Final Results

Numis Corporation PLC
06 December 2006



                             Embargoed for release

                         7am Wednesday 6 December 2006


                      Numis Corporation Plc Final Results
                      for the year ended 30 September 2006


Numis Corporation Plc ('Numis') today announces final results for the year ended
30 September 2006. Numis is the holding company of Numis Securities Limited, the
independent investment banking and broking business.


Financial Highlights


   • Operating income up 11% to £73.1m (2005: £65.7m).


   • Profit before tax up 22% to £37.2m (2005 Profit before tax and
    exceptional profits: £30.6m).


   • Basic earnings per share up 19% to 25.8p (2005 EPS before exceptional
    profits: 21.7p).


   • Final dividend of 3.75p per share, making a total of 5.0p per share
    (2005: 3.15p per share) for the year, up 59%.


   • Net assets increased by 23% to £90.5m (2005: £73.3m) and cash balances
    increased to £74.9m (2005: £57.1m), representing 83% of net assets (2005:
    78%).


Operational Highlights


   • £1,465m raised for corporate clients in the period (2005: £1,062m). Over
    65% of deals were for existing clients.


   • Corporate client list increased to 101 from 94.


   • Further improvement in our service to clients recognised by first places
    in The Thomson Extel survey for research, execution and corporate access for
    companies with market capitalisation up to £1bn.


   • Investment in high calibre staff continues, headcount now 165 (2005:
    127).


   • Control over costbase maintained with pre-bonus expenses 34% of revenue
    (2005: 39%).



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


'Despite more challenging market conditions in the second half of the year, the
quality of our clients and staff has enabled us to report another record year.
We are making good progress towards our goal of making Numis a leading
independent investment banking and broking group serving respected London-quoted
companies. We will work to set Numis apart as an innovative investment banking
business'.






CHIEF EXECUTIVE'S STATEMENT


For the year ended 30 September 2006 operating income was up 11% to £73.1m
(2005: £65.7m). Profit before tax and exceptional items for the year rose to
£37.2m (2005: £30.6m). Basic earnings per share were 25.8p (2005: 21.7p) while
net assets increased to £90.5m (2005: £73.3m) and cash balances to £74.9m (2005:
£57.1m).


Numis has achieved these results despite more challenging market conditions
during the second half of the year. Although the FTSE 250 has more than
recovered from its setback in early May, the AIM market has not done so.
However, the quality of our clients and staff has enabled us to continue to
increase profits. Further evidence of the strength of our business comes from
the result we achieved in the Thomson Extel survey this year. In the market
dealing with companies of less than £1bn market capitalisation we were ranked
1st for research, execution services and corporate access. We were also
identified as the 'most improved firm'.


Numis continues to invest in talented and committed people across the business.
As our corporate and institutional client base has expanded we have continued to
attract such people while still maintaining control over costs. This has enabled
us to build our business at the same time as improving our operating margins.


Corporate Broking and Advisory


After an exceptionally busy first half for our corporate clients, the last
quarter slowed as a result of the weakening in general market conditions.
However, the number of corporate clients for whom we act has now risen to 101
(2005: 94).


During the year, our clients raised a total of £1,465m (2005: £1,062m) through
46 varied transactions across a broad range of sectors. It is also pleasing to
note that over 65% 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.


We are making good progress towards our goal of building a leading independent
investment banking and broking group serving respected London-quoted companies.
We continue to add to our staff with individuals and teams who wish to work
within a growing independent business where they can participate in its
direction and success.


Research, Sales and Trading


Our research and execution services are recognised as being exceptional. In this
year's Thomson Extel survey, Numis was placed first in 7 out of 14 research
sectors and first overall in research and execution. We now have strong and
recognised capability in 14 sectors, including aerospace & defence, building &
construction, food producers, insurance, IT, leisure, life sciences, media,
mining, new energy & emissions, property funds, retail, specialised financials
and support services.


