Peel Hunt Limited Year End Trading Update (0258V)
03 April 2023 - 4:00PM
UK Regulatory
TIDMPEEL
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 GBP82m (FY22: GBP131m). 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
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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