Investment bank Peel Hunt has bounced back to profit for the past year after a flurry of dealmaking activity helped revenues surge higher. However, the group said global information pressures and volatile conditions have weighed on UK market confidence in recent months. Shares in the company nevertheless ticked higher on Monday morning as investors welcomed strong growth for the past year.
Peel Hunt reported a £21.1 million pre-tax profit for the year to March 31, jumping from a £3.5 million loss a year earlier. Bosses said the group benefited from “tight cost controls” over the year, alongside a jump in activity. The improvement led to a sharp jump in revenues, up 57.1% year-on-year to £143.5 million.
This was supported by the group’s investment banking arm, which saw revenues jump by more than double to £67.1 million for the year. This was driven by “exceptional” mergers and acquisitions (M&A) activity after increased dealmaking activity in the UK. It added that its executive services arm, which refers to broker services by the firm, saw revenues jump 41.8% to £47.8 million as it benefited from “volatile” market conditions and technology investment.
However, Peel Hunt highlighted that its business has seen “the volatile outlook for benchmark interest rates and increased domestic political uncertainty” weigh on UK market confidence and transaction activity since the end of March. Steven Fine, chief executive of the firm, said: “We delivered one of the best revenue performances in the history of the group, with investment banking achieving its highest ever revenue. This is thanks to our exceptional people, growing recognition of our M&A advisory capability and the continued strength of our execution services business. While the external environment remains uncertain, we are well-positioned to benefit as conditions improve.” Shares were up 3% on Monday morning.
