Peel Hunt records £1.5m loss as revenue down almost £50m amid ‘extraordinary’ market turmoil
Investment banking firm Peel Hunt recorded a loss of £1.5m after warnings the UK is experiencing “extraordinary” market turmoil.
The company reported revenue of £82.3m, down £48.7m on last year’s £131m, it made a loss before tax of £1.5m – a drop from the previous 12 months’ pre tax profits of £41.2m.
CEO Steven Fine said the challenges of the past year were “well documented, with the impact on market activity and investor sentiment felt across the industry”.
It comes as the firm warned in its market review that 2023 has seen an “extraordinary level of market turmoil”, with war in Ukraine and the impact of the “disastrous mini-budget” sparking “rapidly rising interest rates”, which are now at their highest level for 14 years.
Alongside the largest bank failures since 2008, of SVB UK and Credit Suisse, investor confidence was hit, with capital activity “exceptionally low” and IPO “effectively closed”.
Fine said Peel Hunt remained focused on building its FTSE 350 profile; private capital markets; and strengthening its M&A division.
He added: “Our diversified business model and cost discipline have helped us maintain a strong balance sheet, which 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.”
The firm warned in April that, due to the capital markets slowdown to “historic lows”, it expected to be “marginally loss making” despite markets predicting it would break even.
In its half year results released in December, the broker recorded a 99 per cent fall in profit.
Seven FTSE 350 firms joined Peel Hunt as part of 19 new retained corporate clients, meaning the firm currently acts for 40 FTSE 350 businesses, up 37.9 per cent in five years.
The broker’s Copenhagen office received regulatory approval and is expected to open this summer.