Editing Peel Hunt

'''Company Overview:''' Peel Hunt is a leading independent investment bank in the UK, known for its strong focus on mid and small-cap companies. With a rich history dating back to 1989, the company has established itself as a trusted advisor and broker, offering services like investment banking, research, trading, and asset management.

'''Financial Performance:''' Peel Hunt has demonstrated robust financial health over recent years. The company has shown consistent revenue growth, underpinned by a diversified income stream and a resilient business model. Its balance sheet remains strong, with a healthy liquidity position and a prudent approach to risk management.

'''Market Position and Competitive Advantage:''' Peel Hunt occupies a unique position in the market, specialising in mid and small-cap companies. This focus, combined with its comprehensive service offering, has enabled the firm to build deep client relationships and a strong reputation. The company's research capabilities and sector expertise are also key differentiators.

'''Growth Prospects:''' The future growth trajectory for Peel Hunt appears promising. The company is well-positioned to benefit from the increasing activity in the mid and small-cap market segments. Furthermore, its ongoing investment in technology and expansion of services are likely to open new revenue streams and enhance client engagement.

'''Risks and Challenges:''' Key risks include market volatility, regulatory changes, and increasing competition. However, Peel Hunt's adaptable business model and proactive risk management strategies position it well to navigate these challenges.

'''Investment Rationale:''' Based on Peel Hunt's strong market position, consistent financial performance, and clear growth strategy, it presents as a compelling investment opportunity. The company's specialised focus, combined with its robust operational framework, positions it to capitalise on market opportunities and deliver sustainable value to shareholders.

== Operations ==

=== How did the idea behind the company come about? ===
The idea behind Peel Hunt LLP originated from the desire to create a specialised, client-focused investment banking service. Founded in 1989 by Charles Peel and Christopher Holdsworth Hunt, the firm aimed to provide high-quality, independent advice and execution services to UK mid and small-cap companies. This focus on a specific market segment was somewhat unique at the time and set Peel Hunt apart from larger, more generalised investment banks. The firm's approach centered on building strong, lasting relationships with its clients, emphasising deep sector expertise, and providing tailored financial solutions. This dedication to serving a niche market effectively has been a defining characteristic of Peel Hunt since its inception.

=== What's the mission of the company? ===
The mission of Peel Hunt LLP is focused on "guiding and nurturing people through the evolution of business".<ref>https://www.peelhunt.com/#:~:text=,through%20the%20evolution%20of%20business</ref> This mission statement highlights their commitment to supporting and advising their clients and stakeholders as the business landscape changes and evolves.

=== What's the company's flagship product and what makes it unique? ===
Peel Hunt LLP, as an investment bank, doesn't offer a "flagship product" in the traditional sense like a tech or consumer goods company. Instead, their primary offerings are financial services, specifically tailored to the mid and small-cap sectors in the UK. What makes Peel Hunt unique is its specialised focus on these market segments, providing expert advice and services in equity research, sales, and trading, as well as corporate broking, advisory services, and investment banking. Their emphasis on in-depth sector knowledge, coupled with a strong commitment to independent, client-focused advice, differentiates them in the financial services industry. This approach allows them to cater effectively to a specific group of clients, creating strong, lasting relationships and a reputation for tailored, high-quality service.

=== What is the price of the main offering(s)? ===
The pricing of Peel Hunt LLP's services, such as equity research, sales and trading, corporate broking, advisory services, and investment banking, is not typically publicly disclosed or standardised. These services are highly specialised and tailored to each client's needs, and as such, their pricing would vary depending on the complexity of the service, the scope of the engagement, the market segment, and other specific requirements of each client. Generally, in investment banking, fees can be structured as fixed amounts, percentages of the transaction value, or a combination of both, and are often negotiated on a case-by-case basis.

=== From which place(s) are the offerings able to be purchased? ===
Peel Hunt LLP's financial services and offerings are primarily accessible from their offices in the United Kingdom. The firm operates predominantly within the UK market, focusing on serving UK mid and small-cap companies. Clients typically engage with Peel Hunt through their corporate offices for various services such as equity research, trading, corporate broking, advisory services, and investment banking. These services are usually procured through direct business-to-business interactions and are tailored to the specific needs of each client, rather than being available for purchase in a conventional retail sense.

=== From which place(s) are the offerings promoted? ===
Peel Hunt LLP promotes its offerings primarily in the United Kingdom, reflecting its focus on the UK mid and small-cap markets. The firm leverages various channels for promotion, including its corporate website, industry events, financial news media, and professional networking opportunities. Additionally, as an investment bank, a significant portion of its promotion and client engagement likely occurs through direct, relationship-driven business development efforts, targeting specific sectors and companies that align with their expertise and service offerings.

=== What's the current strategy of the company? ===
Peel Hunt LLP's current strategy, as outlined in their 2023 annual report and other sources, revolves around the following key priorities:

# '''Extending Leading Liquidity Provision:''' Peel Hunt has transformed from a market maker to a key liquidity provider, trading in over 5,000 UK securities and 9,800 overseas securities. They aim to continue this growth by adding incremental liquidity, expanding and diversifying trading counterparties, developing new digital infrastructure to live stream prices to alternative venues, and establishing new strategic partnerships with larger pan-European liquidity providers.
# '''Expanding Investment Banking Capabilities:''' Having evolved from a corporate broking business to a specialist UK investment bank, Peel Hunt is focusing on building its track record with mid-cap and growth companies. The firm is diversifying its client base to include both public companies and its Private Capital Markets business. Additionally, they're expanding services in areas like M&A and Debt Advisory, and integrating investment banking teams with Research & Distribution to deepen relationships with institutional investors.
# '''Advancing as a Distribution Powerhouse:''' Recognised for its award-winning research and experienced distribution teams, Peel Hunt is strengthening its role as a connector between investment institutions and companies. They are deepening relationships with institutional investors, expanding market share, and enhancing their international influence and access. Notably, they've invested in North American and European distribution platforms and are planning to establish a new European office in Copenhagen.
# '''Embedding Technology in Operations:''' Technology is central to Peel Hunt's business strategy. The firm is investing in and innovating digital tools and infrastructure to maintain competitive pricing and secure access to liquidity. A notable development is the spinning out of their proprietary REX platform into a standalone business, RetailBook, aimed at expanding retail participation in capital markets.
# '''Leveraging Unique Culture for Performance:''' Peel Hunt's collaborative culture is seen as a key strength, fostering team collaboration and an increased focus on performance. The firm encourages cross-functional projects and initiatives to drive strategic goals. A newly launched Investment Banking graduate program exemplifies their approach to harnessing internal talent and ideas.

These strategic priorities highlight Peel Hunt's focus on diversification, technology integration, and deepening client relationships, positioning them well for future growth despite challenging market conditions.

=== Who are the key members of the team and what makes them unique? ===
Key members of Peel Hunt LLP's team, each bringing unique experiences and expertise, include:

# '''Lucinda Riches - Chair:''' Lucinda Riches is the Independent Non-Executive Chair of Peel Hunt. She has a distinguished career in investment banking, previously serving as Global Head of Equity Capital Markets at UBS. Her experience spans various non-executive roles, including at Ashtead plc, Greencoat UK Wind plc, and LGT Capital Partners Group Holding Ltd.
# '''Maria Bentley - Non-Executive Director:''' Maria Bentley, with over 30 years of experience in financial services and investment banking, joined Peel Hunt's board in 2022. She has held senior human resources roles at Goldman Sachs, UBS Investment Bank, and Nomura International. She also serves as a non-executive director and chair of remuneration at various firms including Daiwa Capital Markets Europe Limited.
# '''Liz Blythe - Non-Executive Director:''' Liz Blythe, who joined the board in 2020, has a background in audit and finance, having served as Chief Internal Auditor at Skipton Building Society and Finance Director at Homeloan Management Limited. She also holds roles as a non-executive director at other firms including Together Personal Finance.
# '''Richard Brearley - Non-Executive Director:''' Richard Brearley, an Independent Non-Executive Director since 2020, has a strong background in compliance. He has held senior roles at Ninety One, Macquarie, and Investec plc, covering a range of markets and business areas.
# '''Darren Carter - Non-Executive Director:''' Darren Carter has been with Peel Hunt since 2004, bringing over 30 years of equity markets experience. He has held senior positions at D. E. Shaw Securities International and KBC Financial Products, and is involved with other financial firms like Praetura Ventures and Praetura Debt.
# '''Steven Fine - Chief Executive:''' Steven Fine has been with Peel Hunt since 2006 and played a pivotal role in the management buy-out from KBC Bank in 2010. He has extensive experience in equity, convertible, and derivatives operations, and is a non-executive director for the Quoted Companies Alliance.
# '''Sunil Dhall - Chief Financial & Operating Officer:''' Sunil Dhall has been with Peel Hunt since 2010 and previously held senior roles at KBC Financial Products and Credit Suisse. He is active in initiatives to improve socio-economic diversity in UK financial services and holds a degree in Engineering, Economics, and Management from Keble College, Oxford.

These individuals contribute to Peel Hunt's strategic direction and operations with their diverse experiences and specialised expertise, underscoring the firm's commitment to leadership and excellence in the financial sector.

== What's the company's TAM, SAM and SOM in terms of definition and figures? ==
Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) are metrics used to estimate the market potential for a business or product. However, for a company like Peel Hunt LLP, which operates in the investment banking and financial services sector, these terms are less frequently used or defined with specific figures, as their market potential is largely determined by the breadth of financial services they offer and the size of the UK mid and small-cap market segments they target.

# '''TAM (Total Addressable Market):''' The total market demand for a product or service. For Peel Hunt, this would theoretically encompass the entire UK financial services market.
# '''SAM (Serviceable Available Market):''' The segment of the TAM within a firm's reach. For Peel Hunt, this would be the UK mid and small-cap sectors that they specialise in.
# '''SOM (Serviceable Obtainable Market):''' The portion of SAM that a company can capture. This depends on Peel Hunt's market share and competitive position in the UK financial services sector.

Specific figures for Peel Hunt's TAM, SAM, and SOM would require detailed market analysis and internal data, which are typically not publicly available for such specialised service sectors.

== Who are the company's main peers and how are they similar and different to each other? ==
Peel Hunt LLP's main peers in the investment banking and financial services sector are other firms specialising in mid and small-cap markets in the UK. These would include companies like Numis Corporation, Panmure Gordon, and Shore Capital.
Similarities:

* All these firms offer similar services such as equity research, corporate broking, trading, and advisory services.
* They focus on the UK market, particularly targeting mid and small-cap companies.

Differences:

* Peel Hunt distinguishes itself through its unique client-focused approach and deep sector expertise.
* The firm's emphasis on building long-term client relationships and its specialised focus on the UK mid and small-cap sector set it apart from its peers.
* Additionally, Peel Hunt's strategic priorities, like expanding its investment banking capabilities and leveraging technology, contribute to its distinct positioning in the market.

{| class="wikitable"
|+This table illustrates the differences and similarities between Peel Hunt LLP and its peers (such as Numis Corporation, Panmure Gordon, and Shore Capital):
!Feature/Company
!Peel Hunt LLP
!Numis Corporation
!Panmure Gordon
!Shore Capital
|-
|Equity Research
|✓
|✓
|✓
|✓
|-
|Corporate Broking
|✓
|✓
|✓
|✓
|-
|Trading Services
|✓
|✓
|✓
|✓
|-
|Advisory Services
|✓
|✓
|✓
|✓
|-
|UK Market Focus
|✓
|✓
|✓
|✓
|-
|Mid and Small-Cap Focus
|✓
|✓
|✓
|✓
|-
|Client-Focused Approach
|✓
|✓/✗
|✓/✗
|✓/✗
|-
|Deep Sector Expertise
|✓
|✓/✗
|✓/✗
|✓/✗
|-
|Investment Banking Expansion
|✓
|✓/✗
|✓/✗
|✓/✗
|-
|Technology Emphasis
|✓
|✓/✗
|✓/✗
|✓/✗
|}
✓ = Feature is present ✗ = Feature may vary or be less emphasised

This table highlights that while these firms share a core set of services and market focus, differences emerge in their approach, emphasis on expansion, and technology integration. Peel Hunt, for example, is particularly known for its client-focused approach and emphasis on technology.

== Financials ==

The company was incorporated on 11th August 2011.<ref>https://find-and-update.company-information.service.gov.uk/company/OC357088</ref>
{| class="wikitable"
|+
!Year
!1
!2
!3
!4
!5
!6
!7
!8<ref>https://find-and-update.company-information.service.gov.uk/company/OC357088/filing-history/MzMyMzcwNTM1MWFkaXF6a2N4/document?format=pdf&download=0</ref>
!9<ref name=":3">https://find-and-update.company-information.service.gov.uk/company/OC357088/filing-history/MzM1MTIxNjg1OWFkaXF6a2N4/document?format=pdf&download=0</ref>
!10<ref name=":3" />
!11
!12
!13
!14
!15
!16
!17
!18
!19
!20
!21
!22
!23
!24
!25
!26
!27
!28
!29
!30
!31
!32
!33
!34
!35
!36
!37
!38
!39
!40
!41
!42
!43
!44
!45
!46
!47
!48
!49
!50
|-
!Period end date
!31/03/2012
!31/03/2013
!31/03/2014
!31/03/2015
!31/03/2016
!31/03/2017
!31/03/2018
!31/03/2019
!31/03/2020
!31/03/2021
!31/03/2022
!31/03/2023
!31/03/2024
!31/03/2025
!31/03/2026
!31/03/2027
!31/03/2028
!31/03/2029
!31/03/2030
!31/03/2031
!31/03/2032
!31/03/2033
!31/03/2034
!31/03/2035
!31/03/2036
!31/03/2037
!31/03/2038
!31/03/2039
!31/03/2040
!31/03/2041
!31/03/2042
!31/03/2043
!31/03/2044
!31/03/2045
!31/03/2046
!31/03/2047
!31/03/2048
!31/03/2049
!31/03/2050
!31/03/2051
!31/03/2052
!31/03/2053
!31/03/2054
!31/03/2055
!31/03/2056
!31/03/2057
!31/03/2058
!31/03/2059
!31/03/2060
!31/03/2061
|-
!Period duration (days)
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!366
!365
!365
!365
!365
!366
|-
!
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Historic
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
!Forecast
|-
! colspan="51" |Profit and loss
|-
|Revenue
|
|
|
|
|
|
|
|95,596
|196,785
|131,022
|
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|-
|Administrative expenses
|
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|-
|Profit from operations
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|-
|Finance income
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|-
|Finance expense
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|-
|Other income
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|-
|Profit for the year before members' remuneration
|
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|-
|Members' remuneration charged as an expense
|
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|-
|Total comprehensive income for the year available for discretionary division among members
|
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|-
! colspan="51" |Balance sheet
|-
|Assets
|
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|-
|Non-current assets
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|-
|Property, plant and equipment
|
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|-
|Intangible assets
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|-
|Right-of-use assets
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|-
|Deferred tax asset
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|-
|Total non-current assets
|
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|-
|Current assets
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|-
|Securities held for trading
|
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|-
|Market and client debtors
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|-
|Trade and other debtors
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|-
|Amounts due from members
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|-
|Cash and cash equivalents
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Securities held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Market and client creditors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Amounts due to members
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Trade and other creditors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Loans and borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Lease liabiliites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Loans and borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="51" |Cash flow
|-
|Net cash (used in) / generated from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash flow from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Purchase of tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Purchase of intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Disposal of investments not held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net cash used in investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash flow from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Capital introduced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|(Decrease)/increase in borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Lease Liability payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Interest paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net cash (used in) / generated from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net (decrease) / increase in cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash and cash equivalents at beginning of the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cash and cash equivalents at end of the the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="51" |Other information
|-
|Research payments and execution commission
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Execution services revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Investment banking revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="51" |Key metrics
|-
|Cost of goods sold as a proportion of revenue (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Operating expenses as a proportion of revenue (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Tax rate (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Depreciation and amortisation rate (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Net borrowing as a proportion of revenue (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Interest expense as a proportion of revenue (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|}

==== What are the assumptions used to estimate the financial forecasts?====

{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
|-
|What's the estimated current size of the total addressable market?
|$400,000,000,000
|Here, the total addressable market (TAM) is defined as the global HR tech market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (7th November 2023), in terms of revenue, is $400 billion.
|-
|What is the estimated company lifespan?
|50 years
|Currently, Peel Hunt employs around 77, making the company a small organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
|-
|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
|3%
|Research shows that the growth rate of the global HR tech market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
|-
|What's the estimated company peak market share?
|1%
|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Peel Hunt is around 0.50%, and, therefore, suggests using the share amount here. As of 7th November 2023, Peel Hunt's current share of the market is estimated at around 0.00068%.
|-
|Which distribution function do you want to use to estimate company revenue?
|Gaussian 
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function  (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so the Stockhub users suggest using that function here.
|-
|What's the estimated standard deviation of company revenue?
| 5 years
|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Peel Hunt's current estimated revenue amount (i.e. $2.7 million) and Peel Hunt's estimated lifespan (i.e. 50 years) and Peel Hunt's estimated current stage of its lifecycle (i.e. introduction stage), the Stockhub users suggest using five years (i.e. 68% of all sales happen within five years either side of the mean year), so that's what's used here.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
|-
|How many main stages of growth is the company expected to go through?
| 4 stages
|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>

In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Peel Hunt's operating cash flows negative (-), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the first stage of growth (i.e. the 'introduction' stage), and, therefore, it has a total of four main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
|-
|What proportion of the company lifecycle is represented by growth stage 1?
|30% 
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
|-
|What proportion of the company lifecycle is represented by growth stage 2?
|10% 
|Research suggests 10%.<ref name=":6" />
|-
| What proportion of the company lifecycle is represented by growth stage 3?
|20% 
| Research suggests 20%.<ref name=":6" />
|-
|What proportion of the company lifecycle is represented by growth stage 4?
|40%
|Research suggests 40%.<ref name=":6" />
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>'''
|-
|Cost of goods sold as a proportion of revenue (%)
|22.08%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Operating expenses as a proportion of revenue (%)
|(78.39)%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%)
|(0.27)%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%)
|6.82%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
|36.30%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|22.31%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|7.54%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|(7.54)%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
|-
|Cost of goods sold as a proportion of revenue (%) 
|27.59%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. 
|-
|Operating expenses as a proportion of revenue (%)
|75.98%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%) 
|41.08%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%) 
|5.86%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) 
|5.78%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|55.99%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|18.25%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|1.65%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
|-
|Cost of goods sold as a proportion of revenue (%) 
|27.59%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. 
|-
|Operating expenses as a proportion of revenue (%)
|75.98%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%) 
|41.08%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%) 
|5.86%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) 
|5.78%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
|55.99%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|18.25%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|1.65%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
|-
|Cost of goods sold as a proportion of revenue (%) 
|36.13%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. 
|-
|Operating expenses as a proportion of revenue (%)
|174.39%
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Tax rate (%) 
|(1.94)%
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Depreciation and amortisation rate (%) 
|47.29%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
| 6.25%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Working Capital Investment (WCInv) as a proportion of revenue (%)
| 2.13% 
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Net borrowing as a proportion of revenue (%)
|0%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|-
|Interest expense as a proportion of revenue (%)
|0%
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
|}

== Risks ==

As with any investment, investing in Peel Hunt carries a level of risk. Overall, based on the Peel Hunt' adjusted beta (i.e. 0.86), the degree of risk associated with an investment in Peel Hunt is 'medium'.

Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used the 25 available share price Peel Hunt data points. We note that the amount of available data observations for Peel Hunt is less than what's typically used in the five years of monthly data beta calculation (i.e. 25 observations vs. 60 observations), and accordingly, calculating the beta of such a company may be considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta.

The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'medium' risk, it must have a beta value of between 0.50 and 1.50. Further information about the beta ratings can be found in the appendix section of this report.

