Peel Hunt’s profits will decrease by more than 50% due to the high cost of listing in London and the decrease in transaction volume
- Half-year profits for small and medium-sized business specialists plummeted to £ 26.7 million
- Peel Hunt made record returns in the investment banking sector.
- The company’s IPO is in the midst of a surge in the list in the London market this year.
Peelhunt has more than halved its earnings due to rising costs associated with initial public offerings and investments in technology.
Small business specialist profits plummeted to £ 26.7 million in the six months to September 28. This was down from £ 55.4 million in the year-ago quarter due to higher costs due to more staff.
Revenues fell 23% to £ 71.4 million as the economy resumed and recovered with the Covid-19 vaccination program and then retreated from the level of increased trading volume in the early stages of the pandemic.
Poor performance: Peelhunt’s profits plummeted to £ 26.7m in the six months to September 28, compared to £ 55.4m in the same period last year.
This specifically affected the execution and trading departments, with revenues down 57.3% to £ 24 million. The business states that this reflects a wide range of trends across the industry.
However, the company said its division’s revenues were still above pre-Covid levels, in line with forecasts and still maintaining the top market share on the London Stock Exchange.
At the same time, a surge in mergers and acquisitions in the capital revealed a record-breaking return in the investment banking sector, thanks to nearly half the commission increase to £ 28.8 million. ..
CEO Stephen Fine said he was “really happy” with the company’s performance, and its values and culture are as good as our goal of guiding and nurturing people through the evolution of our business. He added that it has helped us grow.
“Our own evolution is no exception. During this transition, we moved from an LLP to a publicly traded company, so all our staff were extraordinary.”
Peelhunt will raise £ 112 million from an IPO in late September and use that money to serve EU customers, invest in technological capabilities, and strengthen its working and regulatory capital offices in Europe. Said that it plans to open.
Positive statement: CEO Stephen Fine said he was “really happy” with the company’s performance, adding that its values and culture helped us grow.
Its listing took place in the midst of a surge in companies publicly available on the London market, with recent data from Refinitive showing that both the number and market value of companies listed on the Tokyo Stock Exchange are over 300% this year. It shows that the number has increased rapidly.
According to the company, since the IPO, the investment banking sector has acquired five new clients and trading volumes are above pre-Covid levels.
There are a total of 162 corporate clients, including well-known names such as retailer JD Sports, Angel Delight maker Premier Foods, and infrastructure group John Laing.
“Overall, the outlook for future growth remains bright,” the company said.
“With the capital raised through the IPO, we can continue to invest in human resources and technology while leveraging multiple growth opportunities in front of us.”
UK companies are also increasingly targeted for takeover bids from foreign private equity houses this year as a result of their relatively cheap value based on price-earnings ratio, Brexit uncertainty, and the depreciation of the pound.
Among the major acquisitions agreed this year are Philip Morris International’s acquisition of inhaler maker Vectura, Clayton Davilier & Rice’s acquisition of supermarket chain Morrisons, and Allied Universal’s acquisition of private security company G4S.
The rush has raised concerns that major UK brands are being sold cheaply, and transactions involving defense companies such as Meggitt have been criticized for their potential national security implications.
Peel Hunt’s profits are reduced by more than 50% due to the high cost of listing in London
https://www.dailymail.co.uk/money/markets/article-10262581/Peel-Hunt-profits-fall-50-large-costs-London-listing.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Peel Hunt’s profits are reduced by more than 50% due to the high cost of listing in London