REG - Peel Hunt Limited - Interim Results
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RNS Number : 5351J Peel Hunt Limited 01 December 2025
1 December 2025
Peel Hunt Limited
Interim Results for the six months ended 30 September 2025
Strong performance and strategic progress
Peel Hunt Limited ('Peel Hunt', the 'Company') together with its subsidiaries
(the 'Group') today announces unaudited interim results for the period ended
30 September 2025 ('H1 FY26'). FY26 refers to the financial year ending on 31
March 2026.
Strategic Progress & Group Profitability
· During the challenging market conditions of the past three years, we
have remained focused on executing our strategy: evolving our corporate client
base towards ambitious mid-cap and growth companies, building a high-quality
M&A franchise, pursuing our ambition to be the leading UK equities
platform, adding incremental liquidity to our Execution Services platform, and
deploying proprietary technology to maintain our competitive edge. This
strategic progress is reflected in our financial performance for H1 FY26.
· We continue to focus on delivering sustainable profitability
through the economic cycle and have reduced fixed costs while maintaining
investment in our client service capabilities. As a result, our strong revenue
performance is now supported by a leaner and better-aligned cost base, which
is evident in the Group's underlying profitability for H1 FY26.
Financial & Operating Highlights
· Group revenue of £74.4m (H1 FY25: £53.8m), representing a 38.3%
year-on-year increase
· Profit before tax of £11.5m (H1 FY25: £1.2m), representing a
858.3% year-on-year increase
· Adjusted profit before tax((1)) of £18.7m (H1 FY25: £4.6m),
representing a 306.5% year-on-year increase
· Net assets of £100.7m (FY25: £88.7m) and cash balances of £13.6m
(FY25: £20.4m), with the reduction in cash largely due to debt repayment and
increased investment into our trading book
· Capital and liquidity remain comfortably in excess of regulatory
requirements
· Headcount reduced by over 15% from its peak in FY23 and underlying
fixed costs are down by approximately £5.0m for FY26
Divisional Performance
Investment Banking
· Revenue of £32.9m (H1 FY25: £22.6m), an increase of 45.6%
year-on-year
· Strong performance in our core equity capital markets business,
executing multiple equity fundraises and block trades, and being the most
active investment bank for all UK ECM transactions in H1 with a market share
of approximately 17% for the period
· Our M&A advisory business delivered an exceptional performance -
we acted as financial adviser on 10 M&A transactions with a total deal
value of £8.1bn, ranking third in the UK public M&A league tables behind
only global investment banks
· Demonstrating the success of our diversification strategy, M&A
fees have significantly contributed to Investment Banking revenue over the
past three years, accounting for approximately 70% of overall Investment
Banking deal fees in H1 FY26
· The average market capitalisation of our corporate clients has
nearly doubled over the last three years to over £1bn, with the median market
cap rising to £457m
· We now act for 57 FTSE 350 clients, including five FTSE 100
companies and 52 FTSE 250 companies, as well as a strong portfolio of exciting
growth companies
Research & Distribution
· Revenue of £13.9m (H1 FY25: £13.6m), an increase of 2.2%
year-on-year
· Continued investment in our distribution capabilities, particularly
internationally. We have now opened Peel Hunt Middle East in Abu Dhabi,
complementing our existing office network in London, New York and Copenhagen
· With one of the largest global sales teams focused on UK equities,
targeting international and domestic funds, we believe we offer the leading
platform for UK mid-cap and growth companies
Execution Services
· Delivered its best half-year performance since the Covid lockdown
period, despite increased market competition
· Revenue of £27.6m (H1 FY25: £17.6m), an increase of 56.8%
year-on-year
Financial and operating highlights
Financial highlights H1 FY26 H1 FY25 Change
Revenue £74.4m £53.8m 38.3%
Profit before tax £11.5m £1.2m 858.3%
Adjusted profit before tax((1)) £18.7m £4.6m 306.5%
Profit after tax £8.3m £0.7m 1,085.7%
Compensation ratio 57.9% 61.2% (3.3)ppts
Operating highlights H1 FY26 FY25 Change
Cash £13.6m £20.4m (33.3)%
Net assets £100.7m £88.7m 13.5%
Investment Banking clients 143 147 (2.7)%
Average market cap of clients £1,096.0m £869.3m 26.1%
Note:
(1) Adjusted profit before tax is a non-statutory measure, which
shows the underlying performance of the Group excluding share-based payment
charges and exceptional items. This is calculated as the Group's profit before
tax less share-based payment charges of £5.0m (H1 FY25: £3.4m) and
exceptional items amounting to £2.2m (H1 FY25: £nil). Exceptional items
relate to staff restructuring costs.