'''The key risks'''

Investing in Peel Hunt LLP involves several key risks:

# The group’s business and financial performance have been and will continue to be affected by general economic conditions in the UK and other jurisdictions in which the group operates and adverse developments int he UK or global financial markets could have a detrimental impact on its earnings and profitability.<ref name=":1">https://www.peelhunt.com/media/icneklr5/admission-document.pdf</ref>
# The group relies on the ability to attract, develop and retain highly skilled personnel.<ref name=":1" />
# Damage to the group’s reputation could cause harm to the group and its business prospects.<ref name=":1" />
# The group’s business is subject to inherent risks concerning liquidity, and this may have an adverse effect on the group’s business and profitability.<ref name=":1" />
# The group’s results of operations may be materially affected by market fluctuations and significant changes in the value of financial instruments.<ref name=":1" />
# A failure in the group’s operational systems may disrupt the group’s business operations, result in regulatory action against the group, and adversely impact the group’s reputation, business, financial condition and results of operations.<ref name=":1" />
# The group is exposed to risks relating to its underwriting activities.<ref name=":1" />
# The group is subject to the credit risk of counterparties.<ref name=":1" />
# The group's framework and policies for risk management may prove inadequate for the risks faced by its business and any failure to properly manage the risks it faces could cause harm to the group and its business prospects.<ref name=":1" />
# Failure to, or perceived failure to, appropriately manage potential conflicts of interest can adversely affect the group’s business and reputation.<ref name=":1" />
# The group's competitive advantage depends in part on its information technology.<ref name=":1" />
# The group faces significant and increasing competition in the financial services industry, including in changing markets.<ref name=":1" />
# The group may be unable to successfully implement its business strategies.<ref name=":1" />
# The group may be unable to protect its intellectual property effectively from misappropriation by others, including current and potential competitors.<ref name=":1" />
# The group operates in an extensive, strict, and frequently changing regulatory landscape and any changes to, or the group’s failure to comply with, any laws and regulations could adversely affect the Group’s business, financial condition and results of operation.<ref name=":1" />
# If employees of the group fail to comply with applicable laws, rules and regulations, including those associated with conduct risk or fail to adapt its business to new laws and regulations, the group could be subject to disciplinary actions, fines and loss of licences to provide its services. <ref name=":1" />
# The group is subject to risks relating to litigation, investigations, claims and potential liabilities under laws and regulations applicable to financial services.<ref name=":1" />
# Regulatory and other changes resulting from the UK’s exit from the EU could impact the group’s results.<ref name=":1" />
# The group’s collection, use, storage, disclosure, transfer and other processing of personal information could give rise to significant costs and liabilities, including as a result of governmental regulation, conflicting legal requirements or differing views of personal privacy rights, which may have a material and adverse impact on the group’s business, financial condition and results of operations.<ref name=":1" />
# The group is subject to anti-bribery and corruption and anti-money laundering laws and regulations and sanctions and embargo programmes.<ref name=":1" />
# The group may be negatively impacted by the failure of its information technology and communications systems and related operational processes, including through cyberattacks. <ref name=":1" />
# The group’s insurance coverage may not be adequate to cover all possible losses that it could suffer and its insurance costs may increase.<ref name=":1" />
# A change in taxation legislation, case law or practice of tax authorities or investigations by tax authorities in key jurisdictions could materially increase the group’s costs.<ref name=":1" />
# An active trading market for the ordinary shares may not develop or be sustained.<ref name=":1" />
# There are no guarantees that the company will pay dividends or regarding the level of any such dividends.<ref name=":1" />
# Substantial future sales of ordinary shares could impact their market price.<ref name=":1" />
# The market price of the ordinary shares may fluctuate significantly in response to a number of factors, many of which will be out of the company's control.<ref name=":1" />
# Future issues of new ordinary shares may dilute the holdings of shareholders.<ref name=":1" />
# Shareholders may be diluted as a result of future equity offerings to the extent they do not participate or are excluded from participating.<ref name=":1" />
# General risks of investing in shares traded on AIM.<ref name=":1" />
# Regulatory approvals are required to increase a shareholding in the company above certain percentage thresholds of its capital.<ref name=":1" />
# Management and Governance: Less than half of Peel Hunt's directors are independent, and there's a relatively inexperienced board with an average tenure of only 2.2 years. Additionally, CEO Steven Fine's compensation has been a point of discussion, being above average for companies of similar size in the UK market.
# Business Model and Strategy: Peel Hunt's unique business model includes serving retail investors through intermediaries, which diversifies its business and reduces exposure to the capital markets cycle.

== Valuation ==

=== What's the expected return of an investment in the company?edit ===
The Stockhub users estimate that the expected return of an investment in the company over the next five years is 12x, which equates to an annual return of 67%. In other words, an £100,000 investment in the company is expected to return £1,302,058 in five years time. The assumptions used to estimate the return figure can be found in the table below.

Assuming that a suitable return level over five years is 67% per year or less, and Peel Hunt achieves its expected return level (of 67%), then an investment in the company is considered to be an 'suitable' one.

===What are the assumptions used to estimate the return?===

{| class="wikitable"
|+ Key inputs
!Description 
!Value
!Commentary
|-
| Which valuation model do you want to use?
|Discounted cash flow 
|Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that he Stockhub users suggest to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report).

Peel Hunt has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, the Stockhub users suggest using the free cash flow valuation method (rather than the dividend discount model). 
|-
|Which financial forecasts to use?
| Stockhub
|The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so the Stockhub users suggest using those.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>'''
|-
|Discount rate (%)
|30%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
|70%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 1) is 70%.
|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' 
|-
|Discount rate (%)
| 15%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
| 80%
| Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 80%.

|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' 
|-
|Discount rate (%)
| 10%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
|100%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%.

|-
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' 
|-
|Discount rate (%)
| 10%
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
|-
|Probability of success (%)
| 100%
|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%.

|-
| colspan="3" |'''<div style="text-align: center;">Other key inputs</div>'''
|-
|What's the current value of the company?
|£21.98 million
|The Stockhub users calculate the valuation as of £21.98 million (for the calculation, see the 'Peel Hunt Series B valuation calculation' table in this report. However, according to Dealroom.co estimates, the firm valuation is between $30m and $46m ($38 million mean) as of January 2023.<ref name=":2">https://app.dealroom.co/companies/arctic_shores/</ref> The valuation is based on either of: the publicly disclosed value, or an estimate that is based on the last funding round amount, using similar rounds as benchmarks.
|-
|Which time period do you want to use to estimate the expected return?
| Between now and five years time
|Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|-
|Which valuation recommendation method do you want to use?
|Relative
|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
|-
|Which top proportion of the investment universe constitutes a "suitable" rating?
|10%
|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
|-
|Which universe of investments do you want to use?
|All investments
|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
|}

===Sensitivity analysis===

The main inputs that result in the greatest change in the expected return of the Peel Hunt investment are, in order of importance (from highest to lowest):   

#The size of the total addressable market (the default size is $400 billion);
#Peel Hunt peak market share (the default share is 0.50%); and
#The discount rate (the default time-weighted average rate is 16.50%).

The impact of a 50% change in those main inputs to the expected return of the Peel Hunt investment is shown in the table below.

{| class="wikitable sortable"
|+Peel Hunt investment expected return sensitivity analysis
!Main input
!50% worse 
!Unchanged
!50% better
|-
|The discount rate
|ccc%
|ccc%
|ccc%
|-
|The size of the total addressable market
|ccc%
|ccc%
|ccc%
|-
|Peel Hunt peak market share
|ccc%
| ccc%
|ccc%
|}

==Actions==

To invest in Peel Hunt, click [mailto:info@arcticshores.com here].

To contact Peel Hunt, click [mailto:info@arcticshores.com here].

== Appendix ==

=== Relative valuation approach ===
As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.

==== What's the expected return of an investment in Peel Hunt using the relative valuation approach? ====
Stockhub estimates that the expected return of an investment in Peel Hunt over the next five years is 38x, which equates to an annual return of 108%. In other words, an £100,000 investment in the company is expected to return £3,933,322 in five years time. The assumptions used to estimate the return figure can be found in the table below.

==== What are the assumptions used to estimate the return figure? ====
{| class="wikitable"
|+Key inputs
!Description
!Value
!Commentary
|-
|Which type of multiple do you want to use?
|Growth-adjusted EV/sales
|For the numerator, the Stockhub users believe that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, the Stockhub users believe that because it expects Peel Hunt to reinvest almost all of its revenue back into the business over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, the Stockhub users suggest valuing its company using the EV/sales ratio. However, the Stockhub users think that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple, rather than the EV/sales multiple.
|-
|In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use?
|Year 5
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|-
|In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use?
|Year 6, from now
|Stockhub suggests that for the sales growth figure, it's best to use Year 6.
|-
|In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use?
|0.18x
|In Stockhub's view, Peel Hunt closest peer(s) is Sova Assessment Limited.
|-
|Which financial forecasts to use?
|Stockhub users
|The only available forecasts are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
|-
|What's the current value of the company?
|£21.98 million
|The Stockhub users calculate the valuation as of £21.98 million (for the calculation, see the 'Peel Hunt Series B valuation calculation' table in this report). However, according to Dealroom.co estimates, the firm valuation is between $30m and $46m ($38 million mean) as of January 2023.<ref name=":2" /> The Dealroom valuation is based on either of: the publicly disclosed value, or an estimate that is based on the last funding round amount, using similar rounds as benchmarks.
|-
|Which time period do you want to use to estimate the expected return?
|Between now and five years time
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
|-
|Which valuation recommendation method do you want to use?
|Relative
|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
|-
|Which top proportion of the investment universe constitutes a "suitable" rating?
|10%
|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
|-
|Which universe of investments do you want to use?
|All investments
|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
|}

==== Sensitivity analysis ====
The main inputs that result in the greatest change in the expected return of the Peel Hunt investment are, in order of importance (from highest to lowest):   

#The growth-adjusted EV/sales multiple (the default multiple 0.18);
#Peel Hunt Year 5 sales figure (the default figure is £48.74 million); and
#Peel Hunt Year 6 sales growth rate (the default rate is 98.5%).

The impact of a 50% change in those main inputs to the expected return of the Peel Hunt investment is shown in the table below.

{| class="wikitable sortable"
|+Peel Hunt investment expected return sensitivity analysis
!Main input
!50% worse 
!Unchanged
!50% better
|-
|The growth-adjusted EV/sales multiple
|ccc%
|ccc%
|ccc%
|-
|Peel Hunt Year 5 sales figure
|ccc%
|ccc%
|ccc%
|-
|Peel Hunt Year 6 sales growth rate
|ccc%
|ccc%
|ccc%
|}

=== Share capital ===
Number of shares currently in issue: 122,807,085.<ref name=":0">https://www.peelhunt.com/investors/share-capital/</ref>

Shares not in public hands: 51.6%.<ref name=":0" />
{| class="wikitable"
|+Significant shareholders (above 3% shareholding)<ref name=":0" />
!Institution
!Registered holding of ordinary shares
!% of total issued share capital
|-
|Darren Carter
|10,189,585
|8.3%
|-
|Gresham House Asset Management
|8,093,809
|6.6%
|-
|Steven Fine
|5,577,351
|4.5%
|-
|Peel Hunt Share Trust
|5,528,728
|4.5%
|-
|Unicorn Asset Management Limited
|4,368,860
|3.6%
|-
|Iain Morgan
|4,206,689
|3.4%
|-
|Canaccord Genuity Wealth (International) Limited
|4,098,877
|3.3%
|-
|Schroder Investment Management Limited
|3,947,368
|3.2%
|}
The aggregate number of Ordinary Shares subject to lock-up in each of the second year following Admission: 33,346,520 Ordinary Shares.<ref name=":0" />

The aggregate number of Ordinary Shares subject to lock-up in each of the third year following Admission: 21,932,985 Ordinary Shares.<ref name=":0" />

The aggregate number of Ordinary Shares subject to lock-up in each of the fourth year following Admission: 10,858,688 Ordinary Shares.<ref name=":0" />

Last updated on 10 August 2023.

===Economic links to cash flow patterns ===
{| class="wikitable"
|+Economic links to cash flow patterns
|-
!Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline
|-
|Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+
| style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |-
|-
|Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-
| style="background: green; color: white;" | +
|-
|Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-
|}

=== Beta risk profile ===
{| class="wikitable"
|+
!Beta value
!Risk rating
|-
|style="background: green; color: white;" |0 to 0.50
|style="background: green; color: white;" | Low
|-
|style="background: orange; color: white;" | 0.50 to 1.50
|style="background: orange; color: white;" | Medium
|-
|style="background: red; color: white;" | 1.50 to 3.00
|style="background: red; color: white;" | High
|-
|style="background: purple; color: white;" | 3.00 and above
|style="background: purple; color: white;" | Extremely high
|}

=== Peel Hunt adjusted beta calculation ===
{| class="wikitable"
|+
!Date
!iShares MSCI World ETF unit price (USD)
!Peel Hunt share price (GBP)
!iShares MSCI World ETF unit price change (%)
!Peel Hunt share price change (%)
|-
|01/11/2018
|86.21
|N/A
|
|
|-
|01/12/2018
|78.87
|N/A
| -8.51%
|N/A
|-
|01/01/2019
|84.96
|N/A
|7.72%
|N/A
|-
|01/02/2019
|87.49
|N/A
|2.98%
|N/A
|-
|01/03/2019
|88.79
|N/A
| 1.49%
|N/A
|-
|01/04/2019
|92.09
|N/A
|3.72%
|N/A
|-
|01/05/2019
|86.76
|N/A
| -5.79%
|N/A
|-
|01/06/2019
|91.02
|N/A 
|4.91%
|N/A
|-
|01/07/2019
|91.86
|N/A
|0.92%
|N/A
|-
|01/08/2019
|89.84
|N/A 
| -2.20%
| N/A
|-
|01/09/2019
|91.78
|N/A
|2.16%
|N/A
|-
|01/10/2019
|94.12
|N/A
|2.55%
|N/A
|-
|01/11/2019
|96.76
|N/A
|2.80%
|N/A
|-
|01/12/2019
|98.78
|N/A
|2.09%
|N/A
|-
|01/01/2020
|97.73
|N/A
| -1.06%
|N/A
|-
|01/02/2020
|89.67
|N/A
| -8.25%
|N/A
|-
|01/03/2020
|77.93
|N/A
| -13.09%
|N/A
|-
|01/04/2020
|86.36
|N/A
|10.82%
|N/A
|-
|01/05/2020
|90.70
|N/A
|5.03%
|N/A
|-
|01/06/2020
|92.14
|N/A
|1.59%
|N/A
|-
|01/07/2020
|96.65
|N/A
|4.89%
|N/A
|-
|01/08/2020
|102.96
|N/A
|6.53%
|N/A
|-
|01/09/2020
|99.52
|N/A
| -3.34%
|N/A
|-
|01/10/2020
|96.53
|N/A
| -3.00%
|N/A
|-
|01/11/2020
|108.94
|N/A
|12.86%
|N/A
|-
|01/12/2020
|112.41
|N/A
|3.19%
|N/A
|-
|01/01/2021
|111.49
|N/A
| -0.82%
|N/A
|-
|01/02/2021
|114.27
|N/A
|2.49%
|N/A
|-
|01/03/2021
|118.49
|N/A
|3.69%
|N/A
|-
|01/04/2021
|123.61
|N/A
|4.32%
|N/A
|-
|01/05/2021
|125.60
|N/A
|1.61%
|N/A
|-
|01/06/2021
|126.57
|N/A
|0.77%
|N/A
|-
|01/07/2021
|128.83
|N/A
|1.79%
|N/A
|-
|01/08/2021
|132.02
|N/A
|2.48%
|N/A
|-
|01/09/2021
|126.46
|N/A
| -4.21%
|N/A
|-
|01/10/2021
|133.84
|227.00
|5.84%
|N/A
|-
|01/11/2021
|131.10
|210.50
| -2.05%
| -7.27%
|-
|01/12/2021
|135.32
|201.00
|3.22%
| -4.51%
|-
|01/01/2022
|128.32
|175.00
| -5.17%
| -12.94%
|-
|01/02/2022
|124.58
|125.50
| -2.91%
| -28.29%
|-
|01/03/2022
|128.16
|124.00
|2.87%
| -1.20%
|-
|01/04/2022
|117.42
|121.50
| -8.38%
| -2.02%
|-
|01/05/2022
|117.94
|119.00
|0.44%
| -2.06%
|-
|01/06/2022
|106.88
|114.00
| -9.38%
| -4.20%
|-
|01/07/2022
|115.57
|103.50
|8.13%
| -9.21%
|-
|01/08/2022
|110.28
|101.00
| -4.58%
| -2.42%
|-
|01/09/2022
|99.95
|88.00
| -9.37%
| -12.87%
|-
|01/10/2022
|107.42
|85.50
|7.47%
| -2.84%
|-
|01/11/2022
|115.44
|83.00
|7.47%
| -2.92%
|-
|01/12/2022
|109.25
|85.00
| -5.36%
|2.41%
|-
|01/01/2023
|117.01
|107.00
|7.10%
|25.88%
|-
|01/02/2023
|113.98
|106.00
| -2.59%
| -0.93%
|-
|01/03/2023
|117.67
|106.00
|3.24%
|0.00%
|-
|01/04/2023
|119.79
|115.00
|1.80%
|8.49%
|-
|01/05/2023
|118.60
|104.50
| -0.99%
| -9.13%
|-
|01/06/2023
|124.52
|103.00
|4.99%
| -1.44%
|-
|01/07/2023
|128.54
|103.00
|3.23%
|0.00%
|-
|01/08/2023
|125.70
|102.50
| -2.21%
| -0.49%
|-
|01/09/2023
|120.17
|83.00
| -4.40%
| -19.02%
|-
|01/10/2023
|117.11
|80.00
| -2.55%
| -3.61%
|-
|24/10/2023
|122.84
|90.50
|4.89%
|13.13%
|}
{| class="wikitable"
|+Peel Hunt beta and adjusted beta value
!
!Beta
!Adjusted beta
!Comment(s)
|-
|Consistent (monthly) intervals between data points
|0.79
|0.86
|Here, when there is no valuation event, we have assumed that the share price is the same as the previous month, and, therefore, there has been no change in the share price. For example, there was no Peel Hunt valuation event in January 2022, so we have assumed that the valuation of Peel Hunt is the same in January 2022 as the previous month of December 2020, and, therefore, the share price change in January is 0%.
|}

=== Cost of equity ===
{| class="wikitable"
|+Cost of equity (%)
!Input
!Input value
!Additional information
|-
|Risk-free rate (%)
|5.061%
|Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 26th October 2023.<ref>https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx</ref> Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 50 years, so we have used the longest maturity, which is 30 years.
|-
|Beta
|0.86
|Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta.
|-
|Equity risk premium (%)
|7.13%
|Here, the equity risk premium is in relation to the global region, and is calculated as at 1st July 2023.<ref>https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html</ref> Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium.
|-
|Cost of equity (%)
|11.193%
|Cost of equity = Risk-free rate + Beta x Equity risk premium.
|}

