Are you looking for Goldman Sachs on the Thames? We call Numis baby-Goldman Sachs because, like Goldman Sachs, Numis provides key financial products and services in the areas of investment banking and equities to varied clients globally. We want to clarify that Goldman Sachs and Numis are not related and do not endorse each other.
Numis, a budding financial institute, can transform itself into a powerhouse British financial institution providing services to English and European companies.
Numis, a new kid on the block, has started making inroads. While it did grapple with pandemic blues like others, it has come out stronger. Numis reports, “We have emerged from the pandemic with a strong client base, a robust operating model, and the drive to continue pursuing our ambitious growth strategy.”
Revenue increased by 39% in 2021; profits rose by 85%. Most segments performed well.
Numis was founded by Mr. Olivier Hemsley, who nurtured the company for over 25 years. After that, he handed over the steering of the company to Mr. Alex Ham and Mr. Ross Mitchinson, who are acting as co-CEOs. They bring a wealth of expertise to Numis. We believe they want their baby to flourish.
Currently, Numis derives most of its revenue from the UK but we see green shoots: Numis recently advised a US company. Numis is opening an office in Dublin and is planning to expand in Europe.
Numis faces numerous competitors, but it's personal touch can attract and retain clients. Numis emphasizes, “We build long-term trusted partnerships with clients by focusing on their needs, devising creative solutions, and delivering on them with conviction.”
If the British economy nosedives, many companies including Numis may suffer, of course.
Strong Balance sheet
In Sept 2021, Numis’s presentation showed cash of £134.1 million.
Looking out for shareholder’s interest
1. Numis continues to repurchase its shares.
2. Dividend: Numis pays decent dividends. Its dividend stood at 5.2% as of April 11, 2022.
Overall, Numis has a solid balance sheet, including sizable cash; can reap benefits of new growth opportunities; acts in the best interest of the shareholders by buying its stocks and dispensing dividends. A feather in the cap is its reasonable valuation.
Will Numis flourish or founder? We believe the founder CEOs will try their best to make Numis a success story.
Disclaimer
We have a beneficial long-term position in the shares of Numis either through stock ownership, options, or other derivatives. We wrote this article to express our opinions. We are not receiving compensation from any individual or entity for it.
You should not treat any opinion expressed in this article as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of our opinion. This is not investment advice. Before you invest in anything you might possibly read in our articles or those of the other people offering investment advice online, do your own research to verify the soundness of what you might have read. Please consult your investment advisor before making any decisions.
Nice read