Peel Hunt has returned to profitability after posting a pre-tax profit of £1.2m in its opening half results, against a loss of £0.8m in the same period last year.

The investment bank said it had overseen a stronger financial market and a rise in dealmaking as a result but warned that investor sentiment had weakened since the Budget.

Peel Hunt’s group revenue totalled £53.8m in H1, which covered the six months to the end of September, which was an increase of approximately 26% year-on-year.

The group said it had recorded an improved performance in its core equity capital markets business, including acting on two IPOs and executing equity fundraises, as well as block trades for several clients.

“We were able to capitalise on improving market conditions in the first few months of FY25, most notably executing two IPOs, collecting material M&A fees and generating increased trading revenues,” Peel Hunt CEO, Steven Fine, said.

“However, the recovery slowed over the summer period and investor sentiment was impacted in the last few weeks of the period due to concerns around the UK Budget, particularly in relation to AIM.

“We welcome recently proposed policy initiatives, including pension reforms and HM Treasury’s call for evidence to support a growth and competitiveness strategy for UK financial services, which are designed to increase investment and liquidity in UK risk assets.”

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