TIDMPEEL
RNS Number : 6374V
Peel Hunt Limited
05 December 2023
5 December 2023
Peel Hunt Limited
Half-Year Results for the six months ended 30 September 2023
Revenue in line with market expectations
Peel Hunt Limited ('Peel Hunt', the 'Company') together with its
subsidiaries (the 'Group') today announces unaudited interim
results for the period ended 30 September 2023 ('H1 FY24'). FY24
refers to the financial year ending on 31 March 2024.
Highlights
-- Strong balance sheet maintained, supporting the Group's overall financial resilience
o Group revenue GBP42.7m (H1 FY23: GBP41.1m), an increase of
3.9% year on year
o Loss before tax of GBP0.8m (H1 FY23: profit before tax of
GBP0.1m), reflecting the challenging macroeconomic environment and
inflationary increases in costs
o Net assets of GBP92.8m (FY23: GBP93.1m) and cash balances of
GBP22.6m (FY23: GBP27.4m)
o Capital comfortably in excess of regulatory requirements
o Long term debt reduced to GBP15m (FY23: GBP21m), partly
offsetting increases in interest costs
-- Good strategic progress made across all business divisions and the Group as a whole
o Investment Banking:
-- Added nine new corporate clients
-- Progressed our diversification strategy acting as financial
adviser on several UK public M&A transactions, both buyside and
sellside, and expanding our pipeline of private capital markets and
debt advisory mandates
o Research & Distribution: Institutional electronic trading
revenues doubled year-on-year a nd key senior hires have joined the
team during the period
o Execution Services: Revenues remain above pre-Covid levels despite lower market volumes
o RetailBook : Application for regulatory approval is currently
being assessed by the Financial Conduct Authority
o European office: Copenhagen office now fully staffed and expected to be operational shortly
-- Strength of our platform and considerable operational gearing
position us well for when market conditions recover
Financial and operating highlights
Financial highlights H1 FY24 H1 FY23 Change
=============================== =========== ========== =========
Revenue GBP42.7m GBP41.1m 3.9%
=============================== =========== ========== =========
(Loss)/profit before tax (GBP0.8m) GBP0.1m (900)%
=============================== =========== ========== =========
(Loss)/profit after tax (GBP0.7m) GBP0.0m (700)%
=============================== =========== ========== =========
Compensation ratio 58.6% 58.5% 0.1ppts
=============================== =========== ========== =========
Operating highlights H1 FY24 FY23 Change
=============================== =========== ========== =========
Cash GBP22.6m GBP27.4m (17.5)%
=============================== =========== ========== =========
Net assets GBP92.8m GBP93.1m (0.3)%
=============================== =========== ========== =========
Investment Banking clients 154 155 (0.6)%
=============================== =========== ========== =========
Average market cap of clients GBP 622.6m GBP690.5m ( 9 .8)%
=============================== =========== ========== =========
Steven Fine, Chief Executive Officer, commented:
"Despite the continued challenging market backdrop, our
performance has remained resilient. Revenue for the first six
months was in line with expectations, and slightly up on the same
period last year. Our performance was not quite enough to offset
the high inflationary environment and its impact on costs but our
balance sheet remains strong, demonstrating the Group's financial
resilience.
Our integrated full-service investment banking offering is a
significant differentiator for Peel Hunt. We continued to make good
progress with our strategic priority to diversify our investment
banking capabilities, winning new mandates in M&A advisory and
developing a growing pipeline in private capital markets and debt
advisory. This diversified business model, coupled with a solid
financial position, means we are well positioned for when market
conditions improve."
For further information, please contact:
Peel Hunt : via Powerscourt
Steven Fine, CEO
Sunil Dhall, CFOO
Powerscourt (Financial PR) : +44 (0)20 7250 1446
Justin Griffiths
Gilly Lock
Russ Lynch
peelhunt@powerscourt-group.com
Grant Thornton UK LLP (Nominated Adviser) : +44 (0)20 7728
2942
Colin Aaronson
Enzo Aliaj
Keefe, Bruyette & Woods (Corporate Broker) : +44 (0) 20 7710
7600
Alistair McKay
Alberto Moreno Blasco
Fred Walsh
Akshman Ori
Notes to editors
Peel Hunt is a leading UK investment bank that specialises in
supporting mid-cap and growth companies. It provides integrated
investment banking advice and services to UK corporates, including
equity capital markets, private capital markets, M&A, debt
advisory, investor relations and corporate broking. The company's
joined up approach combines these services with expert research and
distribution and an execution services hub that provides liquidity
to the UK capital markets, delivering value to global institutions
and trading counterparties alike. The company is admitted to
trading on AIM (LON: PEEL) and has offices in London, New York and
Copenhagen.