Steven Fine, Chief Executive Officer, commented:
"I am delighted with the Group's strong financial performance in the first
half, which reflects the significant strategic progress we have made in recent
years.
Each part of our business delivered year-on-year growth. Our core ECM
franchise continues to strengthen, as demonstrated by our being the most
active investment bank in UK ECM in H1 FY26, while our M&A advisory
business ranked third in the UK league tables. Execution Services also
delivered its best half-year performance since the Covid lockdown period.
We are fortunate to work with outstanding colleagues and an exceptional client
base, whom we were proud to support across a broad range of value-creating
transactions.
The second half has started strongly, with the Group continuing to play
leading roles across both M&A and ECM mandates. Consequently, we are
confident in meeting market expectations for the full financial year."
For further information, please contact:
Peel Hunt: via Sodali & Co
Steven Fine, CEO
Michael Lee, COO
Billy Neve, Group Finance Director
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 international investment bank specialising in
supporting UK 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, Copenhagen and
Abu Dhabi.
Market conditions
Although conditions improved following the initial impact of 'Liberation Day'
in the US and we saw an increase in equity issuances during H1 FY26, overall
activity continues to remain significantly below historical averages. The
changes to the UK's regulatory regime, particularly with respect to secondary
issuances by listed companies, appear to be having a positive impact, and we
expect this to continue once the further changes to the UK's prospectus regime
come into effect in January 2026. IPO activity remained low during H1 FY26,
although we saw an initial re-opening of the IPO market in September and
October 2025, with a number of companies coming to market in London. M&A
bid activity continued at pace throughout H1 FY26, with 60 transactions
announced across the market during the period and there were ten active bids
for FTSE 350 companies as at 30 September 2025.
Global and domestic indices reached a number of highs during the period with
both the FTSE 100 and FTSE 250 rising by 8.9% and 13% respectively as part of
a global rally in equity markets. Outflows from UK equities persisted
throughout the period, and we now await the impact of Budget changes on
investor sentiment towards the UK. Following a prolonged period of pre-Budget
speculation, businesses and investors now have greater clarity from which they
can start to plan. The key measures were generally well received by markets,
particularly the creation of additional headroom against the chancellor's
fiscal rules. Initiatives such as a stamp duty holiday on IPOs and adjustments
to the ISA framework are intended to support UK capital markets and encourage
investment in British companies. These developments, alongside the
'Entrepreneurship in the UK' paper published simultaneously, represent
positive steps toward enhancing the UK's attractiveness for growth businesses
and long-term investors.
Overview of results
Group revenue for the period was £74.4m (H1 FY25: £53.8m) with a profit
before tax of £11.5m (H1 FY25: £1.2m), reflecting strong performances in our
Execution Services business and M&A advisory franchise, and resilient
performances by our other business divisions. Our adjusted profit before tax,
which shows the underlying performance of the Group excluding share-based
payment charges and exceptional items, was £18.7m (H1 FY25: £4.6m). Our
balance sheet remained strong, with net assets of £100.7m as at 30 September
2025 (FY25: £88.7m), and with liquidity and capital comfortably in excess of
regulatory requirements. Cash balances of £13.6m (FY25: £20.4m) reduced
largely due to debt repayment and increased investment into our trading book.
