Numis hiring spree to hit full-year profits

Josh Mines
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The Square Mile - London's Financial District
Numis said it expected to turn in lower profits after spending massively on new staff (Source: Getty)

Numis shares plunged this morning after the financial services firm said profits would be hit by a recent hiring spree at the company.

Its share price dropped six per cent on Friday morning after it said full-year profits would be lower due to "investment in talented individuals across the business".

The stockbroker said headcount had grown 16 per cent over the year, adding to staff-related costs.

It also said second half revenue failed to match a strong performance earlier in the year, meaning its full-year revenue rose just three per cent.

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"Investment in talented individuals across the business has been a key priority during the year as we seek to strengthen and diversify the business for the future," said Numis co-chief executives Alex Ham and Ross Mitchinson.

"Our track record and reputation has been a significant factor in our ability to attract highly respected individuals to the business."

The bosses said they believed Numis was "very well positioned to capture further market share in the near term".

"Whilst deal-related revenue was lower in the second half, our pipeline for the coming months is very strong and we are excited about the prospects for the business as we approach 2019," they concluded.

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