(Alliance News) - Numis Corp PLC on Friday posted a drop in interim revenue and profit, a week after it agreed to be taken over by Deutsche Bank AG.

The London-based investment bank reported that revenue in the six months that ended March 31 fell 14% to GBP63.8 million, down from GBP74.2 million a year earlier. The company explained that the drop was a result of capital markets activity remaining "subdued".

"The first half of our financial year has seen a continuation of the unfavourable market backdrop and, in the case of capital markets, we have experienced a deterioration in deal volumes relative to the comparative period," Numis added.

Pretax profit came in at GBP6.0 million, down 55% from GBP13.4 million.

Numis declared an interim dividend of 6 pence per share, unchanged year-on-year in the first half of financial 2022. The dividend is in line with the terms of its takeover by Deutsche Bank.

In April, Numis said it had agreed a GBP410 million cash takeover from the Frankfurt-based lender.

The offer of 350p per Numis share is made up of 339p in cash, plus the interim dividend of 6p and an additional interim dividend of 5p per share. Both dividends are conditional on the transaction becoming effective.

"Further details relating to the timetable of the offer will be announced in due course," Numis said on Friday.

Looking ahead, Numis said macro-economic sentiment continues to weigh on the outlook for the investment banking industry. It noted that capital markets volumes are likely to remain relatively low, however there are signs of improvement in the second half.

Co-Chief Executive Officers Alex Ham & Ross Mitchinson said: "Whilst capital markets volumes are likely to remain relatively low over the near term, we have started to see emerging indications that the second half may see relatively better conditions. Irrespective of the market environment, the financial position of the group remains resilient and our capital position strong."

Shares in Numis were flat at 340.92p each in London on Friday.

By Sophie Rose, Alliance News reporter

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