REG - Peel Hunt Limited - Full-Year Results
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RNS Number : 8949M Peel Hunt Limited 16 June 2025
Peel Hunt Limited
Full-Year Results
For the year ended 31 March 2025
Improved revenue performance in challenging markets
Peel Hunt Limited ("Peel Hunt" or the "Company") together with its
subsidiaries (the "Group") today announces audited results for the year ended
31 March 2025 ("FY25").
Steven Fine, Chief Executive Officer, said:
"In challenging markets, we have delivered an improved revenue performance
through our continued focus on diversifying our business and being a trusted
advisor to high-quality clients.
Ongoing uncertainty continued to weigh on equity capital markets activity
during the period, driven by geopolitical risks, elections, stagflation fears
and US trade tariffs. Our diversified offering meant we were able to support
clients through these changing market conditions. Despite the backdrop, we
achieved some significant milestones during FY25; acting on the most
successful European IPO of the year and on our largest M&A transaction to
date, as well as taking the retained corporate client base to 52 FTSE 350
companies, including five FTSE 100 companies.
As we continue to make strategic progress, we enter our next financial year
well positioned. In the year ahead we will continue to build the business and
drive further efficiencies as we target sustained profitability."
Highlights
● Overall performance
o Revenue for FY25 increased approximately 6% year-on-year to £91.3m (FY24:
£85.8m), despite ongoing low levels of equity capital markets (ECM) activity
o During the year we took action to reduce costs following a thorough review
of our business needs and strategic priorities. We will continue to pursue
efficiencies and target sustained profitability
o The Group produced a loss before tax (LBT) of £3.5m (FY24: LBT £3.3m),
due to an increase in our costs, predominantly from exceptional Group
restructuring costs. On an adjusted basis 1 (#_ftn1) the Group was profitable
with a profit before tax of £0.8m (FY24: adjusted LBT £2.7m)
● Strong balance sheet
o Net assets of £88.7m and cash balances of £20.4m
o Capital base remains comfortably in excess of minimum regulatory
requirements
● Business division performance
o Investment Banking revenue was £31.5m (FY24: £32.6m), reflecting
resilience in the face of challenging markets and continuing low levels of ECM
activity. Despite these conditions, our M&A Advisory business continues to
go from strength to strength, with a significant portion of Investment Banking
deal fees coming from M&A in FY25. Whilst we have seen a number of client
reductions, these were substantially due to M&A activity, and we
successfully added 17 new clients. As of 31 March 2025, we acted for 147
corporate clients, of which 52 are in the FTSE 350 (five FTSE 100 and 47 FTSE
250)
o Execution Services revenue increased to £33.7m (FY24: £29.6m), due to
our position as a highly valued liquidity provider to our clients, as well as
increased trading volumes. We continue to maintain a leading trading position
despite the competitive environment
o Research & Distribution revenue increased to £26.1m (FY24: £23.6m).
The increase was driven by the further expansion of our low-touch electronic
trading offering, as well as higher returns from our core trading desk
● Strategic progress
o Our corporate client base continued to evolve in FY25, with the average
market capitalisation of our retained clients, which includes many exciting
growth companies, increasing by 15.6% to £869.3m. The aggregate market
capitalisation of our clients also rose by 12.6%, surpassing £125bn
o Despite the low levels of ECM activity, Peel Hunt acted on two of the
three prominent London market IPOs in the period. In addition, we advised on
15% of UK public M&A deals, reinforcing our reputation as a leading UK
mid-market financial adviser
o We made significant progress to enhance our distribution platform in terms
of product and geographical distribution capability:
▪ Our electronic trading platform continues to broaden its client
base across Europe, resulting in its highest revenue recorded
▪ Launch of our economics product including the hire of our Chief
Economist - providing insightful macro-economic analysis alongside our
corporate coverage
▪ Strategic investment in our global distribution capabilities -
we successfully expanded our European office product offering in FY25. After
receiving regulatory approval in principle in May, preparations are underway
to establish an office in Abu Dhabi
o RetailBook, the comprehensive retail access platform for capital markets
transactions, originally created by Peel Hunt, reached several key milestones
in FY25 - completing a number of successful fundraises, hiring key personnel
from the former capital markets team of PrimaryBid, and achieving operational
independence from the Group
● The increasing rate at which companies are exiting the London
market presents a significant challenge for the UK economy. Peel Hunt remains
at the forefront of the reform agenda, championing solutions to revitalise UK
equity markets. Numerous policy initiatives are already in progress, and we
are leveraging our connectivity to drive further advancements
Outlook
Following the challenging market conditions of February and March, FY26 has
started more positively, with the Trump administration agreeing a number of
trade deals, including with the UK, and with interest rates having been cut by
the Bank of England. We are seeing a rotation out of US assets into Europe and
greater institutional positivity towards the UK. ECM activity in the UK
remains generally subdued but could gain traction should macroeconomic
conditions continue to stabilise. Meanwhile our M&A franchise remains
highly active with a strong pipeline of transactions.