Market conditions
Throughout H1 FY24, macroeconomic factors continued to have an
impact across the investment banking sector and the prolonged
period of subdued capital markets activity continued. As a
consequence, the capital markets transaction fee pool remained
diminished, particularly in respect of IPOs. Revenue from M&A
transactions was ahead of the previous year, however, as low
valuations and weak sterling sustained bid activity for UK
companies. The FTSE 100, FTSE 250 and AIM All-share were down 0.3%,
3.4% and 10.6% respectively and market volumes remained low.
UK-focused equity funds continued to experience net outflows,
although towards the end of the period there were indications that
this trend might be starting to change, and we saw some encouraging
signs that interest rates may be nearing their peak as UK inflation
has started to come under control. We saw progress on the market
reform agenda, which is critical to increasing the attractiveness
of UK Plc and reversing the structural trend of de-equitisation,
and the FCA provided some much-needed certainty on the timing of
rule reforms.
Overview of results
Group revenue for the period was GBP42.7m (H1 FY23: GBP41.1m)
with a loss before tax of GBP0.8m (H1 FY23: profit before tax of
GBP0.1m), reflecting the challenging macroeconomic environment and
inflationary increases in costs. Our balance sheet remained strong,
with net assets of GBP92.8m as at 30 September 2023 (FY23:
GBP93.1m), capital comfortably in excess of regulatory requirements
and cash balances of GBP22.6m (FY23: GBP27.4m).
Divisional reviews
Investment Banking
H1 FY24 H1 FY23 Change
============================== ========== ========== =======
Investment Banking fees GBP12.9m GBP7.5m 72.0%
============================== ========== ========== =======
Investment Banking retainers GBP4.4m GBP4.4m 0.0%
============================== ========== ========== =======
Investment Banking revenue GBP17.3m GBP11.9m 45.4%
============================== ========== ========== =======
Whilst overall deal activity has remained subdued, revenues in
Investment Banking were ahead of the same period last year.
Our strategic priority to diversify our investment banking
capabilities is progressing well. We acted as financial adviser on
several UK public M&A transactions in the period, both buyside
and sellside, and expanded our pipeline of private capital markets
and debt advisory transactions. In addition, we added nine new
corporate clients and at 30 September 2023 were appointed as an
adviser to 154 companies, of which 37 are in the FTSE 350. The
aggregate market capitalisation of our corporate clients has
increased by 4.6% year on year, to approximately GBP96bn.
Although levels of capital markets activity were low in the
period, REX has won a number of mandates from third party banks,
brokers and financial advisers.
Research & Distribution
H1 FY24 H1 FY23 Change
============================================ ========== ============= ========
Research payments and execution commission GBP10.5m GBP11.8m(1) (11.0)%
============================================ ========== ============= ========
Notes
(1) To better reflect how the business is managed, we have
changed the way we allocate certain revenues between Research &
Distribution and Execution Services. As a result, we have
reclassified GBP1.9m of execution commission as Execution Services
revenue. This was also reclassified in the FY23 financial
statements.
Over the period, revenue from our Research and Distribution
business decreased broadly in line with the market. Our Research
team has focused on delivering differentiated and highly relevant
mid-cap and growth company research to our institutional clients.
Following further initiations in the period we now provide
insightful analysis on over 200 FTSE 350 companies.
Institutional electronic trading revenues have more than doubled
year on year and we have continued to invest in talent, with key
senior hires joining the team during H1.
Our Copenhagen office, which will broaden our international
distribution capability, received regulatory approval during the
first half of 2023 and is now fully staffed and expected to be
operational shortly.
Execution Services
H1 FY24 H1 FY23 Change
============================ ========== ============= ========
Execution Services revenue GBP14.8m GBP17.4m(1) (14.9)%
============================ ========== ============= ========
Notes
(1) To better reflect how the business is managed, we have
changed the way we allocate certain revenues between Research &
Distribution and Execution Services. As a result, we have
reclassified GBP1.9m of execution commission as Execution Services
revenue. This was also reclassified in the FY23 financial
statements.