Divisional reviews
Investment Banking
H1 FY26 H1 FY25 Change
Investment Banking fees £28.3m £18.4m 53.8%
Investment Banking retainers £4.6m £4.2m 9.5%
Investment Banking revenue £32.9m £22.6m 45.6%
In Investment Banking, revenue increased by 45.6% to £32.9m (H1 FY25:
£22.6m). M&A advisory fees were the largest proportion of overall
Investment Banking deal revenue in the period, reflecting our M&A
franchise's exceptional performance where we acted as financial adviser on a
number of sizeable public M&A transactions. This was coupled with a solid
performance from our equity capital markets ('ECM') business particularly
during July and August 2025, where we acted on a number of sizeable
fundraisings and block trades. Whilst the absolute revenue generated from our
ECM business was low relative to historic standards, Peel Hunt was the most
active investment bank across all UK ECM transactions in H1 FY26, with a
market share by value of approximately 17%.
The slight increase in revenue from retainers reflects an uptick in annual
retainer fees and our successful efforts to actively evolve the quality of our
corporate client base. 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, combined with a number of move ups from AIM to the
Main Market of the London Stock Exchange of our existing corporate clients.
As a result, we now act for 57 FTSE 350 companies (five FTSE 100 companies
and 52 FTSE 250 companies), as well as a strong portfolio of exciting growth
companies on AIM and the Main Market. Consequently, the average market
capitalisation of our retained corporate clients has risen by 22.9% since the
end of FY25, from approximately £869.3m to approximately £1,096.0m, and the
aggregate market capitalisation of our corporate client list has risen by 25%
to approximately £156bn.
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 of choice to UK mid-cap and growth companies.
Research & Distribution
H1 FY26 H1 FY25 Change
Research payments (including commission sharing arrangements) £2.5m £2.7m (7.4)%
Execution commission (including core trading) £11.4m £10.9m 4.6%
Research payments and execution commission £13.9m £13.6m 2.2%
Revenues in our Research & Distribution business were up on the same
period last year at £13.9m (H1 FY25: £13.6m), despite a small decrease in
research payments. Outflows from UK equities persisted throughout the period,
and we now await the impact of Budget changes on investor sentiment towards
the UK. The increase in execution commission was due, in part, to our
continued focus on building out our capabilities for our clients.
In Research, revenue from research payments remained consistent year on year.
We continued to develop and deploy AI applications and to seek innovative ways
to interact with our significant data base of proprietary research.
Execution Services
H1 FY26 H1 FY25 Change
Execution Services revenue £27.6 £17.6m 56.8%
Execution Services revenue for H1 FY26 was £27.6m, an increase of 56.8% year
on year (H1 FY25: £17.6m). The strong performance in the first six months of
the year was driven primarily by the team's ability to capture market
opportunities and maintain a leading position as a liquidity provider.
Alongside this, continued investment in proprietary technology has ensured
that our Execution Services platform remains highly competitive.
Capital and liquidity
Net assets remained strong at £100.7m as at 30 September 2025 (H1 FY25:
£88.7m).
Our cash position decreased as we repaid £3.0m of the senior facility
agreement and increased investment into our trading book. This strategic
deployment of capital has delivered a higher rate of return, when compared to
the prior year. This reinforces our commitment and ability to dynamically
manage capital in changing market conditions in order to maximise shareholder
value.
Long-term debt was £6.0m at 30 September 2025, and we have access to an
additional £30.0m of funding facilities, comprising £20.0m under the
Revolving Credit Facility and a £10.0m overdraft facility. Both were undrawn
at the end of the period.
We continue to operate well in excess of our regulatory capital requirements
with own funds requirements coverage over net assets of 442% at the end of H1
FY26 compared to 417% at the end of FY25. The increase in coverage from FY25
was due to an increase in Group net assets while maintaining risk exposures
within agreed limits.
