Final Results

Numis Corporation PLC
08 December 2004

                             Embargoed for release

                         7am Wednesday 8 December 2004



  Numis Corporation Plc Final Results for the twelve months ended 30 September
                                      2004



Numis Corporation Plc ('Numis') today announces final results for the twelve
months ended 30 September 2004. Numis is the holding company of Numis Securities
Limited, the independent investment banking and stockbroking business.


Financial Highlights


•        Operating income up 39% to £32.7m (2003: £23.6m)


•        Profit before tax up 50% to £14.1m (2003: £9.4m)


•        Basic earnings per share before an exceptional profit of £1.0m (2003:
         nil) up 24% to 49.7p (2003: 40.2p) on the same basis


•        Final dividend of 8.0p per share, making 10.5p per share (2003: 7.5p
         per share) for the year, up 40%


•        Net assets increased by 35% to £39.0m (2003: £28.8m)


Operational Highlights


•        £388m raised for corporate clients in the period (2003: £340m)


•        Corporate client list increased to 73 from 53


•        Significant investment in staff across the business


•        Research coverage expanded - now providing analysis on more than 360
         stocks


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


' I am pleased with the performance of the business in the last financial year.
All areas of the Group's business have grown and we have expanded our corporate
and institutional client base and extended our research capabilities.


Although it is difficult to predict market conditions or business flows going
forward, we have made an excellent start in the first two months of the new
financial year and we are cautiously optimistic for the future.


Our focus on investing in talented people in each of corporate broking,
corporate advisory, research, sales and trading has allowed us consistently to
provide the high quality of service all our clients expect. As a result of this,
we continue to attract further corporate clients and support for our research
product from institutional investors.


We believe we have created a stable platform from which we can drive our client
offering to the next level and position Numis as a leading independent provider
of stockbroking and investment banking services in the UK mid and small cap
market.'


Contacts:


Numis Corporation
Oliver Hemsley, Chief Executive         020 7776 1500


Brunswick
Gill Ackers                             020 7936 7682
Rachel Quigley                          020 7396 3507




Chief Executive's Statement


Results


We are pleased to report that the Group's profit before tax for the twelve
months ended 30 September 2004 was £14.1 million (2003: £9.4 million), an
increase of 50%. Operating profit, which excludes an exceptional profit of £1.0
million relating to the sale of London Stock Exchange plc shares, increased by
36% to £11.6 million (2003: £8.5 million). Operating income increased in the
period to £32.7 million (2003: £23.6 million). Basic earnings per share before
the exceptional profit were 49.7p (2003: 40.2p) while net assets have increased
to £39.0 million (2003: £28.8 million). Our administrative costs rose during the
year as a result of significant investment in new staff and our cost to income
ratio is now 44%, a level that we are comfortable with.


Dividend and Scrip Alternative


The board recommends payment of a final dividend of 8.0p per share payable on 11
February 2005 to all shareholders on the register on 17 December 2004. A maiden
interim dividend of 2.5p per share was paid during the year making the total
dividend per share 10.5p for the year, an increase of 40%. We continue to offer
shareholders the option to receive shares instead of a cash dividend. The
details of this will be explained in a circular to accompany our Annual Report.


Review of Activities


Turnover and profitability increased across all areas of the Group's business as
we grew our corporate client base and expanded our research capabilities.
Institutional commission income rose by 70%, retainers from corporate clients
grew by 89% and fees from capital raisings and corporate finance activities
increased by 51%. Our New York office, opened recently to give corporate clients
access to US investors, has commenced trading and is now making a positive
contribution to commission income as well as broadening our appeal to corporate
clients wishing to undertake US roadshows. In London, we have taken an
additional 10,000 square feet at Cheapside House to accommodate our expansion.
This space will be ready for occupation in the New Year.


Research


We have focused on building and strengthening our research capability,
endeavouring to provide institutional investors with high quality, well
researched ideas. The group is becoming recognised as one of the leading
research houses in the UK mid and small cap arena in London, which is
demonstrated by the wide range of institutions and companies with whom our
analysts and sales team maintain contact. We constantly strive to improve the
quality of our research and our service to institutional clients by investing in
further sectors, and strengthening our existing teams. We have made significant
progress in tailoring our research to make it relevant to all types of investors
and we now cover the majority of UK mid and large cap companies as well as many
smaller ones.


Corporate Broking and Advisory


Our corporate broking and advisory business has developed strongly during the
period and continues to attract new corporate clients. Numis is becoming a
leading independent adviser to high quality UK mid and small cap companies.
During the period, the number of corporate clients for whom we act as broker and
/or retained adviser has risen to 73 (2003: 53), and continues to rise. Numis
raised £388 million for companies in the period (2003: £340 million),
encompassing a broad range of transactions.