Key statistics
Financial highlights 2025 2024 Change
Revenue £91.3m £85.8m 6.4%
Loss before tax £(3.5m) £(3.3m) 6%
Adjusted profit/(loss) before tax((1)) £0.8m £(2.7)m 129.6%
Basic EPS (2.3)p (2.7)p 14.8%
Dividend - - -
Compensation ratio 60.8% 59.0% 1.8ppts
Adjusted compensation ratio 56.7% 58.3% (1.6)ppts
Operational highlights
Cash £20.4m £37.9m (46.2)%
Net assets £88.7m £91.8m (3.4%)
Corporate clients 147 150 (2%)
Average market cap of clients £869.3m £752.3m 15.6%
Note:
(1) Adjusted profit/(loss) before tax is a non-statutory measure,
which shows the underlying performance of the Group less share-based payment
charges and exceptional items. Share-based payment charges for the year were
£1.7m (FY24: £0.6m) with exceptional items including staff restructuring
costs of £2.0m, and impairment of associate of £0.5m, totalling £4.2m
(FY24: £0.6m). The £0.5m impairment of associate is disclosed within the
share of loss of associate line in the statement of comprehensive income.
For further information, please contact:
Peel Hunt: via Sodali & Co
Steven Fine, CEO
Sodali & Co (Financial PR): +44 (0)20 7100 6451
Justin Griffiths
Gilly Lock
Russ Lynch
peelhunt@sodali.com
Grant Thornton UK LLP (Nominated Adviser): +44 (0)20 7383 5100
Philip Secrett
Colin Aaronson
Elliot Peters
Keefe, Bruyette & Woods (Corporate Broker): +44 (0) 20 7710 7600
Alistair McKay
Alberto Moreno Blasco
Fred Walsh
Notes to editors
About Peel Hunt
Peel Hunt is a leading UK investment bank that specialises in supporting
mid-cap and growth companies. It provides integrated investment banking advice
and services to UK corporates, including equity capital markets, private
capital markets, M&A, debt advisory, investor relations and corporate
broking. The Company's joined up approach combines these services with expert
research and distribution and an execution services hub that provides
liquidity to the UK capital markets, delivering value to global institutions
and trading counterparties alike. The Company is admitted to trading on AIM
(LON: PEEL) and has offices in London, New York and Copenhagen.
Forward-looking statements
This announcement contains forward-looking statements. Forward-looking
statements sometimes use words such as 'may', 'will', 'could', 'seek',
'continue', 'aim', 'anticipate', 'target', 'project', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar
meaning. Past performance is no guide to future performance and any
forward-looking statements and forecasts are based on current expectations and
assumptions but relate to events and depend upon circumstances in the future
and you should not place reliance on them. These statements and forecasts are
subject to various risks and uncertainties and there are a number of factors
that could cause actual results or developments to differ materially from
those expressed or implied by forward-looking statements and forecasts.
The forward-looking statements contained in this document speak only as of the
date of this announcement and (except as required by applicable regulations or
by law) Peel Hunt does not undertake to publicly update or review any
forward-looking statements, whether as a result of new information, future
events or otherwise. Nothing in this announcement constitutes or should be
construed as constituting a profit forecast.
No offer of securities
The information, statements and opinions contained in this announcement do not
constitute or form part of, and should not be construed as, any public offer
under any applicable legislation, or an offer, or solicitation of an offer, to
buy or sell any securities or financial instruments in any jurisdiction, or
any advice or recommendation with respect to any securities or financial
instruments.
OPERATING AND FINANCIAL REVIEW
Group revenue performance
The Group's revenue of £91.3m (FY24: £85.8m) represents year-on-year growth
of 6.4% driven largely by a strong revenue performance in Execution Services,
which grew by 13.6%. Investment Banking revenue decreased by 3.2% while
Research & Distribution revenue increased by 10.5%. These results reflect
the improved macroeconomic environment and an uptick in UK equity capital
markets activity during the first five months of the year. However, the rest
of the year was affected by economic and geopolitical uncertainty which
continued to affect investor sentiment. This directly impacted our revenue
opportunities in Investment Banking and Research & Distribution.
