Challenging conditions in the UK capital markets have impacted Peel Hunt Ltd (AIM:PEEL)’s bottom line, with the mid-cap investment bank posting a before-tax loss of £800,000 in the first half of its 2024 financial year.
Scarce listing activity and inflationary pressures remain ongoing concerns for London’s brokers, though Peel Hunt did manage to tick revenues 3.9% higher year over year to £42.7 million.
Capital remains “comfortably” above regulatory requirements, stated the group.
Chief executive Steven Fine commented: "Despite the continued challenging market backdrop, our performance has remained resilient. Revenue for the first six months was in line with expectations, and slightly up on the same period last year.
“Our performance was not quite enough to offset the high inflationary environment and its impact on costs but our balance sheet remains strong, demonstrating the group's financial resilience.”
Though interest costs remain high, Peel Hunt partially offset this by reducing long-term debt from £21 million to £15 million in the six months to 30 September.
Fine said that Peel Hunt was making “good progress” with its diversification strategy, which has seen the bank expand into M&A advisory mandates and private capital markets.
“This diversified business model, coupled with a solid financial position, means we are well positioned for when market conditions improve,” he stated.