Peel Hunt Ltd (AIM:PEEL) said it spied "encouraging signs of recovery" in the financial markets as it put in a resilient first-half performance against a backdrop of rising interest rates, anaemic economic growth and stubbornly high prices.
The boutique investment bank said revenues for the six months ended 30 September 2023 would be around £42.4 million, representing an increase of 3.2% over the same period in 2022.
With a robust balance sheet, Peel Hunt said it had been able to focus on long-term strategic priorities, including solidifying its role as the UK's top independent investment bank for mid-cap and growth companies.
In the Investment Banking sector, Peel Hunt acted as joint bookrunner for CAB Payments in its £335 million IPO, the largest in the UK for the year.
It was also appointed as the sole financial adviser to the newly launched FinTech Growth Fund, which aims to fill the £2 billion FinTech growth funding gap in the UK.
Peel Hunt's diversification strategy has been effective, as evidenced by its advisory role in several UK public M&A transactions and its expanded pipeline in Private Capital Markets and Debt Advisory transactions.
"Whilst the exact timing of recovery cannot be predicted, there are encouraging signs that interest rate rises are bringing inflation under control, and we may be nearing the end of the current tightening cycle," investors were told.
"We have the balance sheet strength and regulatory capital to weather the remainder of this cyclical downturn and are well positioned to benefit from the strength of our platform and considerable operational gearing as market conditions normalise."