Group revenue comprises the following:
FY25 FY24 %
£'000 £'000 Change
Investment Banking revenue 31,526 32,567 (3.2)
Execution Services revenue 33,673 29,638 13.6
Research & Distribution revenue 26,108 23,629 10.5
Total revenue for the year 91,307 85,834 6.4
Our joined-up banking model, which merges expert advice, high-quality
research, extensive distribution networks, and a significant market share in
trading volumes, keeps us well positioned for future growth opportunities. Our
focus on sector specialisation and continuous, targeted investments in our
business areas, including our workforce and technology, are crucial in
achieving our strategic priorities.
Investment Banking
FY25 FY24 %
£'000 £'000 Change
Investment Banking fees 22,890 23,795 (3.8)
Investment Banking retainers 8,636 8,772 (1.6)
Investment Banking revenue 31,526 32,567 (3.2)
Challenging market conditions, with historically low levels of ECM activity in
the UK markets, and companies continuing to transact much less frequently than
normal, have persisted. Despite this backdrop, our diversified investment
banking model has allowed us to support our clients consistently, acting in
partnership as trusted financial advisers, irrespective of the economic
uncertainty.
While IPO market activity remained low, we acted on two of the three prominent
London market IPOs in the period, including a standout IPO in the UK, based on
performance. We have also expanded our IPO origination capabilities through a
collaboration with Santander. This involves focusing on companies with whom
they have a strong relationship and that may see a UK IPO as the next stage of
their journey. Combining the respective capabilities and expertise of our two
firms can deliver a powerful and differentiated service for these companies.
In terms of wider ECM activity, we have successfully worked on a number of
block trades, in both client-related sell-downs and non-client situations. Our
ability to find buyers for significant blocks of shares, in spite of the
highly challenging environment for listed market investors, is testament to
our distribution capabilities in the UK and internationally.
We have also continued to expand our advisory service offering - notably in
M&A - providing strategic and financial advice to boards throughout the
company lifecycle. Collaboration between our advisory and sector teams, and
our leading market intelligence, positions us well to provide cohesive and
well-informed advice to our clients involved in M&A activities. As a
result, we have increased our market share in M&A transactions, placing us
third in UK plc M&A deals since the start of 2024, with only global
investment banks ranking higher than us.
We continue to evolve our corporate client base, increasing the aggregate
market capitalisation of our clients by £14.1bn to £126.9bn and winning a
number of major new corporate mandates. We now act for 147 clients, with five
in the FTSE 100 and 47 (FY24: 42) in the wider FTSE 250. This client growth
contrasts with the wider market, where net client numbers are currently in
decline because of reductions in the overall number of listed companies.
Meanwhile, the opportunities for our firm are accelerating as a result of
consolidation and closure among our competitors in the UK investment banking
landscape.
The ongoing market challenges have prompted some changes in our team this
year, including hiring new talent. Our sector and advisory teams remain
well-resourced with dynamic, experienced individuals, supported by a strong
cohort of more junior talent. Together, it means that our investment banking
team is stronger than ever, allowing us to provide consistent quality to our
corporate clients.
Looking ahead, we will continue to diversify our revenue streams in a
methodical and measured way, building into private company transactions as
well as public market ones, and further expanding our market share across the
lifecycle of our clients. We will continue to provide trusted strategic and
financial advice to our corporate clients and build out our connectivity to a
wider audience of both companies and investors.
Execution Services
FY25 FY24 %
£'000 £'000 Change
Execution Services revenue 33,673 29,638 13.6
Our Execution Services team has performed well this year. This is despite the
continued subdued market environment that has been affected by key
geopolitical events, including the UK election in July 2024 and budget in
October 2024. Revenues increased by 13.6% to £33.7m (FY24: £29.6m).
Alongside these events, there was also a marked increase in competition within
our liquidity pools, with new entrants competing for revenue share.
The rising trend in global trading flows has contributed to the further
'de-equitisation' of the UK markets, with companies continuing to de-list.
Whilst a challenging trading environment to operate in, we remain a valued
business partner for those wishing to deal in the UK markets. Our bespoke
solutions are highly valued, and our proprietary trading intelligence tool,
Peel Hunt Automated Trading (PHAT), continues to deliver fast access to
liquidity.
This has helped our team continue to strengthen our LSE market trading
position, where we are a significant market counterparty. We have also
expanded our capabilities and increased the number of counterparties we
transact with, while continuing to adapt to the evolving execution
environment. Our diverse liquidity offering, with its suite of trading
strategies and products across a number of platforms, is helping us achieve
our strategic objective to extend our leading liquidity position.
The quality and experience of our people means that we have developed a
culture of controlled risk management which supports our financial resilience,
despite increased market competition.