During the period the FTSE 250 and AIM All-Share declined 3.4%
and 10.6% respectively and trading volumes remained much lower
across the market as a whole. Despite this, our trading books
continue to perform well versus market drawdowns and, overall,
Execution Services revenue was GBP14.8m. Trading in fixed income,
investment companies and exchange traded funds contributed to
revenues, volumes and LSE market share that remain above pre-Covid
levels. We continue to focus on adding incremental liquidity and
driving efficiencies.
RetailBook
During the period further progress was made by RetailBook to
establish operations, and its application for regulatory approval
is currently being assessed by the FCA.
Capital and liquidity
Net assets remained strong at GBP92.8m (FY23: GBP93.1m) as at 30
September 2023.
Our cash position also remained healthy, at GBP22.6m as at 30
September 2023, although this decreased from GBP27.4m at the end of
FY23, largely due to the accelerated reduction of long-term debt by
GBP6.0m during the period. Long-term debt is now GBP15.0m, and we
have access to a GBP30.0m revolving credit facility ('RCF'), which
was renewed just before the end of the period. The RCF was undrawn
at the end of the period (FY22: GBP10.0m).
We continue to operate well in excess of our regulatory capital
requirements with own funds requirements coverage over net assets
of 567% at the end of H1 FY24 compared to 555% at the end of FY23.
The increase in coverage from FY23 was achieved by maintaining risk
exposures within the agreed limits despite the minimal reduction in
Group net assets.
Costs and people
H1 FY24 H1 FY23 Change
======================== ========= ========= ==========
Staff costs GBP25.0m GBP24.0m 4.2%
======================== ========= ========= ==========
Non-staff costs GBP17.9m GBP16.2m 10.5%
======================== ========= ========= ==========
Total admin costs GBP42.9m GBP40.2m 6.7%
======================== ========= ========= ==========
Compensation ratio 58.6% 58.5% 0.1ppts
======================== ========= ========= ==========
Non-staff costs ratio 41.9% 39.3% 2.6ppts
======================== ========= ========= ==========
Change in headcount(1) (1.8)% 5.7% (7.5)ppts
======================== ========= ========= ==========
Notes:
(1) Change in average headcount when compared to respective previous financial year ends
Despite the macro-economic challenges, we continued to invest in
our people to enable us to pursue our strategic priorities and be
well positioned when the capital market cycle turns.
Overall, average headcount decreased by 1.9% in the first half
of the financial year. We made selected hires into our Copenhagen
office, which will broaden our international distribution
capability, and key strategic hires into our electronic execution
team that broadens our product offering and provides further
diversification of revenues.
Staff costs were higher in H1 FY24 than H1 FY23, partly due to
one off costs relating to headcount rationalisation and targeted
salary increases for our lower-paid employees to help support those
disproportionately affected by the rising cost of living.
Non-staff costs, particularly technology costs, increased in
line with inflation. We also incurred costs from continued progress
on our strategic priorities, including the establishment of a
fully-staffed office in Copenhagen.
Given the ongoing macroeconomic challenges, we will continue to
monitor costs in H2 FY24, whilst remaining focused on our strategic
priorities.
Responsible business
We are committed to ensuring our business is run responsibly.
Throughout the period our board-level ESG Committee continued to
focus on our sustainability priorities, particularly our targets
for gender diversity and carbon reduction. We continued to work
towards our target of 40% female employees by 2035. As part of our
ongoing commitment to fostering an inclusive and supportive work
environment, we have reviewed and updated our enhanced maternity
and paternity pay provisions.
Our first Carbon Reduction Plan is due for publication shortly,
and in H1 FY24 we implemented an electric car scheme to encourage
employees to make their commute as low carbon as possible.
We were pleased to announce that our employees selected Become,
the only national charity focused solely on supporting children in
care and young care leavers, to be our new charity partner, and we
have a number of fundraising events planned. All employees are
encouraged to participate in a day of charity work and we offered a
number of ongoing volunteering opportunities throughout the
period.
Current trading and outlook
Trading in the first two months of our second half has been
broadly in line with the first half. Since the start of the second
half, macroeconomic and geopolitical concerns have continued to
weigh on equity markets and, whilst there are some signs of
positivity, market activity remains relatively subdued. IPO and
private fundraising activity continues to be muted. Take-private
activity continues as valuations for UK quoted companies remain
attractive, particularly to strategic bidders, and we have been
delighted to support our corporate clients in raising equity
finance to fund M&A transactions during the period.