== References and notes ==
<references />
@@ Line 43: / Line 43: @@
 === Who are the key members of the team and what makes them unique? ===
-==== Listed company board ====
 Key members of Peel Hunt LLP's team, each bringing unique experiences and expertise, include:
@@ Line 56: / Line 54: @@
 These individuals contribute to Peel Hunt's strategic direction and operations with their diverse experiences and specialised expertise, underscoring the firm's commitment to leadership and excellence in the financial sector.
-==== Executive board ====
-# '''Steven Fine - Chief Executive:'''
-# '''Sunil Dhall - Chief Financial & Operating Officer:'''
-# '''Fatima Badini - HR Director:''' Fatima Badini brings over 25 years of experience in senior HR and office management roles across various industries including financial services, US law firms, and insurance.
-# '''Alex Carter - Head of Equities:''' Alex Carter became Head of Equities in 2017, after joining Peel Hunt as Head of Sales in 2009.
-# '''Andrew Chapman - Head of Investment Banking:''' Andrew Chapman has been with Peel Hunt since 2010, previously working at Citi, Hoare Govett, and having over 35 years of Investment Banking experience.
-# '''Suzanne Clark - Chief Internal Auditor:''' Suzanne Clark joined Peel Hunt as Chief of Internal Audit in 2021 with over 25 years of experience in internal auditing across financial services.
-# '''David Curran - Chief Risk Officer:''' David Curran joined Peel Hunt in 2005 and was appointed Chief Risk Officer in June 2021.
-# '''Charles Hall - Head of Research:''' Charles Hall joined Peel Hunt as Head of Research in October 2008.
-# '''Piya Khanna - Chief Technology Officer:''' Piya Khanna joined Peel Hunt as Chief Technology Officer in October 2023.
-# '''Michael Lee - General Counsel:''' Michael Lee joined Peel Hunt as General Counsel in January 2022.
-# '''Iain Morgan - Head of Execution Services:''' Iain Morgan joined Peel Hunt’s Trading department in 2002 and became Head of Market Making in 2005.
-# '''Graham Smith - Finance Director:''' Graham Smith has been the Finance Director at Peel Hunt since 2012.
-==== Management committee ====
-# '''Hayden Ballard - Head of Sales:''' Hayden Ballard, Head of Sales at Peel Hunt, has been with the firm for over 12 years, contributing significantly in various departments. He also spent two years in New York setting up Peel Hunt’s US office. He joined the firm right after achieving a 1st class degree in Modern History from Bristol University.
-# '''James Cooper - Head of IT Development:''' Information regarding James Cooper's background and tenure is not readily available.
-# '''Rachelle Cornel - Director of Marketing & Communications:''' Rachelle Cornel has been serving as the Director of Marketing & Communications at Peel Hunt. She joined the team with an extensive background in marketing and communications, though specific details about her previous roles or educational background are not provided.
-# '''Jon Gerty - Head of Group Compliance:''' Details about Jon Gerty, including his background and tenure, are not immediately available.
-# '''James Hipkiss - CEO, Peel Hunt International:''' James Hipkiss's specific background information and tenure as the CEO of Peel Hunt International are not specified in the available resources.
-# '''Clyde Lewis - Deputy Head of Research:''' Clyde Lewis's role as Deputy Head of Research at Peel Hunt is acknowledged, but further details about his career and educational background are not provided.
-# '''Billy Neve - Head of Management & Financial Reporting:''' Information on Billy Neve, including his career history and academic qualifications, is not explicitly detailed.
-# '''Matt Reali - Head of Sales Trading:''' Matt Reali's background and experiences leading up to his role as Head of Sales Trading at Peel Hunt are not detailed in the available sources.
-# '''James Schofield - Director of Operations:''' James Schofield's tenure and professional background as the Director of Operations at Peel Hunt are not specified in the sources.
-# '''Rob Terry - Head of Market Making:''' Detailed information regarding Rob Terry's career or educational background leading to his position as Head of Market Making at Peel Hunt is not available.
-# '''James Webb - Deputy Head of Execution Services:''' Specific information about James Webb's career and academic background is not provided.
-# '''Dan Webster - Deputy Head of Investment Banking:''' Dan Webster's professional background and experiences as Deputy Head of Investment Banking at Peel Hunt are not detailed in the sources.
-# '''Hester White - Director of Corporate Strategy:''' Information regarding Hester White, including her tenure and professional experiences leading up to her current role, is not readily available.
 == What's the company's TAM, SAM and SOM in terms of definition and figures? ==
@@ Line 117: / Line 84: @@
 !Panmure Gordon
 !Shore Capital
-!Investec
-!Jefferies Group LLC
-!Stifel Financial Corp.
-!Canaccord Genuity Group
-!HSBC Holdings plc
-!Barclays Investment Bank
-!JP Morgan Cazenove
-!Goldman Sachs Group
 |-
 |Equity Research
@@ Line 131: / Line 90: @@
 |✓
 |✓
-|
-|
-|
-|
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-|
-|
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 |Corporate Broking
@@ Line 145: / Line 96: @@
 |✓
 |✓
-|
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 |Trading Services
@@ Line 159: / Line 102: @@
 |✓
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 |Advisory Services
@@ Line 173: / Line 108: @@
 |✓
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 |UK Market Focus
@@ Line 187: / Line 114: @@
 |✓
 |✓
-|
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 |Mid and Small-Cap Focus
@@ Line 201: / Line 120: @@
 |✓
 |✓
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 |-
 |Client-Focused Approach
@@ Line 215: / Line 126: @@
 |✓/✗
 |✓/✗
-|
+|-
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-|
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-|-
 |Deep Sector Expertise
 |✓
@@ Line 229: / Line 132: @@
 |✓/✗
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-|
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 |Investment Banking Expansion
@@ Line 243: / Line 138: @@
 |✓/✗
 |✓/✗
-|
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 |Technology Emphasis
@@ Line 257: / Line 144: @@
 |✓/✗
 |✓/✗
-|
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 |}
 ✓ = Feature is present ✗ = Feature may vary or be less emphasised
@@ Line 272: / Line 151: @@
 == Financials ==
-The company in its current form (i.e. Peel Hunt LLP) was incorporated on 11th August 2010.<ref>https://find-and-update.company-information.service.gov.uk/company/OC357088</ref> However, the company began operations in 1988, via the corporate entity Peel Hunt Holdings Limited (previously KBC Peel Hunt Limited).<ref>https://find-and-update.company-information.service.gov.uk/company/02320252</ref> On 10th December 2010, the business and assets of Peel Hunt Holdings Limited was transferred to Peel Hunt LLP following the management buyout from its former ultimate parent company, KBC Bank NV, on 26th November 2010.<ref>https://find-and-update.company-information.service.gov.uk/company/OC357088/filing-history/MzA0OTEyNDc0MmFkaXF6a2N4/document?format=pdf&download=0</ref>
+The company was incorporated on 11th August 2011.<ref>https://find-and-update.company-information.service.gov.uk/company/OC357088</ref>
-<graph>
-{
-	  "version": 2,
-	  "padding": "auto",
-	  "data": [
-	    {
-	      "name": "table",
-	      "values": [
-	        {"year": 1990,"revenue": 1553},
-	        {"year": 1991,"revenue": 1759},
-	        {"year": 1992,"revenue": 2298},
-	        {"year": 1993,"revenue": 2733},
-	        {"year": 1994,"revenue": 4753},
-            {"year": 1995,"revenue": 4754},
-            {"year": 1996,"revenue": 4974},
-	        {"year": 1997,"revenue": 10268},
-	        {"year": 1998,"revenue": 10741},
-	        {"year": 1999,"revenue": 11725},
-	        {"year": 2000,"revenue": 40261},
-	        {"year": 2001,"revenue": 16438},
-	        {"year": 2002,"revenue": 18522},
-	        {"year": 2003,"revenue": 25359},
-	        {"year": 2004,"revenue": 43216},
-	        {"year": 2005,"revenue": 53252},
-	        {"year": 2006,"revenue": 55249},
-	        {"year": 2007,"revenue": 57809},
-            {"year": 2008,"revenue": 36392},
-            {"year": 2009,"revenue": 66768},
-	        {"year": 2011,"revenue": 32005},
-	        {"year": 2012,"revenue": 39606},
-	        {"year": 2013,"revenue": 32189},
-	        {"year": 2014,"revenue": 58178},
-	        {"year": 2015,"revenue": 46319},
-	        {"year": 2016,"revenue": 64614},
-	        {"year": 2017,"revenue": 70434},
-	        {"year": 2018,"revenue": 89795},
-	        {"year": 2019,"revenue": 68560},
-	        {"year": 2020,"revenue": 95596},
-	        {"year": 2021,"revenue": 196785},
-	        {"year": 2022,"revenue": 131022},
-	        {"year": 2023,"revenue": 82337},
-]
-},
-	    {
-	      "name": "annotation",
-	      "values": [
-	        {"start": 1990,"end": 2023,"text": "Past revenues"},
-	        {"start": 2023,"end": 2060,"text": "Expected future revenues"}
-	      ]
-	    }
-	  ],
-	  "scales": [
-	    {
-	      "name": "x",
-	      "type": "linear",
-	      "range": "width",
-	      "zero": false,
-	      "domain": {"data": "table","field": "year"}
-	    },
-	    {
-	      "name": "y",
-	      "type": "linear",
-	      "range": "height",
-	      "nice": true,
-	      "domain": {"data": "table","field": "revenue"}
-	    },
-	    {
-	      "name": "color",
-	      "type": "ordinal",
-	      "domain": {"data": "annotation","field": "text"},
-	      "range": ["black","red"]
-	    }
-	  ],
-	  "axes": [
-	    {
-	      "type": "x",
-	      "scale": "x",
-	      "format": "d",
-	      "title": "Year",
-	      "ticks": 15
-	    },
-	    {
-	      "type": "y",
-	      "scale": "y",
-	      "title": "£000",
-	      "grid": true,
-	      "layer": "back"
-	    }
-	  ],
-	  "marks": [
-	    {
-	      "type": "rect",
-	      "from": {"data": "annotation"},
-	      "properties": {
-	        "enter": {
-	          "x": {"scale": "x","field": "start"},
-	          "y": {"value": 0},
-	          "x2": {"scale": "x","field": "end"},
-	          "y2": {"signal": "height"},
-	          "fill": {"scale": "color","field": "text"},
-	          "opacity": {"value": 0.2}
-	        }
-	      }
-	    },
-	    {
-	      "type": "line",
-	      "from": {"data": "table"},
-	      "properties": {
-	        "enter": {
-	          "interpolate": {"value": "monotone"},
-	          "x": {"scale": "x","field": "year"},
-	          "y": {"scale": "y","field": "revenue"},
-	          "stroke": {"value": "steelblue"},
-	          "strokeWidth": {"value": 3}
-	        }
-	      }
-	    },
-	    {
-	      "type": "symbol",
-	      "from": {"data": "table"},
-	      "properties": {
-	        "enter": {
-	          "x": {"scale": "x","field": "year"},
-	          "y": {"scale": "y","field": "revenue"},
-	          "stroke": {"value": "steelblue"},
-	          "fill": {"value": "white"},
-	          "size": {"value": 30}
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-	    },
-	    {
-	      "type": "text",
-	      "from": {
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-	        "transform": [
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-	            "summarize": {"year": ["min","max"]}
-	          }
-	        ]
-	      },
-	      "properties": {
-	        "enter": {
-	          "x": {"signal": "width","mult": 0.5},
-	          "y": {"value": -10},
-	          "text": {
-	            "template": "Peel Hunt's revenues over the lifetime of the company"
-	          },
-	          "fill": {"value": "black"},
-	          "fontSize": {"value": 16},
-	          "align": {"value": "center"},
-	          "fontWeight": {"value": "bold"}
-	        }
-	      }
-	    }
-	  ],
-	  "legends": [
-	    {
-	      "fill": "color",
-	      "title": "Period",
-	      "properties": {
-	        "symbols": {
-	          "strokeWidth": {"value": 0},
-	          "shape": {"value": "square"},
-	          "opacity": {"value": 0.3}
-	        },
-	        "legend": {
-	          "x": {"value": 10},
-	          "y": {"value": 5},
-	          "fill": {"value": "white"}
-	        }
-	      }
-	    }
-	  ]
-	}
-</graph>
 {| class="wikitable"
 |+
@@ Line 463: / Line 162: @@
 !6
 !7
-!8
+!8<ref>https://find-and-update.company-information.service.gov.uk/company/OC357088/filing-history/MzMyMzcwNTM1MWFkaXF6a2N4/document?format=pdf&download=0</ref>
-!9
+!9<ref name=":3">https://find-and-update.company-information.service.gov.uk/company/OC357088/filing-history/MzM1MTIxNjg1OWFkaXF6a2N4/document?format=pdf&download=0</ref>
-!10
+!10<ref name=":3" />
 !11
 !12
@@ Line 506: / Line 205: @@
 !49
 !50
-!51
-!52
-!53
-!54
-!55
-!56
-!57
-!58
-!59
-!60
-!61
-!62
-!63
-!64
-!65
-!66
-!67
-!68
-!69
-!70
-!
-!
 |-
 !Period end date
-!23/03/1990
-!1/04/1991
-!3/04/1992
-!16/04/1993
-!22/04/1994
-!21/04/1995
-!19/04/1996
-!18/04/1997
-!17/04/1998
-!16/04/1999
-!31/03/2000
-!31/03/2001
-!31/12/2001
-!31/12/2002
-!31/12/2003
-!31/12/2004
-!31/12/2005
-!31/12/2006
-!31/12/2007
-!31/12/2008
-!31/12/2009
-!31/03/2011
 !31/03/2012
 !31/03/2013
@@ Line 600: / Line 255: @@
 !31/03/2058
 !31/03/2059
-!
+!31/03/2060
-!
+!31/03/2061
 |-
 !Period duration (days)
-!
-!365
-!365
 !366
 !365
@@ Line 621: / Line 273: @@
 !366
 !365
-!365
-!365
-!366
 !365
 !365
@@ Line 656: / Line 305: @@
 !366
 !365
-!365
-!365
-!366
 !365
 !365
 !365
 !366
-!365
+|-
-!365
+!
-!365
-!366
-!365
-!365
-!365
-!366
-!365
-!365
-!365
-!
-!
-|-
-!
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
 !Historic
 !Historic
@@ Line 748: / Line 359: @@
 !Forecast
 !Forecast
-!
+!Forecast
-!
+!Forecast
 |-
-! colspan="73" |Profit and loss
+! colspan="51" |Profit and loss
 |-
 |Revenue
-|1,553
+|
-|1,759
+|
-|2,298
+|
-|2,733
+|
-|4,753
+|
-|4,754
+|
-|4,974
+|
-|10,268
-|10,741
-|11,725
-|40,261
-|35,946
-|16,438
-|18,522
-|25,359
-|43,216
-|53,252
-|55,249
-|57,809
-|36,392
-|66,768
-|32,005
-|39,606
-|32,189
-|58,178
-|46,319
-|64,614
-|70,434
-|89,795
-|68,560
 |95,596
 |196,785
 |131,022
-|82,337
+|
+|
 |
 |
@@ Line 859: / Line 448: @@
 |
 |
-|(53,829)
-|(76,219)
-|(82,377)
 |
 |
@@ Line 881: / Line 467: @@
 |
 |
+|-
+|Profit from operations
 |
 |
@@ Line 900: / Line 488: @@
 |
 |
-|-
-|Profit from operations
 |
 |
@@ Line 933: / Line 519: @@
 |
 |
-|142,956
+|-
-|54,803
+|Finance income
-|(40)
 |
 |
@@ Line 974: / Line 559: @@
 |
 |
-|-
-|Finance income
 |
 |
@@ Line 988: / Line 571: @@
 |
 |
+|-
+|Finance expense
 |
 |
@@ Line 1,007: / Line 592: @@
 |
 |
-|30
-|15
-|692
 |
 |
@@ Line 1,041: / Line 623: @@
 |
 |
+|-
+|Other income
 |
 |
@@ Line 1,048: / Line 632: @@
 |
 |
-|-
-|Finance expense
 |
 |
@@ Line 1,081: / Line 663: @@
 |
 |
-|(824)
-|(1,335)
-|(2,320)
 |
 |
@@ Line 1,096: / Line 675: @@
 |
 |
+|-
+|Profit for the year before members' remuneration
 |
 |
@@ Line 1,122: / Line 703: @@
 |
 |
-|-
-|Other income
 |
 |
@@ Line 1,148: / Line 727: @@
 |
 |
+|-
+|Members' remuneration charged as an expense
 |
 |
@@ Line 1,155: / Line 736: @@
 |
 |
-|330
-|58
-|180
 |
 |
@@ Line 1,196: / Line 774: @@
 |
 |
-|-
-|Profit for the year before members' remuneration and profit share
 |
 |
@@ Line 1,203: / Line 779: @@
 |
 |
+|-
+|Total comprehensive income for the year available for discretionary division among members
 |
 |
@@ Line 1,229: / Line 807: @@
 |
 |
-|142,492
-|53,541
-|(1,488)
 |
 |
@@ Line 1,256: / Line 831: @@
 |
 |
+|-
+! colspan="51" |Balance sheet
+|-
+|Assets
 |
 |
@@ Line 1,270: / Line 849: @@
 |
 |
-|-
-|Members' remuneration charged as an expense
 |
 |
@@ Line 1,303: / Line 880: @@
 |
 |
-|(20,118)
-|(9,908)
-|0
 |
 |
@@ Line 1,311: / Line 885: @@
 |
 |
+|-
+|Non-current assets
 |
 |
@@ Line 1,344: / Line 920: @@
 |
 |
-|-
-|Total comprehensive income for the year available for discretionary division among members
 |
 |
@@ Line 1,363: / Line 937: @@
 |
 |
+|-
+|Property, plant and equipment
 |
 |
@@ Line 1,377: / Line 953: @@
 |
 |
-|122,374
-|43,633
-|(1,488)
 |
 |
@@ Line 1,416: / Line 989: @@
 |
 |
+|-
+|Intangible assets
 |
 |
-|-
-! colspan="73" |Balance sheet
-|-
-|Assets
 |
 |
@@ Line 1,470: / Line 1,041: @@
 |
 |
+|-
+|Right-of-use assets
 |
 |
@@ Line 1,494: / Line 1,067: @@
 |
 |
-|-
-|Non-current assets
 |
 |
@@ Line 1,522: / Line 1,093: @@
 |
 |
+|-
+|Deferred tax asset
 |
 |
@@ Line 1,568: / Line 1,141: @@
 |
 |
-|-
-|Property, plant and equipment
 |
 |
 |
 |
+|-
+|Total non-current assets
 |
 |
@@ Line 1,601: / Line 1,174: @@
 |
 |
-|9,687
-|9,305
-|8,092
 |
 |
@@ Line 1,627: / Line 1,197: @@
 |
 |
+|-
+|Current assets
 |
 |
@@ Line 1,642: / Line 1,214: @@
 |
 |
-|-
-|Intangible assets
 |
 |
@@ Line 1,675: / Line 1,245: @@
 |
 |
-|87
-|62
-|1,152
 |
 |
 |
 |
+|-
+|Securities held for trading
 |
 |
@@ Line 1,716: / Line 1,285: @@
 |
 |
-|-
-|Right-of-use assets
 |
 |
@@ Line 1,734: / Line 1,301: @@
 |
 |
+|-
+|Market and client debtors
 |
 |
@@ Line 1,749: / Line 1,318: @@
 |
 |
-|19,508
-|17,418
-|15,889
 |
 |
@@ Line 1,787: / Line 1,353: @@
 |
 |
+|-
+|Trade and other debtors
 |
 |
 |
-|-
-|Deferred tax asset
 |
 |
@@ Line 1,825: / Line 1,391: @@
 |
 |
-|273
 |
 |
@@ Line 1,840: / Line 1,405: @@
 |
 |
+|-
+|Amounts due from members
 |
 |
@@ Line 1,864: / Line 1,431: @@
 |
 |
-|-
-|Total non-current assets
 |
 |
@@ Line 1,892: / Line 1,457: @@
 |
 |
+|-
+|Cash and cash equivalents
 |
 |
@@ Line 1,897: / Line 1,464: @@
 |
 |
-|29,282
-|26,785
-|25,406
 |
 |
@@ Line 1,938: / Line 1,502: @@
 |
 |
-|-
-|Current assets
 |
 |
@@ Line 1,947: / Line 1,509: @@
 |
 |
+|-
+|Total current assets
 |
 |
@@ Line 1,997: / Line 1,561: @@
 |
 |
+|-
+|Liabilities
 |
 |
@@ Line 2,012: / Line 1,578: @@
 |
 |
-|-
-|Securities held for trading
 |
 |
@@ Line 2,045: / Line 1,609: @@
 |
 |
-|47,296
-|50,341
-|54,144
 |
 |
 |
 |
+|-
+|Current liabilities
 |
 |
@@ Line 2,083: / Line 1,646: @@
 |
 |
-|
-|
-|
-|-
-|Market and client debtors
 |
 |
@@ Line 2,107: / Line 1,665: @@
 |
 |
+|-
+|Securities held for trading
 |
 |
@@ Line 2,119: / Line 1,679: @@
 |
 |
-|531,178
-|559,485
-|471,504
 |
 |
@@ Line 2,161: / Line 1,718: @@
 |
 |-
-|Trade and other debtors
+|Market and client creditors
 |
 |
@@ Line 2,193: / Line 1,750: @@
 |
 |
-|13,460
-|21,857
-|15,546
 |
 |
@@ Line 2,215: / Line 1,769: @@
 |
 |
+|-
+|Amounts due to members
 |
 |
@@ Line 2,234: / Line 1,790: @@
 |
 |
-|-
-|Amounts due from members
 |
 |
@@ Line 2,267: / Line 1,821: @@
 |
 |
-|62
+|-
+|Trade and other creditors
 |
 |
@@ Line 2,308: / Line 1,863: @@
 |
 |
-|-
-|Cash and cash equivalents
 |
 |
@@ Line 2,320: / Line 1,873: @@
 |
 |
+|-
+|Loans and borrowings
 |
 |
@@ Line 2,341: / Line 1,896: @@
 |
 |
-|101,859
-|69,916
-|27,410
 |
 |
@@ Line 2,373: / Line 1,925: @@
 |
 |
+|-
+|Provisions
 |
 |
@@ Line 2,382: / Line 1,936: @@
 |
 |
-|-
-|Total current assets
 |
 |
@@ Line 2,415: / Line 1,967: @@
 |
 |
-|693,855
-|701,599
-|568,604
 |
 |
@@ Line 2,428: / Line 1,977: @@