Technology is a major enabler for our business, enhancing our connectivity to
markets and trading products. Our dedicated Technology team works closely with
our traders to provide access to incremental liquidity opportunities. We
continue to build tech-driven solutions to strategically diversify our
offering, and enhance our proprietary trading platform, which allows us to
rapidly access liquidity pools. This agility and access is a true
differentiator for our business.
Looking forward, our priority remains to further diversify our trading
strategies. We will continue to invest in our people and technology to
maintain our leading market position and ensure the long-term success of the
business.
Research & Distribution
FY25 FY24 %
£'000 £'000 Change
Research payments and execution commission 26,108 23,629 10.5
Our business has remained resilient, despite the continued difficult market
conditions, characterised by depressed ECM activity and consistent fund
outflows from UK equities. Revenue from research payments, execution
commission and core trading was up 10.5% at £26.1m (FY24: £23.6m).
The strength and depth of our research and business knowledge is a result of
our commitment to UK plc, and sets us apart from our competitors. Through our
high-quality research and international distribution - with expanded access
into broader and deeper investment pools - we now have more than 500 trading
relationships across multiple countries. Our comprehensive market intelligence
is invaluable for our institutional and corporate clients alike, with our
corporate clients consistently outperforming the wider market.
Our talented people are the bedrock of our business. Our consistent focus on
the long-term future of our business helps us attract and retain top talent.
They recognise that our growing market share and evolving client base puts us
in an excellent position to accelerate out of the market downturn. Based in
London, New York and Copenhagen, our teams have deep experience and a
reputation for excellence and consistency, which have helped expand our
high-quality client list.
We are committed to growing our research coverage and market intelligence,
which is why, in FY25, we appointed our first Chief Economist. He brings a
wealth of experience and regularly engages with company boards, policymakers
and regulators. Meanwhile, our reputation and impact in the market has been
enhanced by our immensely popular suite of podcasts and multimedia products,
bringing leading voices, such as company CEOs and industry thinktanks, to a
wider audience. Our access to industry experts continues to grow, as does our
influence with government and regulators.
We have continued to use our growing reputation as a leading UK-focused
investment bank to champion the revitalisation of UK capital markets, sharing
our ideas via thought leadership pieces on our website and engaging with
government policymakers to enhance economic growth in the UK.
Meanwhile, we continue to make careful strategic investments to advance our
position as a distribution powerhouse. With our new Copenhagen office having
successfully expanded our European distribution capabilities, we also plan to
open an office in the Middle East, for which we have received regulatory
approval in principle. Establishing a full-time presence in the region will
enable us to increase our international access and deepen our liquidity reach.
Technology remains a focal point for our business; we have developed
artificial intelligence tools to help our analysts access greater insight from
our large database of research.
Our focus in the upcoming year remains the same: continuing to make strategic
progress to expand our access to deep pools of investment capital, both in the
UK and internationally, supported by our offices in the UK, Europe, North
America and, soon, in the Middle East.
Other financial information
FY25 FY24 %
£'000 £'000 Change
Staff costs 55,490 50,643 9.6
Non-staff costs 38,401 37,399 2.7
Total administration costs 93,891 88,042 6.6
Compensation ratio 60.8% 59.0% 1.8ppts
Period-end headcount 287 303 (5.3)
Average headcount 298 309 (3.6)
Adjusted staff costs(1) 51,755 50,043 3.4
Adjusted admin costs(1) 90,156 87,442 3.1
Adjusted compensation ratio(1) 56.7% 58.3% (1.6)ppts
(1)Adjusted staff costs and adjusted admin costs is a measure calculated as
staff costs or admin costs less share-based payment charges of £1.7m (FY24:
£0.6m) and exceptional items amounting to £2.0m (FY24: £nil) respectively.
"Exceptional items" relate to staff restructuring costs of £2.0m.
During the year we have been focused on the long-term success of the Group and
ensuring the business is operating efficiently. As a result, we have reduced
staff costs during the year through headcount reductions to support the
business in moving towards profitability throughout the cycle. This led to our
average headcount decreasing by 3.6% compared to prior year. However, staff
costs were 9.6% higher than FY24 mainly due to exceptional Group restructuring
costs and share-based payment charges of £3.7m (FY24: £0.6m).
Despite the macroeconomic challenges, we have continued to target investment
in talent in line with our strategic priorities. This includes key senior
hires in our Investment Banking and European teams, who are already helping to
drive greater revenue opportunities, as well as salary increases and long-term
share awards to retain our talent.
