Peel Hunt Expects In-Line Performance as Slower Activity Dampens First-Half Growth

By Elena Vardon

Peel Hunt expects its performance for fiscal 2025 to be in line with market expectations due to slowing activity in recent weeks following a stronger first half.

The U.K. mid- and small-cap specialist investment bank on Tuesday said that market activity has slowed ahead of the U.K. budget and the U.S. election, which create uncertainty.

The London-listed group expects revenue for the six months ended Sept. 30 to come in at 53.3 million pounds ($71.3 million). This is 25% higher than in the same period of the previous year thanks to a more positive macroeconomic environment and the company's successful completion of M&A financial advisory mandates for its clients, it said.

It saw improved performance in its core equity capital markets business--within its investment banking division--for the period, despite muted activity market-wide.

The group expects revenue from its research and distribution business to be slightly up and flagged that trading activity in its execution services branch increased in the first four months of the period but that uncertainty around the upcoming political events had resulted in slower volumes.

"We remain well positioned across all parts of our business to take advantage of increased activity when market confidence returns," Peel Hunt said.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

October 01, 2024 03:03 ET (07:03 GMT)

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