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 first place in the Thomson
Extel survey.


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


Innovation


During the year Numis worked with the former deputy CEO of the Prudential PLC to
form Paternoster Limited, a new FSA regulated Life Assurance company. We jointly
conceived and developed this business, focused on taking over the liabilities of
mature closed final salary pension schemes. We also secured commitments of £500m
to fund the business, drawing down £250m during the period, enabling Paternoster
to start signing up pension schemes.


Operations and Financial Review


We continue to invest in capable staff in all areas of the business and in
improving our service to clients. During the year our average headcount has
increased from 112 to 145 and our productivity has been broadly maintained with
revenue per employee of £504,000 (2005: £587,000). With this tight cost control
our expense ratio and operating margins have improved - with costs before
bonuses falling to 34% of revenue (2005: 39%).


We are also pleased with progress on balance sheet management. Our Employee
Benefit Trust ('EBT') has made significant share purchases and reduced potential
dilution from options not covered by unencumbered shares held in the EBT.
Uncovered options are down from 2,913,000 (2.8% of outstanding share capital) to
1,015,374 (1.0%). At the same time balance sheet discipline has been maintained
with cash balances now representing 81% of net assets (2005: 78%).


New Offices at Paternoster Square


On 2 October 2006 we signed a lease for 31,000 square feet of space in the
London Stock Exchange building at 5 Paternoster Square, London EC4. This will
enable controlled expansion of the business into more efficient office space.


Dividend and Scrip Alternative


The Board has declared a final dividend of 3.75p per share (2005: 2.525p). The
dividend will be payable on 9 February 2007 to all shareholders on the register
at 15 December 2006. 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.


Outlook


We have seen a satisfactory start to the new financial year with institutional
commission & market making revenues more than double our performance at this
point last year and £169m being raised to date for 11 corporate clients. Our
corporate business pipeline is strong and the quality of our research is such
that we look forward to growth in our secondary market revenues. We work hard to
attract high quality companies and people to the organisation and I am confident
that we will continue to reap the benefits from these efforts. We also continue
to develop services and investment opportunities that will set Numis apart as a
flexible and innovative investment banking business.





Oliver Hemsley

Chief Executive


6th December 2006






Contacts:

Numis Corporation:
Oliver Hemsley, Chief Executive           020 7776 1500
Bill Trent, CFO

Brunswick:
Gill Ackers                               020 7936 5382
Lucie Anne Brailsford                     020 7396 3515









Consolidated profit and loss account

For the year ended 30 September 2006
     
                                                                       Restated
                                                       2006                2005
                                                       £000                £000


OPERATING INCOME                                     73,060              65,693
                                                  _________           _________
GROSS PROFIT                                         73,060              65,693

Administrative expenses                             (41,127)            (38,076)
                                                   ________            ________
OPERATING PROFIT                                     31,933              27,617

Share of associated undertakings' profit              2,165               1,388

Exceptional item
     - profits on disposal of fixed asset
                              investments                 -               9,299
                                                   ________            ________
PROFIT ON ORDINARY ACTIVITIES                        34,098              38,304
BEFORE INTEREST

Interest receivable and similar income                3,149               1,652
Interest payable and similar charges                   (41)                (48)

PROFIT ON ORDINARY ACTIVITIES                      ________            ________
BEFORE TAXATION                                      37,206              39,908
Tax on profit on ordinary activities               (11,183)             (9,466)

PROFIT ON ORDINARY ACTIVITIES                      ________            ________
AFTER TAXATION                                       26,023              30,442

                                                   ________            ________
PROFIT FOR THE YEAR                                  26,023              30,442
                                                ___________         ___________

Earnings per share
Basic                                                 25.8p               31.3p
Diluted                                               24.9p               30.0p

Earnings per share, excluding exceptional item
Basic                                                 25.8p               21.7p
Diluted                                               24.9p               20.9p





