. Earnings per Share


The calculation of basic earnings per ordinary share is calculated on profit on
ordinary activities after taxation for the year of £27,631,000 (2006:
£25,460,000) and 100,389,740 (2006: 100,712,107) ordinary shares being the
weighted average number of ordinary shares in issue during the year. Diluted
earnings per share assumes that options outstanding at 30 September 2007 were
exercised at 1 October 2006, for options where the exercise price was less than
the average price of the share during the year.


Basic earnings per share, excluding non-recurring property costs, for the year
ended 30 September 2007 is calculated on profit on ordinary activities after
taxation of £28,707,000 (2006: £25,558,000). Diluted earnings per share assumes
that options outstanding at 30 September 2007 were exercised at 1 October 2006,
for options where the exercise price was less than the average price of the
share during the year.


The calculations exclude shares held by the ESOP Trust.

                                                             2007         2006
                                                             Number       Number
Weighted average number of ordinary shares in issues
during the year - basic                                   100,390      100,712
Effect of options over ordinary shares                      2,713        3,730
----------------------------                              ---------    ---------
Diluted number of ordinary shares                         103,103      104,442
----------------------------                              ---------    ---------



6. Preliminary Results


These preliminary results, which were approved by the Board of Directors on 5th
December 2007, are unaudited. Under IFRS, only a complete set of financial
statements comprising a balance sheet, income statement, statement of changes in
equity, cash flow statement, together with comparative financial information and
the financial notes, can provide a fair presentation of the company's financial
position, results of operations and cash flow.





Note: Profit before tax and before non recurring property costs includes an
adjustment to reflect the related impact on incentive payments. Incentive
payments are disclosed within administrative expenses on the face of the income
statement.












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