3 April 2023

Peel Hunt Limited

("Peel Hunt" or the "Company")

Year End Trading Update

Peel Hunt, a leading UK investment bank, today announces a trading update for the financial year ended on 31 March 2023 ("FY23").

Financial performance

Revenue for the full year is expected to be in line with market expectations at approximately £82m (FY22: £131m). This is against a backdrop of the uncertain global economic environment that has impacted our Investment Banking revenue, with capital markets activity at historic lows throughout FY23.

Execution Services revenue remained higher than pre-pandemic levels, although down year on year due to lower market volumes. Research and Distribution revenue remained resilient, with research payments and institutional commissions largely consistent with the prior year despite the drop in market activity.

Administrative expenses increased following our IPO, as expected, and we have continued to face inflationary cost pressures. Notwithstanding actions taken to rationalise costs, we expect the business will now be marginally loss making for the full year against market expectations of broadly break even.

Our robust balance sheet has allowed us to take advantage of market dislocation to make selective and targeted investment in talent in line with our strategy.

Further strategic progress

We have continued to make good strategic progress, adding 19 new retained corporate clients in FY23, including seven in the FTSE 350. We now act for 39 FTSE 350 clients, an increase of 70% over the last five years. During the year, we also continued to diversify our Investment Banking business, building out our Private Capital Markets capability and strengthening our M&A/Advisory business.

We announced the relaunch of our retail access technology platform REX as RetailBook, and have submitted an application for regulatory approval for the entity. RetailBook will be a standalone business that will operate independently of Peel Hunt and collaboration agreements are in place with Hargreaves Lansdown, Jefferies, Numis and Rothschild & Co. REX enables retail investors to participate in capital markets transactions such as IPOs and follow-on share offerings through intermediaries and investment platforms. During FY23 REX was mandated on 12 completed Retail Capital Markets transactions (a market share of 32.4%).

Copenhagen office

On 31 March 2023, we received regulatory approval for Peel Hunt Europe to open our Copenhagen office. This is expected to be operational shortly and will strengthen our market leading mid-cap distribution into Continental Europe.

Outlook

We have seen a gradual improvement in our pipeline having been mandated across all Investment Banking products during the last few weeks. However, execution risk remains high in light of continuing negative macro-economic news, most notably the recent bail out of a number of banking institutions on both sides of the Atlantic.

Notice of full year results

The Company intends to publish its FY23 preliminary results on 16 June 2023.

For further information, please contact:

Peel Hunt: via MHP

Steven Fine, CEO

Sunil Dhall, CFOO

MHP (Financial PR): +44 (0)20 3128 8540

Tim Rowntree

Charlie Barker

Robert Collett-Creedy

peelhunt@mhpgroup.com

Grant Thornton UK LLP (Nominated Adviser): +44 (0)20 7728 2942

Colin Aaronson

Sam Littler

Keefe, Bruyette & Woods (Corporate Broker): +44 (0) 20 7710 7600

Alistair McKay

Alberto Moreno Blasco

Fred Walsh

Notes to editors

Peel Hunt is a leading specialist in UK investment banking. Our purpose is to guide and nurture people through the evolution of business. We achieve this through a proven, joined-up approach that consistently delivers value to UK corporates, global institutions and trading counterparties alike.