Peel Hunt Limited NPV (PEEL)

Sector:

Financials

Index:

FTSE AIM All-Share

132.82p
   
  • Change Today:
    -0.18p
  • 52 Week High: 138.00
  • 52 Week Low: 79.00
  • Currency: UK Pounds
  • Shares Issued: 122.81m
  • Volume: 10,052
  • Market Cap: £163.11m

Peel Hunt swings to loss as revenue slides

By Josh White

Date: Friday 16 Jun 2023

LONDON (ShareCast) - (Sharecast News) - Peel Hunt reported a decline in revenue and profitability in its final results on Friday, due to unusually low capital markets activity throughout the 2023 financial year.
The AIM-traded firm said revenue for the 12 months ended 31 March totalled £82.3m - a decrease from £131m in 2022.

It incurred a loss before tax of £1.5m, swinging from a profit before tax of £41.2m in the prior year.

In the investment banking division, revenues fell to £23.4m from £57.9m, although the group added 19 new retained corporate clients, including seven from the FTSE 350.

Peel Hunt said it currently represented 40 FTSE 350 clients, reflecting an increase of 37.9% over the past five years.

Execution services revenues remained higher than pre-pandemic levels, totalling £33.8m, although they were lower year-on-year due to reduced market volumes compared to 2022, when they totalled £46.1m.

The company said it maintained its market-leading position with a 13.3% share of London Stock Exchange volumes.

Its research and distribution division delivered a resilient performance, with revenues of £25.1m despite an overall drop in market activity.

The group said it further strengthened its position as a market leader in mid-cap North American and continental European distribution, and continued to expand its institutional client base.

Peel Hunt said it maintained a robust financial position, with net assets of £93.1m and cash balances of £27.4m.

The company added that its capital base exceeded the minimum regulatory requirements comfortably.

Looking ahead, Peel Hunt said that although macroeconomic conditions remained challenging, it was seeing a gradual improvement in its merger and acquisition pipeline since the beginning of the 2024 financial period.

UK mid-cap valuations remained attractive, with the board saying there were early indications of a pick-up in capital markets activity.

The group said it would continue to advance its strategic priorities while prudently managing the business through the downturn.

"The challenges faced by the financial services sector in the past 12 months have been well documented, with the impact on market activity and investor sentiment felt across the industry," said chief executive officer Steven Fine.

"This can be seen in our 2023 results.

"Despite this backdrop, we have continued to deliver on the strategic priorities of the organisation, adding FTSE 350 mandates, building-out our Private Capital Markets capability and strengthening our M&A and Advisory business."

Fine said the company was "pleased" to be relaunching REX as RetailBook alongside a number of its peers, and to have received regulatory approval for its EU platform.

"Our distinctive culture and continued technology leadership have been integral to navigating this turbulence and will remain core to the long-term future of the firm.

"Our diversified business model and cost discipline have helped us maintain a strong balance sheet, which in turn has allowed us to invest selectively to strengthen our platform.

"We remain confident that we will be ready and well-positioned to capitalise when market activity normalises."

At 0818 BST, shares in Peel Hunt were down 3.06% at 98.88p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

PEEL Market Data

Currency UK Pounds
Share Price 132.82p
Change Today -0.18p
% Change -0.14 %
52 Week High 138.00
52 Week Low 79.00
Volume 10,052
Shares Issued 122.81m
Market Cap £163.11m

PEEL Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
Market averageMarket averageMarket averageMarket averageMarket average
55.77% below the sector average55.77% below the sector average55.77% below the sector average55.77% below the sector average55.77% below the sector average
Price Trend
Market averageMarket averageMarket averageMarket averageMarket average
76.07% above the sector average76.07% above the sector average76.07% above the sector average76.07% above the sector average76.07% above the sector average
Income Not Available
Growth
Market averageMarket averageMarket averageMarket averageMarket average
62.26% below the sector average62.26% below the sector average62.26% below the sector average62.26% below the sector average62.26% below the sector average

PEEL Dividends

  Latest Previous
  Final
Ex-Div 16-Jun-22
Paid 15-Jul-22
Amount 3.10p

Trades for 04-Mar-2024

Time Volume / Share Price
10:06 52 @ 133.05p
08:25 10,000 @ 133.00p

PEEL Key Personnel

CEO Steven Fine
Chair Lucinda Riches

Top of Page