Peel Hunt posts record revenues, flags more uncertain outlook

(Sharecast News) - Peel Hunt posted a surge in revenues and confirmed it had swung back into the black on Monday, but warned of more uncertain conditions ahead.

The British investment bank saw revenues spike 57.1% in the year to 31 March to �143.5m, while pre-tax profits came in at �21.1m. Last year the firm posted a �3.5m loss.

Peel Hunt said it had seen an improvement across all business areas. However, the biggest growth was seen in investment banking, the mid-cap specialist's largest division. Revenues more than doubled, coming in at �67.1m against �31.5m a year previously, supported by an "exceptional" M&A performance.

The introduction of a more efficient operating model firm-wide also helped manage costs, it added.

Steven Fine, chief executive, said: "We delivered one of the best revenue performances in the history of the group, with investment banking achieving its highest-ever revenue.

"Our position as a leading advisor to UK-listed companies continues to be reflected in the quality of both the mandates we win and our retained client base."

However, the AIM-listed broker adopted a more cautious stance going forward.

It warned: "While markets remain supportive of high quality transactions, renewed global inflationary pressures, the volatile outlook for benchmark interest rates and increased domestic political uncertainty have all weighed on UK market confidence and therefore transactional activity since the start of our financial year.

"A sustained recover in UK ECM, IPO and M&A activity will inevitably depend on greater macroeconomic stability and the pace at which confidence rebuilds."

Fine added: "We have taken decisive action on costs and are operating a leaner, more efficient platform. While the external environment remains uncertain, we are well positioned to benefit as conditions improve."

As at 1015 BST, the stock was trading 3% higher at 99.4p.

See latest RNS on Investegate