REG - Peel Hunt Limited - Year End Trading Update

Peel HuntAnnouncement

03/04/2024 07:00

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RNS Number : 0287J  Peel Hunt Limited  03 April 2024

3 April 2024

 

Peel Hunt Limited

("Peel Hunt" or the "Company")

Year End Trading Update

Another resilient performance in challenging market conditions

Peel Hunt, a leading UK investment bank, today announces a trading update for
the financial year ended 31 March 2024 ("FY24").

Financial performance

Revenue for the full year is expected to be consistent with market
expectations at approximately £85.5m (FY23: £82.3m), an increase of
approximately 4% year-on-year despite equity capital markets remaining
challenging throughout FY24. However, this was not quite sufficient to offset
cost pressures and consequently we expect to report a loss for the full year
broadly in line with market expectations.

The overall increase in revenues was driven largely by Investment Banking,
with M&A revenues in particular accounting for a large proportion of
Investment Banking deal fees. This shows demonstrable progress with our
strategy to diversify revenues across different investment banking products.
Whilst research payments were resilient, there was less institutional trading
activity market wide in the period and so we saw a modest reduction in overall
Research & Distribution revenues. Execution Services revenue reduced,
again in line with overall lower market volumes.

Further strategic progress

During the year, we made good progress in delivering on our strategic
priorities, putting us in a strong position for when market conditions
improve.

We continued to evolve our corporate client base, with 18 new client wins
during the period, including 5 FTSE 350 clients. We now act for 150 corporate
clients of which 43 are in the FTSE 350, and the aggregate market
capitalisation of our clients has risen by 5.81% in the period to over
£110bn.

During the year we invested in the platform in a measured way, taking
advantage of our strong balance sheet and market dislocation to add talent in
key areas such as senior hires into our Investment Banking and Institutional
Electronic Trading teams. We also further strengthened our European mid-cap
distribution with the opening of Peel Hunt Europe, headquartered in
Copenhagen.

RetailBook has raised the funds for the next stage of its growth and received
FCA approval on 2 April 2024. We envisage that RetailBook will begin to
operate fully independently of Peel Hunt during the first half of FY25.

Outlook

Market trading volumes remain low and ECM issuance continues to be subdued. We
expect these trends to continue until there are meaningful signs of recovery
in the UK economy and fund outflows reverse. However, we continue to be active
in public M&A, with financial advisory mandates on both the buy and sell
side. Whilst IPO activity in the UK remains muted, there has been more
activity in Europe and sentiment towards IPOs is improving in the UK, with
investors increasingly willing to engage in relation to high quality
companies.

 

 

Notice of full year results

The Company intends to publish its FY24 preliminary results on 13 June 2024.

For further information, please contact:

 

Peel Hunt: via Powerscourt

Steven Fine, CEO

Sunil Dhall, CFOO

 

Powerscourt (Financial PR): +44 (0)20 7250 1446

Justin Griffiths

Gilly Lock

Russ Lynch

peelhunt@powerscourt-group.com

 

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

Philip Secrett

Colin Aaronson

Enzo Aliaj

 

Keefe, Bruyette & Woods (Corporate Broker): +44 (0) 20 7710 7600

Alistair McKay

Alberto Moreno Blasco

Fred Walsh

Akshman Ori

 

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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