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.
