Peel Hunt Limited, a leading UK-based investment bank, released its half-year financial report for the period ending September 30, 2024. The company showed improved performance across all business areas, with a 26% year-on-year increase in revenue, totaling £53.8 million. The profit before tax was £1.2 million, compared to a loss of £0.8 million in the previous period. The adjusted profit before tax, excluding share-based payment charges, was £4.6 million. Net assets stood at £94.8 million, with cash balances of £18.0 million. The reduction in cash was mainly due to the repayment of Group funding facilities. The companys capital remains well above regulatory requirements.
The report highlights the performance of its three business divisions: Investment Banking, Research & Distribution, and Execution Services. Investment Banking revenues increased by 31% to £22.6 million, with improvements in core equity capital markets and M&A advisory services. Research & Distribution revenues rose slightly to £13.6 million, despite outflows from UK equities. Execution Services revenues grew by 19% to £17.6 million, driven by increased trading activity in the first four months.
The company leveraged its position as a leading UK-focused investment bank, championing UK capital markets through its thought leadership and ideas. Market conditions showed an increase in equity issuances and M&A activity, with a rise in the FTSE 100 and FTSE 250 indices, while the AIM All-Share dipped due to uncertainties.
Peel Hunts balance sheet remained strong, with net assets of £94.8 million and adequate regulatory capital requirements. The company continued to invest in talent, making senior hires in its Investment Banking team and European distribution platform.
The companys responsible business initiatives included sustainability, diversity, and charity partnerships. The outlook for the second half of the year is positive, with a solid pipeline of corporate transactions, although some uncertainty is expected to persist in the short term.