Whilst inflationary costs from suppliers have increased non-staff costs during
the year, we are focused on minimising these where possible, such as those
from technology providers. We anticipate that this will lead to reductions in
non-staff costs in FY26. In FY25 we have also seen the full cost impact of the
Copenhagen office following its set-up in FY24, and a full year's worth of
costs for the electronic trading desk, which was operational for the whole of
FY25. Both our staff costs and non-staff costs also include the full costs of
RetailBook, our subsidiary until May 2025, which was fully operational in
FY25.
As we navigate the uncertain market conditions, we continue to focus on our
strategic priorities and monitor costs so that we are best positioned to
capitalise on future opportunities for growth.
Profit and loss
Although we had growth in revenue from FY24, this has been offset with a rise
in our costs leading to a loss before tax of £3.5m (FY24: £3.3m), and an
adjusted profit before tax of £0.8m (FY24: £(2.7)m), which excludes
exceptional items and share-based payments.
EPS improved by 14.8% to (2.3)p per share (2024: (2.7)p).
Strategic investments
Our investment in RetailBook was diluted in FY25 from 56.6% to 51.5% following
a fundraise of £0.5m. Following the year end, the Group's investment was
further diluted to below 50% due to an external fundraise. A number of key
senior hires were made in Q4 FY25 as part of a wider accelerated growth plan.
Our European platform has been fully operational for the entire financial
year. The Copenhagen office has strengthened our distribution capability,
facilitating the distribution of research, the trading of shares, and the
promotion of investment banking deals into the region. Combined, these
capabilities provide significant liquidity to investors, better insights to
corporate clients and further grows Peel Hunt's business.
We are in the process of setting up a small office in Abu Dhabi to cover the
Middle Eastern region. We submitted the regulatory application in early FY26
and are aiming for the office to be operational later in the year.
We have fully impaired our £0.54m investment in Peel Hunt Fintech Ventures
LLP, an associate of the Group, due to the continued challenging market
conditions contributing to delays for the first fund close for FinTech Growth
Fund.
We continue to invest in technology which is central to our business growth
plans, driving efficiencies and competitive advantage as we leverage our
talent pool across the Group.
Balance sheet
The Group's net asset position as at 31 March 2025 remains strong at £88.7m
(31 March 2024: £91.8m). We have continued to focus our attention on
maintaining a healthy financial position by carefully managing costs, making
cost-efficient investments and growing revenue so that we are best positioned
to take advantage of market opportunities as the macroeconomic environment
improves.
As required by accounting rules, the company carried out the impairment
assessment in its investments in subsidiaries and associates held on its
balance sheet after the year end. Following this assessment the associate
investment in Peel Hunt Fintech Ventures LLP was fully impaired.
Capital and liquidity
Our cash position decreased to £20.4m as at 31 March 2025 from £37.9m as at
the end of 31 March 2024, which included a £15.0m Revolving Credit Facility
(RCF) drawdown which was repaid during the year.
We made a scheduled loan repayment of £6.0m during the year reducing our
long-term debt to £9.0m (31 March 2024: £15.0m). We have occasionally used
our £20.0m RCF with Lloyds Bank and £10.0m Santander overdraft facility
during the year, supporting our clients' large trades generating revenue for
the Group. As at 31 March 2025, the RCF and overdraft facility were undrawn.
In June 2024, we partnered with BNP Paribas SA to allow us to settle our
trades more effectively from FY26 to ensure we use the Group's funding more
efficiently.
Our own funds coverage over net assets was 417% as at 31 March 2025 (31 March
2024: 532%). The decrease was a result of maintaining risk exposures and a
decrease in net assets. We continue to operate well in excess of our minimum
regulatory capital requirements.