Against the backdrop of prolonged subdued market activity and
de-equitisation, we continue to support efforts to reinvigorate UK
equity markets through a combination of supply and demand side
reforms, and in particular those initiatives designed to encourage
investment into small and mid-cap companies that are the lifeblood
of the UK economy.
Steven Fine
Chief Executive Officer
5 December 2023
The information, statements and opinions contained in this
announcement do not constitute a public offer under any applicable
legislation or an offer to buy or sell any securities or financial
instruments nor any advice or recommendation with respect to such
securities or other financial instruments.
There are a number of key judgement areas, which are based on
models and which are subject to ongoing modification and
alteration. The reported numbers reflect our best estimates and
judgements at the given point in time.
Forward-looking statements
This announcement contains forward-looking statements.
Forward-looking statements sometimes use words such as 'may',
'will', 'seek', 'continue', 'aim', 'anticipate', 'target',
'projected', 'expect', 'estimate', 'intend', 'plan', 'goal',
'believe', 'on track', 'achieve' or other words of similar meaning.
Such statements and forecasts involve risk and uncertainty because
they are based on current expectations and assumptions but relate
to events and depend upon circumstances in the future and you
should not place reliance on them. There are a number of factors
that could cause actual results or developments to differ
materially from those expressed or implied by forward-looking
statements and forecasts. Forward-looking statements and forecasts
are based on the Directors' current view and information known to
them at the date of this announcement.
Subject to our obligations under the applicable laws and
regulations of any relevant jurisdiction, in relation to disclosure
and ongoing information, we undertake no obligation to update
publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Nothing in this announcement constitutes or should be construed
as constituting a profit forecast.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
Unaudited for the six months ended 30 September 2023
Six months Six months Year ended
ended ended
30 Sep 2023 30 Sep 2022 31 Mar 2023
Unaudited Unaudited Audited
Continuing Note GBP'000 GBP'000 GBP'000
activities
------------------ ----- ------------------------------ ------------------------------ --------------------------------
Revenue 2 42,677 41,067 82,337
Administrative
expenses 3 (42,866) (40,164) (82,377)
(Loss)/profit
from operations 3 (189) 903 (40)
Finance income 5 510 170 692
Finance expense 5 (1,139) (1,110) (2,320)
Other income 60 98 180
------------------ ----- ------------------------------ ------------------------------ --------------------------------
Operating
(loss)/profit
for
the period (758) 61 (1,488)
Share of loss
from associate 8 (15) - -
-----
(Loss)/profit
before tax
for the period (773) 61 (1,488)
Tax 94 (15) 166
(Loss)/profit for
the period (679) 46 (1,322)
Other - - -
comprehensive
income
for the period
Total
comprehensive
(expense)/
income for the
period (679) 46 (1,322)
------------------ ----- ------------------------------ ------------------------------ --------------------------------
Attributable to:
Owners of the
Company (679) 46 (1,322)
Non-controlling 7 - - -
interests
------------------ ----- ------------------------------ ------------------------------ --------------------------------
(Loss)/profit for
the period (679) 46 (1,322)
------------------ ----- ------------------------------ ------------------------------ --------------------------------
Attributable to:
Owners of the
Company (679) 46 (1,322)
Non-controlling 7 - - -
interests
------------------ ----- ------------------------------ ------------------------------ --------------------------------
Total
comprehensive
(expense)/income
for the period (679) 46 (1,322)
------------------ ----- ------------------------------ ------------------------------ --------------------------------
Earnings per share - attributable
to owners of the Company
Basic 6 (0.6p) 0.0p (1.1p)
Diluted 6 (0.6p) 0.0p (1.1p)
----------------------------------- ------- ----- -------
Consolidated Balance Sheet
Unaudited as at 30 September 2023
As at 30 As at 30 As at 31
Sep 2023 Sep 2022 Mar 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ----------
ASSETS
Non-current assets
Property, plant and equipment 7,299 8,920 8,092
Intangible assets 1,849 718 1,152
Right-of-use assets 14,869 17,156 15,889
Investments in associates 535 - -
Deferred tax asset 322 322 273
Total non-current assets 24,874 27,116 25,406
-------------------------------- ---------- ---------- ----------
Current assets
Securities held for trading 62,772 55,180 54,144
Market and client debtors 376,408 451,633 471,504
Trade and other debtors 15,853 13,777 15,546
Cash and cash equivalents 22,554 41,352 27,410
