Peel Hunt has signalled a surge in UK market investments, with revenues surpassing last year’s figures at this point.
The London-based brokerage firm noted an uplift in the economic climate recently, which has sparked “tentative signs of a pick-up in equity capital markets (ECM) activity,” according to their July 4 trading update.
They reported that their investment banking revenue for the first quarter is now outstripping the same period in 2023.
During the quarter ending June 30, Peel Hunt has been busy advising on “a number of [capital markets] transactions”.
This includes playing a pivotal role as global co-ordinator for two initial public offerings on the London Stock Exchange.
Notably, they oversaw the highly successful launch of tech company Raspberry Pi, whose value soared post-listing, marking a triumph for the UK’s financial scene.
Peel Hunt also expressed optimism over increased business in both its execution services and institutional trading divisions.
They concluded: “Consequently, revenues for Q1 FY25 (three months to June 30) are ahead of the equivalent prior year period and in line with market expectations.”
The statement resonates with the buoyant beginning to the year for London’s financial markets, as the FTSE 100 index notched up gains of as much as 9% since January, although it has since retreated to around a 6% increase as of July 4.
In tandem, the wider UK economy is showing signs of resurgence, with inflation dropping below the Bank of England’s 2% target and the gross domestic product (GDP) expanding in the first quarter, thus halting the brief recession that marked the close of 2023.
This comes on the heels of Peel Hunt revealing a trading update following a lacklustre performance last year, which saw the firm post its second consecutive pre-tax loss.
Last month, Steven Fine, the chief executive, commented: “We are seeing tentative signs that a recovery from the lows of the last two years is under way.”