Dividend
The Board is not proposing a dividend in respect of FY25.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
Audited for the year ended 31 March 2025
Consolidated
Year ended Consolidated
31 March 2025 Year ended
£'000 31 March 2024
£'000
Continuing activities Note
Revenue 91,307 85,834
2
Administrative expenses (93,891) (88,042)
Loss from (2,584) (2,208)
operations
Finance 1,495 1,117
income
4
Finance (2,105) (2,244)
expense
4
Other 235 115
income
Operating loss for the year (2,959) (3,220)
Share of loss from (538) (42)
associate
Loss before tax for the year (3,497) (3,262)
Tax (83) 61
5
Loss for the year (3,580) (3,201)
Other comprehensive income/(expense) for the - -
year
Total comprehensive expense for the year (3,580) (3,201)
Attributable to:
Owners of the Company (2,728) (3,201)
Non-controlling interests (852) -
Loss for the year (3,580) (3,201)
Attributable to:
Owners of the Company (2,728) (3,201)
Non-controlling interests (852) -
Total comprehensive expense for the year (3,580)
(3,201)
Loss per share - attributable to owners of the Company
Basic (2.3)p (2.7)p
8
Diluted (2.3)p (2.7)p
8
Consolidated Statements of Financial Position
Audited as at 31 March 2025
Consolidated Consolidated
As at As at
31 March 2025 31 March 2024
£'000 £'000
Company Number - 65579
ASSETS
Non-current assets
Property, plant and equipment 5,715 6,555
Intangible assets 1,658 1,901
Investment in associates - 538
Right-of-use assets 12,069 13,741
Deferred tax asset 472 409
Total non-current assets 19,914 23,144
Current assets
Securities held for trading 68,539 60,104
Market and client debtors 496,029 551,943
Trade and other debtors 20,042 19,613
Cash and cash equivalents 20,395 37,929
Total current assets 605,005 669,589
LIABILITIES
Current liabilities
Securities held for trading (53,770) (35,305)
Market and client creditors (447,146) (508,980)
Trade and other creditors (8,859) (7,280)
Revolving credit facility - (15,000)
Lease liabilities (2,983) (2,956)
Long-term loans (6,000) (6,000)
Provisions (611) (708)
Total current liabilities (519,369) (576,229)
Net current assets 85,636 93,360
Non-current liabilities
Long-term loans (3,000) (9,000)
Lease liabilities (13,833) (15,754)
Total non-current liabilities (16,833) (24,754)
Net assets 88,717 91,750
EQUITY
Ordinary share capital 40,099 40,099
Other reserves 47,895 50,076
Total shareholders' equity 87,994 90,175
Non-controlling 723 1,575
interests
Total equity 88,717 91,750
Consolidated Statement of Changes in Equity
Audited for the year ended 31 March 2025
Ordinary share Other Total shareholders' equity Non- controlling interest Total equity
capital reserves £'000 £'000
Group £'000 £'000 £'000
Balance as at 1 April 2023 40,099 53,047 93,146 - 93,146
Loss for the year - (3,201) (3,201) - (3,201)
Other comprehensive income - - - - -
Total comprehensive expense - (3,201) (3,201) - (3,201)
Transactions with owners
Equity-settled share-based payments reserve - 688 688 - 688
Purchase of Company shares - (458) (458) - (458)
Transaction with non-controlling interests - - - 1,575 1,575
Balance as at 31 March 2024 40,099 50,076 90,175 1,575 91,750
Loss for the year - (2,728) (2,728) (852) (3,580)
Other comprehensive income - - - - -
Total comprehensive expense - (2,728) (2,728) (852) (3,580)
Transactions with owners
Equity-settled share-based payments reserve - 1,521 1,521 - 1,521
Purchase of Company shares - (974) (974) - (974)
Balance as at 31 March 2025 40,099 47,895 87,994 723 88,717
Consolidated Statements of Cash Flows
Audited for the year ended 31 March 2025
Consolidated Consolidated
Year ended Year ended
31 March 2025 31 March 2024
£'000 £'000
Note
Net cash generated from operations 10 9,601 7,027
Cash flows from investing activities
Investment in - (580)
associates
Purchase of property, plant and equipment (583) (76)
Disposal of property, plant and equipment 2 -
Purchase of intangible assets (283) (1,078)
Net cash used in investing activities (864) (1,734)
Cash flows from financing activities
Interest paid (1,404) (1,435)
Lease liability payments (3,402) (3,456)
Purchase of Company shares (974) (458)
Non-controlling - 1,575
interests
Disposal of equity in a subsidiary investment 9 -
RetailBook fundraising proceeds 500 -
(Repayment)/drawdown from the revolving credit (15,000) 15,000
facility
Repayment of long-term loan (6,000) (6,000)
Net cash used in financing activities (26,271) 5,226
Net (decrease)/increase in cash and cash equivalents (17,534) 10,519
Cash and cash equivalents at beginning of period 37,929 27,410
Cash and cash equivalents at the end of the year 20,395 37,929
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
Peel Hunt Limited (the Company) is a non-cellular company limited by shares
having admitted its shares for trading on AIM, a market operated by the London
Stock Exchange plc, on 29 September 2021. The Company is registered in
Guernsey. Its registered office is Mont Crevelt House, Bulwer Avenue, St
Sampson, Guernsey GY2 4LH. The consolidated financial statements of the
Company comprise the Company and its subsidiaries, together referred to as the
Group.
The financial information is presented in pounds sterling and all values are
rounded to the nearest thousand (£'000), except where indicated otherwise.
The financial information has been prepared on the historical cost basis,
except for derivatives and financial assets and liabilities which are valued
at fair value through profit and loss (FVTPL). Historical cost is generally
based on the fair value of the consideration given in exchange for the assets.
