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Highlights
- Peel Hunt’s H1 FY25 revenue rose by 26%, reaching £53.8 million, with a return to profitability.
- The company’s investment banking division saw significant growth, with revenues increasing to £22.6 million and notable client wins.
- Cash balances reduced to £18.0 million due to repayment of funding facilities, but the company remains well-capitalized with net assets of £94.8 million.
Peel Hunt Limited (LSE:PEEL), a leading UK-focused investment bank, has announced its unaudited interim results for the six-month period ending 30 September 2024 (H1 FY25). The company reported strong performance across all business divisions, driven by a more favorable macroeconomic environment, which contributed to significant revenue growth and improved profitability.
Impressive Revenue and Profit Growth
Peel Hunt’s group revenue for H1 FY25 was £53.8 million, a 26% increase compared to £42.7 million in H1 FY24. This growth was supported by an improved performance in core business areas, particularly investment banking, which saw a notable uptick in revenues. The company swung to a profit before tax of £1.2 million, compared to a loss before tax of £0.8 million in the prior period. Adjusted profit before tax also showed significant improvement, rising to £4.6 million, up from a loss of £0.5 million in H1 FY24.
Despite a reduction in cash balances, which decreased to £18.0 million from £37.9 million in FY24, Peel Hunt maintained solid financial health. The cash reduction was primarily due to the repayment of £18 million in Group funding facilities. The company’s net assets increased to £94.8 million, up from £91.8 million at the end of FY24, with capital levels comfortably exceeding regulatory requirements.
Performance Across Business Divisions
Peel Hunt’s performance during the period was broad-based across its business divisions:
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Investment Banking: Revenues increased to £22.6 million (H1 FY24: £17.3 million), driven by improved performance in core equity capital markets. The firm successfully executed two IPOs and participated in several equity fundraises and block trades. M&A advisory fees also played a significant role in the revenue growth. The company continued to expand its client base, now representing 4 FTSE 100 companies and 42 FTSE 350 companies. Additionally, Peel Hunt saw a 14.6% rise in the average market capitalization of its corporate clients, from £752 million at the end of FY24 to £862 million.
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Research & Distribution: Revenues grew to £13.6 million (H1 FY24: £10.5 million), despite ongoing outflows from UK equities. The division focused on enhancing its capabilities in low-touch electronic trading, catering to client demand for more efficient solutions.
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Execution Services: Revenues increased to £17.6 million (H1 FY24: £14.8 million), with a surge in trading activity during the first four months of FY25. However, volumes decreased towards the end of the period due to market uncertainty surrounding the UK Budget and the US election.
Strategic Developments and Market Positioning
Peel Hunt capitalized on its position as a leading UK investment bank, leveraging its thought leadership and expertise to reinvigorate UK capital markets. The company continued to attract new clients, particularly in investment banking and equity capital markets. Additionally, RetailBook, a new independent business launched in September 2024, has already executed its first Main Market IPO, marking a significant milestone for the company.