In Q1 FY26, Retail Book Holdings Limited (RBHL) successfully carried out an
equity fundraise. Following completion, the Group's equity interest in RBHL
has decreased to 40.95% meaning RBHL and Retail Book Limited (RBL) are no
longer subsidiaries and are no longer consolidated in the financial statements
of the Group. The assets and liabilities of RBHL and RBL were derecognised
(including non-controlling interests) and an investment in associate has been
recorded.
Costs and people
H1 FY26 H1 FY25 Change
Staff costs £43.1m £32.9m 31.0%
Non-staff costs £19.1m £19.6m (2.6)%
Total admin costs £62.2m £52.5m 18.5%
Compensation ratio 57.9% 61.2% (3.3)ppts
Non-staff costs ratio 25.7% 36.4% (10.7)ppts
Change in headcount((1)) (9.7)% (3.9)% (5.8)ppts
Adjusted staff costs((2)) £35.9m £29.5m 21.7%
Non-staff costs £19.1m £19.6m (2.6)%
Adjusted admin costs((2)) £55.0m £49.1m 12.0%
Adjusted compensation ratio 48.3% 54.8% (6.5)ppts
Non-staff costs ratio 25.7% 36.4% (10.7)ppts
Notes:
(1) Change in average headcount when compared to respective
previous financial year ends.
(2) Adjusted staff costs and adjusted admin costs are measures
calculated as staff costs or admin costs less share-based payment charges
amounting to £5.0m (H1 FY25: £3.4m) and exceptional items amounting to
£2.2m (H1 FY25: £nil). Exceptional items relate to staff restructuring
costs.
As we continue to focus on delivering sustainable profitability through the
economic cycle, we have reduced fixed costs while maintaining investment in
our client service capabilities. As a result, our strong revenue performance
is now supported by a leaner and better-aligned cost base.
Average headcount decreased by 9.4% since the end of H1 FY25 as we continued
to actively manage headcount to ensure that the business operates efficiently
whilst maintaining excellent client service. We also accelerated succession,
bringing through the next generation of leaders in a number of areas of the
business.
Fixed staff costs, including targeted salary increases to ensure that we
remain competitive and retain key talent, have reduced by over £4.0m per
annum, due to reduced headcount. Adjusted staff costs were higher than the
prior year period, due to accrued variable remuneration associated with the
increase in the Group's profitability.
Non-staff costs were lower than the corresponding H1 FY25 figure as a result
of a review of significant technology contracts and continued discipline
around other key areas of discretionary spend. Importantly, these cost savings
have been achieved without compromising our strategic growth initiatives or
client service capabilities.
Responsible business
As in previous years, we have remained committed to being a responsible
business. A key part of this has been our engagement with local communities,
including employee volunteer programmes and, this year, the launch of a new
partnership with Uptree, a social mobility charity that supports
under-represented groups in bridging the gap between education and employment.
We have also continued to work toward our ESG targets, focusing on carbon
emissions and diversity, with ongoing employee education programmes and
initiatives led by our ESG forums.
Current trading and outlook
The Group has made a strong start to the second half, successfully completing
several sizeable investment banking transactions, and performance from our
Execution Services business, although down from the highs of the first half,
has been robust. Consequently, we are confident in meeting market expectations
for the full financial year.
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.
