Peel Hunt to beat targets as it shrugs off ‘challenging’ market conditions

UK investment bank Peel Hunt has said it is on track to beat its financial targets for the year after a “strong start” to trading.

Shares in the company swung to their highest level so far this year as a result.

The company said it has reported the positive start to the current financial year after making “strategic progress” in the face of “challenging market conditions” over the past three years.

The firm has been impacted by a dearth of new stock market listings over the past three years, with many companies opting not to list on the London Stock Exchange while many previously listed firms have also been taken private.

On Friday, Peel Hunt said it has seen “nascent” activity in its equity capital markets business in recent weeks, however.

It said it has supported clients on a number of equity raises and block trades, amid improved optimism in the City after a recent uptick in the value of London equities.

The firm said it is now working with 58 FTSE 350 clients, after increasing this from 55 in the previous quarter.

Peel Hunt said it was also boosted by work on a number of major merger and acquisition deals.

“As a result of this activity, we expect to deliver full year results ahead of market expectations,” the company added.

Edward Frith, analyst at KBW, said: “The last three years have been tough for UK equity capital markets and yet across that period Peel Hunt has still delivered two years of both revenue and franchise growth.

“2026 looks set to be a continuation of that trajectory and most importantly a return to profitability.”

Peel Hunt shares were up 6.9% at 108.5p on Friday.