Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION For the year ended 31 March 2024 JUNE 2024
Slide 2: Agenda
Agenda 01 Overview & Highlights 02 Market Update 03 Business, Strategy & Financials Update 04 Outlook 05 Q&A 06 Appendices 2
Slide 3: Overview and Highlights
OVERVIEW AND HIGHLIGHTS
Slide 4: Overview and highlights
Overview and highlights Strategic progress in difficult markets £85.8m £(3.2)m 59% £91.8m 150 43 14.9% Compensation Net Asset No. of IB No. of FTSE Share of LSE Revenue Loss After Tax Ratio Value (NAV) Clients 350 IB Clients volume(1) Investment Banking Execution Services • Investment Banking revenu
Slide 5: Key messages
Key messages Despite the challenging market backdrop, the business is well positioned for growth Strategic progress Financial resilience A voice in the market • Starting to reap the rewards of our • Revenue for full year up 4.3% to £85.8m • Peel Hunt is taking a leading role in the reform diversific
Slide 6: Market Update
MARKET UPDATE
Slide 7: Market Update
Market Update Markets continue to see positive movement but outflows still occurring from UK market Commentary Major Indices Performance (LTM) Major Indices P/E Ratio (NTM) 140 Major indices 22.5x • The FTSE 100 and FTSE 250 are both up c. 130 20.0x 7.0% so far this year 17.5x • UK CPI was 2.3% in t
Slide 8: Capital raising activity
Capital raising activity Signs of recovery as UK markets see higher deal flow Commentary UK Issuance by Product (£m)1 IPO Speedometer • The UK markets have returned to life in the 20,000 last few months, with the FTSE 100 reaching 18,000 Open record highs in May 2024. 16,000 Selectively Open 14,000
Slide 9: Total market cap of clients
Total market cap of clients Peel Hunt punches above its weight in terms of total market cap of corporate clients Commentary Total Market Cap of Corporate Clients by Bank The past 18 months have seen a wave of Total Market Average Market Total Number of Market Cap of consolidation in the industry. Ca
Slide 10: M&A | Recent track record
M&A | Recent track record Active public M&A market reflected in a marked uptick in the number of companies under offer Monthly count | UK plcs under offer MergerMarket | UK plc M&A since 20231 Rank Adviser Value (£m) # Deals 40 1 JP Morgan 7,862 8 2 Barclays 7,409 6 35 3 Rothschild 6,926 14 Number o
Slide 11: Business and Strategy Update
BUSINESS AND STRATEGY UPDATE
Slide 12: Strategy
Strategy Five strategic priorities 1 2 3 4 5 Extend our leading Expand our Advance our position Embed technology in Leverage our unique liquidity provision investment banking as a distribution everything we do culture to boost capabilities powerhouse performance See Execution Services See Investment
Slide 13: Investment Banking Overview
Investment Banking Overview Increased diversification resulted in record M&A fees Key headlines Investment Banking revenue (£m) • Investment Banking revenues in FY24 were £57.9m up at £32.6m, compared with £23.4m in £8.3m FY23. £32.6m £23.4m £8.8m • This increase was driven by fees from M&A £49.6m £
Slide 14: Research Overview
Research Overview Expanding reach supports growing relationships Key headlines Research and Distribution revenue • Revenue from research payments and execution commissions was down 5.9% at £23.6m (FY23: £25.1m), largely due to £27.0m £25.1m £23.6m institutional investors’ budgets being under pressur
Slide 15: Distribution Overview and Copenhagen
Distribution Overview and Copenhagen Expanding our distribution capabilities Copenhagen Office Europe and rest of the world North America • In January 2024, our newly operational Copenhagen office started trading, reinstating our pre-Brexit access to 153 825 institutional investors across Europe. In
Slide 16: Execution Services Overview
Execution Services Overview Consistent returns in a subdued market Key headlines Execution Services revenue breakdown FY 22 FY 23 FY 24 • The Execution Services team generated revenue of £29.6m (FY23: £33.8m), a Small-cap / AIM reduction of 12.3% on the prior year. FTSE 350 • We were able to retain
Slide 17: Data, Technology, and RetailBook
Data, Technology, and RetailBook Technology supporting our clients and our people STRATEGIC PILLAR RetailBook Embed technology in everything we do • Rebuilt Peel Hunt’s proprietary REX platform on a new, independent technology stack New leadership • We appointed Piya Khanna as Chief • Partnered with
Slide 18: Operating Costs and Balance Sheet
OPERATING COSTS AND BALANCE SHEET
Slide 19: Operating Costs Overview
Operating Costs Overview Commentary Staff costs (£m) 175 60.0% • Actual total staff costs in FY24 were 5% 155 55.0% higher than FY23, with the business working 135 58.6% 59.0% 50.0% to balance strategic hires and targeted salary 115 Staff Cost inc Bonus (£m) 95 45.0% increases with ongoing work to r
Slide 20: Balance Sheet & Capital Position Overview
Balance Sheet & Capital Position Overview Commentary Cash Position and Net Asset Value • The Group’s net asset position as at 31 £93.1m £91.8m March 2024 was £91.8m (31 March 2023: £93.1m), representing a decrease of 1.4% from 31 March 2023. • Our cash position has increased, to £37.9m £37.9m £27.4m
Slide 21: Outlook
OUTLOOK
Slide 22: Environment, Trading and Outlook
Environment, Trading and Outlook Macroeconomic backdrop Impact on Financial Services • A more favourable macroeconomic backdrop in the UK • Market signals of more positivity • Inflation appears to be coming under control, falling towards Bank of • Public M&A continues at pace as UK listed companies
Slide 23: Q&A
Q&A
Slide 24: Appendices
APPENDICES
Slide 25: Consolidated Income Statement
Consolidated Income Statement Income Statement £’000 FY24 FY23 Change Research payments & Execution commission 23,629 25,116 (5.9%) Execution Services Revenue 29,638 33,810 (12.3%) Investment Banking fees and retainers 32,567 23,411 39.1% Revenue 85,834 82,337 4.3% Administrative expenses (88,042) (
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet £’000 FY24 FY23 Change Non-current assets 23,144 25,406 (8.9%) Securities held for trading 60,104 54,144 11.0% Market and client debtors 551,943 471,504 17.1% Other debtors 19,613 15,546 26.2% Cash and cash equivalents 37,929 27,410 38.4% Current assets 669,5
Slide 27: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Cash Flow £’000 FY24 FY23 Change Net cash generated from/(used in) operations 7,027 (30,899) 122.7% Cash flows from investment activities Purchase of property, plant & equipment (76) (511) 85.1% Purchase of intangible assets (1,078) (1,087) 0.8% Investment in ass
Slide 28: Disclaimer/Risk Warning
Disclaimer/Risk Warning This document has been prepared by Peel Hunt LLP (“Peel Hunt”) and is for the use of the addressee only. It may not be copied or distributed to any other person without the written consent of Peel Hunt. This document has been prepared using sources believed to be reliable and