Peel Hunt Limited · LSE:PEEL
Peel Hunt — H1 FY23 Earnings Presentation
22 slides from Peel Hunt's earnings presentation, Dec 1, 2022
Slide 1: Half Year Results, period ended 30 September 2022
1st December 2022 FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Slide 2: Agenda
Agenda 01 Overview & Highlights 02 Market Update 03 Business & Financials Update 04 Strategy & Outlook 05 Q&A 06 Appendix 2
Slide 3: Section 1: Overview & Highlights
SECTION 1 OVERVIEW & HIGHLIGHTS
Slide 4: Overview & Highlights
Overview & Highlights Revenues down across all business divisions year on year but marginal profitability maintained in difficult markets 1 Overall: Strong balance sheet maintained and marginal profitability despite a multi-decade low for equity £41.1m capital markets activity Revenue 2 £0.1m Invest
Slide 5: Key messages from H1 FY23
Key messages from H1 FY23 Results impacted by market conditions but well positioned for growth due to operational leverage when market normalise “Challenging market conditions Areas of Focus Market Opportunities have persisted throughout our • Building size and quality of Corporate • Re-pricing of d
Slide 6: Section 2: Market Update
SECTION 2 MARKET UPDATE
Slide 7: Market Update
Market Update Historically low levels of market-wide capital markets activity combined with low trading volume Commentary Decline in 12m forward PE ratio 18 16 12m Forward 14 PE ratio Central banks have ramped up interest 12 rate increases to try and tame high 10 inflation. 8 6 4 2007 2008 2009 2010
Slide 8: Section 3: Business & Financial Update
SECTION 3 BUSINESS & FINANCIAL UPDATE
Slide 9: Illustrative Statement of Comprehensive Income
Illustrative Statement of Comprehensive Income Commentary Change (H1 As at 30 September H1 23 H1 22 23 v H1 22) Challenging market conditions have persisted throughout our first half £m as the macroeconomic and geopolitical backdrop has continued to have an adverse impact on markets and investor sen
Slide 10: Balance Sheet & Capital Position Overview
Balance Sheet & Capital Position Overview Commentary Net Assets vs Pillar 1 Coverage1 700% 150 558% 596% 600% 500% 100 Net assets remained strong, They are 4.2% 400% 243% lower than 31 March 2022, due to the £3.9m 300% 200% 50 dividend payment made in July 2022. 100% £50.0m £100.1m £95.9m 0% 0 H1 21
Slide 11: Investment Banking Overview
Investment Banking Overview Investment Banking revenue Commentary + 29% Retainer income £32.7m Low volumes of activity, especially in £3.9m +29% since H1 21 equity issuance has resulted in reduced £22.8m fee income. Lowest Fee income since H1 £3.4m 12. £11.9m £28.8m £19.4m £4.4m £7.5m H1 21 H1 22 H1
Slide 12: Execution Services Overview
Execution Services Overview Execution Services Commentary H1 22 H2 22 H1 23 Small-cap / AIM FY22 revenue was lower than the prior FTSE 350 year, due to lower trading volumes Corp. broking clients £24.0m £18.9m £15.5m particularly in small-cap and AIM. Fixed Income Investment Trusts International / O
Slide 13: Research and Distribution Overview
Research and Distribution Overview Research and Distribution revenue Commentary £15.5m £14.7m £13.7m Market volumes in H1 23 reduced in comparison to H1 22, due to lower institutional investor sentiment, and interest rate and inflationary concerns weighing on risk assets, including H1 22 H2 22 H1 23
Slide 14: Operating Costs Overview
Operating Costs Overview Cost Overview Commentary £218k 140 £181k 220 120 £151k Illustrative staff and non-staff costs per 170 100 £125k FTE declined due to a stable cost base £109k £102k 80 120 and an increase in headcount. 60 £48.7m £47.3m 70 £40.2m 40 £32.7m £28.0m £24.0m 20 20 £16.0m £19.3m £16.
Slide 15: Delivering on strategic priorities
Delivering on strategic priorities Continuing to make investments to deliver strategic priorities Digital Strategy Expanding our offering REX Platform What is it? European Distribution Proprietary technology platform opening up primary capital markets Our plans to open an EU office based in Copenhag
Slide 16: ESG at Peel Hunt: Community, Diversity & Sustainability
ESG at Peel Hunt: Community, Diversity & Sustainability Sustainability Diversity & Inclusion Social Working on carbon reduction plan which As of September 2022, 25.1% of Peel £32,037 - Amount raised by staff for will be submitted for verification by the Hunt’s staff are women Stem4, a charity that p
Slide 17: Section 4: Outlook
SECTION 4 OUTLOOK
Slide 18: Current trading and outlook
Current trading and outlook Peel Hunt well placed to weather the difficult markets and take advantage when activity increases Current Trading and Priorities Outlook • Continue to open up access to incremental, trading flows, which increases our ability to provide liquidity to our • Market conditions
Slide 19: Section 5: Q&A
SECTION 5 Q&A
Slide 20: Section 6: Appendix
SECTION 6 APPENDIX
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Unaudited as at 30 September 2022 FY22 FY21 Change £’000 30 Sep 22 28 Sep 21 Non-current assets 27,116 29,863 (9.4%) Securities held for trading 55,180 67,067 (17.7%) Market and client debtors 451,633 484,578 (6.8%) Other debtors 13,777 8,213 67.8% Cash 41,352 76,972 (46.3
Slide 22: Broker Nominated Advisor Disclaimer
Broker Nominated Advisor Disclaimer Keefe, Bruyette & Woods Grant Thornton UK LLP Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of 150 Cheapside, 4th Floor 30 Finsbury Square the group’s operations, performanc