 |
 |
+|-
+|Total current liabilities
 |
 |
@@ Line 2,456: / Line 2,007: @@
 |
 |
-|-
-|Liabilities
 |
 |
@@ Line 2,480: / Line 2,029: @@
 |
 |
+|-
+|Net current assets
 |
 |
@@ Line 2,531: / Line 2,082: @@
 |
 |-
-|Current liabilities
+|Non-current liabilities
 |
 |
@@ Line 2,582: / Line 2,133: @@
 |
 |
+|-
+|Lease liabiliites
 |
 |
@@ Line 2,604: / Line 2,157: @@
 |
 |
-|-
-|Securities held for trading
 |
 |
@@ Line 2,632: / Line 2,183: @@
 |
 |
+|
+|
+|-
+|Loans and borrowings
 |
 |
@@ Line 2,637: / Line 2,192: @@
 |
 |
-|(33,727)
-|(32,705)
-|(32,062)
 |
 |
@@ Line 2,678: / Line 2,230: @@
 |
 |
-|-
-|Market and client creditors
 |
 |
@@ Line 2,687: / Line 2,237: @@
 |
 |
+|-
+|Total non-current liabilities
 |
 |
@@ Line 2,711: / Line 2,263: @@
 |
 |
-|(464,796)
-|(505,475)
-|(421,953)
 |
 |
@@ Line 2,740: / Line 2,289: @@
 |
 |
+|-
+|Net assets
 |
 |
@@ Line 2,752: / Line 2,303: @@
 |
 |
-|-
-|Amounts due to members
 |
 |
@@ Line 2,785: / Line 2,334: @@
 |
 |
-|(113,448)
-|(21,836)
-|0
 |
 |
@@ Line 2,795: / Line 2,341: @@
 |
 |
+|-
+! colspan="51" |Cash flow
+|-
+|Net cash (used in) / generated from operations
 |
 |
@@ Line 2,826: / Line 2,376: @@
 |
 |
-|-
-|Trade and other creditors
 |
 |
@@ Line 2,847: / Line 2,395: @@
 |
 |
+|-
+|Cash flow from investing activities
 |
 |
@@ Line 2,859: / Line 2,409: @@
 |
 |
-|(13,933)
-|(26,658)
-|(4,214)
 |
 |
@@ Line 2,901: / Line 2,448: @@
 |
 |-
-|Loans and borrowings
+|Purchase of tangible assets
 |
 |
@@ Line 2,933: / Line 2,480: @@
 |
 |
-|0
-|(15,000)
-|(6,000)
 |
 |
@@ Line 2,955: / Line 2,499: @@
 |
 |
+|-
+|Purchase of intangible assets
 |
 |
@@ Line 2,974: / Line 2,520: @@
 |
 |
-|-
-|Lease liabilities
 |
 |
@@ Line 3,007: / Line 2,551: @@
 |
 |
+|-
+|Disposal of investments not held for trading
 |
 |
-|(2,867)
 |
 |
@@ Line 3,048: / Line 2,593: @@
 |
 |
-|-
-|Provisions
 |
 |
@@ Line 3,060: / Line 2,603: @@
 |
 |
+|-
+|Net cash used in investing activities
 |
 |
@@ Line 3,081: / Line 2,626: @@
 |
 |
-|(431)
-|(540)
-|(576)
 |
 |
@@ Line 3,113: / Line 2,655: @@
 |
 |
+|-
+|Cash flow from financing activities
 |
 |
@@ Line 3,122: / Line 2,666: @@
 |
 |
-|-
-|Total current liabilities
 |
 |
@@ Line 3,165: / Line 2,707: @@
 |
 |
+|-
+|Capital introduced
 |
 |
@@ Line 3,196: / Line 2,740: @@
 |
 |
-|-
-|Net current assets
 |
 |
@@ Line 3,217: / Line 2,759: @@
 |
 |
+|-
+|(Decrease)/increase in borrowings
 |
 |
@@ Line 3,229: / Line 2,773: @@
 |
 |
-|(626,335)
-|(602,214)
-|(467,672)
 |
 |
@@ Line 3,271: / Line 2,812: @@
 |
 |-
-|Non-current liabilities
+|Lease Liability payments
+|
 |
 |
@@ Line 3,303: / Line 2,845: @@
 |
 |
-|67,520
-|99,385
-|100,932
 |
 |
@@ Line 3,324: / Line 2,863: @@
 |
 |
+|-
+|Interest paid
 |
 |
@@ Line 3,344: / Line 2,885: @@
 |
 |
-|-
-|Lease liabiliites
 |
 |
@@ Line 3,376: / Line 2,915: @@
 |
 |
+|-
+|Net cash (used in) / generated from financing activities
 |
-|(13,933)
-|(22,330)
-|(18,192)
 |
 |
@@ Line 3,418: / Line 2,956: @@
 |
 |
-|-
-|Loans and borrowings
 |
 |
@@ Line 3,431: / Line 2,967: @@
 |
 |
+|-
+|Net (decrease) / increase in cash and cash equivalents
 |
 |
@@ Line 3,451: / Line 2,989: @@
 |
 |
-|0
-|(15,000)
-|(15,000)
 |
 |
@@ Line 3,484: / Line 3,019: @@
 |
 |
+|-
+|Cash and cash equivalents at beginning of the period
 |
 |
@@ Line 3,492: / Line 3,029: @@
 |
 |
-|-
-|Total non-current liabilities
 |
 |
@@ Line 3,525: / Line 3,060: @@
 |
 |
-|(21,462)
-|(37,330)
-|(33,192)
 |
 |
@@ Line 3,539: / Line 3,071: @@
 |
 |
+|-
+|Cash and cash equivalents at end of the the period
 |
 |
@@ Line 3,566: / Line 3,100: @@
 |
 |
-|-
-|Net assets
 |
 |
@@ Line 3,591: / Line 3,123: @@
 |
 |
+|-
+! colspan="51" |Other information
+|-
+|Research payments and execution commission
 |
 |
@@ Line 3,599: / Line 3,135: @@
 |
 |
-|75,340
-|88,840
-|93,146
 |
 |
@@ Line 3,640: / Line 3,173: @@
 |
 |
-|-
-! colspan="73" |Cash flow
-|-
-|Net cash (used in) / generated from operations
 |
 |
 |
 |
+|-
+|Execution services revenue
 |
 |
@@ Line 3,674: / Line 3,205: @@
 |
 |
-|5,476
-|79,303
-|(76,625)
-|(30,899)
 |
 |
@@ Line 3,702: / Line 3,229: @@
 |
 |
+|-
+|Investment banking revenue
 |
 |
@@ Line 3,716: / Line 3,245: @@
 |
 |
-|-
-|Cash flow from investing activities
 |
 |
@@ Line 3,754: / Line 3,281: @@
 |
 |
+|-
+! colspan="51" |Key metrics
+|-
+|Cost of goods sold as a proportion of revenue (%)
 |
 |
@@ Line 3,786: / Line 3,317: @@
 |
 |
-|
-|
-|
-|
-|-
-|Purchase of tangible assets
 |
 |
@@ Line 3,810: / Line 3,335: @@
 |
 |
+|-
+|Operating expenses as a proportion of revenue (%)
 |
 |
@@ Line 3,822: / Line 3,349: @@
 |
 |
-|(750)
-|(9,470)
-|(1,345)
-|(511)
 |
 |
@@ Line 3,865: / Line 3,388: @@
 |
 |-
-|Purchase of intangible assets
+|Tax rate (%)
 |
 |
@@ Line 3,896: / Line 3,419: @@
 |
 |
-|(95)
-|(16)
-|(6)
-|(1,087)
 |
 |
@@ Line 3,920: / Line 3,439: @@
 |
 |
+|-
+|Depreciation and amortisation rate (%)
 |
 |
@@ Line 3,938: / Line 3,459: @@
 |
 |
-|-
-|Disposal of investments not held for trading
 |
 |
@@ Line 3,972: / Line 3,491: @@
 |
 |
+|-
+|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
 |
-|0
 |
 |
@@ Line 4,012: / Line 3,532: @@
 |
 |
-|-
-|Net cash used in investing activities
 |
 |
@@ Line 4,025: / Line 3,543: @@
 |
 |
+|-
+|Working Capital Investment (WCInv) as a proportion of revenue (%)
 |
 |
@@ Line 4,037: / Line 3,557: @@
 |
 |
-|
-|
-|
-|
-|
-|
-|
-|(845)
-|(9,486)
-|(1,351)
-|(1,598)
 |
 |
@@ Line 4,087: / Line 3,596: @@
 |
 |-
-|Cash flow from financing activities
+|Net borrowing as a proportion of revenue (%)
 |
 |
@@ Line 4,138: / Line 3,647: @@
 |
 |
+|-
+|Interest expense as a proportion of revenue (%)
 |
 |
@@ Line 4,150: / Line 3,661: @@
 |
 |
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Capital introduced
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|15,000
-|0
-|13,500
-|0
 |
 |
@@ Line 4,234: / Line 3,699: @@
 |
 |
+|}
+==== What are the assumptions used to estimate the financial forecasts?====
+{| class="wikitable"
+|+Key inputs
+!Description
+!Value
+!Commentary
+|-
+| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
 |-
-|(Decrease)/increase in borrowings
+|What's the estimated current size of the total addressable market?
-|
+|$400,000,000,000
-|
+|Here, the total addressable market (TAM) is defined as the global HR tech market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (7th November 2023), in terms of revenue, is $400 billion.
-|
+|-
-|
+|What is the estimated company lifespan?
-|
+|50 years
-|
+|Currently, Peel Hunt employs around 77, making the company a small organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
-|
+|-
-|
+|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
-|
+|3%
-|
+|Research shows that the growth rate of the global HR tech market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
-|
+|-
-|
+|What's the estimated company peak market share?
-|
+|1%
-|
+|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Peel Hunt is around 0.50%, and, therefore, suggests using the share amount here. As of 7th November 2023, Peel Hunt's current share of the market is estimated at around 0.00068%.
-|
+|-
-|
+|Which distribution function do you want to use to estimate company revenue?
-|
+|Gaussian
-|
+|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function  (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so the Stockhub users suggest using that function here.
-|
+|-
-|
+|What's the estimated standard deviation of company revenue?
-|
+| 5 years
-|
+|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Peel Hunt's current estimated revenue amount (i.e. $2.7 million) and Peel Hunt's estimated lifespan (i.e. 50 years) and Peel Hunt's estimated current stage of its lifecycle (i.e. introduction stage), the Stockhub users suggest using five years (i.e. 68% of all sales happen within five years either side of the mean year), so that's what's used here.
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
-|
+|-
-|
+|How many main stages of growth is the company expected to go through?
-|
+| 4 stages
-|
+|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>
-|
-|
+In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Peel Hunt's operating cash flows negative (-), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the first stage of growth (i.e. the 'introduction' stage), and, therefore, it has a total of four main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
-|7,500
+|-
-|(7,500)
+|What proportion of the company lifecycle is represented by growth stage 1?
-|30,000
+|30%
-|(6,000)
+|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
-|
+|-
-|
+|What proportion of the company lifecycle is represented by growth stage 2?
-|
+|10%
-|
+|Research suggests 10%.<ref name=":6" />
-|
+|-
-|
+| What proportion of the company lifecycle is represented by growth stage 3?
-|
+|20%
-|
+| Research suggests 20%.<ref name=":6" />
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Lease Liability payments
+|What proportion of the company lifecycle is represented by growth stage 4?
-|
+|40%
-|
+|Research suggests 40%.<ref name=":6" />
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>'''
-|
+|-
-|
+|Cost of goods sold as a proportion of revenue (%)
-|
+|22.08%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Operating expenses as a proportion of revenue (%)
-|
+|(78.39)%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Tax rate (%)
-|
+|(0.27)%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Depreciation and amortisation rate (%)
-|
+|6.82%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
+|36.30%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
+|22.31%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Net borrowing as a proportion of revenue (%)
-|(1,101)
+|7.54%
-|(905)
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|0
+|-
-|(3,117)
+|Interest expense as a proportion of revenue (%)
-|
+|(7.54)%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
-|
+|-
-|
+|Cost of goods sold as a proportion of revenue (%)
-|
+|27.59%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Operating expenses as a proportion of revenue (%)
-|
+|75.98%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Tax rate (%)
-|
+|41.08%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Depreciation and amortisation rate (%)
-|
+|5.86%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
+|5.78%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Interest paid
+|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
+|55.99%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Net borrowing as a proportion of revenue (%)
-|
+|18.25%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Interest expense as a proportion of revenue (%)
-|
+|1.65%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
-|
+|-
-|
+|Cost of goods sold as a proportion of revenue (%)
-|
+|27.59%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Operating expenses as a proportion of revenue (%)
-|
+|75.98%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Tax rate (%)
-|
+|41.08%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Depreciation and amortisation rate (%)
-|
+|5.86%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|(133)
+|5.78%
-|(253)
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|(467)
+|-
-|(1,382)
+|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
+|55.99%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Net cash (used in) / generated from financing activities
+|Net borrowing as a proportion of revenue (%)
-|
+|18.25%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Interest expense as a proportion of revenue (%)
-|
+|1.65%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
-|
+|-
-|
+|Cost of goods sold as a proportion of revenue (%)
-|
+|36.13%
-|
+|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Operating expenses as a proportion of revenue (%)
-|
+|174.39%
-|
+|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Tax rate (%)
-|
+|(1.94)%
-|
+|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Depreciation and amortisation rate (%)
-|
+|47.29%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
+| 6.25%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|-
-|
+|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|21,266
+| 2.13%
-|(8,658)
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|43,033
+|-
-|(16,812)
+|Net borrowing as a proportion of revenue (%)
-|
+|0%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Net (decrease) / increase in cash and cash equivalents
+|Interest expense as a proportion of revenue (%)
-|
+|0%
-|
+|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|
+|}
-|
-|
+== Risks ==
-|
-|
+As with any investment, investing in Peel Hunt carries a level of risk. Overall, based on the Peel Hunt' adjusted beta (i.e. 0.86), the degree of risk associated with an investment in Peel Hunt is 'medium'.
-|
-|
+Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used the 25 available share price Peel Hunt data points. We note that the amount of available data observations for Peel Hunt is less than what's typically used in the five years of monthly data beta calculation (i.e. 25 observations vs. 60 observations), and accordingly, calculating the beta of such a company may be considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta.
-|
-|
+The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'medium' risk, it must have a beta value of between 0.50 and 1.50. Further information about the beta ratings can be found in the appendix section of this report.
-|
-|
+'''The key risks'''
-|
-|
+Investing in Peel Hunt LLP involves several key risks:
-|
-|
+# The group’s business and financial performance have been and will continue to be affected by general economic conditions in the UK and other jurisdictions in which the group operates and adverse developments int he UK or global financial markets could have a detrimental impact on its earnings and profitability.<ref name=":1">https://www.peelhunt.com/media/icneklr5/admission-document.pdf</ref>
-|
+# The group relies on the ability to attract, develop and retain highly skilled personnel.<ref name=":1" />
-|
+# Damage to the group’s reputation could cause harm to the group and its business prospects.<ref name=":1" />
-|
+# The group’s business is subject to inherent risks concerning liquidity, and this may have an adverse effect on the group’s business and profitability.<ref name=":1" />
-|
+# The group’s results of operations may be materially affected by market fluctuations and significant changes in the value of financial instruments.<ref name=":1" />
-|
+# A failure in the group’s operational systems may disrupt the group’s business operations, result in regulatory action against the group, and adversely impact the group’s reputation, business, financial condition and results of operations.<ref name=":1" />
-|
+# The group is exposed to risks relating to its underwriting activities.<ref name=":1" />
-|
+# The group is subject to the credit risk of counterparties.<ref name=":1" />
-|
+# The group's framework and policies for risk management may prove inadequate for the risks faced by its business and any failure to properly manage the risks it faces could cause harm to the group and its business prospects.<ref name=":1" />
-|
+# Failure to, or perceived failure to, appropriately manage potential conflicts of interest can adversely affect the group’s business and reputation.<ref name=":1" />
-|
+# The group's competitive advantage depends in part on its information technology.<ref name=":1" />
-|
+# The group faces significant and increasing competition in the financial services industry, including in changing markets.<ref name=":1" />
-|
+# The group may be unable to successfully implement its business strategies.<ref name=":1" />
-|
+# The group may be unable to protect its intellectual property effectively from misappropriation by others, including current and potential competitors.<ref name=":1" />
-|25,897
+# The group operates in an extensive, strict, and frequently changing regulatory landscape and any changes to, or the group’s failure to comply with, any laws and regulations could adversely affect the Group’s business, financial condition and results of operation.<ref name=":1" />
-|61,158
+# If employees of the group fail to comply with applicable laws, rules and regulations, including those associated with conduct risk or fail to adapt its business to new laws and regulations, the group could be subject to disciplinary actions, fines and loss of licences to provide its services. <ref name=":1" />
-|(31,943)
+# The group is subject to risks relating to litigation, investigations, claims and potential liabilities under laws and regulations applicable to financial services.<ref name=":1" />
-|(49,309)
+# Regulatory and other changes resulting from the UK’s exit from the EU could impact the group’s results.<ref name=":1" />
-|
+# The group’s collection, use, storage, disclosure, transfer and other processing of personal information could give rise to significant costs and liabilities, including as a result of governmental regulation, conflicting legal requirements or differing views of personal privacy rights, which may have a material and adverse impact on the group’s business, financial condition and results of operations.<ref name=":1" />
-|
+# The group is subject to anti-bribery and corruption and anti-money laundering laws and regulations and sanctions and embargo programmes.<ref name=":1" />
-|
+# The group may be negatively impacted by the failure of its information technology and communications systems and related operational processes, including through cyberattacks. <ref name=":1" />
-|
+# The group’s insurance coverage may not be adequate to cover all possible losses that it could suffer and its insurance costs may increase.<ref name=":1" />
-|
+# A change in taxation legislation, case law or practice of tax authorities or investigations by tax authorities in key jurisdictions could materially increase the group’s costs.<ref name=":1" />
-|
+# An active trading market for the ordinary shares may not develop or be sustained.<ref name=":1" />
-|
+# There are no guarantees that the company will pay dividends or regarding the level of any such dividends.<ref name=":1" />
-|
+# Substantial future sales of ordinary shares could impact their market price.<ref name=":1" />
-|
+# The market price of the ordinary shares may fluctuate significantly in response to a number of factors, many of which will be out of the company's control.<ref name=":1" />
-|
+# Future issues of new ordinary shares may dilute the holdings of shareholders.<ref name=":1" />
-|
+# Shareholders may be diluted as a result of future equity offerings to the extent they do not participate or are excluded from participating.<ref name=":1" />
-|
+# General risks of investing in shares traded on AIM.<ref name=":1" />
-|
+# Regulatory approvals are required to increase a shareholding in the company above certain percentage thresholds of its capital.<ref name=":1" />
-|