-------------------------------- ---------- ---------- ----------
Total current assets 477,587 561,942 568,604
-------------------------------- ---------- ---------- ----------
LIABILITIES
Current liabilities
Securities held for trading (33,100) (27,604) (32,062)
Market and client creditors (336,135) (399,465) (421,953)
Amounts due to members - (5,041) -
Trade and other creditors (4,856) (4,095) (4,214)
Borrowings - (10,000) -
Lease liabilities (2,757) (2,907) (2,867)
Long-term loans (3,000) (6,000) (6,000)
Provisions (642) (518) (576)
-------------------------------- ---------- ---------- ----------
Total current liabilities (380,490) (455,630) (467,672)
-------------------------------- ---------- ---------- ----------
Net current assets 97,097 106,312 100,932
-------------------------------- ---------- ---------- ----------
Non-current liabilities
Long-term loans (12,000) (18,000) (15,000)
Lease liabilities (17,196) (19,482) (18,192)
Total non-current liabilities (29,196) (37,482) (33,192)
-------------------------------- ---------- ---------- ----------
Net assets 92,775 95,946 93,146
-------------------------------- ---------- ---------- ----------
Consolidated Balance Sheet
Unaudited as at 30 September 2023
As at 30 As at 30 As at 31
Sep 2023 Sep 2022 Mar 2023
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------ ---------- ---------- ----------
EQUITY
Ordinary share capital 40,099 40,099 40,099
Other reserves 52,676 55,847 53,047
Total equity 92,775 95,946 93,146
------------------------- ---------- ---------- ----------
Consolidated Statement of Changes in Equity
Unaudited for the six months ended 30 September 2023
Ordinary Other reserves Consolidated
Share Capital
GBP'000 GBP'000 GBP'000
----------------------------- --------------- --------------- -------------
Balance as at 31 March 2022 40,099 60,035 100,134
Profit for the period - 46 46
Other comprehensive income - - -
----------------------------- --------------- --------------- -------------
Total comprehensive income - 46 46
Transactions with owners
Share Based Payments - 305 305
Purchase of Company shares - (807) (807)
Dividends paid - (3,732) (3,732)
------------------------------ --------------- --------------- -------------
Balance as at 30 September
2022 40,099 55,847 95,946
------------------------------ --------------- --------------- -------------
Loss for the period - (1,368) (1,368)
Other comprehensive income - - -
----------------------------- --------------- --------------- -------------
Total comprehensive expense - (1,368) (1,368)
Transactions with owners
Share Based Payments - 342 342
Purchase of Company shares - (1,774) (1,774)
--------------- --------------- -------------
Balance as at 31 March 2023 40,099 53,047 93,146
------------------------------ --------------- --------------- -------------
Loss for the period - (679) (679)
Other comprehensive income - - -
----------------------------- --------------- --------------- -------------
Total comprehensive expense - (679) (679)
Transactions with owners
Share Based Payments - 324 324
Purchase of Company shares - (16) (16)
--------------- --------------- -------------
Balance as at 30 September
2023 40,099 52,676 92,775
------------------------------ --------------- --------------- -------------
Consolidated Statement of Cash Flows
Unaudited for the six months ended 30 September 2023
Six months Six months Year ended
ended 30 ended 30 31 Mar 2023
Sep 2023 Sep 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ----------- ----------- -------------
Net cash generated from/(used
in) operations 9 5,019 (34,697) (30,899)
------------------------------- ----- ----------- ----------- -------------
Cash flows from investing
activities
Purchase of tangible assets (60) (493) (511)
Purchase of intangible assets (815) (623) (1,087)
Investment in associate (550) - -
Net cash used in investing
activities (1,425) (1,116) (1,598)
------------------------------- ----- ----------- ----------- -------------
Cash flows from financing
activities
Interest paid (727) (603) (1,382)
Short term borrowings - 10,000 -
Lease Liability payments (1,707) (1,412) (3,117)
Purchase of Company shares (16) (807) (2,581)
Dividends paid - (3,732) (3,732)
Repayment of Long-term loan (6,000) (3,000) (6,000)
Net cash (used in)/generated
from financing activities (8,450) 446 (16,812)
------------------------------- ----- ----------- ----------- -------------
Net decrease in cash and cash
equivalents (4,856) (35,367) (49,309)
Cash and cash equivalents
at start of period 27,410 76,719 76,719
------------------------------- ----- ----------- ----------- -------------
Cash and cash equivalents
at end of period 22,554 41,352 27,410
------------------------------- ----- ----------- ----------- -------------
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
Peel Hunt Limited (the 'Company') is a non-cellular company
limited by shares having its shares admitted to trading on AIM, a
market operated by London Stock Exchange plc, on 29 September 2021.
