Top pairing at Numis predict jump in foreign takeovers

British companies made “cheaper” to buy by the weak pound are likely to trigger a stampede of foreign buyers to UK shores next year, City broker Numis said.

“We are expecting more inbound bids from private-equity firms and corporates. If you adjust for the currency and the firepower they have, we are expecting more activity. Companies look cheaper,” co-chief executive Alex Ham said.

Numis, led by Ham and Ross Mitchinson, worked on the £130 million sale of UK stovemaker Aga to the Americans last September and also advised UK firm Micro focus on its recent outbound takeover of Hewlett-Packard’s software unit. That, plus other big deals like the sale of broadcaster UTV to ITV, helped push deal-making fees up to £73.9 million.

Throwing in £38.4 million from equity trading, revenues rose 15% to a record of £112.3 million in the year ending in September.

Despite a drop in stock market flotations of companies, Mitchinson said the door hadn’t shut on the IPO market.

“Institutions are still keen to be shown good ideas. The market is open to the right kind of company in valuation terms,” he said. Numis worked on the listing of Hostelworld last year. Such deals make about 15% of its revenues.