Peel Hunt (PEEL) H1 2025 earnings summary

Executive summary

• Revenue rose 26% year-over-year to £53.8m, with adjusted profit before tax at £4.7m versus a loss last year.

• Profit before tax was £1.2m, up from a £0.8m loss; all business divisions saw increased performance.

• Improved macroeconomic backdrop and market conditions in early FY25, though activity slowed later due to UK Budget and US election.

• Net assets at £94.8m, cash balance at £18.0m, and long-term debt reduced to £12m.

• Capital remains well above regulatory requirements, supporting ongoing operations and growth.

Financial highlights

• Group revenue £53.8m, up 26% year-over-year; adjusted profit before tax £4.7m (vs. £0.4m loss prior year).

• Profit before tax: £1.2m (H1 FY24: £-0.8m); adjusted profit before tax: £4.6m (H1 FY24: £-0.5m).

• Investment Banking revenue £22.6m (+31%), Execution Services £17.6m (+19%), Research & Distribution £13.6m (+30%).

• Net assets: £94.8m (FY24: £91.8m); cash: £18.0m (FY24: £37.9m).

• Compensation ratio increased to 61.2% (H1 FY24: 58.6%).

Outlook and guidance

• Trading improved in October but activity muted in November; outlook cautious due to macroeconomic and political uncertainty.

• Some transaction execution may shift to the next financial year due to persistent market uncertainty.

• M&A and IPO pipeline solid, but deal execution likely to be pushed into FY26.

• Cost pressures from wage and technology inflation expected to persist; interest costs to fall as rates are cut in 2025.

• UK economic fundamentals and growth forecasts remain stable despite recent dips in sentiment.