The Company is registered in Guernsey. Its registered office is
Mont Crevelt House, Bulwer Avenue, St Sampson, Guernsey GY2 4LH.
The consolidated interim financial information of the Company
comprises the Company and its subsidiaries, together referred to as
the 'Group'.
The financial information contained within these condensed
consolidated interim financial statements is unaudited and has been
prepared in accordance with International Accounting Standard 34
Interim Financial Reporting ('IAS 34'). The Financial Statements
should be read in conjunction with the annual financial statements
for the year ended 31 March 2023, which have been prepared in
accordance with UK-adopted international accounting standards
(International Financial Reporting Standards ('IFRS') and
International Financial Reporting Interpretations Committee
('IFRIC')) and with the requirements of the Companies (Guernsey)
Law, 2008.
The preparation of the condensed consolidated interim financial
statements in conformity with IAS 34 requires the use of certain
critical accounting judgements and significant estimates. It also
requires the Board of Directors to exercise its judgement in the
application of the Group's accounting policies. The accounting
policies applied are consistent with those of the annual financial
statements for the year ended 31 March 2023.
The financial information is presented in pounds sterling and
all values are rounded to the nearest thousand (GBP'000), except
where indicated otherwise.
The financial information has been prepared on the historical
cost basis, except for derivatives, financial assets and
liabilities measured at Fair value through profit and loss
('FVTPL') and at Fair value through other comprehensive income
('FVTOCI'). Historical cost is generally based on the fair value of
the consideration given in exchange for the assets.
These condensed consolidated interim financial statements have
been prepared on a going concern basis as the Directors have
satisfied themselves that, at the time of approving these condensed
consolidated interim financial statements, the Company and the
Group have adequate resources to continue in operational existence
for at least the next twelve months.
During the period, there were no new standards or amendments to
IFRS that became effective and were adopted by the Company and the
Group with a material impact.
2. Revenue
Six months Six months Year ended
ended 30 ended 30 31 Mar 2023
Sep 2023 Sep 2022
-------------------------------
Restated
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ -------------
Research payments & Execution
commission 10,503 11,785 25,116
Execution services revenue 14,834 17,416 33,810
Investment Banking revenue 17,340 11,866 23,411
-------------------------------- ------------ ------------ -------------
Total revenues for the period 42,677 41,067 82,337
================================ ============ ============ =============
To better reflect how the business is managed, we have changed
the way we allocate certain revenues between Research &
Distribution and Execution Services. As a result, we have
reclassified GBP1.9m of execution commission as Execution Services
revenue. This was also reclassified in the FY23 financial
statements.
3. Profit from operations
The following items have been included in arriving at profit
from operations:
Six months Six months Year ended
ended 30 ended 30 Sep 31 Mar
Sep 2023 2022 2023
-------------------------------
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------- ------------ --------------- -----------
Depreciation and amortisation 970 892 1,805
Lease depreciation 1,172 1,309 2,446
Staff costs (see note 4) 24,996 24,010 48,252
Other non-staff costs 15,728 13,953 29,874
-------------------------------- ------------ --------------- -----------
Total administrative costs 42,866 40,164 82,377
================================ ============ =============== ===========
Other non-staff costs comprise expenses incurred in the normal
course of business, including technology costs, professional and
regulatory fees, auditors' fees, brokerage, clearing and exchange
fees.
4. Staff costs
Six months Six months Year ended
ended 30 ended 30 Sep 31 Mar 2023
Sep 2023 2022
-------------------------------
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------- ------------ --------------- -------------
Wages and salaries 20,731 20,034 39,946
Social security costs 2,848 2,682 5,597
Pensions costs 1,368 1,251 2,623
Other costs 49 43 86
================================ ============ =============== =============
Total staff costs charged
as an expense for the period 24,996 24,010 48,252
================================ ============ =============== =============
The average number of employees of the Group during the period
has decreased to 310 (H1 FY23: 316). The number of employees of the
Group at the end of the period has decreased to 308 (H1 FY23:
319).