Going concern
The Group's principal activities are Investment Banking, Research &
Distribution and Execution Services in UK mid-cap and growth companies to
institutional clients, wealth managers and private client brokers.
The Directors have assessed the Group's projected business activities and
available financial resources together with a detailed cash flow forecast for
the next 18 months from the date these financial statements were approved. The
Directors have used base case and severe but plausible scenarios to perform
the going concern assessment.
The base scenario assumes:
● Long-term sustainable growth of the Group as approved by the Board
in the Group's five-year business plan
● Moderate inflationary increases on all cost categories
● Continued strategic investment in the Group, particularly in
relation to technology and further diversification in our revenue
The severe but plausible downside scenario assumes:
● Worsening of the economic climate from the current historic low
levels, continuing to keep capital market activity low and trading volumes
reduced
● An operational event occurs reducing profitability and cash
● Management continues to rationalise costs where possible
The results of the scenario analyses consider the impact on profitability,
cash, liquid assets, regulatory capital and covenant requirements. The severe
but plausible downside scenario also includes active management of the Group's
liquid assets in order to ensure the Group's ability to repay its long-term
loans as required, which would mitigate any potential covenant constraints. In
view of the Group's available financial resources, the Directors believe that
the Group is well placed to manage its business risks successfully.
The Directors are satisfied that the Group has adequate resources to continue
in operational existence for a period of at least 12 months from the date
these financial statements are approved and for the foreseeable future. The
Group has a strong focus on working capital management to ensure the payment
of the Group's liabilities as they fall due. There is also a focus on
monitoring the regulatory capital resources and requirements of Peel Hunt LLP
and the UK regulatory group to ensure that all regulatory capital and
liquidity requirements and covenant requirements are met.
Accordingly, the Directors continue to adopt the going concern basis in
preparing the financial statements for the year ended 31 March 2025.
The new standards or amendments to IFRS that became effective and were adopted
by the Group during the year had no material effect on the financial
statements.
2. Revenue
Year ended Year ended
31 March 2025 31 March 2024
£'000 £'000
Research payments and execution commission 26,108 23,629
Execution Services revenue 33,673 29,638
Investment Banking fees and retainers 31,526 32,567
Total revenue for the year 91,307 85,834
3. Staff costs
Year ended Year ended
31 March 2025 31 March 2024
£'000 £'000
Wages and salaries 46,450 41,874
Social security costs 5,923 5,914
Pensions costs 2,570 2,741
Other costs 547 114
Total staff costs charged as an expense for the year 55,490 50,643
The average number of employees of the Group excluding RetailBook during the
year decreased to 291 (31 March 2024: 308). Average number of employees for
RetailBook during the year was 7 (31 March 2024: 1).
4. Net finance expense
Year ended Year ended
31 March 2025 31 March 2024
£'000 £'000
Finance income
Interest received 1,495 1,117
Finance expense
Interest paid (293) (85)
Interest on lease liabilities (712) (809)
Interest accrued on long-term loan (1,100) (1,350)
Finance expense for the year (2,105) (2,244)
Net finance expense for the year (610) (1,127)
5. Tax charge
The Group tax charge in the year ended 31 March 2025 includes a tax expense of
£0.1m (31 March 2024: tax credit of £0.1m).
6. Non-controlling interest
The amount of non-controlling interest is measured at the non-controlling
interest's proportionate share of the subsidiary's identifiable net assets.
7. Statement of Financial Position items
(a) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and impairment losses. Depreciation is charged to the income statement on a
straight-line basis over the estimated useful economic lives of each item.
(b) Intangible assets
Intangible assets represent internally generated intangible assets, computer
software and sports debentures. Amortisation is charged to the income
statement on a straight-line basis over the estimated useful economic lives of
each item. Internally generated intangible assets are amortised over three
years, computer software is amortised over five years and sports debentures
are amortised over the life of the ticket rights.
Internally generated intangible assets comprise capitalised development costs
for certain technology developments for key projects in the Group. The
expenditure incurred in the research phase of these internal projects is
expensed. Intangible assets are recognised from the development phase if and
only if certain specific criteria are met in order to demonstrate the asset
will generate probable future economic benefits and that its costs can be
reliably measured. Amortisation begins when the asset is available for use.
(c) Right-of-use asset and lease liabilities
The right-of-use asset and lease liabilities (current and non-current)
represent the two property leases that the Group currently uses for its
offices and car leases.
