Peel Hunt said profits had plunged by 99 per cent in the first half of the year as it is hammered by a slump in initial public offerings and volatility on the markets.
In its half year results today, the firm reported pre-tax profits of just £0.1m, down from £29.5m last year, after revenue tumbled to £41.1m from £71.4m in the same period last year.
The figures underscore the torrid period on London’s capital markets this year as the City’s brokers and bankers suffer a sharp slowdown in fees after a bumper year in 2021.
Peel Hunt’s assets fell to £95.9m from £100.1m in the same period as cash levels plunged by nearly half to £41.4m.
Peel Hunt chief Steven Fine said “challenging market conditions” continued to have an “adverse impact on markets and investor sentiment”.
“Equity capital markets activity has been at a multi-decade low and market volumes have reduced materially during this period,” he said.
“This is due to several factors including investor redemptions, institutional investors building up cash positions and retail investors being more cautious as equity markets responded to rising inflation, the cost-of-living crisis and the possibility of a lengthy UK recession.”
The firm said it had increased the “size and quality” of its corporate client base however, with 13 new corporate clients, including four in the FTSE 350.
Investors took fright at the results this morning as shares tumbled six per cent.
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