Peel Hunt full-year results show a proper comeback in profit and a record year for investment banking
Peel Hunt has delivered a much stronger set of full-year numbers for the year ended 31 March 2026, with revenue up 57.1% to £143.5 million and profit before tax swinging to £21.1 million from a £3.5 million loss last year. For investors, that is the headline: this is a business that has moved from recovery mode into much healthier territory.
The standout was Investment Banking, where revenue more than doubled to a record £67.1 million. That matters because it shows Peel Hunt is not just surviving a tough UK capital markets backdrop – it is winning business, especially in mergers and acquisitions, or M&A, where companies buy, sell or combine with each other.
| Key FY26 numbers | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | £143.5 million | £91.3 million | 57.1% |
| Profit/(loss) before tax | £21.1 million | £(3.5) million | 702.9% |
| Adjusted profit before tax | £32.0 million | £0.8 million | 3,900.0% |
| Basic EPS | 12.9p | (2.3)p | 660.9% |
| Cash and cash equivalents | £36.9 million | £20.4 million | 80.9% |
| Net assets | £108.5 million | £88.7 million | 22.3% |
| Final dividend | 4.9p | Nil | Not meaningful |
Why Peel Hunt’s FY26 profit rebound matters to shareholders
This was not just a revenue bounce. Peel Hunt also kept costs under control well enough for a lot of that extra income to drop through into profit. Total administration costs rose 27.9% to £120.0 million, which is a fair bit, but far slower than revenue growth.
That gap is important. It tells you the operational gearing is working – in plain English, when business improves, profits can rise quickly because the cost base is no longer expanding at the same pace. The compensation ratio, which measures staff costs as a share of revenue, improved to 56.3% from 60.8%. On an adjusted basis it improved to 48.7% from 56.7%.
That said, this is still a people-heavy business. Staff costs were £80.8 million, up 45.6%, reflecting higher variable pay linked to stronger profitability. That is normal for an investment bank, but it also means earnings can stay a bit lumpy.
Record investment banking revenue was the engine room of the Peel Hunt results
Investment Banking revenue climbed 112.8% to £67.1 million, driven mainly by a surge in deal fees, which rose 153.1% to £57.9 million. Retainer income, the steadier recurring bit, was up a modest 6.1% to £9.2 million.
The crucial detail is where the fees came from. Peel Hunt says a significant majority of Investment Banking deal fees came from M&A activity rather than the wider equity capital markets. That is a positive sign of diversification because UK IPO and fundraising markets have remained patchy.
There is another encouraging point here. Peel Hunt ended the year with 147 corporate clients, unchanged from FY25, but the average market capitalisation of those clients rose 30.0% to £1,130.0 million. In other words, the number of clients was flat, but the quality and scale of those relationships improved.
The firm also finished with a record 62 FTSE 350 clients, despite losing some clients through takeover activity. That suggests Peel Hunt is still strengthening its position in the mid-cap and growth company market, even while the total pool of UK-listed companies is shrinking.
Execution Services and Research & Distribution gave Peel Hunt broader support
It was not a one-division story. Execution Services, essentially Peel Hunt’s trading and liquidity business, delivered revenue of £47.8 million, up 41.9%. Management credited market volatility, stronger desk performance and continued investment in trading technology, including its proprietary tool called PHAT.
That matters because trading income can help offset quieter periods in corporate finance. It is not risk-free and margins can tighten, but for this year it clearly did its job.
Research & Distribution revenue rose 9.5% to £28.6 million, which looks modest next to the other divisions but still deserves credit. This part of the business helps connect UK-listed companies with institutional investors, and Peel Hunt says it remained resilient despite wider market turbulence.
The opening of an Abu Dhabi office in November 2025 also looks strategically sensible. Peel Hunt is trying to widen access to international capital pools, which could be useful if UK investor appetite stays soft. It is not transformational overnight, but it does fit the firm’s longer-term plan to reduce dependence on a single market mood.
| Division | FY26 revenue | FY25 revenue | Change |
|---|---|---|---|
| Investment Banking | £67.1 million | £31.5 million | 112.8% |
| Execution Services | £47.8 million | £33.7 million | 41.9% |
| Research & Distribution | £28.6 million | £26.1 million | 9.5% |
Peel Hunt balance sheet, cash and dividend all improved – with one borrowing caveat
The balance sheet looks stronger. Net assets rose to £108.5 million and cash increased to £36.9 million. The group says capital remains comfortably above regulatory requirements, which is especially important for a financial services firm.
There is also a welcome return of cash to shareholders, with a final dividend of 4.9p per share recommended. That is a meaningful marker of confidence after no dividend in FY25.
Still, there is one point worth watching. Peel Hunt secured a £20.0 million loan facility and drew £10.0 million before year end, using the money in its trading book to support higher future returns. That may pay off, but it does add leverage, and leverage always cuts both ways if market conditions turn.
The revolving credit facility of £20.0 million and the £10.0 million overdraft were both undrawn at year end, so liquidity does not look stretched. But investors should note that the business is leaning into its trading operation with more capital, which can boost returns but also raises the temperature a little.
Retail investors should note the adjusted numbers – and the moving parts behind them
Adjusted profit before tax was £32.0 million, compared with statutory profit before tax of £21.1 million. The difference comes from £10.9 million of share-based payment charges and exceptional items. Those exceptional items included £3.1 million of staff restructuring costs.
I would not ignore those costs completely just because they are labelled adjusted. Share-based pay is a real economic cost, even if it is non-cash in the period. Still, even on the statutory numbers, the turnaround is strong, so this is not a case of the company needing adjustments to rescue the story.
There was also a £1.3 million share of loss from associate relating to RetailBook, plus a £0.1 million loss on derecognition of the ownership interest not owned by the group. RetailBook is still described as a key strategic investment, but for now it is a drag rather than a profit contributor.
Peel Hunt outlook: strong position, but UK IPO and ECM recovery still not here yet
This is where management gets more cautious. Peel Hunt says renewed global inflationary pressures, uncertainty over benchmark interest rates and domestic political uncertainty have weighed on UK market confidence since the start of the new financial year.
That is the main negative in the RNS. Peel Hunt has had an excellent FY26, but it is not calling the all-clear for UK equity capital markets. A sustained recovery in ECM – equity capital markets, meaning share issues and related fundraising – plus IPOs and M&A still depends on better macroeconomic stability and improved confidence.
My read is fairly simple. Peel Hunt has executed very well, gained share, improved profitability and strengthened its balance sheet. That is all good. But the business still operates in cyclical markets, and some of this year’s strength came from M&A and trading conditions that may not repeat at the same level every year.
What Peel Hunt’s 2026 results mean for investors
Overall, this is a strong set of full-year results and probably one of Peel Hunt’s most convincing updates since listing. Revenue growth was broad-based, profit recovery was sharp, the dividend is back, and client quality improved even in a tough market.
The bull case is that Peel Hunt is emerging as a more diversified and more resilient UK investment bank, with M&A, trading and international distribution all helping reduce reliance on a single revenue stream. The bear case is that UK market conditions remain fragile, and earnings could stay volatile if deal activity cools.
Right now, though, the positives clearly outweigh the negatives. Peel Hunt has shown it can make good money even before any full recovery in UK IPOs and wider capital markets arrives. If those markets do improve, this business looks better positioned than it did a year ago.
