Peel Hunt shares decreased 4.1% to 112.2p in late afternoon trading on Thursday following a 33.5% drop in FY 2022 revenue to £121 million against £196.9 million in FY 2021.
The company announced a 57% pre-tax profit fall to £33.1 million from £77 million, alongside a basic EPS of 21.1p compared to 47.8p the last year.
Peel Hunt confirmed a cash hit of 25.8% to £76.7 million compared to £103.4 million.
However, the firm noted a 106.8% growth in net assets to £100.1 million against £48.4 million.
Peel Hunt reported that all three of its business divisions continued to make progress, with investment banking achieving record results for its second consecutive year at a 32% revenue increase to £57.9 million. The sector executed 46 equity fundraises, with advisory revenue up 166% to £8.4 million as the department acted on 19% of announced UK mid-and-small-cap takeovers.
The group commented that its execution services business delivered revenue of £42.9 million in FY 2022 compared to £166.7 million in FY 2021, and its research and distribution results were resilient, however revenues slid to £30.2 million from £36.3 million year-on-year. The sector apparently gained substantial market share in institutional commissions across the term.
Peel Hunt added 19 new corporate clients to its portfolio, with an additional four added in the period since the close of FY 2021, which brought its complete number to 164 clients.
“Against this backdrop, our performance was resilient, with all three divisions continuing to make progress, demonstrating the benefit of our diversified business model,” said Peel Hunt CEO Steven Fine.
“We generated record Investment Banking revenue for the second consecutive year, continuing to grow our corporate client base while being more active than any other investment bank in UK ECM transactions.”
“Alongside this, both Execution Services and Research & Distribution delivered solid performances, as we continued to develop our trading technologies and to win market share in institutional commissions.”
Peel Hunt reported a final dividend of 3.1p, in line with the company’s dividend policy.