+# Management and Governance: Less than half of Peel Hunt's directors are independent, and there's a relatively inexperienced board with an average tenure of only 2.2 years. Additionally, CEO Steven Fine's compensation has been a point of discussion, being above average for companies of similar size in the UK market.
-|
+# Business Model and Strategy: Peel Hunt's unique business model includes serving retail investors through intermediaries, which diversifies its business and reduces exposure to the capital markets cycle.
-|
-|
+== Valuation ==
-|
-|
+=== What's the expected return of an investment in the company?edit ===
-|
+The Stockhub users estimate that the expected return of an investment in the company over the next five years is 12x, which equates to an annual return of 67%. In other words, an £100,000 investment in the company is expected to return £1,302,058 in five years time. The assumptions used to estimate the return figure can be found in the table below.
-|
-|
+Assuming that a suitable return level over five years is 67% per year or less, and Peel Hunt achieves its expected return level (of 67%), then an investment in the company is considered to be an 'suitable' one.
-|
-|
+===What are the assumptions used to estimate the return?===
-|
-|
+{| class="wikitable"
-|
+|+ Key inputs
-|
+!Description
-|
+!Value
-|
+!Commentary
-|
+|-
-|
+| Which valuation model do you want to use?
-|
+|Discounted cash flow
-|
+|Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that he Stockhub users suggest to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report).
-|
-|
+Peel Hunt has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, the Stockhub users suggest using the free cash flow valuation method (rather than the dividend discount model).
-|
+|-
-|
+|Which financial forecasts to use?
+| Stockhub
+|The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so the Stockhub users suggest using those.
+|-
+| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>'''
+|-
+|Discount rate (%)
+|30%
+|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
+|-
+|Probability of success (%)
+|70%
+|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 1) is 70%.
+|-
+| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
+|-
+|Discount rate (%)
+| 15%
+|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
 |-
-|Cash and cash equivalents at beginning of the period
+|Probability of success (%)
-|
+| 80%
-|
+| Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 80%.
-|
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|14,803
-|40,701
-|101,859
-|76,719
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Cash and cash equivalents at end of the the period
+|Discount rate (%)
-|
+| 10%
-|
+|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
-|
+|-
-|
+|Probability of success (%)
-|
+|100%
-|
+|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%.
-|
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
-|
+|-
-|
+|Discount rate (%)
-|
+| 10%
-|
+|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
-|
+|-
-|
+|Probability of success (%)
-|
+| 100%
-|
+|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%.
-|
-|
+|-
-|
+| colspan="3" |'''<div style="text-align: center;">Other key inputs</div>'''
-|
+|-
-|
+|What's the current value of the company?
-|
+|£21.98 million
-|
+|The Stockhub users calculate the valuation as of £21.98 million (for the calculation, see the 'Peel Hunt Series B valuation calculation' table in this report. However, according to Dealroom.co estimates, the firm valuation is between $30m and $46m ($38 million mean) as of January 2023.<ref name=":2">https://app.dealroom.co/companies/arctic_shores/</ref> The valuation is based on either of: the publicly disclosed value, or an estimate that is based on the last funding round amount, using similar rounds as benchmarks.
-|
+|-
-|
+|Which time period do you want to use to estimate the expected return?
-|
+| Between now and five years time
-|
+|Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
-|
+|-
-|
+|Which valuation recommendation method do you want to use?
-|40,700
+|Relative
-|101,859
+|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
-|69,916
-|76,719
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-! colspan="73" |Other information
+|Which top proportion of the investment universe constitutes a "suitable" rating?
+|10%
+|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
 |-
-|Research payments and execution commission
+|Which universe of investments do you want to use?
-|
+|All investments
-|
+|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
-|
+|}
-|
-|
+===Sensitivity analysis===
-|
-|
+The main inputs that result in the greatest change in the expected return of the Peel Hunt investment are, in order of importance (from highest to lowest):
-|
-|
+#The size of the total addressable market (the default size is $400 billion);
-|
+#Peel Hunt peak market share (the default share is 0.50%); and
-|
+#The discount rate (the default time-weighted average rate is 16.50%).
-|
-|
+The impact of a 50% change in those main inputs to the expected return of the Peel Hunt investment is shown in the table below.
-|
-|
+{| class="wikitable sortable"
-|
+|+Peel Hunt investment expected return sensitivity analysis
-|
+!Main input
-|
+!50% worse
-|
+!Unchanged
-|
+!50% better
-|
+|-
-|
+|The discount rate
-|
+|ccc%
-|
+|ccc%
-|
+|ccc%
-|
+|-
-|
+|The size of the total addressable market
-|
+|ccc%
-|
+|ccc%
-|
+|ccc%
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Execution services revenue
+|Peel Hunt peak market share
-|
+|ccc%
-|
+| ccc%
-|
+|ccc%
-|
+|}
-|
-|
+==Actions==
-|
-|
+To invest in Peel Hunt, click [mailto:info@arcticshores.com here].
-|
-|
+To contact Peel Hunt, click [mailto:info@arcticshores.com here].
-|
-|
+== Appendix ==
-|
-|
+=== Relative valuation approach ===
-|
+As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.
-|
-|
+==== What's the expected return of an investment in Peel Hunt using the relative valuation approach? ====
-|
+Stockhub estimates that the expected return of an investment in Peel Hunt over the next five years is 38x, which equates to an annual return of 108%. In other words, an £100,000 investment in the company is expected to return £3,933,322 in five years time. The assumptions used to estimate the return figure can be found in the table below.
-|
-|
+==== What are the assumptions used to estimate the return figure? ====
-|
+{| class="wikitable"
-|
+|+Key inputs
-|
+!Description
-|
+!Value
-|
+!Commentary
-|
+|-
-|
+|Which type of multiple do you want to use?
-|
+|Growth-adjusted EV/sales
-|
+|For the numerator, the Stockhub users believe that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, the Stockhub users believe that because it expects Peel Hunt to reinvest almost all of its revenue back into the business over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, the Stockhub users suggest valuing its company using the EV/sales ratio. However, the Stockhub users think that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple, rather than the EV/sales multiple.
-|
+|-
-|
+|In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use?
-|
+|Year 5
-|
+|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
-|
+|-
-|
+|In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use?
-|
+|Year 6, from now
-|
+|Stockhub suggests that for the sales growth figure, it's best to use Year 6.
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Investment banking revenue
+|In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use?
-|
+|0.18x
-|
+|In Stockhub's view, Peel Hunt closest peer(s) is Sova Assessment Limited.
-|
+|-
-|
+|Which financial forecasts to use?
-|
+|Stockhub users
-|
+|The only available forecasts are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
-|
+|-
-|
+|What's the current value of the company?
-|
+|£21.98 million
-|
+|The Stockhub users calculate the valuation as of £21.98 million (for the calculation, see the 'Peel Hunt Series B valuation calculation' table in this report). However, according to Dealroom.co estimates, the firm valuation is between $30m and $46m ($38 million mean) as of January 2023.<ref name=":2" /> The Dealroom valuation is based on either of: the publicly disclosed value, or an estimate that is based on the last funding round amount, using similar rounds as benchmarks.
-|
+|-
-|
+|Which time period do you want to use to estimate the expected return?
-|
+|Between now and five years time
-|
+|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
-|
+|-
-|
+|Which valuation recommendation method do you want to use?
-|
+|Relative
-|
+|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
-|
+|-
-|
+|Which top proportion of the investment universe constitutes a "suitable" rating?
-|
+|10%
-|
+|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
-|
+|-
-|
+|Which universe of investments do you want to use?
-|
+|All investments
-|
+|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
-|
+|}
-|
-|
+==== Sensitivity analysis ====
-|
+The main inputs that result in the greatest change in the expected return of the Peel Hunt investment are, in order of importance (from highest to lowest):
-|
-|
+#The growth-adjusted EV/sales multiple (the default multiple 0.18);
-|
+#Peel Hunt Year 5 sales figure (the default figure is £48.74 million); and
-|
+#Peel Hunt Year 6 sales growth rate (the default rate is 98.5%).
-|
-|
+The impact of a 50% change in those main inputs to the expected return of the Peel Hunt investment is shown in the table below.
-|
-|
+{| class="wikitable sortable"
-|
+|+Peel Hunt investment expected return sensitivity analysis
-|
+!Main input
-|
+!50% worse
-|
+!Unchanged
-|
+!50% better
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-! colspan="73" |Key metrics
+|The growth-adjusted EV/sales multiple
-|-
+|ccc%
-|Cost of goods sold as a proportion of revenue (%)
+|ccc%
-|
+|ccc%
-|
+|-
-|
+|Peel Hunt Year 5 sales figure
-|
+|ccc%
-|
+|ccc%
-|
+|ccc%
-|
+|-
-|
+|Peel Hunt Year 6 sales growth rate
-|
+|ccc%
-|
+|ccc%
-|
+|ccc%
-|
+|}
-|
-|
+=== Share capital ===
-|
+Number of shares currently in issue: 122,807,085.<ref name=":0">https://www.peelhunt.com/investors/share-capital/</ref>
-|
-|
+Shares not in public hands: 51.6%.<ref name=":0" />
-|
+{| class="wikitable"
-|
+|+Significant shareholders (above 3% shareholding)<ref name=":0" />
-|
+!Institution
-|
+!Registered holding of ordinary shares
-|
+!% of total issued share capital
-|
+|-
-|
+|Darren Carter
-|
+|10,189,585
-|
+|8.3%
-|
+|-
-|
+|Gresham House Asset Management
-|
+|8,093,809
-|
+|6.6%
-|
-|N/A
-|N/A
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Operating expenses as a proportion of revenue (%)
+|Steven Fine
-|
+|5,577,351
-|
+|4.5%
-|
+|-
-|
+|Peel Hunt Share Trust
-|
+|5,528,728
-|
+|4.5%
-|
+|-
-|
+|Unicorn Asset Management Limited
-|
+|4,368,860
-|
+|3.6%
-|
+|-
-|
+|Iain Morgan
-|
+|4,206,689
-|
+|3.4%
-|
+|-
-|
+|Canaccord Genuity Wealth (International) Limited
-|
+|4,098,877
-|
+|3.3%
-|
+|-
-|
+|Schroder Investment Management Limited
-|
+|3,947,368
-|
+|3.2%
-|
+|}
-|
+The aggregate number of Ordinary Shares subject to lock-up in each of the second year following Admission: 33,346,520 Ordinary Shares.<ref name=":0" />
-|
-|
+The aggregate number of Ordinary Shares subject to lock-up in each of the third year following Admission: 21,932,985 Ordinary Shares.<ref name=":0" />
-|
-|
+The aggregate number of Ordinary Shares subject to lock-up in each of the fourth year following Admission: 10,858,688 Ordinary Shares.<ref name=":0" />
-|
-|
+Last updated on 10 August 2023.
-|
-|27.35%
+===Economic links to cash flow patterns ===
-|58.17%
+{| class="wikitable"
-|
+|+Economic links to cash flow patterns
-|
+|-
-|
+!Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline
-|
+|-
-|
+|Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+
-|
+| style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |-
-|
+|-
-|
+|Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-
-|
+| style="background: green; color: white;" | +
-|
+|-
-|
+|Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-
-|
+|}
-|
-|
+=== Beta risk profile ===
-|
+{| class="wikitable"
-|
+|+
-|
+!Beta value
-|
+!Risk rating
-|
+|-
-|
+|style="background: green; color: white;" |0 to 0.50
-|
+|style="background: green; color: white;" | Low
-|
+|-
-|
+|style="background: orange; color: white;" | 0.50 to 1.50
-|
+|style="background: orange; color: white;" | Medium
-|
+|-
-|
+|style="background: red; color: white;" | 1.50 to 3.00
-|
+|style="background: red; color: white;" | High
-|
+|-
-|
+|style="background: purple; color: white;" | 3.00 and above
-|
+|style="background: purple; color: white;" | Extremely high
-|
+|}
-|
-|
+=== Peel Hunt adjusted beta calculation ===
-|
+{| class="wikitable"
-|
+|+
-|
+!Date
-|
+!iShares MSCI World ETF unit price (USD)
+!Peel Hunt share price (GBP)
+!iShares MSCI World ETF unit price change (%)
+!Peel Hunt share price change (%)
+|-
+|01/11/2018
+|86.21
+|N/A
 |
 |
 |-
-|Tax rate (%)
+|01/12/2018
-|
+|78.87
-|
+|N/A
-|
+| -8.51%
-|
+|N/A
-|
+|-
-|
+|01/01/2019
-|
+|84.96
-|
+|N/A
-|
+|7.72%
-|
+|N/A
-|
+|-
-|
+|01/02/2019
-|
+|87.49
-|
+|N/A
-|
+|2.98%
-|
+|N/A
-|
+|-
-|
+|01/03/2019
-|
+|88.79
-|
+|N/A
-|
+| 1.49%
-|
+|N/A
-|
+|-
-|
+|01/04/2019
-|
+|92.09
-|
-|
-|
-|
-|
-|
 |N/A
+|3.72%
+|N/A
+|-
+|01/05/2019
+|86.76
+|N/A
+| -5.79%
+|N/A
+|-
+|01/06/2019
+|91.02
+|N/A
+|4.91%
 |N/A
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Depreciation and amortisation rate (%)
+|01/07/2019
-|
+|91.86
-|
+|N/A
-|
+|0.92%
-|
+|N/A
-|
+|-
-|
+|01/08/2019
-|
+|89.84
-|
+|N/A
-|
+| -2.20%
-|
+| N/A
-|
+|-
-|
+|01/09/2019
-|
+|91.78
-|
+|N/A
-|
+|2.16%
-|
+|N/A
-|
+|-
-|
+|01/10/2019
-|
+|94.12
-|
+|N/A
-|
+|2.55%
-|
+|N/A
-|
+|-
-|
+|01/11/2019
-|
+|96.76
-|
+|N/A
-|
+|2.80%
-|
+|N/A
-|
+|-
-|
+|01/12/2019
-|
+|98.78
-|
+|N/A
-|
+|2.09%
-|
+|N/A
-|
+|-
-|
+|01/01/2020
-|
+|97.73
-|
+|N/A
-|
+| -1.06%
-|
+|N/A
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
+|01/02/2020
-|
+|89.67
-|
+|N/A
-|
+| -8.25%
-|
+|N/A
-|
+|-
-|
+|01/03/2020
-|
+|77.93
-|
+|N/A
-|
+| -13.09%
-|
+|N/A
-|
+|-
-|
+|01/04/2020
-|
+|86.36
-|
+|N/A
-|
+|10.82%
-|
+|N/A
-|
+|-
-|
+|01/05/2020
-|
+|90.70
-|
+|N/A
-|
+|5.03%
-|
+|N/A
-|
+|-
-|
+|01/06/2020
-|
+|92.14
-|
+|N/A
-|
+|1.59%
-|
+|N/A
-|
+|-
-|
+|01/07/2020
-|
+|96.65
-|
+|N/A
-|
+|4.89%
-|
+|N/A
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
+|01/08/2020
-|
+|102.96
-|
+|N/A
-|
+|6.53%
-|
+|N/A
-|
+|-
-|
+|01/09/2020
-|
+|99.52
-|
+|N/A
-|
+| -3.34%
-|
+|N/A
-|
+|-
-|
+|01/10/2020
-|
+|96.53
-|
+|N/A
-|
+| -3.00%
-|
+|N/A
-|
+|-
-|
+|01/11/2020
-|
+|108.94
-|
+|N/A
-|
+|12.86%
-|
+|N/A
-|
+|-
-|
+|01/12/2020
-|
+|112.41
-|
+|N/A
-|
+|3.19%
-|
+|N/A
-|
+|-
-|
+|01/01/2021
-|
+|111.49
-|
+|N/A
-|
+| -0.82%
-|
+|N/A
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Net borrowing as a proportion of revenue (%)
+|01/02/2021
-|
+|114.27
-|
+|N/A
-|
+|2.49%
-|
+|N/A
-|
+|-
-|
+|01/03/2021
-|
+|118.49
-|
+|N/A
-|
+|3.69%
-|
+|N/A
-|
+|-
-|
+|01/04/2021
-|
+|123.61
-|
+|N/A
-|
+|4.32%
-|
+|N/A
-|
+|-
-|
+|01/05/2021
-|
+|125.60
-|
+|N/A
-|
+|1.61%
-|
+|N/A
-|
+|-
-|
+|01/06/2021
-|
+|126.57
-|
+|N/A
-|
+|0.77%
-|
+|N/A
-|
+|-
-|
+|01/07/2021
-|
+|128.83
-|
+|N/A
-|
+|1.79%
-|
+|N/A
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
 |-
-|Interest expense as a proportion of revenue (%)
+|01/08/2021
-|
+|132.02
-|
+|N/A
-|
+|2.48%
-|
+|N/A
-|
+|-
-|
+|01/09/2021
-|
+|126.46
-|
+|N/A
-|
+| -4.21%
-|
+|N/A
-|
+|-
-|
+|01/10/2021
-|
+|133.84
-|
+|227.00
-|
+|5.84%
-|
+|N/A
-|
+|-
-|
+|01/11/2021
-|
+|131.10
-|
+|210.50
-|
+| -2.05%
-|
+| -7.27%
-|
+|-
-|
+|01/12/2021
-|
+|135.32
-|
+|201.00
-|
+|3.22%
-|
+| -4.51%
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|}
-==== What are the assumptions used to estimate the financial forecasts?====
-{| class="wikitable"
-|+Key inputs
-!Description
-!Value
-!Commentary
 |-
-| colspan="3" | <div style="text-align: center;">'''Revenue'''</div>
+|01/01/2022
+|128.32
+|175.00
+| -5.17%
+| -12.94%
 |-
-|What's the estimated current size of the total addressable market?
+|01/02/2022
-|$400,000,000,000
+|124.58
-|Here, the total addressable market (TAM) is defined as the global investment banking market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (6th January 2024), in terms of revenue, is $400 billion.
+|125.50
+| -2.91%
+| -28.29%
 |-
-|What is the estimated company lifespan?
+|01/03/2022
-|50 years
+|128.16
-|Currently, Peel Hunt employs around 300, making the company a medium organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref>
+|124.00
+|2.87%
+| -1.20%
 |-
-|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company?
+|01/04/2022
-|3%
+|117.42
-|Research shows that the growth rate of the global investment banking market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>.
+|121.50
+| -8.38%
+| -2.02%
 |-
-|What's the estimated company peak market share?
+|01/05/2022
-|1%
+|117.94
-|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Peel Hunt is around 0.50%, and, therefore, suggests using the share amount here. As of 7th November 2023, Peel Hunt's current share of the market is estimated at around 0.00068%.
+|119.00
+|0.44%
+| -2.06%
 |-
-|Which function do you want to use to estimate company revenue?
+|01/06/2022
-|Logistic
+|106.88
-|Research suggests that the revenue pattern of companies is similar to the pattern produced by the logistic growth function  (i.e. the revenue distribution is S-shaped)<ref>https://decisionanalyticsjournal.springeropen.com/articles/10.1186/2193-8636-1-2</ref>, so the Stockhub users suggest using that function here.
+|114.00
+| -9.38%
+| -4.20%
 |-
-|What's the estimated logistic growth rate of company revenue?
+|01/07/2022
-| 5%
+|115.57
-|Another way of asking this question is this way: what is the projected rate of growth for the company's revenue following a logistic model? Based on Peel Hunt's current estimated revenue amount (i.e. £82 million) and Peel Hunt's estimated lifespan (i.e. 100 years) and Peel Hunt's estimated current stage of its lifecycle (i.e. growth stage), the Stockhub users suggest using 5% annual logistic growth rate, so that's what's used here.
+|103.50
+|8.13%
+| -9.21%
 |-
-| colspan="3" |'''<div style="text-align: center;">Growth stages</div>'''
+|01/08/2022
+|110.28
+|101.00
+| -4.58%
+| -2.42%
 |-
-|How many main stages of growth is the company expected to go through?
+|01/09/2022
-| 4 stages
+|99.95
-|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref>
+|88.00
+| -9.37%
-In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Peel Hunt's operating cash flows positive (+), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the second stage of growth (i.e. the 'growth' stage), and, therefore, it has a total of three main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows.
+| -12.87%
 |-
-|What proportion of the company lifecycle is represented by growth stage 1?
+|01/10/2022
-|30%
+|107.42
-|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>
