Peel Hunt returns to £1.2m profit as the investment bank sees rise in dealmaking

The UK-focused investment banking group said it was able to capitalise on a stronger financial market over the latest half-year period

Peel Hunt, the investment bank, is back in the black with a pre-tax profit of £1.2m for the six months up to September, bouncing back from a loss of £800,000 in the previous year.

The London-listed firm's revenues soared by 26% to £53.8m compared to last year, thanks to a stronger financial market and increased dealmaking. The UK-centric investment bank has been busy with two IPOs, including the much-anticipated London introduction of Raspberry Pi, and has raked in higher fees from advising on mergers and acquisitions among British firms.

Despite a recent uptick in City activity after a slowdown in deals and market action last year, Peel Hunt has warned that the pace of recovery has slackened since the summer, particularly as investor nerves were rattled by concerns over the UK autumn Budget and the US presidential election.

Steven Fine, chief executive of Peel Hunt, said: "The recovery slowed over the summer period and investor sentiment was impacted in the last few weeks of the period due to concerns around the UK Budget, particularly in relation to Aim."

The Aim market found itself under scrutiny following the Government's announcement of reduced tax relief for shares listed on the exchange.

Mr Fine noted that confidence in the UK took a hit after the Budget announcement, with investor risk appetite dampened by "increased concerns about global trade". However, he welcomed Government proposals such as pension reforms aimed at boosting investment in UK assets.

"Although we have a solid pipeline of corporate transactions, including M&A and IPOs, we expect a degree of uncertainty to persist in the short term and consequently some of these transactions are more likely to execute in our next financial year," Mr Fine commented.