Investment bank Peel Hunt said it expected revenues to come in at £40.5m in the first six months of the year as it continues to feel strain of a slump in capital markets activity this year.
In a trading update this morning, the bank said it had made “significant progress” on its strategic priorities against a backdrop of “historically low levels of capital markets activity.
Peel Hunt said group revenues for the period is expected to be approximately £40.5m. It comes after revenues for the year to March tumbled from £197m to £131 million and profits fell from £120m to £41m, as the dealmaking slowdown took hold.
Peel Hunt said it had managed to offset many of its client losses by building out both its advisory and private capital markets capabilities.
“During the period we added 11 new retained corporate clients (including 4 in the FTSE 350), more than offsetting client losses in the period (including those resulting from M&A),” the firm said in a statement.
“We now have a retained corporate client base of 164 companies with an average market capitalisation of approximately £600m and spanning 10 per cent of the FTSE 350 (35 FTSE 350 clients).”
Peel Hunt has been rocked by a drop off in IPOs this year as firms and investors shun the capital markets amid extreme volatility, sparked by soaring inflation and war in Ukraine.
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