There are a number of key judgement areas, which are based on models and which
are subject to ongoing modification and alteration. The reported numbers
reflect our best estimates and judgements at the given point in time.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
Unaudited for the six months ended 30 September 2025
Six months ended Six months ended
30 Sep 2025 30 Sep 2024
Unaudited Unaudited
Continuing activities Note £'000 £'000
Revenue 2 74,368 53,787
Administrative expenses 3 (62,161) (52,450)
Profit from operations 3 12,207 1,337
Finance income 5 600 927
Finance expense 5 (741) (1,129)
Other income 97 98
Operating profit for the period 12,163 1,233
Share of loss from associate (668) -
Profit before tax for the period 11,495 1,233
Tax (3,177) (574)
Profit for the period 8,318 659
Other comprehensive income for the period - -
Total comprehensive income for the period 8,318 659
Attributable to:
Owners of the Company 8,318 889
Non-controlling interests 7 - (230)
Total comprehensive income for the period 8,318 659
Earnings per share - attributable to owners of the Company
Basic 6 7.2p 0.8p
Diluted 6 6.5p 0.7p
Consolidated Balance Sheet
Unaudited as at 30 September 2025
As at 30 Sep 2025 As at 31 Mar 2025
Unaudited Audited
Note £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 5,343 5,715
Intangible assets 455 1,658
Right-of-use assets 11,028 12,069
Investment in associates 2,058 -
Deferred tax asset 1,689 472
Total non-current assets 20,573 19,914
Current assets
Securities held for trading 84,664 68,539
Market and client debtors 601,819 496,029
Trade and other debtors 21,262 20,042
Cash and cash equivalents 13,630 20,395
Total current assets 721,375 605,005
LIABILITIES
Current liabilities
Securities held for trading (56,336) (53,770)
Market and client creditors (542,071) (447,146)
Trade and other creditors (20,508) (8,859)
Lease liabilities (2,983) (2,983)
Long-term loans (6,000) (6,000)
Provisions (677) (611)
Total current liabilities (628,575) (519,369)
Net current assets 92,800 85,636
Non-current liabilities
Long-term loans - (3,000)
Lease liabilities (12,638) (13,833)
Total non-current liabilities (12,638) (16,833)
Net assets 100,735 88,717
EQUITY
Ordinary share capital 40,099 40,099
Other reserves 60,636 47,895
Total shareholders' equity 100,735 87,994
Non-controlling interests - 723
Total equity 100,735 88,717
Consolidated Statement of Changes in Equity
Unaudited for the six months ended 30 September 2025
Ordinary Share Capital Other reserves Total shareholders' equity Non-controlling interests Total equity
£'000 £'000 £'000 £'000 £'000
Balance as at 1 April 2024 40,099 50,076 90,175 1,575 91,750
Profit/(loss) for the period - 889 889 (230) 659
Other comprehensive income - - - - -
Total comprehensive income/(expense) - 889 889 (230) 659
Transactions with owners
Share based payments - 2,837 2,837 - 2,837
Purchase of Company shares - (476) (476) - (476)
Balance as at 30 September 2024 40,099 53,326 93,425 1,345 94,770
Loss for the period - (3,617) (3,617) (622) (4,239)
Other comprehensive income - - - - -
Total comprehensive expense - (3,617) (3,617) (622) (4,239)
Transactions with owners
Share based payments - (1,316) (1,316) - (1,316)
Purchase of Company shares - (498) (498) - (498)
Balance as at 31 March 2025 40,099 47,895 87,994 723 88,717
Profit for the period - 8,318 8,318 - 8,318
Other comprehensive income - - - - -
Total comprehensive income - 8,318 8,318 - 8,318
Transactions with owners
Share based payments - 4,330 4,330 - 4,330
Non-controlling interests - - - (723) (723)
Net movement in Company shares - 93 93 - 93
Balance as at 30 September 2025 40,099 60,636 100,735 - 100,735
Consolidated Statement of Cash Flows
Unaudited for the six months ended 30 September 2025
Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Unaudited Unaudited
Note £'000 £'000
Net cash generated from operations 9 435 1,461
Cash flows from investing activities
Purchase of tangible assets (398) (179)
Purchase of intangible assets (35) (165)
Derecognition of Retail Book cash on loss of control (1,774) -
Net cash used in investing activities (2,207) (344)
Cash flows from financing activities
Interest paid (468) (775)
Short term borrowings - (15,000)
Lease liability payments (1,618) (1,754)
Net cash movement in Company shares 93 (476)
Repayment of long-term loan (3,000) (3,000)
Net cash used in financing activities (4,993) (21,005)
Net decrease in cash and cash equivalents (6,765) (19,888)
Cash and cash equivalents at start of period 20,395 37,929
Cash and cash equivalents at end of period 13,630 18,041
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
Peel Hunt Limited (the 'Company') is a non-cellular company limited by shares
having its shares admitted to trading on AIM, a market operated by 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 interim financial information of
the Company comprise the Company and its subsidiaries, together referred to as
the 'Group'.
