Peel Hunt, a U.K. mid- and small-cap specialist investment bank, has reported a pretax loss of approximately £800,000 ($1 million) for the first half of fiscal 2024. This comes as a result of difficult conditions within the investment banking sector and capital markets, as well as inflationary pressures on costs.
In comparison, Peel Hunt recorded a pretax profit of around £100,000 for the same period the previous year. Despite the loss, the company saw a slight increase in revenue, rising from £41.1 million to £42.7 million.
The capital markets transaction fee pool remained low during this period, particularly with initial public offerings. However, revenue from merger and acquisition transactions showed improvement compared to the previous year. The sustained bid activity for U.K. companies, driven by low valuations and a weak pound, contributed to this growth. While U.K.-focused equity funds experienced net outflows, Peel Hunt indicated that there are signs of this trend starting to change.
Peel Hunt’s Chief Executive, Steven Fine, expressed confidence in their diversified business model and solid financial position, stating that they are well-positioned to benefit when market conditions improve.