+|85.50
+|7.47%
+| -2.84%
 |-
-|What proportion of the company lifecycle is represented by growth stage 2?
+|01/11/2022
-|10%
+|115.44
-|Research suggests 10%.<ref name=":6" />
+|83.00
+|7.47%
+| -2.92%
 |-
-| What proportion of the company lifecycle is represented by growth stage 3?
+|01/12/2022
-|20%
+|109.25
-| Research suggests 20%.<ref name=":6" />
+|85.00
+| -5.36%
+|2.41%
 |-
-|What proportion of the company lifecycle is represented by growth stage 4?
+|01/01/2023
-|40%
+|117.01
-|Research suggests 40%.<ref name=":6" />
+|107.00
+|7.10%
+|25.88%
 |-
-| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
+|01/02/2023
+|113.98
+|106.00
+| -2.59%
+| -0.93%
 |-
-|Cost of goods sold as a proportion of revenue (%)
+|01/03/2023
-|27.59%
+|117.67
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|106.00
+|3.24%
+|0.00%
 |-
-|Operating expenses as a proportion of revenue (%)
+|01/04/2023
-|75.98%
+|119.79
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|115.00
+|1.80%
+|8.49%
 |-
-|Tax rate (%)
+|01/05/2023
-|41.08%
+|118.60
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|104.50
+| -0.99%
+| -9.13%
 |-
-|Depreciation and amortisation rate (%)
+|01/06/2023
-|5.86%
+|124.52
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|103.00
+|4.99%
+| -1.44%
 |-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
+|01/07/2023
-|5.78%
+|128.54
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|103.00
+|3.23%
+|0.00%
 |-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
+|01/08/2023
-|55.99%
+|125.70
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|102.50
+| -2.21%
+| -0.49%
 |-
-|Net borrowing as a proportion of revenue (%)
+|01/09/2023
-|18.25%
+|120.17
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|83.00
+| -4.40%
+| -19.02%
 |-
-|Interest expense as a proportion of revenue (%)
+|01/10/2023
-|1.65%
+|117.11
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|80.00
+| -2.55%
+| -3.61%
 |-
-| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
+|24/10/2023
-|-
+|122.84
-|Cost of goods sold as a proportion of revenue (%)
+|90.50
-|27.59%
+|4.89%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|13.13%
+|}
+{| class="wikitable"
+|+Peel Hunt beta and adjusted beta value
+!
+!Beta
+!Adjusted beta
+!Comment(s)
 |-
-|Operating expenses as a proportion of revenue (%)
+|Consistent (monthly) intervals between data points
-|75.98%
+|0.79
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|0.86
+|Here, when there is no valuation event, we have assumed that the share price is the same as the previous month, and, therefore, there has been no change in the share price. For example, there was no Peel Hunt valuation event in January 2022, so we have assumed that the valuation of Peel Hunt is the same in January 2022 as the previous month of December 2020, and, therefore, the share price change in January is 0%.
+|}
+=== Cost of equity ===
+{| class="wikitable"
+|+Cost of equity (%)
+!Input
+!Input value
+!Additional information
 |-
-|Tax rate (%)
+|Risk-free rate (%)
-|41.08%
+|5.061%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 26th October 2023.<ref>https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx</ref> Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 50 years, so we have used the longest maturity, which is 30 years.
 |-
-|Depreciation and amortisation rate (%)
+|Beta
-|5.86%
+|0.86
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta.
 |-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
+|Equity risk premium (%)
-|5.78%
+|7.13%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|Here, the equity risk premium is in relation to the global region, and is calculated as at 1st July 2023.<ref>https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html</ref> Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium.
 |-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
+|Cost of equity (%)
-|55.99%
+|11.193%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
+|Cost of equity = Risk-free rate + Beta x Equity risk premium.
-|-
-|Net borrowing as a proportion of revenue (%)
-|18.25%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Interest expense as a proportion of revenue (%)
-|1.65%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|36.13%
-|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Operating expenses as a proportion of revenue (%)
-|174.39%
-|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Tax rate (%)
-|(1.94)%
-|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Depreciation and amortisation rate (%)
-|47.29%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-| 6.25%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-| 2.13%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Net borrowing as a proportion of revenue (%)
-|0%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|-
-|Interest expense as a proportion of revenue (%)
-|0%
-|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report.
-|}
-== Risks ==
-As with any investment, investing in Peel Hunt carries a level of risk. Overall, based on the Peel Hunt adjusted beta (i.e. 0.86), the degree of risk associated with an investment in Peel Hunt is 'medium'.
-Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used the 25 available share price Peel Hunt data points. We note that the amount of available data observations for Peel Hunt is less than what's typically used in the five years of monthly data beta calculation (i.e. 25 observations vs. 60 observations), and accordingly, calculating the beta of such a company may be considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta.
-The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'medium' risk, it must have a beta value of between 0.50 and 1.50. Further information about the beta ratings can be found in the appendix section of this report.
-'''The key risks'''
-Investing in Peel Hunt LLP involves several key risks:
-# The group’s business and financial performance have been and will continue to be affected by general economic conditions in the UK and other jurisdictions in which the group operates and adverse developments in the UK or global financial markets could have a detrimental impact on its earnings and profitability.<ref name=":1">https://www.peelhunt.com/media/icneklr5/admission-document.pdf</ref>
-# The group relies on the ability to attract, develop and retain highly skilled personnel.<ref name=":1" />
-# Damage to the group’s reputation could cause harm to the group and its business prospects.<ref name=":1" />
-# The group’s business is subject to inherent risks concerning liquidity, and this may have an adverse effect on the group’s business and profitability.<ref name=":1" />
-# The group’s results of operations may be materially affected by market fluctuations and significant changes in the value of financial instruments.<ref name=":1" />
-# A failure in the group’s operational systems may disrupt the group’s business operations, result in regulatory action against the group, and adversely impact the group’s reputation, business, financial condition and results of operations.<ref name=":1" />
-# The group is exposed to risks relating to its underwriting activities.<ref name=":1" />
-# The group is subject to the credit risk of counterparties.<ref name=":1" />
-# The group's framework and policies for risk management may prove inadequate for the risks faced by its business and any failure to properly manage the risks it faces could cause harm to the group and its business prospects.<ref name=":1" />
-# Failure to, or perceived failure to, appropriately manage potential conflicts of interest can adversely affect the group’s business and reputation.<ref name=":1" />
-# The group's competitive advantage depends in part on its information technology.<ref name=":1" />
-# The group faces significant and increasing competition in the financial services industry, including in changing markets.<ref name=":1" />
-# The group may be unable to successfully implement its business strategies.<ref name=":1" />
-# The group may be unable to protect its intellectual property effectively from misappropriation by others, including current and potential competitors.<ref name=":1" />
-# The group operates in an extensive, strict, and frequently changing regulatory landscape and any changes to, or the group’s failure to comply with, any laws and regulations could adversely affect the Group’s business, financial condition and results of operation.<ref name=":1" />
-# If employees of the group fail to comply with applicable laws, rules and regulations, including those associated with conduct risk or fail to adapt its business to new laws and regulations, the group could be subject to disciplinary actions, fines and loss of licences to provide its services. <ref name=":1" />
-# The group is subject to risks relating to litigation, investigations, claims and potential liabilities under laws and regulations applicable to financial services.<ref name=":1" />
-# Regulatory and other changes resulting from the UK’s exit from the EU could impact the group’s results.<ref name=":1" />
-# The group’s collection, use, storage, disclosure, transfer and other processing of personal information could give rise to significant costs and liabilities, including as a result of governmental regulation, conflicting legal requirements or differing views of personal privacy rights, which may have a material and adverse impact on the group’s business, financial condition and results of operations.<ref name=":1" />
-# The group is subject to anti-bribery and corruption and anti-money laundering laws and regulations and sanctions and embargo programmes.<ref name=":1" />
-# The group may be negatively impacted by the failure of its information technology and communications systems and related operational processes, including through cyberattacks. <ref name=":1" />
-# The group’s insurance coverage may not be adequate to cover all possible losses that it could suffer and its insurance costs may increase.<ref name=":1" />
-# A change in taxation legislation, case law or practice of tax authorities or investigations by tax authorities in key jurisdictions could materially increase the group’s costs.<ref name=":1" />
-# An active trading market for the ordinary shares may not develop or be sustained.<ref name=":1" />
-# There are no guarantees that the company will pay dividends or regarding the level of any such dividends.<ref name=":1" />
-# Substantial future sales of ordinary shares could impact their market price.<ref name=":1" />
-# The market price of the ordinary shares may fluctuate significantly in response to a number of factors, many of which will be out of the company's control.<ref name=":1" />
-# Future issues of new ordinary shares may dilute the holdings of shareholders.<ref name=":1" />
-# Shareholders may be diluted as a result of future equity offerings to the extent they do not participate or are excluded from participating.<ref name=":1" />
-# General risks of investing in shares traded on AIM.<ref name=":1" />
-# Regulatory approvals are required to increase a shareholding in the company above certain percentage thresholds of its capital.<ref name=":1" />
-== Valuation ==
-=== What's the expected return of an investment in the company? ===
-The Stockhub users estimate that the expected return of an investment in the company over the next five years is 12x, which equates to an annual return of 67%. In other words, an £100,000 investment in the company is expected to return £1,302,058 in five years time. The assumptions used to estimate the return figure can be found in the table below.
-Assuming that a suitable return level over five years is 67% per year or less, and Peel Hunt achieves its expected return level (of 67%), then an investment in the company is considered to be an 'suitable' one.
-===What are the assumptions used to estimate the return?===
-{| class="wikitable"
-|+ Key inputs
-!Description
-!Value
-!Commentary
-|-
-| Which valuation model do you want to use?
-|Discounted cash flow
-|Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that he Stockhub users suggest to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report).
-Peel Hunt has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, the Stockhub users suggest using the free cash flow valuation method (rather than the dividend discount model).
-|-
-|Which financial forecasts to use?
-| Stockhub
-|The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so the Stockhub users suggest using those.
-|-
-| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>'''
-|-
-|Discount rate (%)
-| 15%
-|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
-|-
-|Probability of success (%)
-| 80%
-| Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 80%.
-|-
-| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>'''
-|-
-|Discount rate (%)
-| 10%
-|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
-|-
-|Probability of success (%)
-|100%
-|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%.
-|-
-| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>'''
-|-
-|Discount rate (%)
-| 10%
-|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital.
-|-
-|Probability of success (%)
-| 100%
-|Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%.
-|-
-| colspan="3" |'''<div style="text-align: center;">Other key inputs</div>'''
-|-
-|What's the current value of the company?
-|£127.11 million
-|The current valuation of Peel Hunt as of 27th December 2023 is £127.11 million.
-|-
-|Which time period do you want to use to estimate the expected return?
-| Between now and five years time
-|Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
-|-
-|Which valuation recommendation method do you want to use?
-|Relative
-|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
-|-
-|Which top proportion of the investment universe constitutes a "suitable" rating?
-|10%
-|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
-|-
-|Which universe of investments do you want to use?
-|All investments
-|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
-|}
-===Sensitivity analysis===
-The main inputs that result in the greatest change in the expected return of the Peel Hunt investment are, in order of importance (from highest to lowest):
-#The size of the total addressable market (the default size is $400 billion);
-#Peel Hunt peak market share (the default share is 0.50%); and
-#The discount rate (the default time-weighted average rate is 16.50%).
-The impact of a 50% change in those main inputs to the expected return of the Peel Hunt investment is shown in the table below.
-{| class="wikitable sortable"
-|+Peel Hunt investment expected return sensitivity analysis
-!Main input
-!50% worse
-!Unchanged
-!50% better
-|-
-|The discount rate
-|ccc%
-|ccc%
-|ccc%
-|-
-|The size of the total addressable market
-|ccc%
-|ccc%
-|ccc%
-|-
-|Peel Hunt peak market share
-|ccc%
-| ccc%
-|ccc%
-|}
-==Actions==
-To invest in Peel Hunt, click [https://www.hl.co.uk/shares/shares-search-results/p/peel-hunt-ltd-ord-npv here].
-To contact Peel Hunt, click [mailto:info@peelhunt.com here].
-== Appendix ==
-=== Relative valuation approach ===
-As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach.
-==== What's the expected return of an investment in Peel Hunt using the relative valuation approach? ====
-Stockhub estimates that the expected return of an investment in Peel Hunt over the next five years is 38x, which equates to an annual return of 108%. In other words, an £100,000 investment in the company is expected to return £3,933,322 in five years time. The assumptions used to estimate the return figure can be found in the table below.
-==== What are the assumptions used to estimate the return figure? ====
-{| class="wikitable"
-|+Key inputs
-!Description
-!Value
-!Commentary
-|-
-|Which type of multiple do you want to use?
-|Growth-adjusted EV/sales
-|For the numerator, the Stockhub users believe that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, the Stockhub users believe that because it expects Peel Hunt to reinvest almost all of its revenue back into the business over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, the Stockhub users suggest valuing its company using the EV/sales ratio. However, the Stockhub users think that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple, rather than the EV/sales multiple.
-|-
-|In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use?
-|Year 5
-|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
-|-
-|In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use?
-|Year 6, from now
-|Stockhub suggests that for the sales growth figure, it's best to use Year 6.
-|-
-|In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use?
-|0.18x
-|In Stockhub's view, Peel Hunt closest peer(s) is Sova Assessment Limited.
-|-
-|Which financial forecasts to use?
-|Stockhub users
-|The only available forecasts are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so Stockhub suggests using those.
-|-
-|What's the current value of the company?
-|£127.11 million
-|The current valuation of Peel Hunt as of 27th December 2023 is £127.11 million.
-|-
-|Which time period do you want to use to estimate the expected return?
-|Between now and five years time
-|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time.
-|-
-|Which valuation recommendation method do you want to use?
-|Relative
-|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more).  Assuming sufficient data, the Stockhub users suggest using the relative method.
-|-
-|Which top proportion of the investment universe constitutes a "suitable" rating?
-|10%
-|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment.
-|-
-|Which universe of investments do you want to use?
-|All investments
-|If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe.
-|}
-==== Sensitivity analysis ====
-The main inputs that result in the greatest change in the expected return of the Peel Hunt investment are, in order of importance (from highest to lowest):
-#The growth-adjusted EV/sales multiple (the default multiple 0.18);
-#Peel Hunt Year 5 sales figure (the default figure is £48.74 million); and
-#Peel Hunt Year 6 sales growth rate (the default rate is 98.5%).
-The impact of a 50% change in those main inputs to the expected return of the Peel Hunt investment is shown in the table below.
-{| class="wikitable sortable"
-|+Peel Hunt investment expected return sensitivity analysis
-!Main input
-!50% worse
-!Unchanged
-!50% better
-|-
-|The growth-adjusted EV/sales multiple
-|ccc%
-|ccc%
-|ccc%
-|-
-|Peel Hunt Year 5 sales figure
-|ccc%
-|ccc%
-|ccc%
-|-
-|Peel Hunt Year 6 sales growth rate
-|ccc%
-|ccc%
-|ccc%
-|}
-=== Share capital ===
-Number of shares currently in issue: 122,807,085.<ref name=":0">https://www.peelhunt.com/investors/share-capital/</ref>
-Shares not in public hands: 51.6%.<ref name=":0" />
-{| class="wikitable"
-|+Significant shareholders (above 3% shareholding)<ref name=":0" />
-!Institution
