Peel Hunt Expects Full-Year Results to Beat Market Expectations

Peel Hunt says FY26 is off to a flyer and now expects to beat forecasts

Peel Hunt has kicked off FY26 with a clear tailwind. In a short trading update, the UK mid-cap investment bank said it is trading ahead of market expectations and will update on first-half revenues on 1 October 2025. After three tough years across UK capital markets, this reads as a meaningful inflection.

The tone is confident. Investment Banking is busy with substantial M&A mandates, equity capital markets activity is re-emerging, and Execution Services revenues are materially ahead of the same period last year. There are no numbers today, but the direction of travel is firmly positive.

Investment Banking momentum: M&A deals and early ECM green shoots

Peel Hunt highlights a number of substantial M&A transactions. M&A is mergers and acquisitions work, typically advisory fees paid when clients buy, sell or merge companies. This can be lumpy, but it is high margin and a strong signal of corporate confidence.

The more telling line is the return of nascent ECM activity. ECM, or equity capital markets, covers primary and secondary equity raises and block trades. Block trades are large, often accelerated share sales by institutions. That Peel Hunt has supported clients on several equity raises and blocks in recent weeks suggests secondary issuance is picking up – a classic precursor to a healthier IPO and follow-on market.

Execution Services revenues are materially ahead year-on-year

Execution Services is the trading arm that provides liquidity and executes orders for institutions. Peel Hunt says revenues here are materially ahead of the equivalent prior year period. That implies higher client activity, better market share, or both.

In challenging markets, Execution can be the ballast. When deal-making slows, trading volumes and spreads can still support the P&L. Seeing this division outpacing last year adds breadth to the recovery story, not just a one-off deal spike.

Corporate franchise strength: 58 FTSE 350 clients is a solid platform

The Group now acts for 58 FTSE 350 companies, comprising 5 FTSE 100 and 53 FTSE 250 clients. For a broker-investment bank focused on mid-caps, that is a healthy roster. Corporate broking relationships are the gateway to repeat revenues across research, execution, M&A, and capital markets.

Depth in the FTSE 250 is especially relevant. That is where financing needs often surface first as growth companies tap markets for expansion, acquisitions or balance sheet resilience. The client list is the well from which future mandates flow.

Why this matters for investors

• Guidance upgrade in practice: Saying results will be ahead of market expectations is the key takeaway. It effectively nudges consensus up without publishing numbers.
• Revenue breadth: Investment Banking, ECM and Execution are all contributing. That reduces reliance on any single revenue stream and points to a more durable improvement.
• Signs of market normalisation: References to nascent ECM and substantial M&A suggest the UK deal and issuance cycle is warming up after a prolonged lull.

Key figures and details from the RNS

Reading between the lines: positives and watchouts

Positives I like

• Clear upgrade language: The phrase ahead of market expectations is unambiguous. It should reset sentiment.
• ECM reawakening: Equity raises and block trades are often the first shoots before a broader reopening of issuance. That plays to Peel Hunt’s strengths.
• Execution outperformance: Trading revenue being materially higher than last year indicates robust client engagement and potential market share gains.
• Client franchise depth: 58 FTSE 350 mandates is a strong base for cross-sell and future deal flow, especially in the FTSE 250.

What is not disclosed

• No revenue or profit numbers, no margin or cost detail.
• No specific transaction names or fee visibility.
• No guidance range, just direction of travel.

Watchouts

• Deal timing risk: M&A and ECM can slip across periods, creating revenue volatility.
• Market dependency: Activity levels are sensitive to UK equity market sentiment and macro conditions.
• Visibility: Without hard numbers, it is hard to gauge the scale of the beat versus expectations.

Regulatory note: inside information handled per UK MAR

The company flagged that this announcement contained inside information under the Market Abuse Regulation until publication. That simply means material, price-sensitive information has now been put into the public domain at the same time for all investors.

What I am watching next into 1 October

• First-half revenues: The quantum will tell us how far ahead of expectations Peel Hunt is running.
• Revenue mix: How much is coming from Investment Banking and ECM versus Execution Services.
• ECM pipeline texture: Any commentary on the pace of equity raises and whether activity is broadening.
• Cost discipline: Not disclosed today, but margins will matter if activity accelerates.

Bottom line: a clean, confidence-building trading update

This is a straightforward and encouraging RNS. Activity is up across key divisions, the corporate client base is strong, and management expects to beat market expectations for the full year. For a business geared to UK mid-cap markets, the return of ECM and steady M&A work are exactly what shareholders want to see.

We now look to 1 October for the first-half revenue print. If the numbers corroborate today’s tone, the narrative of recovery at Peel Hunt will look increasingly well founded.