REG - Peel Hunt Limited - Year End Trading Update

Peel HuntAnnouncement

03/04/2023 07:00

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RNS Number : 0258V  Peel Hunt Limited  03 April 2023

 

3 April 2023

Peel Hunt Limited

("Peel Hunt" or the "Company")

 

Year End Trading Update

 

Peel Hunt, a leading UK investment bank, today announces a trading update for
the financial year ended on 31 March 2023 ("FY23").

 

Financial performance

 

Revenue for the full year is expected to be in line with market expectations
at approximately £82m (FY22: £131m). This is against a backdrop of the
uncertain global economic environment that has impacted our Investment Banking
revenue, with capital markets activity at historic lows throughout FY23.

 

Execution Services revenue remained higher than pre-pandemic levels, although
down year on year due to lower market volumes. Research and Distribution
revenue remained resilient, with research payments and institutional
commissions largely consistent with the prior year despite the drop in market
activity.

 

Administrative expenses increased following our IPO, as expected, and we have
continued to face inflationary cost pressures. Notwithstanding actions taken
to rationalise costs, we expect the business will now be marginally loss
making for the full year against market expectations of broadly break even.

 

Our robust balance sheet has allowed us to take advantage of market
dislocation to make selective and targeted investment in talent in line with
our strategy.

 

Further strategic progress

 

We have continued to make good strategic progress, adding 19 new retained
corporate clients in FY23, including seven in the FTSE 350. We now act for 39
FTSE 350 clients, an increase of 70% over the last five years. During the
year, we also continued to diversify our Investment Banking business, building
out our Private Capital Markets capability and strengthening our
M&A/Advisory business.

 

We announced the relaunch of our retail access technology platform REX as
RetailBook, and have submitted an application for regulatory approval for the
entity. RetailBook will be a standalone business that will operate
independently of Peel Hunt and collaboration agreements are in place with
Hargreaves Lansdown, Jefferies, Numis and Rothschild & Co. REX
enables retail investors to participate in capital markets transactions such
as IPOs and follow-on share offerings through intermediaries and investment
platforms. During FY23 REX was mandated on 12 completed Retail Capital Markets
transactions (a market share of 32.4%).

 

Copenhagen office

 

On 31 March 2023, we received regulatory approval for Peel Hunt Europe to open
our Copenhagen office. This is expected to be operational shortly and will
strengthen our market leading mid-cap distribution into Continental Europe.

 

Outlook

 

We have seen a gradual improvement in our pipeline having been mandated across
all Investment Banking products during the last few weeks. However, execution
risk remains high in light of continuing negative macro-economic news, most
notably the recent bail out of a number of banking institutions on both sides
of the Atlantic.

 

Notice of full year results

 

The Company intends to publish its FY23 preliminary results on 16 June 2023.

 

For further information, please contact:

 

Peel Hunt: via MHP

Steven Fine, CEO

Sunil Dhall, CFOO

 

MHP (Financial PR): +44 (0)20 3128 8540

Tim Rowntree

Charlie Barker

Robert Collett-Creedy

peelhunt@mhpgroup.com (mailto:peelhunt@mhpgroup.com)

 

Grant Thornton UK LLP (Nominated Adviser): +44 (0)20 7728 2942

Colin Aaronson

Sam Littler

 

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 specialist in UK investment banking. Our purpose is to
guide and nurture people through the evolution of business. We achieve this
through a proven, joined-up approach that consistently delivers value to UK
corporates, global institutions and trading counterparties alike.

 

 

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