REG - Peel Hunt Limited - Half Year Trading Update

Peel HuntAnnouncement

01/10/2024 07:00

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RNS Number : 3376G  Peel Hunt Limited  01 October 2024

1 October 2024

Peel Hunt Limited

("Peel Hunt")

Half Year Trading Update: Performance in line with expectations

Peel Hunt, a leading UK investment bank, today issues a trading update in
respect of the six-month period ended 30 September 2024 (H1 FY25).

Financial performance

Group revenue for H1 FY25 is expected to be £53.3m (H1 FY24: £42.7m), an
increase of approximately 25% year on year. Our performance reflects a more
positive macroeconomic backdrop, together with success in completing M&A
financial advisory mandates for our clients during the period.

In Investment Banking, we saw improved performance in our core equity capital
markets (ECM) business, particularly in the first quarter of FY25, where we
acted as joint global coordinator on a Main Market IPO and nominated adviser
and sole bookrunner on an AIM IPO. Whilst market wide ECM activity remained
muted in the period, we were able to help a number of our clients execute both
equity fundraises and block trades. M&A advisory fees were a larger
proportion of overall Investment Banking deal revenues in the period, although
this does include material fees from a deal announced at the end of FY24 and
completed in H1 FY25.

Revenues in our Research & Distribution business are expected to be
modestly up on the same period last year despite continued outflows from UK
equities, as we continue to build out our capabilities for our clients,
particularly in merger arbitrage and low touch electronic trading.

Trading activity across Execution Services also increased in the first four
months of FY25 but volumes have slowed in recent weeks given uncertainty
around the outcomes of the upcoming Budget and US election.

Strategic progress

We have continued our targeted investment in talent, in line with our
strategic priorities. The recent market dislocation and consolidation amongst
our competitors provided opportunities to further strengthen our franchise,
with senior hires into our Investment Banking team in the Financials,
Consumer, Industrials and Technology, Media & Telecoms sectors, as well as
into our European distribution platform. We remain a resilient and stable
counterparty in a fast-changing landscape and are clearly benefiting from our
leading position as an independent, UK-focused investment bank.

During the period, we had a number of corporate client wins, as well as
successful organic growth of our existing clients leading to several index
promotions. We now act for 4 FTSE 100 companies and 42 FTSE 250 companies.
Consequently, the average market capitalisation of our retained corporate
clients has risen year on year by 38% from approximately £620m to
approximately £860m, and the aggregate market capitalisation has risen by 29%
to approximately £124bn. A combination of our focus on distribution, advice,
market share, influence and access has continued to extend our reach as a
trusted, well connected and stable investment banking partner to a broader
spectrum of listed plc's across the market cap scale.

We also have continued to use our ideas and well-respected thought leadership
to champion and reinvigorate UK capital markets, which are central to
accelerating growth in the UK economy.

Outlook

Market activity has slowed again in recent weeks ahead of the upcoming Budget
and US election.  Consequently, despite better first half revenues, we expect
full year performance to be in line with market expectations and
we remain well positioned across all parts of our business to take advantage
of increased activity when market confidence returns.

Peel Hunt will announce half year results for the six-month period ended 30
September 2024 on 29 November 2024.

For further information, please contact:

Peel Hunt: via Sodali & Co

Steven Fine, CEO

Sunil Dhall, CFOO

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 7728 2942

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

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.

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