-!Registered holding of ordinary shares
-!% of total issued share capital
-|-
-|Darren Carter
-|10,189,585
-|8.3%
-|-
-|Gresham House Asset Management
-|8,093,809
-|6.6%
-|-
-|Steven Fine
-|5,577,351
-|4.5%
-|-
-|Peel Hunt Share Trust
-|5,528,728
-|4.5%
-|-
-|Unicorn Asset Management Limited
-|4,368,860
-|3.6%
-|-
-|Iain Morgan
-|4,206,689
-|3.4%
-|-
-|Canaccord Genuity Wealth (International) Limited
-|4,098,877
-|3.3%
-|-
-|Schroder Investment Management Limited
-|3,947,368
-|3.2%
-|}
-The aggregate number of Ordinary Shares subject to lock-up in each of the second year following Admission: 33,346,520 Ordinary Shares.<ref name=":0" />
-The aggregate number of Ordinary Shares subject to lock-up in each of the third year following Admission: 21,932,985 Ordinary Shares.<ref name=":0" />
-The aggregate number of Ordinary Shares subject to lock-up in each of the fourth year following Admission: 10,858,688 Ordinary Shares.<ref name=":0" />
-Last updated on 10 August 2023.
-===Economic links to cash flow patterns ===
-{| class="wikitable"
-|+Economic links to cash flow patterns
-|-
-!Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline
-|-
-|Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+
-| style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |-
-|-
-|Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-
-| style="background: green; color: white;" | +
-|-
-|Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-
-|}
-=== Beta risk profile ===
-{| class="wikitable"
-|+
-!Beta value
-!Risk rating
-|-
-|style="background: green; color: white;" |0 to 0.50
-|style="background: green; color: white;" | Low
-|-
-|style="background: orange; color: white;" | 0.50 to 1.50
-|style="background: orange; color: white;" | Medium
-|-
-|style="background: red; color: white;" | 1.50 to 3.00
-|style="background: red; color: white;" | High
-|-
-|style="background: purple; color: white;" | 3.00 and above
-|style="background: purple; color: white;" | Extremely high
-|}
-=== Peel Hunt adjusted beta calculation ===
-{| class="wikitable"
-|+
-!Date
-!iShares MSCI World ETF unit price (USD)
-!Peel Hunt share price (GBP)
-!iShares MSCI World ETF unit price change (%)
-!Peel Hunt share price change (%)
-|-
-|01/11/2018
-|86.21
-|N/A
-|
-|
-|-
-|01/12/2018
-|78.87
-|N/A
-| -8.51%
-|N/A
-|-
-|01/01/2019
-|84.96
-|N/A
-|7.72%
-|N/A
-|-
-|01/02/2019
-|87.49
-|N/A
-|2.98%
-|N/A
-|-
-|01/03/2019
-|88.79
-|N/A
-| 1.49%
-|N/A
-|-
-|01/04/2019
-|92.09
-|N/A
-|3.72%
-|N/A
-|-
-|01/05/2019
-|86.76
-|N/A
-| -5.79%
-|N/A
-|-
-|01/06/2019
-|91.02
-|N/A
-|4.91%
-|N/A
-|-
-|01/07/2019
-|91.86
-|N/A
-|0.92%
-|N/A
-|-
-|01/08/2019
-|89.84
-|N/A
-| -2.20%
-| N/A
-|-
-|01/09/2019
-|91.78
-|N/A
-|2.16%
-|N/A
-|-
-|01/10/2019
-|94.12
-|N/A
-|2.55%
-|N/A
-|-
-|01/11/2019
-|96.76
-|N/A
-|2.80%
-|N/A
-|-
-|01/12/2019
-|98.78
-|N/A
-|2.09%
-|N/A
-|-
-|01/01/2020
-|97.73
-|N/A
-| -1.06%
-|N/A
-|-
-|01/02/2020
-|89.67
-|N/A
-| -8.25%
-|N/A
-|-
-|01/03/2020
-|77.93
-|N/A
-| -13.09%
-|N/A
-|-
-|01/04/2020
-|86.36
-|N/A
-|10.82%
-|N/A
-|-
-|01/05/2020
-|90.70
-|N/A
-|5.03%
-|N/A
-|-
-|01/06/2020
-|92.14
-|N/A
-|1.59%
-|N/A
-|-
-|01/07/2020
-|96.65
-|N/A
-|4.89%
-|N/A
-|-
-|01/08/2020
-|102.96
-|N/A
-|6.53%
-|N/A
-|-
-|01/09/2020
-|99.52
-|N/A
-| -3.34%
-|N/A
-|-
-|01/10/2020
-|96.53
-|N/A
-| -3.00%
-|N/A
-|-
-|01/11/2020
-|108.94
-|N/A
-|12.86%
-|N/A
-|-
-|01/12/2020
-|112.41
-|N/A
-|3.19%
-|N/A
-|-
-|01/01/2021
-|111.49
-|N/A
-| -0.82%
-|N/A
-|-
-|01/02/2021
-|114.27
-|N/A
-|2.49%
-|N/A
-|-
-|01/03/2021
-|118.49
-|N/A
-|3.69%
-|N/A
-|-
-|01/04/2021
-|123.61
-|N/A
-|4.32%
-|N/A
-|-
-|01/05/2021
-|125.60
-|N/A
-|1.61%
-|N/A
-|-
-|01/06/2021
-|126.57
-|N/A
-|0.77%
-|N/A
-|-
-|01/07/2021
-|128.83
-|N/A
-|1.79%
-|N/A
-|-
-|01/08/2021
-|132.02
-|N/A
-|2.48%
-|N/A
-|-
-|01/09/2021
-|126.46
-|N/A
-| -4.21%
-|N/A
-|-
-|01/10/2021
-|133.84
-|227.00
-|5.84%
-|N/A
-|-
-|01/11/2021
-|131.10
-|210.50
-| -2.05%
-| -7.27%
-|-
-|01/12/2021
-|135.32
-|201.00
-|3.22%
-| -4.51%
-|-
-|01/01/2022
-|128.32
-|175.00
-| -5.17%
-| -12.94%
-|-
-|01/02/2022
-|124.58
-|125.50
-| -2.91%
-| -28.29%
-|-
-|01/03/2022
-|128.16
-|124.00
-|2.87%
-| -1.20%
-|-
-|01/04/2022
-|117.42
-|121.50
-| -8.38%
-| -2.02%
-|-
-|01/05/2022
-|117.94
-|119.00
-|0.44%
-| -2.06%
-|-
-|01/06/2022
-|106.88
-|114.00
-| -9.38%
-| -4.20%
-|-
-|01/07/2022
-|115.57
-|103.50
-|8.13%
-| -9.21%
-|-
-|01/08/2022
-|110.28
-|101.00
-| -4.58%
-| -2.42%
-|-
-|01/09/2022
-|99.95
-|88.00
-| -9.37%
-| -12.87%
-|-
-|01/10/2022
-|107.42
-|85.50
-|7.47%
-| -2.84%
-|-
-|01/11/2022
-|115.44
-|83.00
-|7.47%
-| -2.92%
-|-
-|01/12/2022
-|109.25
-|85.00
-| -5.36%
-|2.41%
-|-
-|01/01/2023
-|117.01
-|107.00
-|7.10%
-|25.88%
-|-
-|01/02/2023
-|113.98
-|106.00
-| -2.59%
-| -0.93%
-|-
-|01/03/2023
-|117.67
-|106.00
-|3.24%
-|0.00%
-|-
-|01/04/2023
-|119.79
-|115.00
-|1.80%
-|8.49%
-|-
-|01/05/2023
-|118.60
-|104.50
-| -0.99%
-| -9.13%
-|-
-|01/06/2023
-|124.52
-|103.00
-|4.99%
-| -1.44%
-|-
-|01/07/2023
-|128.54
-|103.00
-|3.23%
-|0.00%
-|-
-|01/08/2023
-|125.70
-|102.50
-| -2.21%
-| -0.49%
-|-
-|01/09/2023
-|120.17
-|83.00
-| -4.40%
-| -19.02%
-|-
-|01/10/2023
-|117.11
-|80.00
-| -2.55%
-| -3.61%
-|-
-|24/10/2023
-|122.84
-|90.50
-|4.89%
-|13.13%
-|}
-{| class="wikitable"
-|+Peel Hunt beta and adjusted beta value
-!
-!Beta
-!Adjusted beta
-!Comment(s)
-|-
-|Consistent (monthly) intervals between data points
-|0.79
-|0.86
-|Here, when there is no valuation event, we have assumed that the share price is the same as the previous month, and, therefore, there has been no change in the share price. For example, there was no Peel Hunt valuation event in January 2022, so we have assumed that the valuation of Peel Hunt is the same in January 2022 as the previous month of December 2020, and, therefore, the share price change in January is 0%.
-|}
-=== Cost of equity ===
-{| class="wikitable"
-|+Cost of equity (%)
-!Input
-!Input value
-!Additional information
-|-
-|Risk-free rate (%)
-|5.061%
-|Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 26th October 2023.<ref>https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx</ref> Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 50 years, so we have used the longest maturity, which is 30 years.
-|-
-|Beta
-|0.86
-|Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta.
-|-
-|Equity risk premium (%)
-|7.13%
-|Here, the equity risk premium is in relation to the global region, and is calculated as at 1st July 2023.<ref>https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html</ref> Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium.
-|-
-|Cost of equity (%)
-|11.193%
-|Cost of equity = Risk-free rate + Beta x Equity risk premium.
-|}
-=== Peel Hunt Nominated Advisors Clients ===
-Peel Hunt in the nominated advisor to 28 companies that are listed on the AIM market of the London Stock Exchange (LSE) as at 26th December 2023.<ref name=":4">https://www.londonstockexchange.com/adviser</ref>
-{| class="wikitable sortable"
-|+
-!Code
-!Name
-!Sector
-!Location
-!Market cap
-!Admission date
-|-
-|32ID
-|Renold Plc 6% Cum Prf Stk Gbp1
-|Industrial Engineering
-|North West
-|621,116
-|28/06/2002
-|-
-|ABDP
-|AB Dynamics Plc Ord 1P
-|Industrial Engineering
-|South West
-|415,112,007
-|22/05/2013
-|-
-|AET
-|Afentra Plc Ord 10P
-|Oil, Gas and Coal
-|International
-|76,468,598
-|23/12/2009
-|-
-|AFC
-|AFC Energy Plc Ord 0.1P
-|Alternative Energy
-|South East
-|144,326,910
-|24/04/2007
-|-
-|BOKU
-|Boku, Inc. Cmn Shs Usd0.0001 (Di) Reg S Cat 3/144A
-|Industrial Support Services
-|International
-|409,724,748
-|20/11/2017
-|-
-|BRK
-|Brooks Macdonald Group Plc Ord 1P
-|Investment Banking and Brokerage Services
-|London
-|299,219,466
-|21/03/2006
-|-
-|CAML
-|Central Asia Metals Plc Ord Usd0.01
-|Industrial Metals and Mining
-|International
-|330,339,373
-|30/09/2010
-|-
-|CFX
-|Colefax Group Plc Ord 10P
-|Household Goods and Home Construction
-|London
-|44,814,823
-|24/03/2005
-|-
-|CRW
-|Craneware Plc Ord 1P
-|Health Care Providers
-|Scotland
-|630,995,108
-|13/09/2007
-|-
-|CVSG
-|CVS Group Plc Ord 0.2P
-|Consumer Services
-|East Anglia
-|1,217,571,007
-|18/03/2008
-|-
-|FDEV
-|Frontier Developments Plc Ord 0.5P
-|Leisure Goods
-|South West
-|53,296,022
-|15/07/2013
-|-
-|GDR
-|Genedrive Plc Ord 1.5P
-|Pharmaceuticals and Biotechnology
-|North West
-|10,394,120
-|04/04/2007
-|-
-|GMR
-|Gaming Realms Plc Ord 10P
-|Travel and Leisure
-|East Anglia
-|102,343,242
-|01/08/2013
-|-
-|HZM
-|Horizonte Minerals Plc Ord 20P
-|Industrial Metals and Mining
-|International
-|21,177,644
-|31/05/2022
-|-
-|IDOX
-|Idox Plc Ord 1P
-|Software and Computer Services
-|Scotland
-|310,206,020
-|19/12/2000
-|-
-|IPX
-|Impax Asset Management Group Plc Ord 1P
-|Investment Banking and Brokerage Services
-|London
-|741,214,737
-|22/03/2006
-|-
-|IQE
-|IQE Plc Ord 1P
-|Technology Hardware and Equipment
-|Wales
-|230,763,498
-|30/09/2003
-|-
-|MANO
-|Manolete Partners Plc Ord 0.4P
-|Investment Banking and Brokerage Services
-|London
-|72,206,153
-|14/12/2018
-|-
-|MPE
-|M. P. Evans Group Plc Ord 10P
-|Food Producers
-|International
-|399,678,608
-|18/06/2007
-|-
-|NWF
-|NWF Group Plc Ord 25P
-|Industrial Support Services
-|North West
-|111,238,607
-|02/06/2000
-|-
-|PAF
-|Pan African Resources Plc Ord 1P
-|Precious Metals and Mining
-|London
-|319,672,865
-|14/09/2004
-|-
-|RNO
-|Renold Plc Ord 5P
-|Industrial Engineering
-|North West
-|80,248,715
-|19/12/2006
-|-
-|SPEC
-|Inspecs Group Plc Ord 1P
-|Personal Goods
-|International
-|85,404,081
-|27/02/2020
-|-
-|SQZ
-|Serica Energy Plc Ord Usd0.10
-|Oil, Gas and Coal
-|London
-|879,663,358
-|05/09/2006
-|-
-|STX
-|Shield Therapeutics Plc Ord 1.5P
-|Pharmaceuticals and Biotechnology
-|Yorkshire & North East
-|50,442,636
-|26/02/2016
-|-
-|VANL
-|Van Elle Holdings Plc Ord 2P
-|Construction and Materials
-|Midlands
-|40,027,850
-|26/10/2016
-|-
-|VLX
-|Volex Plc Ord 25P
-|Electronic and Electrical Equipment
-|South West
-|591,376,248
-|19/03/2001
-|-
-|WJG
-|Watkin Jones Plc Ord 1P
-|Household Goods and Home Construction
-|Wales
-|146,940,838
-|23/03/2016
-|}
-Peel Hunt is ranked 12th in terms of the number of AIM-listed companies to which it is a nominated advisor as at 26th December 2023.<ref name=":4" />
-{| class="wikitable sortable"
-|+
-!Nominated advisor
-!Number of clients
-!Ranking based on clients number
-|-
-|Peel Hunt LLP
-|28
-|12
-|-
-|Numis Securities Limited
-|24
-|15
-|-
-|Cairn Financial Advisers LLP
-|21
-|16
-|-
-|SPARK Advisory Partners Limited
-|27
-|13
-|-
-|Cavendish Capital Markets Limited
-|105
-|1
-|-
-|Beaumont Cornish Limited
-|35
-|9
-|-
-|S P Angel Corporate Finance LLP
-|40
-|7
-|-
-|Singer Capital Markets Advisory LLP
-|52
-|4
-|-
-|Zeus Capital Limited
-|21
-|16
-|-
-|W H Ireland Limited
-|52
-|4
-|-
-|Cavendish Securities Plc
-|18
-|18
-|-
-|Allenby Capital Limited
-|55
-|3
-|-
-|Investec Bank Plc
-|27
-|13
-|-
-|Joh. Berenberg, Gossler & Co. KG
-|2
-|24
-|-
-|Strand Hanson Limited
-|59
-|2
-|-
-|Panmure Gordon (UK) Limited
-|29
-|11
-|-
-|Liberum Capital Limited
-|42
-|6
-|-
-|Stifel Nicolaus Europe Limited
-|17
-|19
-|-
-|Shore Capital & Corporate Limited
-|35
-|9
-|-
-|Grant Thornton UK LLP
-|11
-|20
-|-
-|Houlihan Lokey UK Limited
-|5
-|22
-|-
-|Canaccord Genuity Limited
-|40
-|7
-|-
-|Davy Corporate Finance
-|9
-|21
-|-
-|J.P. Morgan Securities plc
-|3
-|23
-|}
-{| class="wikitable sortable"
-|+
-!Sector
-!Number of clients
-!Ranking based on number of clients
-|-
-|Industrial Engineering
-|3
-|1
-|-
-|Oil, Gas and Coal
-|2
-|3
-|-
-|Alternative Energy
-|1
-|8
-|-
-|Industrial Support Services
-|2
-|3
-|-
-|Investment Banking and Brokerage Services
-|3
-|1
-|-
-|Industrial Metals and Mining
-|2
-|3
-|-
-|Household Goods and Home Construction
-|2
-|3
-|-
-|Health Care Providers
-|1
-|8
-|-
-|Consumer Services
-|1
-|8
-|-
-|Leisure Goods
-|1
-|8
-|-
-|Pharmaceuticals and Biotechnology
-|2
-|3
-|-
-|Travel and Leisure
-|1
-|8
-|-
-|Software and Computer Services
-|1
-|8
-|-
-|Technology Hardware and Equipment
-|1
-|8
-|-
-|Food Producers
-|1
-|8
-|-
-|Precious Metals and Mining
-|1
-|8
-|-
-|Personal Goods
-|1
-|8
-|-
-|Construction and Materials
-|1
-|8
-|-
-|Electronic and Electrical Equipment
-|1
-|8
-|}
-=== Peel Hunt peer(s) ===
-{| class="wikitable"
-|+
-!
-!Peel Hunt LLP
-!Numis Corporation plc
-!Panmure Gordon
-!Shore Capital
-!Goldman Sachs
-!Investec
-!Jefferies Financial Group, Inc.
-!Stifel Financial Corp.
-!Canaccord Genuity Group
-!HSBC Holdings plc
-!Barclays Investment Bank
-!JP Morgan Cazenove
-!Average (median)
-|-
-! colspan="14" |Relative valuation data
-|-
-|Local currency
-|GBP
-|GBP
-|GBP
-|GBP
-|USD
-|USD
-|USD
-|USD
-|CAD
-|GBP
-|GBP
-|USD
-|N/A
-|-
-|Current market capitalisation (local currency, million)
-|144.91
-|410.00
-|
-|47.50
-|125,360
-|5,000
-|8,411
-|7,029
-|777.19
-|121,240
-|23,648
-|498,005
-|N/A
-|-
-|Year ago sales
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|N/A
-|-
-|Current sales
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|N/A
-|-
-|Sales growth rate (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|N/A
-|-
-|Current cash
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|N/A
-|-
-|Current debt
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|N/A
-|-
-! colspan="14" |Relative valuation metrics
-|-
-|Enterprise value/sales
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Growth-adjusted enterprise value/sales ratio
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-! colspan="14" |Absolute valuation data
-|-
-|Lifecycle growth stage
-|Stage 2 (of 4)
-|Stage 3 (of 4)
-|Stage 4 (of 4)
-|N/A
-|Stage 2 (of 4)
-|Stage 3 (of 4)
-|Stage 3 (of 4)
-|
-|
-|Stage 3 (of 4)
-|Stage 2 (of 4)
-|
-|
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Key metrics for different stages of the business lifecycle
-!
-!Stage 1
-!Stage 2
-!Stage 3
-!Stage 4
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|N/A
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|N/A
-|
-|
-|
-|-
-|Tax rate (%)
-|N/A
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|N/A
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|N/A
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|N/A
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|N/A
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|N/A
-|
-|
-|
-|}
-{| class="wikitable"
-|+Stage 2
-!
-!Peel Hunt
-!Goldman Sachs
-!Barclays Bank Plc
-!Median
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Stage 3
-!
-!Numis Corporation
-!Investec
-!Jefferies Financial Group, Inc.
-!HSBC Holdings Plc
-!Median
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Stage 4
-!
-!Blackberry
-!Panmure Gordon
-!
-!Median
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|36.13%
-|
-|
-|36.13%
-|-
-|Operating expenses as a proportion of revenue (%)
-|174.39%
-|
-|
-|174.39%
-|-
-|Tax rate (%)
-|(1.94)%
-|
-|
-|(1.94)%
-|-
-|Depreciation and amortisation rate (%)
-|47.29%
-|
-|
-|47.29%
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|6.25%
-|
-|
-|6.25%
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|2.13%
-|
-|
-|2.13%
-|-
-|Net borrowing as a proportion of revenue (%)
-|0%
-|
-|
-|0%
-|-
-|Interest expense as a proportion of revenue (%)
-|0%
-|
-|
-|0%
-|}
-{| class="wikitable"
-|+Numis Corporation plc
-!
-!30/09/2018
-!30/09/2019
-!30/09/2020
-!30/09/2021
-!30/09/2022
-|-
-!
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-|-
-! colspan="6" |Profit and loss
-|-
-|Revenue (£'million)
-|
-|
-|
-|215,582
-|144,229
-|-
-|Other operating income/(loss)
-|
-|
-|
-|8,715
-|(1,432)
-|-
-|Total income
-|
-|
-|
-|224,297
-|142,797
-|-
-|Administrative expenses
-|
-|
-|
-|(147,859)
-|(123,716)
-|-
-|Operating profit/(loss)
-|
-|
-|
-|76,438
-|19,081
-|-
-|Finance income
-|
-|
-|
-|1
-|3,906
-|-
-|Finance costs
-|
-|
-|
-|(2,289)
-|(2,131)
-|-
-|Profit Before Tax
-|
-|
-|
-|74,150
-|20,856
-|-
-|Taxation
-|
-|
-|
-|(16,303)
-|(7,153)
-|-
-|Profit for the period
-|
-|
-|
-|57,847
-|13,703
-|-
-! colspan="6" |Balance sheet
-|-
-| colspan="6" |'''Assets'''
-|-
-| colspan="6" |'''Non-current assets'''
-|-
-|Property, plant and equipment
-|
-|
-|
-|10,044
-|9,458
-|-
-|Intangible assets
-|
-|
-|
-|558
-|275
-|-
-|Right-of-use assets
-|
-|
-|
-|38,033
-|35,400
-|-
-|Deferred tax assets
-|
-|
-|
-|4,006
-|1,354
-|-
-|
-|
-|
-|
-|52,641
-|46,487
-|-
-| colspan="6" |'''Current assets'''
-|-
-|Trade and other receivables
-|
-|
-|
-|467,799
-|403,416
-|-
-|Trading investments
-|
-|
-|
-|58,972
-|36,071
-|-
-|Stock borrowing collateral
-|
-|
-|
-|18,623
-|20,354
-|-
-|Current income tax recievable
-|
-|
-|
-|3,171
-|10,792
-|-
-|Derivative financial instruments
-|
-|
-|
-|629
-|22
-|-
-|Cash and cash equivalents
-|
-|
-|
-|134,125
-|105,653
-|-
-|Total current assets
-|
-|
-|
-|683,319
-|576,309
-|-
-| colspan="6" |'''Liabilities'''
-|-
-| colspan="6" |'''Non-current liabilities'''
-|-
-|Lease liabilities
-|
-|
-|
-|(39,580)
-|(40,910)
-|-
-| colspan="6" |'''Current liabilities'''
-|-
-|Trade and other payables
-|
-|
-|
-|(481,946)
-|(385,720)
-|-
-|Trading investments
-|
-|
-|
-|(27,217)
-|(10,340)
-|-
-|Lease liabilities
-|
-|
-|
-|(491)
-|(605)
-|-
-|Total current liabilities
-|
-|
-|
-|(509,654)
-|(396,665)
-|-
-|Net assets
-|
-|
-|
-|186,726
-|185,221
-|-
-|Equity
-|
-|
-|
-|
-|
-|-
-|Share capital
-|
-|
-|
-|6,252
-|5,718
-|-
-|Capital redemption reserve
-|
-|
-|
-|0
-|534
-|-
-|Other reserves
-|
-|
-|
-|9,037
-|10,641
-|-
-|Retained earnings
-|
-|
-|
-|171,437
-|168,328
-|-
-|Total equity
-|
-|
-|
-|186,726
-|185,221
-|-
-! colspan="6" |Cash flow statement
-|-
-|Operating activities
-|
-|
-|
-|
-|
-|-
-|Cash flows generated from operating activities
-|
-|
-|
-|77,115
-|7,902
-|-
-|Taxation paid
-|
-|
-|
-|(17,599)
-|(7,164)
-|-
-|Interest received in relation to operating activities
-|
-|
-|
-|1
-|436
-|-
-|Interest paid in relation to operating activities
-|
-|
-|
-|(1,187)
-|0
-|-
-|'''Net cash from/(used in) operating activities'''
-|
-|
-|
-|58,330
-|1,174
-|-
-| colspan="6" |'''Investing activities'''
-|-
-|Decrease in term deposits
-|
-|
-|
-|0
-|0
-|-
-|Purchase of property, plant and equipment
-|
-|
-|
-|(8,881)
-|(1,114)
-|-
-|Purchase of intangible assets
-|
-|
-|
-|(310)
-|(19)
-|-
-|Proceeds on disposal of subsidiary
-|
-|
-|
-|0
-|0
-|-
-|Proceeds/(purchase) on disposal of investments
-|
-|
-|
-|0
-|0
-|-
-|'''Net cash from/(used in) investing activities'''
-|
-|
-|
-|(9,191)
-|(1,133)
-|-
-| colspan="6" |'''Financing activities'''
-|-
-|Purchase of own shares - Treasury
-|
-|
-|
-|(1,555)
-|(8,183)
-|-
-|Purchase of own shares - Employee Benefit Trust
-|
-|
-|
-|(22,663)
-|(3,385)
-|-
-|Cash paid in respect of lease arrangements - principal
-|
-|
-|
-|(1,811)
-|(555)
-|-
-|Interest paid
-|
-|
-|
-|(1,102)
-|(537)
-|-
-|Dividends paid
-|
-|
-|
-|(12,726)
-|(15,580)
-|-
-|'''Net cash from/(used in) financing activities'''
-|
-|
-|
-|(39,857)
-|(28,240)
-|-
-! colspan="6" |Operating costs
-|-
-|Depreciation of owned plant and equipment and right-of-use assets
-|
-|
-|
-|
-|
-|-
-|Amortisation of other intangible assets
-|
-|
-|
-|
-|
-|-
