Peel Hunt's Year in Review: A Mixed Bag of Revenue Growth and Persistent Losses
Bonuses cancelled for the third consecutive year, according to Peel Hunt.
In the latest financial year, Peel Hunt navigated a tumultuous sea, registering a revenue boost but still bearing persistent losses.
The investment bank's CEO, Steven Fine, pocketed a salary of £465,000, while Sunil Dhall, the chief financial and operating officer, took home £316,000, according to the annual report. For a third consecutive year, no annual bonuses were handed out to either exec following another year of financial losses at Peel Hunt. The last time Fine received a bonus was the £1m he was given in 2022, with Dhall receiving a £450,000 bonus at the same time. Notably, Dhall is stepping down from the board effective 3 July.
A Year of Losses for Peel Hunt
The tough financial figures come after Peel Hunt reported a pre-tax loss of £3.4m for the year ending March 2025, following a loss of £3.2m the previous year, and a pre-tax loss of £1.4m in the year ending March 2023. However, revenue managed to increase from £85.8m to £91.3m over the same period.
After accounting for restructuring costs, Peel Hunt recorded a profit of £800m on an adjusted basis. In its annual report, the remuneration committee explained that despite a challenging macroeconomic climate and slow market volumes, Peel Hunt had managed to increase its revenue due to strategic cost management. Given the reported losses, the executives agreed to forgo their bonuses and share awards.
A Drubbing from the Market and Self-Esteem Issues
Speaking to City AM, CEO Steven Fine admitted that the last few months had been a rough ride for Peel Hunt. He believed that markets suddenly froze, leading to a limp finish to the year. Fine went on to attribute the UK's perception of its own economic circumstances as a major hindrance to London markets. According to Fine, the domestic lack of self-esteem has caused assets to cheapen, resulting in a challenging market environment.
Peel Hunt's cash reserves took a 46.2% hit, shrinking to £20.4m, while net assets decreased by 3.4% to £88.7m. Staff costs jumped 9.6% to £55m, and total administration costs rose 6.6% to £94m.
In an effort to reach profitability, Peel Hunt trimmed staff costs during the year, reducing headcount by 3.6%. Despite the challenges, the company continued to expand its client base, targeting FTSE 350 and FTSE 100 companies to support clients in tough market conditions and drive future growth.
Sources:1. Peel Hunt's Financial Results: Full Year to 31 March 20252. Peel Hunt's 2023 Annual Report and Accounts3. Peel Hunt's Interim Results for the Six Months Ended 30 September 20244. City AM
- Amidst the challenging macroeconomic climate, Peel Hunt aimed to increase revenue by implementing strategic cost management within the finance industry and banking sector.
- Despite the year's persistent losses, Peel Hunt's executives, Fine and Dhall, prioritized the business's growth over their personal bonuses and share awards, following the advice of the remuneration committee.
- In the volatile business world, Peel Hunt's CEO, Steven Fine, attributed the UK's challenging market conditions to a domestic lack of self-esteem, leading to asset devaluation and a difficult market environment, especially after the global financial markets unexpectedly froze.
