Peel Hunt Ltd (AIM:PEEL), the UK mid-cap focused broker, has warned that renewed inflationary pressures, volatile interest rate expectations and domestic political uncertainty have weighed on UK market confidence since the start of its new financial year, even as it reported record investment banking revenues for the year to March 2026.
The company said a sustained recovery in UK equity capital markets, initial public offering activity and mergers and acquisitions would depend on greater macroeconomic stability and the pace at which confidence rebuilds.
Peel added that it remains focused on disciplined cost and capital management while pursuing initiatives to enhance market share, broaden the asset classes traded within its execution services business and develop adjacent revenue streams.
For the year ended 31 March, the group reported revenue of £143.5 million, up 57.1% from £91.3 million a year earlier, with all three business divisions contributing to the improvement.
Profit before tax came in at £21.1 million, swinging from a loss of £3.5 million in the prior year, while adjusted profit before tax, which strips out share-based payment charges and exceptional items totalling £10.9 million, rose to £32.0 million from £0.8 million.
Investment banking was the standout performer, with revenue more than doubling to £67.1 million from £31.5 million, driven by what the company described as an exceptional mergers and acquisitions performance, with M&A contributing a significant majority of deal fees across the division.
Execution services revenue rose to £47.8 million from £33.7 million, benefiting from market volatility and continued investment in proprietary trading technology, while research and distribution revenue increased to £28.6 million from £26.1 million.
The company ended the year with 147 corporate clients, unchanged from the prior year despite significant M&A-related client attrition, with the average market capitalisation of its client base rising 30% to over £1.13 billion, including 62 FTSE 350 clients.
Net assets increased to £108.5 million from £88.7 million, with cash balances rising to £36.9 million from £20.4 million.
The board recommended a final dividend of 4.9p per share, compared with nothing in the prior year.
Chief executive Steven Fine said the group had delivered one of the best revenue performances in its history and was operating a leaner, more efficient platform following decisive action on costs.