5. Net finance expense
Six months Six months Year ended
ended 30 ended 30 31 Mar 2023
Sep 2023 Sep 2022
------------------------------------
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------ ------------ ------------ -------------
Finance income:
Bank interest received 510 170 692
Finance expense:
Bank interest paid (28) (14) (52)
Interest on lease liabilities (412) (507) (938)
Interest accrued on long-term
loan (699) (589) (1,330)
-------------------------------------
Finance expense for the period (1,139) (1,110) (2,320)
------------------------------------- ------------ ------------ -------------
Net Finance expense for the period (629) (940) (1,628)
===================================== ============ ============ =============
6. (Loss)/earnings per share
Six months Six months Year ended
ended 30 Sep ended 31 Mar 2023
2023 30 Sep 2022
---------------------------------
Number of Number of Number of
shares shares shares
---------------------------------
Unaudited Unaudited Audited
--------------------------------- -------------- ------------- -------------
Weighted number of ordinary
shares in issue during the
period 117,239,017 119,986,084 119,197,519
Dilutive effect of share option
grants 7,574,291 1,605,000 1,605,000
Diluted weighted average number
of ordinary shares in issue
during the period 124,813,308 121,591,084 120,802,519
---------------------------------- -------------- ------------- -------------
Basic (loss)/earnings per share is calculated on total
comprehensive (loss)/income for the six-month period, attributable
to owners of the Company, of (GBP0.7m) (H1 FY23: GBP0.0m) and
117,239,017 (H1 FY23: 119,986,084) ordinary shares, being the
weighted average number of shares in issue during the period.
Diluted (loss)/ earnings per share is calculated after adjusting
for the number of options expected to be exercised from the share
option grants.
The calculations exclude Company shares held by the Employee
Benefit Trust on behalf of the Group.
The Company has 7,574,291 (H1 FY23: 1,605,000) of dilutive
equity instruments outstanding as at 30 September 2023.
7. Non-controlling interest
The non-controlling interest in H1 FY23 relates to the
individual members of Peel Hunt LLP prior to admission of the
Company to trading on AIM; these amounts are included in Amounts
due to members on the Statement of Financial Position. The Group no
longer has non-controlling interests from FY23.
8. Balance sheet items
(a) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation and impairment losses. Depreciation is charged to the
Income Statement on a straight-line basis over the estimated useful
economic lives of each item.
(b) Intangible assets
Intangible assets represent internal software intellectual
property, computer software and sports debentures. Amortisation is
charged to the Income Statement on a straight-line basis over the
estimated useful economic lives of each item. Internal software
intellectual property is amortised over 3 years, computer software
is amortised over five years and sports debentures are amortised
over the life of the ticket rights.
Internal software intellectual property represents
internally-generated intangible assets and it comprises of
capitalised development costs for certain technology developments
for key projects in the Group. The costs incurred in the research
phase of these internal projects are expensed. Intangible assets
are recognised from the development phase if certain specific
criteria are met in order to demonstrate the asset will generate
probable future economic benefits and that its costs can be
reliably measured. Amortisation begins when the asset is available
for use.
(c) Right-of-use asset and lease liabilities
The right-of-use asset and lease liabilities (current and
non-current) represent the two property leases that the Group
currently uses for its offices in London and New York and car
rental leases.
(d) Investments in associates
The Group applies IAS 28 Investments in Associates and joint
ventures. Associates are entities in which the Group has
significant influence over the financial and operating policy
decisions of the investee but does not have control or joint
control of those policies. The Group holds directly or indirectly
through subsidiaries, 20 per cent or more of the voting power of
the investee.
The Group applies the equity method to account for its
investments in associates. Under the equity method, on initial
recognition the investment in an associate is recognised at cost,
and the carrying amount is increased or decreased to recognise the
Group's share of the profit or loss of the investee after the date
of acquisition. The Group's share of the investee's profit or loss
is recognised in the investor's profit or loss. The investment in
associates relate to the Group's investment in Peel Hunt Fintech
Ventures LLP GBP0.6m (H1 FY23: GBPnil) which was made during the
period.
