UPDATE 2-UK broker Numis pretax up 87 pct, sees M&A upturn
* FY adj pretax profit rises 87 percent to 7.9 mln stg
* To pay final dividend at 4 pence, total unchanged at 8p
* Appoints Simon Denyer as FD, acting since 2009
* Shares up 4.2 percent
(Adds detail, CEO comment and share price reaction)
By Una Galani
LONDON, Dec 1 (Reuters) - British stockbroker Numis Corp (NUM.L) expects to benefit from a rise in M&A activity after a year in which its growing client list of mid-range companies helped drive an 87 percent rise in pretax profit.
A rise in corporate deal-making boosts Numis's advisory work, one of its main money-spinners, and the group's Chief Executive Oliver Hemsley said on Wednesday he expected such activities to increase in coming months.
"I think the M&A market will pick up next year and continue aggressively into 2012," Hemsley told Reuters.
Numis shares rose 4.2 percent to 120 pence by 0944 GMT in thin volume, having risen as high as 127.9p -- their highest in a month and a half.
But Hemsley warned that it would be a challenge for the group, which focuses on small to mid-cap UK clients, to translate its promising pipeline of primary and secondary corporate activity into profit in the current environment.
The group, listed on London's junior Aim market, said pretax profit jumped to 7.9 million pounds ($12.3 million) in the year through September, adjusted for changes in its investment portfolio and other factors, on a 9 percent increase in revenue to 51.9 million.
Arden Partners, one of the few brokerages to cover the relatively illiquid stock, had forecast adjusted pretax profit of 6.1 million pounds.
Earnings at Numis, whose competitors include Evolution Group EVG.L and Panmure Gordon (PMR.L), were boosted by a 7 percent cut in non-salary related costs, success in attracting new clients and a stabilisation in its investment portfolio.
The company maintained its final dividend at 4 pence per share, giving a total of 8p -- the same as 2009.
Earlier this year, the company acted as sole manager in its first corporate debt issue on behalf of a FTSE 250 company, signaling a willingness to branch out from its core activities. [ID:nSGE64408Q]
Hemsley, a farmer's son who never went to university, owns 12.4 percent of the company. A further 14.2 percent is held by Numis's employee benefit trust.
Numis also announced the appointment of Simon Denyer as the group finance director, a position he has held in an acting capacity since January 2009. (Editing by Sarah Young and David Holmes) ($1=.6431 Pound)
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