Peel Hunt Ltd (AIM:PEEL) said it remains cautiously optimistic despite a slowdown in activity ahead of Labour's first Budget and the US election.
In a trading statement, the City firm recorded a bounceback in activity in the first half led by the re-emergence of dealmaking with revenues rising by 25% year-on-year to £53.3 million
In the Investment Banking division, Peel's core equity capital markets (ECM) business performed well, highlighted by its involvement in two initial public offerings (IPOs) in the UK.
Despite the broader market seeing reduced activity, it helped clients with various equity fundraisings and block trades. M&A advisory services also contributed significantly to revenue, particularly from a major deal completed earlier in the year.
The firm’s Research and Distribution division recorded slight revenue growth, even as UK equities faced continued outflows. Peel expanded its offerings in merger arbitrage and low-touch electronic trading to meet client needs.
It also strengthened its market position by making several senior hires, expanding its investment banking team, and securing new corporate clients. The bank now advises four FTSE 100 and 42 FTSE 250 companies, reflecting its growing influence in the UK financial market.