Peel Hunt Fintech Ventures LLP is incorporated in England and
Wales and its registered office is 100 Liverpool Street, London,
United Kingdom, EC2M 2AT. The Group indirectly (through a
subsidiary) has a 25% shareholding in the entity.
(e) Market and client debtors and creditors
The market and client debtor and creditor balances represent
unsettled sold securities transactions and unsettled purchased
securities transactions, which are recognised on a trade date
basis. The majority of open bargains were settled in the ordinary
course of business (trade date plus two days). Market and client
debtor and creditor balances in these financial statements include
agreed counterparty netting of GBP25.6m (FY23: GBP11.9m).
(f) Financial instruments
Financial assets and financial liabilities are recognised in the
Statement of Financial Position when the Group becomes a party to
the contractual provisions of the financial instrument. The fair
valuation hierarchy applied is consistent with that outlined in the
FY23 audited Financial Statements. The value of 'Level 1' financial
assets held by the Group at the end of H1 FY24 was GBP61.3m (FY23:
GBP53.0m), 'Level 2' GBP0.1m (FY23: GBP0.1m) and 'Level 3' GBP1.4m
(FY23: GBP1.0m). The value of 'Level 1' financial liabilities held
by the Group at the end of H1 FY24 was GBP32.9m (FY23: GBP31.6m),
'Level 2' GBP0.0m (FY23: GBP0.0m) and 'Level 3' GBP0.2m (FY23:
GBP0.5m).
(g) Stock borrowing collateral
The Group enters into stock borrowing agreements with a number
of institutions on a collateralised basis. Under such agreements
securities are purchased with a commitment to return them at a
future date. The securities purchased are not recognised on the
Statement of Financial Position. The cash advanced is recorded on
the Statement of Financial Position as cash collateral within trade
and other debtors, the value of which is not significantly
different from the value of the securities purchased. The total
value of cash collateral held on the Statement of Financial
Position is GBP3.6m (FY23: GBP2.4m).
(h) Borrowings
The Group has a committed Revolving Credit Facility ('RCF') of
up to GBP30m in order to further support its general corporate and
working capital requirements. As at 30 September 2023 the RCF was
undrawn (FY23: GBPnil).
(i) Long-term loans
During the period we accelerated GBP6.0m of the principal
repayments of the Senior Facilities Agreement ('SFA'). As at 30
September 2023 GBP15.0m (FY23: GBP21.0m) was outstanding.
(j) Post balance sheet events
There are no material post balance sheet events.
9. Reconciliation of (loss)/profit before tax to cash from operating activities
Six months Six months Year ended
ended 30 ended 31 Mar 2023
Sep 2023 30 Sep 2022
-----------------------------------
Unaudited Unaudited Audited
-----------------------------------
GBP'000 GBP'000 GBP'000
----------------------------------- ----------- ------------- -------------
(Loss)/profit for the period (773) 61 (1,488)
Adjustments for:
Depreciation and amortisation 2,142 2,201 4,251
Expected credit loss on financial
assets held at amortised cost 71 (40) 277
Increase/(decrease) in provisions 66 (22) 37
Movement on deferred tax asset 49 16 -
Share based payments - IFRS
2 Charge 324 305 647
Revaluation of Right-of-use
asset and Lease liabilities 38 (147) (71)
Net finance costs 629 940 1,628
Changes in working capital:
Increase in net securities
held for trading (7,590) (9,940) (4,446)
Decrease in net market and
client debtors 9,278 1,841 4,458
Increase in trade and other
debtors (378) (537) (2,339)
Decrease in net amounts due
to members (0) (16,790) (21,837)
Increase/(decrease) in trade
and other creditors 642 (12,623) (12,572)
------------------------------------
Cash generated from/( used
in) operations 4,498 (34,735) (31,455)
------------------------------------ ----------- ------------- -------------
Interest received 510 170 692
Corporation tax paid 11 (132) (136)
Net cash generated from/(used
in) operations 5,019 (34,697) (30,899)
==================================== =========== ============= =============
END
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IR FLFFAFELSIIV
(END) Dow Jones Newswires
December 05, 2023 02:00 ET (07:00 GMT)
Peel Hunt (LSE:PEEL)
過去 株価チャート
から 4 2024 まで 5 2024
Peel Hunt (LSE:PEEL)
過去 株価チャート
から 5 2023 まで 5 2024
