- Peel Hunt shares fell almost 4% on Thursday afternoon
In charge: Steven Fine is CEO of Peel Hunt
Peel Hunt Stock fell on Thursday after the group revealed a £3.3m annual loss, amid higher costs and a shortage of listings.
Twelve months earlier, the investment bank’s losses stood at £1.5m.
In the year to March 31, group revenue rose 4 per cent to £85.8m, amid improved investment banking fees.
Shares in the group fell 3.97 per cent or 5.5 per cent to 133 pence on Thursday, having risen almost 30 per cent in the last year.
Core losses per share rose to 2.7p from 1.1p in 2023, and the group did not declare a dividend for the year.
However, the company’s balance sheet remained strong with net assets of £91.8 million and a 38.3 per cent increase in cash balances to £37.9 million, well above the regulatory requirements.
Peel Hunt said its investment banking division enjoyed growth, with revenue up 39.1 per cent to £32.6 million and 18 new client acquisitions, bringing the total to 150 clients. corporates, including 43 in the FTSE 350.
But revenue from execution services fell to £29.6 million, reflecting lower trading volumes in the broader market.
Research and distribution revenue fell 5.9 per cent to £23.6 million, in line with market trends.
Peel Hunt said the average market capitalization of its corporate clients rose 9 per cent to £752 million, outperforming the FTSE All-Share Index.
RetailBook, a platform aimed at improving retail investor engagement, has received approval from the Financial Conduct Authority for its next phase of growth, the group added.
Looking ahead, Peel Hunt said he was optimistic about the improving macroeconomic environment, with inflation rates falling and lower interest rates possible.
It said: ‘Public M&A is very active across the market as bid activity continues in respect of undervalued UK assets.
“Against this backdrop, equity capital markets (ECM) activity is starting to grow from the low levels of the last two years and, although the IPO market has not yet fully reopened, UK investors are increasingly receptive to high quality companies, with Peel Hunt acted in two IPOs announced on the London market this month.
“While challenges remain, we are increasingly confident of a broader recovery in ECM activity.”
Chief executive Steven Fine said: “Despite the challenging market backdrop, revenues have grown year on year and while this was not enough to offset the inflationary cost environment, the business is well positioned as it grows. the activity of the capital markets”.
“During the year we made good strategic progress, securing some of our largest corporate clients to date and establishing increasingly strong relationships with our existing client base.”
He added: “We are seeing tentative signs that a recovery is underway from the lows of the last two years, and we are delighted to have supported two clients with their initial public offerings on the London market, as announced this month.” .