Sales and Execution


Institutional commissions have risen by 70% during the period. This rise
reflects an increasing emphasis on providing targeted research and high quality
ideas to institutional clients, a substantial effort to increase our market
share in stocks that we analyse and our drive to provide first-class execution.
We are seeking to expand our sales team with high quality individuals and teams
in the mid and large cap area.


Our emphasis when executing business remains on client service and facilitation,
a model that has worked well in developing confidence amongst institutional
investors. We now actively trade 236 stocks, of which 72 are on SETSmm, a
trading system which we support and also welcome its proposed extension.


During the year we became a Retail Service Provider (RSP). At present we have 12
retail brokers in our community and anticipate growing this substantially. We
believe our ability to attract retail order flow will enhance our offering to
institutional clients.


Investment in comdirect


During the year, the Group acquired a 26.3 per cent stake in comdirect, the UK's
second largest on-line broker and the UK's third largest retail stockbroker by
share trading volumes and the market leader in covered warrants. We are
delighted with the progress made at comdirect since we acquired our stake in
June 2004.


Outlook


The new financial year has started well with further corporate client wins and a
total of £261 million being raised for 7 corporate clients in the last two
months. These include two secondary placings of £100 million or more,
underlining the growing strength of our distribution capability. Although it is
difficult to predict market conditions or business flows, our pipeline of
corporate transactions is ahead of last year and we are cautiously optimistic
for the future.


We continue to invest in high quality people in all areas of the business,
whilst maintaining a watchful eye on our cost base. It is pleasing to note that
whilst our cost base has increased by 80% since 2001, our turnover is up nearly
five fold. We are confident the increased investment during the year, mostly in
high quality people and the establishment of a presence in New York, will help
us to make further progress in the current year.


We are grateful for the efforts of our staff, without whom we would have been
unable to make such positive progress.




Oliver Hemsley
Chief Executive
8 December 2004



Consolidated profit and loss account
For the year ended 30 September 2004
                                                                               Year ended    Year ended
                                                                               30 Sept 04    30 Sept 03
                                                                                Unaudited       Audited
                                                                                   £000's        £000's
                                                                                               Restated

Operating income                                                                   32,733        23,610


Administrative expenses                                                          (21,138)      (15,097)
                                                                               __________    __________
Operating profit                                                                   11,595         8,513

Share of associated undertaking's profit                                              588           243

Exceptional item
-profit on disposal of fixed asset investments                                        984             0
                                                                               __________    __________

Profit on ordinary activities before interest                                      13,167         8,756



Interest receivable and similar income                                                897           634
Interest payable and similar charges                                                 (14)          (11)
                                                                               __________    __________

Profit on ordinary activities before taxation                                      14,050         9,379


Taxation on profit on ordinary activities                                         (4,321)       (2,966)
                                                                               __________    __________

Profit on ordinary activities after taxation                                        9,729         6,413


Dividends paid and proposed                                                       (1,951)       (1,322)
                                                                               __________    __________

Retained profit for the year                                                        7,778         5,091




Earnings per share 
Basic                                                                               53.4p         40.2p
Diluted                                                                             47.7p         34.5p

Earnings per share, excluding exceptional item
Basic                                                                               49.7p         40.2p
Diluted                                                                             44.3p         34.5p





Consolidated balance sheet
At 30 September 2004
                                                                            30 Sept 04    30 Sept 03
                                                                             Unaudited       Audited
                                                                                £000's        £000's
                                                                                            Restated
Fixed Assets

Tangible fixed assets                                                              736           848
Fixed asset investments                                                            295           916
Investment in associated undertakings                                            4,331           644
                                                                            __________    __________
                                                                                 5,362         2,408
Current Assets

Debtors                                                                         84,201        52,393

Investments                                                                     13,396         8,952

Cash at bank and in hand                                                        23,468        13,068

                                                                            __________    __________

                                                                               121,065        74,413

Creditors

Amounts falling due within one year                                           (87,446)      (48,037)

                                                                            __________    __________



Net current assets                                                              33,619        26,376

                                                                            __________    __________



Net assets                                                                      38,981        28,784




Capital and reserves

Share capital                                                                    4,875         4,595

Share premium                                                                   14,896        11,608

Profit and loss account                                                         19,210        12,581

                                                                            __________    __________


Equity shareholders' funds                                                      38,981        28,784







Consolidated cashflow statement
For the year ended 30 September 2004
                                                                            30 Sept 04    30 Sept 03
                                                                             Unaudited       Audited
                                                                                £000's        £000's
Net cash inflow / (outflow) from operating activities
before exceptional items                                                        15,314       (4,969)
Cash inflow from exceptional items                                               1,954             0
                                                                            __________    __________
Net cash inflow/(outflow) from operating activities                             17,268       (4,969)

