Peel Hunt performance dips as pandemic-driven market conditions ease
Peel Hunt Limited (Peel Hunt) has been unable to consolidate the highs of its pandemic-driven performance last year, but has still posted healthy profits and robust revenues in its latest full-year results.
The investment group reported full-year revenues of £131.0m – down on the previous year’s figure of £196.9m, but ahead of analyst expectations.
Its profits before tax have dipped from £120.1m profit before tax to £41.2m as market activity and volumes have moderated from the highs of the pandemic.
The results cover the 12-months of trading between the beginning April 2021 and the end of March 2022.
Commenting on Peel Hunt’s performance, Rob Murphy, managing director at Edison Group said: “Despite high market volatility, Peel Hunt’s full year results suggest a solid performance from the UK Investment Banking company.”
Peel Hunt’s investment banking division has driven the group’s performance, with the division achieving record results for the second consecutive year – with revenues up 32 per cent to £57.9m.
Overall, it was the the most active investment bank in UK equity capital markets (ECM) transactions – executing 46 equity fundraises.
Its advisory revenue was up 166 per cent to £8.48m as, with Peel Hunt acting on on nearly a fifth (19 per cent) of all announced UK mid- and small-cap takeover situations.
The company’s research and distribution performance showed signs of resilience with revenues of £30.2m – up from £36.3m.
By contrast, earnings across its execution services have plummeted, heavily influencing the decline in the firm’s performance from last year .
This reflects less unstable markets and lower capital markets activity – taking revenues from £116.7m to £42.9m.
Alongside the headline results, it also launched its initial public offering last September on the London Stock Exchange, raising £112m.
The company has also gained 19 new corporate clients, with a another four added in the period since the year end.
This brings its current total number of corporate clients to 164, including 35 in the FTSE 350.
Chief executive Steven Fine said: “I’m grateful to our outstanding team for their dedication in a challenging year, which included our own IPO and navigating volatile market conditions in the period since, particularly in the last quarter of our financial year. Against this backdrop, our performance was resilient, with all three divisions continuing to make progress, demonstrating the benefit of our diversified business model.”
Peel Hunt’s board has proposed a final dividend of 3.1p, in line with the dividend policy.
Shares in the company were down three per cent at close of play today on the FTSE AIM All-Share.