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Peel Hunt Ltd on Monday said overall activity remains ‘significantly’ below historical averages despite reporting a markedly improved half-year financial performance. The London-based broker said pretax profit ballooned to £11.5 million in the six months to September from £1.2 million the year prior, or to £18.7 million from £4.6 million on an adjusted basis. Revenue jumped 38% to £74.4 million from £53.8 million, outstripping 19% growth in administrative expenses, which increased to £62.2 million from £52.5 million. Peel Hunt said headcount has reduced by over 15% from its peak in financial 2023 with fixed staff costs down by more than £4.0 million per annum. Investment banking sales increased 46% to £32.9 million from £22.6 million, Research & Distribution by 2.2% to £13.9 million from £13.6 million and Execution Services by 57% to £27.6 million from £17.6 million. ‘We continue to focus on delivering sustainable profitability through the economic cycle and have reduced fixed costs while maintaining investment in our client service capabilities. As a result, our strong revenue performance is now supported by a leaner and better-aligned cost base, which is evident in the group’s underlying profitability,’ Peel Hunt said in a statement. Despite the improved performance, Peel Hunt said overall activity continues to remain significantly below historical averages. The broker said changes to the UK’s regulatory regime, particularly with respect to secondary issuances by listed companies, appear to be having a ‘positive impact, and we expect this to continue once the further changes to the UK’s prospectus regime come into effect in January.’ ‘IPO activity remained low,’ but M&A bid activity ‘continued at pace,’ the firm added. Shares in Peel Hunt were up 0.9% at 105.90 pence each in London on Monday morning. Chief Executive Steven Fine said he was ‘delighted’ with the ‘strong’ financial performance in the first half of the financial year, noting ‘each part of our business delivered year-on-year growth.’ ‘The second half has started strongly,’ Fine said, and ‘we are confident in meeting market expectations for the full financial year.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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