City Broker Peel Hunt rakes in record revenues as investors shrug off concerns about rising inflation and war in Ukraine
- Peel Hunt has seen trading top analysts’ forecasts despite expecting a slowdown
- Its execution and trading division did better than expected
- Its investment banking division raked in record revenues in the year to 31 March
City broker Peel Hunt has seen trading top analysts’ forecasts despite expecting a slowdown in the wake of turbulent market conditions.
The newly-listed investment company said its execution and trading business had a strong end to its financial year, with group revenue now expected to be around £131million.
In February, the broker had warned of a slowdown in its trading division after rising inflation and the war in Ukraine dampened market conditions and investor sentiment.
City broker Peel Hunt said its investment banking arm raked in record revenue (Pictured: Peel Hunt offices in London)
It said at the time: ‘The backdrop for capital markets activity has been particularly challenging’.
However, today’s trading update shows its concerns had been overstated, with Peel Hunt revealing that trading performance has been ahead of its previously revised expectations.
It said in a trading update: ‘Following on from the trading update issued on 23 February 2022, the Group’s trading performance has been ahead of revised analyst expectations, following a strong end to the year from our Execution & Trading business.
‘As a result, revenue for the full year is expected to be around £131million.’
Peel Hunt’s investment banking division delivered record revenues for the year, despite the slowdown in activity across global capital markets in the last quarter.
The company said its pipeline of deals remains strong, despite the current geopolitical and economic situation posing higher risks.
Its number of corporate clients is continuing to grow, with 19 new clients added during the financial year.
‘We continue to benefit from our diversified business model, demonstrated by the increase in Execution & Trading revenues during periods of higher market volatility,’ it said.
‘In addition, our broad range of Investment Banking services and increased institutional commission market share leaves us well placed to benefit from any ongoing market dislocation.’
AIM-listed Peel Hunt shares rose 2 per cent 126.50p in morning trading on Friday.
Peel Hunt raised £112million from its IPO in September last year and said it intended to use the money to open a European office to serve EU clients, invest in its technological capabilities, and enhance its working and regulatory capital.
‘We are continuing to invest in the business to drive long-term growth, having made good progress against our strategic priorities,’ it said today.
‘This includes progress towards establishing a platform and legal entity in the EU and ongoing investment in our digital strategy and proprietary technology.’