The financial information contained within these condensed consolidated
interim financial statements is unaudited and has been prepared in accordance
with International Accounting Standard 34 Interim Financial Reporting ('IAS
34'). The Financial Statements should be read in conjunction with the annual
financial statements for the year ended 31 March 2025, which have been
prepared in accordance with UK-adopted international accounting standards
(International Financial Reporting Standards ('IFRS') and International
Financial Reporting Interpretations Committee ('IFRIC')) and with the
requirements of the Companies (Guernsey) Law, 2008.
The preparation of the condensed consolidated interim financial statements in
conformity with IAS 34 requires the use of certain critical accounting
judgements and significant estimates. It also requires the Board of Directors
to exercise its judgement in the application of the Group's accounting
policies. The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2025.
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, financial assets and liabilities measured 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.
These condensed consolidated interim financial statements have been prepared
on a going concern basis as the Directors have satisfied themselves that, at
the time of approving these condensed consolidated interim financial
statements, the Company and the Group have adequate resources to continue in
operational existence for at least the next twelve months.
During the period, there were no new standards or amendments to IFRS that
became effective and were adopted by the Company and the Group with a material
impact.
2. Revenue
Six months ended 30 Sep 2025 Six months ended
30 Sep 2024
Unaudited Unaudited
£'000 £'000
Research payments & Execution commission 13,866 13,616
Execution services revenue 27,581 17,592
Investment Banking revenue 32,921 22,579
Total revenue for the period 74,368 53,787
3. Profit from operations
The following items have been included in arriving at profit from operations:
Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Unaudited Unaudited
£'000 £'000
Depreciation and amortisation 957 923
Lease depreciation 1,189 1,197
Staff costs (see note 4) 43,058 32,865
Other non-staff costs 16,957 17,465
Total administrative costs 62,161 52,450
Other non-staff costs comprise expenses incurred in the normal course of
business, including technology costs, professional and regulatory fees,
auditors' fees, brokerage, clearing and exchange fees.
4. Staff costs
Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Unaudited Unaudited
£'000 £'000
Wages and salaries 31,278 24,488
Share based payment charges 4,982 3,440
Social security costs 5,406 3,492
Pensions costs 1,192 1,385
Other costs 200 60
Total staff costs charged as an expense for the period 43,058 32,865
Wages and salaries include variable compensation accruals.
The average number of employees of the Group during the period has decreased
to 269 (H1 FY25: 297). The number of employees of the Group at the end of the
period has decreased to 270 (H1 FY25: 295).
5. Net finance expense
Six months ended 30 Sep 2025 Six months ended 30 Sep 2024
Unaudited Unaudited
£'000 £'000
Finance income:
Bank interest received 600 927
Finance expense:
Bank interest paid (109) (124)
Interest on lease liabilities (273) (354)
Interest accrued on loans (359) (651)
Finance expense for the period (741) (1,129)
Net Finance expense for the period (141) (202)
6. Earnings per share
Six months ended Six months ended 30 Sep 2024
30 Sep 2025
Number of shares Number of shares
Unaudited Unaudited
Weighted number of ordinary shares in issue during the period 115,620,288 116,891,735
Dilutive effect of share option grants 12,336,580 11,466,209
Diluted weighted average number of ordinary shares 127,956,868 128,357,944
in issue during the period
Basic earnings per share is calculated on total comprehensive income for the
six-month period, attributable to owners of the Company, of £8.3m (H1 FY25:
£0.9m) and 115,620,288 (H1 FY25: 116,891,735) ordinary shares, being the
weighted average number of shares in issue during the period. Diluted earnings
per share is calculated after adjusting for the number of options expected to
be exercised from the share option grants.
