(Correcting spelling of Steven Fine)

Peel Hunt Ltd on Friday reported growth in half-year revenue as it hailed an ‘improved performance across all business areas’ and said IPO activity ‘appears to be gradually resuming on the [London] Main Market and AIM’.

The London-based company provides investment banking, advisory and capital markets services, as well as research & distribution and a trading platform.

It swung to a half-year pretax profit of £1.2 million from a loss of £773,000 in the prior year.

In the six months that ended, September 30, revenue grew by 26% to £53.8 million from £42.7 million a year before, bolstered by a strong performance in its investment banking division.

Revenue from investment banking grew by 31% to £22.6 million from £17.3 million a year prior, driven by an increase in fee generation of 43% to £18.4 million from £12.9 million.

Peel Hunt said: ‘We saw improved performance in our core equity capital markets business, particularly in the first quarter of FY25, where we acted as joint global coordinator on a main market [initial public offering] and nominated adviser and sole bookrunner on an AIM IPO.’ These were Raspberry Pi Holdings PLC and AOTI Inc.

Research & Distribution revenue rose 30% on-year to £13.6 million from £10.5 million, ‘despite continued outflows from UK equities’ and Execution Services was up 19% to £17.6 million from £14.8 million as the firm experienced increased trading volumes in the first four months of the financial year.

Peel Hunt added that weaker trading volumes experienced towards the end of the first-half were owed to concerns surrounding the US election and UK autumn statement, particularly with regard to worries that inheritance tax relief on AIM listed companies would be withdrawn by the new Labour government.

In the event, UK Chancellor of the Exchequer Rachel Reeves said a 50% relief still would apply in all circumstances on inheritance tax for shares on AIM, and other similar markets, setting the effective rate of tax at 20%.

Peel Hunt said trading in the first few weeks of its second-half has been in line with management expectations but said it expects a degree of uncertainty to persist in the short term, with some of its ‘solid pipeline of corporate transactions... more likely to execute in [its] next financial year’.

Peel Hunt Chief Executive Steven Fine said: ‘We were able to capitalise on improving market conditions in the first few months of FY25, most notably executing two IPOs, collecting material M&A fees and generating increased trading revenues.

‘However, the recovery slowed over the summer period and investor sentiment was impacted in the last few weeks of the period due to concerns around the UK budget, particularly in relation to AIM.

‘We welcome recently proposed policy initiatives, including pension reforms and HM Treasury’s call for evidence to support a growth and competitiveness strategy for UK financial services, which are designed to increase investment and liquidity in UK risk assets.’

Peel Hunt shares were up 0.5% at 109.00 pence on Friday afternoon in London.

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