(d) Market and client debtors and creditors
The market and client debtor and creditor balances represent unsettled sold
securities transactions and unsettled purchased securities transactions, which
are recognised on a trade date basis. The majority of open bargains were
settled in the ordinary course of business (trade date plus two days). Market
and client debtor and creditor balances in these financial statements include
agreed counterparty netting of £10.0m (31 March 2024: £10.2m).
(e) Financial instruments
Financial assets and financial liabilities are recognised in the statement of
financial position when the Group becomes a party to the contractual
provisions of the financial instrument. The type of financial instruments held
by the Group at 31 March 2025 are consistent with those held at the prior year
end. The majority of financial instruments are classified as 'Level 1', with
quoted prices in active markets.
(f) Stock borrowing collateral
The Group enters into stock borrowing agreements with a number of institutions
on a collateralised basis. Under such agreements, securities are borrowed with
a commitment to return them at a future date. The securities borrowed are not
recognised on the statement of financial position. The cash pledged is
recorded on the statement of financial position as cash collateral within
trade and other debtors, the value of which is not significantly different
from the value of the securities borrowed. The total value of cash collateral
held on the statement of financial position is £2.4m (31 March 2024: £5.4m).
(g) Long-term loans
During the year, the Company repaid £3m of the Senior Facilities Agreement
(SFA) scheduled principal repayments due in each of September 2024 and March
2025, reducing the outstanding balance to £9m (31 March 2024: £15m).
(h) Revolving credit facility
As at 31 March 2025, the £20.0m (31 March 2024: £30.0m) Revolving Credit
Facility (RCF) was undrawn (31 March 2024: £15m) and £10.0m (31 March 2024:
n/a) was undrawn (31 March 2024: n/a).
8. Loss per share
Year ended Year ended
31 March 2025 31 March 2024
Basic weighted average number of ordinary shares in issue during the year 116,352,608 117,069,636
Dilutive effect of share option grants 10,363,476 8,755,598
Diluted weighted average number of ordinary shares in issue during the year 126,716,084 125,825,234
Basic loss per share of (2.3) pence (31 March 2024: (2.7) pence) is calculated
on total comprehensive expense for the year, attributable to the owners of the
Company, of £(2.7)m (31 March 2024: £(3.2)m) and 116,352,608 (31 March 2024:
117,069,636) ordinary shares, being the weighted average number of ordinary
shares in issue during the year.
The calculations exclude Company shares held by the Employee Benefit Trust on
behalf of the Group.
The Company has 10,363,476 (31 March 2024: 8,755,598) of dilutive equity
instruments outstanding as at 31 March 2025.
9. Post balance sheet event
Retail Book Holdings Limited (RBHL) raised £0.2m cash from various investors
in an equity fundraise completed in April 2025. Another c.£4.0m was raised
from investors in an equity funding round in May 2025. The proceeds will be
used to fund the next stage of RetailBook's growth. The Group did not
participate in these fundraisings, allowing RetailBook to pursue its strategy
to be an independent industry utility and allowing our percentage shareholding
to reduce.
Following completion of the above fundraisings, the Group's equity interest in
RBHL has decreased to 40.6% resulting in loss of control; thus RBHL and Retail
Book Limited (RBL) are no longer subsidiaries from 9 May 2025. Consequently,
RBHL and RBL will no longer be consolidated in the financial statements of the
Group from 09 May 2025 onwards. The assets and liabilities of RBHL and RBL
will be derecognised (including non-controlling interests) and an investment
in associate will be recognised in line with the Group Accounting policy. The
Group still retains significant influence in the financial and operating
decisions of RBHL and RBL.
10. Reconciliation of loss before tax to cash from operating
activities
Year ended Year ended
31 March 2025 31 March 2024
£'000 £'000
Loss before tax for the financial year (3,497) (3,262)
Adjustments for:
Depreciation and amortisation 4,429 4,353
Expected credit loss on financial assets held at amortised cost (258) 186
Impairment of investments in subsidiaries 538 -
Increase in provisions (97) 131
Equity settled share-based payments - IFRS 2 charge 1,521 688
Revaluation of right-of-use asset and lease liabilities (22) 33
Net finance expense 610 1,127
Change in working capital:
Decrease/(increase) in net securities held for trading 10,031 (2,717)
(Increase)/decrease in net market and client debtors (6,152) 6,588
(Increase) in trade and other debtors (403) (4,595)
Increase in trade and other creditors 1,408 3,049
Cash generated from operations 8,108 5,581
Interest received 1,495 1,117
Corporation tax (paid)/credit (2) 329
Net cash generated from operations 9,601 7,027
END
1 (#_ftnref1) Adjusted profit/(loss) before tax is a non-statutory measure,
which shows the underlying performance of the Group less share-based payment
charges and exceptional items
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