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Peel Hunt expects full-year loss in challenging equity markets

3rd Apr 2024 09:56

(Alliance News) - Peel Hunt Ltd on Wednesday said it would report a full-year loss as increasing costs offset a modest rise in revenue.

Shares in Peel Hunt fell 5.1% to 120.00 pence in London on Wednesday morning.

In a trading statement for the year to March 31, the London-based investment bank said revenue is expected to be consistent with market expectations at around GBP85.5 million, up 3.9% from GBP82.3 million last year.

This growth came despite equity capital markets "remaining challenging" throughout the financial year.

"However, this was not quite sufficient to offset cost pressures and consequently we expect to report a loss for the full year broadly in line with market expectations," the company said.

Growth in revenue was driven largely by Investment Banking, with M&A revenue in particular accounting for a large proportion of Investment Banking deal fees, Peel Hunt said.

Peel Hunt disclosed 18 new client wins during the period, including five FTSE 350 clients.

Looking ahead, the firm expects market trading volumes to remain low until there are meaningful signs of recovery in the UK economy and fund outflows reverse.

It noted whilst initial public offering activity in the UK remains muted, there has been more activity in Europe and sentiment towards IPOs is improving in the UK, with investors increasingly willing to engage in relation to high quality companies.

By Jeremy Cutler, Alliance News reporter

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