Investment bank Peel Hunt said a slump in the IPO market was weighing on performance today as revenues hit £22.8m in the three months to the end of June.
Ahead of the firm’s annual general meeting today, bosses said they had continued to build the firm’s client base with 7 new clients, 3 of which it said are in the FTSE 350, alongside a “substantial pipeline of investment banking transactions” with over 50 mandated deals.
London-listed Peel Hunt said today it was “resilient” and had a “strong balance sheet” to weather the downturn ahead.
“ We continue to take a long term view, investing in the business to deliver our strategic priorities including developing our proprietary technology and international capabilities,” the firm said.
“As a result, the business is very well positioned for when market conditions improve.”
Revenues at the investment bank have been tested by a global slump in the IPO market, as investors get the jitters amid rising interest rates and market volatility sparked by Russia’s invasion of Ukraine.
The comments from the firm come after peel Hunt said revenues for the year to March tumbled from £197m to £131 million and profits fell from £120m to £41m, as the dealmaking slowdown took hold.
Figures releases today from EY showed that the total proceeds of IPOs in the capital plunged 94 per cent in the first half of the year as 26 firms raised a total of £595m, a sharp slump from 47 issuers raising £9.4bn in the same period in 2021.