Consolidated balance sheet

At 30 September 2006




                                                                      Restated
                                                           2006           2005
                                                           £000           £000

Fixed assets

Tangible fixed assets                                     1,802          1,598
Fixed asset investments                                       -          1,546
Investment in associated undertakings                     2,209            859
                                                       --------      ---------

                                                          4,011          4,003
                                                       ========      =========

Current assets
Debtors                                                 104,066         92,103
Investments                                              25,742         17,812
Cash at bank and in hand                                 74,898         57,133
                                                       --------      ---------

                                                        204,706        167,048

Creditors
Amounts falling due within one year                    (118,189)       (97,725)
                                                       --------      ---------

Net current assets                                       86,517         69,323
                                                       --------      ---------

Net assets                                               90,528         73,326
                                                       ========      =========

Capital and reserves

Share capital                                             5,295          5,258
Share premium account                                    20,636         19,341
Profit and loss account                                  64,597         48,727
                                                       --------      ---------

Equity shareholders' funds                               90,528         73,326
                                                       ========      =========



Consolidated cash flow statement

For the year ended 30 September 2006

                                                                      Restated
                                                              2006        2005
                                                              £000        £000

Net cash inflow from operating activities                   44,342      25,069

Returns on investments and servicing of finance
Dividends received from associate                              150           -
Interest received                                            3,149       1,631
Interest paid                                                 (41)        (48)
Other dividends received                                         -          21
                                                         ---------    --------

Net cash inflow from returns on                              3,258       1,604
investments and servicing of finance

Taxation
Corporation tax paid                                       (14,009)     (5,683)

Capital expenditure and financial investment
Purchase of tangible fixed assets                           (1,111)     (1,375)
Purchase of fixed asset investments                         (5,695)     (1,251)
Disposal of interests in associated undertakings                 -      13,540
                                                           
Net cash outflow from investing activities                  (6,806)     10,914
from capital expenditure and financial investment

Equity dividends paid                                       (2,642)     (1,361)

Financing
Issue of ordinary shares                                       130       4,044
Purchase of own shares for the ESOP                         (6,508)       (922)
                                                         ---------    --------

Increase in cash in the year                                17,765      33,665
                                                         =========    ========

Reconciliation of net cash flow
to movement in net funds
Increase in cash balances in the year                       17,765      33,665
Net funds at the beginning of the year                      57,133      23,468
                                                         ---------    --------

Net funds at the end of the year                            74,898      57,133
                                                         =========    ========

Notes to the financial statements
 1   Operating income
                                                           2006           2005
                                                           £000           £000

        Institutional trading profits and                17,512         17,386
        commissions
        Corporate retainers                               3,464          2,197
        Deal fees                                         8,980         11,044
        Placing commission                               43,104         35,066
                                                        -------       --------
                                                       
                                                         73,060         65,693
                                                        =======       ========

 2   Exceptional items
                                                           2006           2005
                                                           £000           £000

        Profit from sale of interest in associate:            -          9,299
        Squaregain Ltd
        (formerly Comdirect Ltd)
                                                        -------       --------
                                                           
                                                              -          9,299
                                                        =======       ========

 3   Staff costs
                                                           2006           2005
                                                           £000           £000
        Employee costs during the year amounted to:
        Wages and salaries                               11,482          8,753
        Incentive payments                               13,050         10,697
        Exceptional incentive payments (in                    -            600
        connection with Squaregain disposal)
        Social security costs                             2,639          4,226
        Compensation for loss of office                     214            526
        Other pension costs                                 507            755
        LTIP award costs                                  1,009          1,063
                                                        -------       --------
                                                            
                                                         28,901         26,620
                                                        =======       ========
 4   Number of staff employed
                                                           2006           2005
                                                         Number         Number
        Average for the year
        Professional                                        112             85
        Administration                                       33             27
                                                        -------       --------
                                                              
                                                            145            112
                                                        =======       ========
        At the year end
                                                            165            127
                                                        =======       ========




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