The calculations exclude Company shares held by the Employee Benefit Trust on
behalf of the Group.
The Company has 12,336,580 (H1 FY25: 11,466,209) of dilutive equity
instruments outstanding as at 30 September 2025.
7. 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.
Non-controlling interest has been derecognised following loss of control in
Retail Book during the period resulting from a shareholding dilution from
51.46% as at 31 March 2025 to 40.95% as at 30 September 2025.
8. Balance sheet 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 internal software intellectual property, 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. Internal software intellectual property is amortised over 3 or 5
years, computer software is amortised over five years and sports debentures
are amortised over the life of the ticket rights.
Internal software intellectual property represents internally-generated
intangible assets and it comprises of capitalised development costs for
certain technology developments for key projects in the Group. The costs
incurred in the research phase of these internal projects are expensed.
Intangible assets are recognised from the development phase 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 in London and New York and car rental leases.
(d) Investment in associate
Retail Book is now recognised as an associate, with its assets, liabilities,
and non-controlling interests derecognised from the Group's consolidated
financial statements during the period. The carrying value of the investment
was reduced from £3.2m gross investment as at 31 March 2025 to £2.1m. This
reduction reflects the Group's share of Retail Book's losses and the loss
recognised on initial recognition of investment in associate. See note 7 for
further information.
(e) 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 £17.4m (FY25: £10.0m).
(f) 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 fair valuation hierarchy applied
is consistent with that outlined in the FY25 audited financial statements. The
value of 'Level 1' financial assets held by the Group at the end of H1 FY26
was £77.7m (FY25: £66.8m), 'Level 2' £5.8m (FY25: £0.7m) and 'Level 3'
£1.1m (FY25: £1.0m). The value of 'Level 1' financial liabilities held by
the Group at the end of H1 FY26 was £56.0m (FY25: £53.7m), 'Level 2' £0.0m
(FY25: £0.0) and 'Level 3' £0.4m (FY25: £0.0m).
(g) 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 £9.8m (FY25: £2.4m).
(h) Borrowings
The Group has a committed Revolving Credit Facility of up to £20.0m and an
overdraft facility of up to £10.0m in order to further support its general
corporate and working capital requirements.
As at 30 September 2025 the funding facilities were undrawn (FY25: £nil)
(i) Long-term loans
During the period we paid £3.0m of the principal repayments of the Senior
Facilities Agreement. As at 30 September 2025 £6.0m (FY25: £9.0m) was
outstanding.
(j) Post balance sheet events
There are no post balance sheet events.
9. Reconciliation of profit before tax to cash from operating activities
Six months ended Six months ended 30 Sep 2024
30 Sep 2025
Unaudited Unaudited
£'000 £'000
Profit before tax for the period 11,495 1,233
Adjustments for:
Depreciation and amortisation 2,146 2,120
Movement in expected credit loss on financial assets held at amortised cost (207) 289
Increase in provisions 66 66
Share based payments - IFRS 2 charge 4,330 2,837
Revaluation of Right-of-use asset and Lease liabilities (3) 70
Net finance costs 141 202
Changes in working capital:
Increase in net securities held for trading (13,559) (146)
Increase in net market and client debtors (10,872) (13,399)
Increase/(decrease) in trade and other debtors (930) 4,180
Increase in trade and other creditors 6,867 3,071
Cash (used)/generated from operations (526) 523
Interest received 600 927
Corporation tax received 361 11
Net cash generated from operations 435 1,461
END
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