Returns on investments and servicing of finance

Interest received                                                                  893           623
Interest paid                                                                     (14)          (11)
Dividends received                                                                   4            11
                                                                            __________    __________


Net cash inflow from returns on investments and servicing of finance               883           623


Taxation

Corporation tax paid                                                           (4,431)       (2,144)

Capital expenditure and financial investment

Purchase of tangible fixed assets                                                (345)         (179)
Purchase of associated undertaking                                             (4,231)         (620)
Disposal of fixed asset investments                                                620             0
                                                                            __________    __________

Net cash outflow from investing activities from capital expenditure and
financial investments                                                          (3,956)         (799)

Equity dividends                                                               (1,304)         (628)

Financing

Issue of ordinary shares                                                         1,940         7,409
                                                                            __________    __________

Increase / (decrease) in cash in the year                                       10,400         (508)



Reconciliation of net cashflow to movement in net funds

Increase / (decrease) in cash balances in the year                              10,400         (508)
Net funds at the beginning of the year                                          13,068        13,576
                                                                            __________    __________

Net funds at the end of the year                                                23,468        13,068






Accounting policies


The accounting policies that have been applied to the unaudited results are
consistent with the latest published audited accounts.


Prior Year Restatements


Following the implementation in December 2003 of UITF 38 Accounting for ESOP
trusts, the Group and the Company have made certain restatements in the
financial statements for the year ended 30 September 2003. The effect of the
UITF is principally to reduce the distributable reserves of the Company by the
cost of the shares held in the ESOP trust. In addition, dividends payable on
shares held by the trust have been deducted from dividends payable in the profit
and loss account and balance sheet.


Exceptional item


The profit on disposal of fixed asset investment of £984,000 (2003: nil) relates
to the sale of 265,000 London Stock Exchange plc shares. The Group held no
(2003: 265,000) London Stock Exchange plc shares at 30 September 2004.


Earnings per share


The calculation of basic earnings per ordinary share is based on the profit for
the year ended 30 September 2004 of £9,729,000 (2003: £6,413,000) and 18,207,000
(2003: 15,946,000) 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 2004 were exercised at 1 October 2003, for options
where the exercise price was less than the average the price of the share during
the year.


Basic earnings per share, excluding the exceptional items for the year ended 30
September 2004 (2003: there were no exceptional items) is calculated on profit
on ordinary activities after taxation of £9,040,000. Diluted earnings per share
assumes that options outstanding at 30 September 2004 were exercised at 1
October 2003, for options where the exercise price was less than the average
price of the share during the year.


                                                                             Year ended          Year ended
                                                                             30 Sept 04          30 Sept 03
                                                                              Unaudited           Unaudited 
                                                                                 number              number

Weighted average number of ordinary shares in issue during the year              18,207              15,946
- basic
Effect of options over ordinary shares                                            2,160               2,648

                                                                             __________          __________

Diluted number of ordinary shares                                                20,367              18,594



Administrative expenses


Administrative expenses include a provision for incentive payments of £6,459,000
(2003: £4,335,000).


Dividend


The board recommends payment of a final dividend of 8.0p per share (2003: 7.5p
per share). The dividend will be payable on 11 February 2005 to all shareholders
on the register on 17 December 2004.


Reconciliation of operating profit to net cashflow from operating activities



                                                                             Year ended          Year ended
                                                                             30 Sept 04          30 Sept 03
                                                                              Unaudited             Audited
                                                                                 £000's              £000's

Operating profit                                                                 11,595               8,513

Amounts written off tangible fixed assets                                             0                   3

Amounts written off investment                                                        0                 384

Depreciation charges                                                                457                 407

Increase in debtors (excluding taxation receivable)                            (31,588)            (33,737)

Net increase in trading investments                                             (4,444)             (6,112)

Increase in creditors (excluding taxation and dividends payable)                 39,294              25,573

                                                                             __________          __________

Net cash inflow/ (outflow) from operating activities                             15,314             (4,969)



Audited results


The audited results for the year ended 30 September 2003 are an extract from the
latest published audited accounts and do not constitute the statutory accounts
as defined in Section 240 of the Companies Act 1985. The published audited
accounts have been delivered to the Registrar of Companies and included the
report of the auditors that was unqualified.


Further copies


A copy of the audited Report and Accounts and the circular explaining the
payment of the dividend and scrip alternative is to be sent to all shareholders
on or about 7 January 2005. Copies of this announcement are available free of
charge for one month from:



The Company Secretary
Numis Corporation Plc
Cheapside House
138 Cheapside
London
EC2V 6LH




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