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The AIM 100 - Investors Chronicle, 24/04/2015, p.2

24 Apr 2015

35.NUMIS CORP This year, Numis (NUM) celebrates 15 years since it sold its private client business, changed its name, and set off towards becoming the stockbroker and corporate adviser business that it is today. Over that time it has built both the number and size of its clients considerably, and now serves 175 companies with an average market capitalisation of £540m - sitting in a secure second place to JP Morgan Cazenove in client numbers. In its half-year update to 31 March, the company announced it had completed 23 equity transactions, including six IPOs. This tracks reasonably against the 44 transactions and 16 IPOs completed over its last full year to the end of September 2014, and boosted its revenue by a fifth to £92.9m. Full-year numbers will tell us if the rate of client growth is slowing - published statements suggest the company has added only four new clients since its year-end, compared to the 24 new clients it added over the previous 12 months. But there are only so many fish in the sea, and the strength of the business is how it crosssells services from corporate finance to research. The issue with being a listed broker is that analyst coverage is practically non-existent, given the patent problems with passing sensitive information to competitors. Its shares currently trade at 14 times historic earnings, which is better value than they were a year ago, but not good enough to make us change our recommendation. Hold.