Numis chief 'faces power struggle'

SENIOR staff at stockbroker Numis have challenged the way it is run by chief executive and largest shareholder Oliver Hemsley. One client described it as a 'power struggle'.

It is believed that several staff, led by corporate financier David Poutney, felt that Hemsley, who owns 15.1%, had not properly promoted Numis in the City and claimed he had not driven its image aggressively enough.

One insider said: 'There was a clear division on how the business should be run, how it is presented and how it should deal with the City.'

Numis recently hired City public relations adviser Brunswick to promote its brand and position.

Poutney, Numis's third-largest shareholder with 8.1, has told friends that he believes Hemsley has held back the broker.

He has been backed by a group of colleagues who joined Numis with him three years ago from Panmure Gordon, the stockbroker recently bought by Lazard, and who sit on the management committee.

They believe that Numis's share price does not adequately reflect its true market valuation, less cash.

The stockbroker is believed to have made record commissions in September and is expected to make pre-tax profits of about £15m.

One insider said: 'These guys just feel that Oliver has not done enough.'

Last week Numis revealed it had rejected a takeover approach from Landsbanki, Iceland's oldest commercial bank. Insiders claim Hemsley was keen to accept the offer, believed to be about 750p a share, which values Numis at £176m. Others at the stockbroker believe an offer of £10 per share is more appropriate.

Numis closed down 17 1/2p at 635p on Friday.

Chairman Michael Spencer, also chief executive of money broker ICAP and the second-largest shareholder in Numis with 9.4%, dismissed talk of a rift and declined to comment further.