-|Impairment of intangible assets
-|
-|
-|
-|
-|
-|-
-|Marketing costs
-|
-|
-|
-|
-|
-|-
-|Operating lease rentals payable – property
-|
-|
-|
-|
-|
-|-
-|Office running costs – excluding operating lease rents payable
-|
-|
-|
-|
-|
-|-
-|FSCS costs
-|
-|
-|
-|
-|
-|-
-|Dealing and financial services costs
-|
-|
-|
-|
-|
-|-
-|Data and technology costs
-|
-|
-|
-|
-|
-|-
-|Legal and professional costs
-|
-|
-|
-|
-|
-|-
-|Other operating costs
-|
-|
-|
-|
-|
-|-
-|Staff (including contractors) costs
-|
-|
-|
-|
-|
-|-
-|Total
-|
-|
-|
-|
-|
-|-
-! colspan="6" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|N/A
-|N/A
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|65.92%
-|86.64%
-|-
-|Tax rate (%)
-|
-|
-|
-|21.99%
-|34.30%
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Panmure Gordon Group Limited
-!
-!31/12/2018
-!31/12/2019
-!31/12/2020
-!31/12/2021
-!31/12/2022
-!30/09/2023
-!30/09/2024
-|-
-!
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Forecast
-!Forecast
-|-
-! colspan="8" |Profit and loss
-|-
-|Revenue (£'000)
-|
-|
-|
-|48,286
-|27,637
-|
-|
-|-
-|Cost of sales
-|
-|
-|
-|(1,882)
-|(1,704)
-|
-|
-|-
-|Gross profit
-|
-|
-|
-|46,404
-|25,933
-|
-|
-|-
-|Operating expenses
-|
-|
-|
-|(42,516)
-|(41,648)
-|
-|
-|-
-|Total operating (loss)/profit
-|
-|
-|
-|3,888
-|(15,715)
-|
-|
-|-
-|Net interest expense
-|
-|
-|
-|(119)
-|(870)
-|
-|
-|-
-|Profit before tax
-|
-|
-|
-|3,769
-|(16,585)
-|
-|
-|-
-|Tax expense
-|
-|
-|
-|56
-|(127)
-|
-|
-|-
-|(Loss)/profit on ordinarily activities before taxation
-|
-|
-|
-|3,825
-|(16,712)
-|
-|
-|-
-|Discontinued operations
-|
-|
-|
-|(720)
-|364
-|
-|
-|-
-|(Loss)/profit after taxation
-|
-|
-|
-|3,105
-|(16,348)
-|
-|
-|-
-|Attributable to: equity holder of parent
-|
-|
-|
-|3,105
-|(16,348)
-|
-|
-|-
-|Other comprehensive income net of income tax:
-|
-|
-|
-|
-|
-|
-|
-|-
-|Debt instruments at fair value through other comprehensive income
-|
-|
-|
-|2
-|22
-|
-|
-|-
-|Total comprehensive (loss)/profit for the year
-|
-|
-|
-|3,107
-|(16,326)
-|
-|
-|-
-! colspan="8" |Balance sheet
-|-
-| colspan="8" |'''Assets'''
-|-
-| colspan="8" |'''Non-current assets'''
-|-
-|Intangible assets
-|
-|
-|
-|973
-|759
-|
-|
-|-
-|Goodwill
-|
-|
-|
-|792
-|792
-|
-|
-|-
-|Property, plant and equipment
-|
-|
-|
-|451
-|1,327
-|
-|
-|-
-|Deferred tax asset
-|
-|
-|
-|174
-|63
-|
-|
-|-
-|Trade and other receivables
-|
-|
-|
-|413
-|0
-|
-|
-|-
-|
-|
-|
-|
-|2,803
-|2,941
-|
-|
-|-
-| colspan="8" |'''Current assets'''
-|-
-|Securities held for trading
-|
-|
-|
-|9,135
-|6,405
-|
-|
-|-
-|Financial investments
-|
-|
-|
-|3,793
-|2,770
-|
-|
-|-
-|Trade and other receivables
-|
-|
-|
-|84,202
-|36,200
-|
-|
-|-
-|Cash and cash equivalents
-|
-|
-|
-|8,613
-|4,826
-|
-|
-|-
-|
-|
-|
-|
-|105,743
-|50,201
-|
-|
-|-
-|Total assets
-|
-|
-|
-|108,546
-|53,142
-|
-|
-|-
-| colspan="8" |'''Liabilities'''
-|-
-| colspan="8" |'''Current liabilities'''
-|-
-|Securities held for trading
-|
-|
-|
-|(4,098)
-|(3,688)
-|
-|
-|-
-|Trade and other payables
-|
-|
-|
-|(77,470)
-|(19,790)
-|
-|
-|-
-|Overdrafts
-|
-|
-|
-|0
-|(15,535)
-|
-|
-|-
-|
-|
-|
-|
-|(81,568)
-|(39,013)
-|
-|
-|-
-| colspan="8" |'''Non-current liabilities'''
-|-
-|Deferred tax liability
-|
-|
-|
-|(161)
-|(130)
-|
-|
-|-
-|Trade and other payables
-|
-|
-|
-|0
-|(459)
-|
-|
-|-
-|Provisions
-|
-|
-|
-|(274)
-|0
-|
-|
-|-
-|
-|
-|
-|
-|(435)
-|(589)
-|
-|
-|-
-|Total liabilities
-|
-|
-|
-|(82,003)
-|(39,602)
-|
-|
-|-
-|Net assets
-|
-|
-|
-|26,543
-|13,540
-|
-|
-|-
-| colspan="8" |'''Equity'''
-|-
-|Called up share capital
-|
-|
-|
-|420
-|478
-|
-|
-|-
-|Share premium
-|
-|
-|
-|78,524
-|81,936
-|
-|
-|-
-|Retained earnings
-|
-|
-|
-|(52,401)
-|(68,874)
-|
-|
-|-
-|Total equity
-|
-|
-|
-|26,543
-|13,540
-|
-|
-|-
-! colspan="6" |Cash flow statement
-!
-!
-|-
-| colspan="8" |'''Cash flows from operating activities'''
-|-
-|Profit for the financial year
-|
-|
-|
-|3,769
-|(16,585)
-|
-|
-|-
-|Finance income
-|
-|
-|
-|0
-|(32)
-|
-|
-|-
-|Finance costs
-|
-|
-|
-|0
-|902
-|
-|
-|-
-|Foreign exchange on capitalised shareholders loan
-|
-|
-|
-|0
-|313
-|
-|
-|-
-|Depreciation
-|
-|
-|
-|870
-|965
-|
-|
-|-
-|Amortisation
-|
-|
-|
-|691
-|225
-|
-|
-|-
-|Change in operating assets
-|
-|
-|
-|(56,281)
-|50,800
-|
-|
-|-
-|Change in operating liabilities
-|
-|
-|
-|44,840
-|(57,871)
-|
-|
-|-
-|Change in other non-cash items
-|
-|
-|
-|384
-|28
-|
-|
-|-
-|Discontinued operations
-|
-|
-|
-|(720)
-|0
-|
-|
-|-
-|Utilisation of provision
-|
-|
-|
-|(533)
-|(97)
-|
-|
-|-
-|Tax paid
-|
-|
-|
-|(52)
-|(181)
-|
-|
-|-
-|Net cash from/(used in) operating activities
-|
-|
-|
-|(7,032)
-|(21,533)
-|
-|
-|-
-| colspan="8" |'''Cash flows from investing activities'''
-|-
-|Acquisition of intangible assets and property, plant and equipment
-|
-|
-|
-|(116)
-|(616)
-|
-|
-|-
-|Interest received
-|
-|
-|
-|0
-|32
-|
-|
-|-
-|Sale of financial investments
-|
-|
-|
-|485
-|1,367
-|
-|
-|-
-|Net cash from/(used in) investing activities
-|
-|
-|
-|369
-|783
-|
-|
-|-
-| colspan="8" |'''Cash flows from financing activities'''
-|-
-|Funds raised from shareholders
-|
-|
-|
-|100
-|2,950
-|
-|
-|-
-|Overdrafts
-|
-|
-|
-|0
-|15,535
-|
-|
-|-
-|Interest paid
-|
-|
-|
-|0
-|(672)
-|
-|
-|-
-|Interest paid on lease liabilities
-|
-|
-|
-| -
-|(23)
-|
-|
-|-
-|Lease repayments
-|
-|
-|
-|(815)
-|(827)
-|
-|
-|-
-|Net cash from/(used in) financing activities
-|
-|
-|
-|(715)
-|16,963
-|
-|
-|-
-|Net decrease in cash and cash equivalents
-|
-|
-|
-|(7,378)
-|(3,787)
-|
-|
-|-
-|Cash and cash equivalents at the beginning of the year
-|
-|
-|
-|15,991
-|8,613
-|
-|
-|-
-|Cash and cash equivalents at the end of the year
-|
-|
-|
-|8,613
-|4,826
-|
-|
-|-
-! colspan="8" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Share Capital Group plc
-!Year
-!1
-!2
-!3
-!4
-!5
-!6<ref name=":2">https://find-and-update.company-information.service.gov.uk/company/02089582/filing-history/MzM4Mzg5MDEwNmFkaXF6a2N4/document?format=pdf&download=0</ref>
-!7<ref name=":2" />
-|-
-!Year end date
-!31/12/2016
-!31/12/2017
-!31/12/2018
-!31/12/2019
-!31/12/2020
-!31/12/2021
-!31/12/2022
-|-
-!
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-|-
-! colspan="8" |Profit and loss
-|-
-|Revenue
-|
-|
-|
-|
-|
-|2,174
-|1,721
-|-
-|Administrative expenses
-|
-|
-|
-|
-|
-|(7,971)
-|(2,495)
-|-
-|Profit from operations
-|
-|
-|
-|
-|
-|(5,797)
-|(774)
-|-
-|Dividend income
-|
-|
-|
-|
-|
-|2,800
-|0
-|-
-|Profit before tax
-|
-|
-|
-|
-|
-|(2,997)
-|(774)
-|-
-|Tax credit
-|
-|
-|
-|
-|
-|435
-|138
-|-
-|Profit for the year
-|
-|
-|
-|
-|
-|(2,562)
-|(636)
-|-
-! colspan="8" |Balance sheet
-|-
-| colspan="8" |'''Assets'''
-|-
-| colspan="8" |'''Non-current assets'''
-|-
-|Tangible assets
-|
-|
-|
-|
-|
-|804
-|672
-|-
-|Investments in subsidiaries
-|
-|
-|
-|
-|
-|35,784
-|35,784
-|-
-|
-|
-|
-|
-|
-|
-|36,588
-|36,456
-|-
-| colspan="8" |'''Current assets'''
-|-
-|Debtors: amounts due within one year
-|
-|
-|
-|
-|
-|5,946
-|5,903
-|-
-|Cash at bank and in hand
-|
-|
-|
-|
-|
-|1,443
-|462
-|-
-|
-|
-|
-|
-|
-|
-|7,389
-|6,365
-|-
-|Total assets
-|
-|
-|
-|
-|
-|
-|
-|-
-| colspan="8" |Liabilities
-|-
-| colspan="8" |'''Non-current liabilities'''
-|-
-|Creditors: amounts falling due after more than one year
-|
-|
-|
-|
-|
-|(59)
-|(59)
-|-
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-| colspan="8" |'''Current liabilities'''
-|-
-|Creditors: amounts falling due within one year
-|
-|
-|
-|
-|
-|(43,062)
-|(42,542)
-|-
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-|Total liabilities
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net assets
-|
-|
-|
-|
-|
-|856
-|220
-|-
-| colspan="8" |'''Issued capital and reserves attributable to owners of the parent'''
-|-
-|Called up share capital
-|
-|
-|
-|
-|
-|460
-|460
-|-
-|Share premium account
-|
-|
-|
-|
-|
-|20,090
-|20,090
-|-
-|Revaluation reserve
-|
-|
-|
-|
-|
-|5,596
-|5,596
-|-
-|Retained earnings
-|
-|
-|
-|
-|
-|(25,290)
-|(25,926)
-|-
-|Total equity
-|
-|
-|
-|
-|
-|856
-|220
-|-
-! colspan="8" |Cash flow statement
-|-
-| colspan="8" |'''Cash flows from operating activities'''
-|-
-|Profit for the year
-|
-|
-|
-|
-|
-|
-|
-|-
-| colspan="8" |'''Adjustments for:'''
-|-
-|Depreciation of property, plant and equipment
-|
-|
-|
-|
-|
-|
-|
-|-
-|Amortisation of intangible fixed assets
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest and other finance income
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest and other finance expenses
-|
-|
-|
-|
-|
-|
-|
-|-
-|Loss/(gain) on sale of property, plant and equipment
-|
-|
-|
-|
-|
-|
-|
-|-
-|Foreign exchange gain/(loss) of revaluation of assets
-|
-|
-|
-|
-|
-|
-|
-|-
-|Foreign exchange (loss)/gain on consolidation
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest paid
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest received
-|
-|
-|
-|
-|
-|
-|
-|-
-|Income tax expense
-|
-|
-|
-|
-|
-|
-|
-|-
-|
-|
-|
-|
-|
-|
-|
-|
-|-
-| colspan="8" |'''Movements in working capital:'''
-|-
-|Decrease/(increase) in trade and other receivables
-|
-|
-|
-|
-|
-|
-|
-|-
-|Increase in current asset investments
-|
-|
-|
-|
-|
-|
-|
-|-
-|Increase in trade and other payables
-|
-|
-|
-|
-|
-|
-|
-|-
-|Cash generated from operations
-|
-|
-|
-|
-|
-|
-|
-|-
-|Income tax paid
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net cash from/(used in) operating activities
-|
-|
-|
-|
-|
-|
-|
-|-
-| colspan="8" |'''Cash flows from investing activities'''
-|-
-|Purchases of property, plant and equipment
-|
-|
-|
-|
-|
-|
-|
-|-
-|Purchases of intangible assets
-|
-|
-|
-|
-|
-|
-|
-|-
-|Proceeds from disposal of property, plant and equipment
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net cash from/(used in) investing activities
-|
-|
-|
-|
-|
-|
-|
-|-
-| colspan="8" |'''Cash flows from financing activities'''
-|-
-|Finance lease payments
-|
-|
-|
-|
-|
-|
-|
-|-
-|New finance leases
-|
-|
-|
-|
-|
-|
-|
-|-
-|Loan repayments
-|
-|
-|
-|
-|
-|
-|
-|-
-|Loans received
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net cash from/(used in) financing activities
-|
-|
-|
-|
-|
-|
-|
-|-
-! colspan="8" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Goldman Sachs
-!
-!31/12/2018
-!31/12/2019
-!31/12/2020
-!31/12/2021
-!31/12/2022
-|-
-!
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-|-
-! colspan="6" |Profit and loss
-|-
-|In millions, except per share amounts
-|
-|
-|
-|
-|
-|-
-|Revenues
-|
-|
-|
-|
-|
-|-
-|Investment banking
-|
-|
-|9,100
-|14,136
-|7,360
-|-
-|Investment management
-|
-|
-|6,986
-|8,171
-|9,005
-|-
-|Commissions and fees
-|
-|
-|3,539
-|3,590
-|4,034
-|-
-|Market making
-|
-|
-|15,428
-|15,357
-|18,634
-|-
-|Other principal transactions
-|
-|
-|4,756
-|11,615
-|654
-|-
-|Total non-interest revenues
-|
-|
-|39,809
-|52,869
-|39,687
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Interest income
-|
-|
-|13,689
-|12,120
-|29,024
-|-
-|Interest expense
-|
-|
-|8,938
-|5,650
-|21,346
-|-
-|Net interest income
-|
-|
-|4,751
-|6,470
-|7,678
-|-
-|Total net revenues
-|
-|
-|44,560
-|59,339
-|47,365
-|-
-|Provision for credit losses
-|
-|
-|3,098
-|357
-|2,715
-|-
-|Operating expenses
-|
-|
-|
-|
-|
-|-
-|Compensation and benefits
-|
-|
-|13,309
-|17,719
-|15,148
-|-
-|Transaction based
-|
-|
-|4,141
-|4,710
-|5,312
-|-
-|Market development
-|
-|
-|401
-|553
-|812
-|-
-|Communications and technology
-|
-|
-|1,347
-|1,573
-|1,808
-|-
-|Depreciation and amortization
-|
-|
-|1,902
-|2,015
-|2,455
-|-
-|Occupancy
-|
-|
-|960
-|981
-|1,026
-|-
-|Professional fees
-|
-|
-|1,306
-|1,648
-|1,887
-|-
-|Other expenses
-|
-|
-|5,617
-|2,739
-|2,716
-|-
-|Total operating expenses
-|
-|
-|28,983
-|31,938
-|31,164
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Pre-tax earnings
-|
-|
-|12,479
-|27,044
-|13,486
-|-
-|Provision for taxes
-|
-|
-|3,020
-|5,409
-|2,225
-|-
-|Net earnings
-|
-|
-|9,459
-|21,635
-|11,261
-|-
-|Preferred stock dividends
-|
-|
-|544
-|484
-|497
-|-
-|Net earnings applicable to common shareholders
-|
-|
-|8,915
-|21,151
-|10,764
-|-
-! colspan="6" |Balance sheet
-|-
-|$ in millions
-|
-|
-|
-|
-|
-|-
-|Assets
-|
-|
-|
-|
-|
-|-
-|Cash and cash equivalents
-|
-|
-|
-|261,036
-|241,825
-|-
-|Collateralized agreements:
-|
-|
-|
-|
-|
-|-
-|Securities purchased under agreements to resell (at fair value)
-|
-|
-|
-|205,703
-|225,117
-|-
-|Securities borrowed (includes $38,578 and $39,955 at fair value)
-|
-|
-|
-|178,771
-|189,041
-|-
-|Customer and other receivables (includes $25 and $42 at fair value)
-|
-|
-|
-|160,673
-|135,448
-|-
-|Trading assets (at fair value and includes $40,143 and $68,208 pledged as collateral)
-|
-|
-|
-|375,916
-|301,245
-|-
-|Investments (includes $78,201 and $83,427 at fair value, and $9,818 and $12,840 pledged as collateral)
-|
-|
-|
-|88,719
-|130,629
-|-
-|Loans (net of allowance of $5,543 and $3,573, and includes $7,655 and $10,769 at fair value)
-|
-|
-|
-|158,562
-|179,286
-|-
-|Other assets (includes $145 and $0 at fair value)
-|
-|
-|
-|34,608
-|39,208
-|-
-|Total assets
-|
-|
-|
-|1,463,988
-|1,441,799
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Liabilities and shareholders’ equity
-|
-|
-|
-|
-|
-|-
-|Deposits (includes $15,746 and $35,425 at fair value)
-|
-|
-|
-|364,227
-|386,665
-|-
-|Collateralized financings:
-|
-|
-|
-|
-|
-|-
-|Securities sold under agreements to repurchase (at fair value)
-|
-|
-|
-|165,883
-|110,349
-|-
-|Securities loaned (includes $4,372 and $9,170 at fair value)
-|
-|
-|
-|46,505
-|30,727
-|-
-|Other secured financings (includes $12,756 and $17,074 at fair value)
-|
-|
-|
-|18,544
-|13,946
-|-
-|Customer and other payables
-|
-|
-|
-|251,931
-|262,045
-|-
-|Trading liabilities (at fair value)
-|
-|
-|
-|181,424
-|191,324
-|-
-|Unsecured short-term borrowings (includes $39,731 and $29,832 at fair value)
-|
-|
-|
-|46,955
-|60,961
-|-
-|Unsecured long-term borrowings (includes $73,147 and $52,390 at fair value)
-|
-|
-|
-|254,092
-|247,138
-|-
-|Other liabilities (includes $159 and $359 at fair value)
-|
-|
-|
-|24,501
-|21,455
-|-
-|Total liabilities
-|
-|
-|
-|1,354,062
-|1,324,610
-|-
-|Commitments, contingencies and guarantees
-|
-|
-|
-|
-|
-|-
-|Shareholders’ equity
-|
-|
-|
-|
-|
-|-
-|Preferred stock; aggregate liquidation preference of $10,703 and $10,703
-|
-|
-|
-|10,703
-|10,703
-|-
-|Common stock; 917,815,030 and 906,430,314 shares issued, and 334,918,639 and 333,573,254 shares outstanding
-|
-|
-|
-|9
-|9
-|-
-|Share-based awards
-|
-|
-|
-|4,211
-|5,696
-|-
-|Nonvoting common stock; no shares issued and outstanding
-|
-|
-|
-|–
-|–
-|-
-|Additional paid-in capital
-|
-|
-|
-|56,396
-|59,050
-|-
-|Retained earnings
-|
-|
-|
-|131,811
-|139,372
-|-
-|Accumulated other comprehensive loss
-|
-|
-|
-|(2,068)
-|(3,010)
-|-
-|Stock held in treasury, at cost; 582,896,393 and 572,857,062 shares
-|
-|
-|
-|(91,136)
-|(94,631)
-|-
-|Total shareholders’ equity
-|
-|
-|
-|109,926
-|117,189
-|-
-|Total liabilities and shareholders’ equity
-|
-|
-|
-|1,463,988
-|1,441,799
-|-
-! colspan="6" |Cash flow statement
-|-
-|$ in millions
-|
-|
-|
-|
-|
-|-
-| colspan="6" |'''Cash flows from operating activities'''
-|-
-|Net earnings
-|
-|
-|9,459
-|21,635
-|11,261
-|-
-|Adjustments to reconcile net earnings to net cash provided by/(used for) operating activities
-|
-|
-|
-|
-|
-|-
-|Depreciation and amortization
-|
-|
-|1,902
-|2,015
-|2,455
-|-
-|Deferred income taxes
-|
-|
-|(833)
-|5
-|(2,412)
-|-
-|Share-based compensation
-|
-|
-|1,920
-|2,348
-|4,083
-|-
-|Gain related to extinguishment of unsecured borrowings
-|
-|
-|(1)
-|–
-|–
-|-
-|Provision for credit losses
-|
-|
-|3,098
-|357
-|2,715
-|-
-|Changes in operating assets and liabilities:
-|
-|
-|
-|
-|
-|-
-|Customer and other receivables and payables, net
-|
-|
-|(30,895)
-|21,971
-|35,014
-|-
-|Collateralized transactions (excluding other secured financings), net
-|
-|
-|(13,007)
-|(70,058)
-|(100,996)
-|-
-|Trading assets
-|
-|
-|(33,405)
-|15,232
-|45,278
-|-
-|Trading liabilities
-|
-|
-|44,892
-|26,616
-|8,062
-|-
-|Loans held for sale, net
-|
-|
-|1,820
-|(5,556)
-|3,161
-|-
-|Other, net
-|
-|
-|(3,485)
-|(8,267)
-|87
-|-
-|'''Net cash provided by/(used for) operating activities'''
-|
-|
-|'''(18,535)'''
-|'''6,298'''
-|'''8,708'''
-|-
-| colspan="6" |'''Cash flows from investing activities'''
-|-
-|Purchase of property, leasehold improvements and equipment
-|
-|
-|(6,309)
-|(4,667)
-|(3,748)
-|-
-|Proceeds from sales of property, leasehold improvements and equipment
-|
-|
-|2,970
-|3,933
-|2,706
-|-
-|Net cash used for business acquisitions
-|
-|
-|(231)
-|–
-|(2,115)
-|-
-|Purchase of investments
-|
-|
-|(48,670)
-|(39,912)
-|(60,536)
-|-
-|Proceeds from sales and paydowns of investments
-|
-|
-|29,057
-|45,701
-|12,961
-|-
-|Loans (excluding loans held for sale), net
-|
-|
-|(11,173)
-|(35,520)
-|(25,228)
-|-
-|'''Net cash used for investing activities'''
-|
-|
-|'''(34,356)'''
-|'''(30,465)'''
-|'''(75,960)'''
-|-
-| colspan="6" |'''Cash flows from financing activities'''
-|-
-|Unsecured short-term borrowings, net
-|
-|
-|7,707
-|2,137
-|321
-|-
-|Other secured financings (short-term), net
-|
-|
-|2,861
-|(1,320)
-|(2,283)
-|-
-|Proceeds from issuance of other secured financings (long-term)
-|
-|
-|8,073
-|4,795
-|1,800
-|-
-|Repayment of other secured financings (long-term), including the current portion
-|
-|
-|(4,137)
-|(6,590)
-|(3,407)
-|-
-|Purchase of Trust Preferred securities
-|
-|
-|(11)
-|–
-|–
-|-
-|Proceeds from issuance of unsecured long-term borrowings
-|
-|
-|47,250
-|92,717
-|84,522
-|-
-|Repayment of unsecured long-term borrowings, including the current portion
-|
-|
-|(55,040)
-|(52,608)
-|(42,806)
-|-
-|Derivative contracts with a financing element, net
-|
-|
-|1,037
-|1,121
-|1,797
-|-
-|Deposits, net
-|
-|
-|67,343
-|103,538
-|28,074
-|-
-|Preferred stock redemption
-|
-|
-|(350)
-|(2,675)
-|–
-|-
-|Common stock repurchased
-|
-|
-|(1,928)
-|(5,200)
-|(3,500)
-|-
-|Settlement of share-based awards in satisfaction of withholding tax requirements
-|
-|
-|(830)
-|(985)
-|(1,595)
-|-
-|Dividends and dividend equivalents paid on common stock, preferred stock and share-based awards
-|
-|
-|(2,336)
-|(2,725)
-|(3,682)
-|-
-|Proceeds from issuance of preferred stock, net of issuance costs
-|
-|
-|349
-|2,172
-|–
-|-
-|Other financing, net
-|
-|
-|392
-|361
-|361
-|-
-|'''Net cash provided by financing activities'''
-|
-|
-|'''70,380'''
-|'''134,738'''
-|'''59,602'''
-|-
-|Effect of exchange rate changes on cash and cash equivalents
-|
-|
-|4,807
-|(5,377)
-|(11,561)
-|-
-|Net increase/(decrease) in cash and cash equivalents
-|
-|
-|22,296
-|105,194
-|(19,211)
-|-
-|Cash and cash equivalents, beginning balance
-|
-|
-|133,546
-|155,842
-|261,036
-|-
-|Cash and cash equivalents, ending balance
-|
-|
-|155,842
-|261,036
-|241,825
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Supplemental disclosures:
-|
-|
-|
-|
-|
-|-
-|Cash payments for interest, net of capitalized interest
-|
-|
-|9,091
-|5,521
-|19,022
-|-
-|Cash payments for income taxes, net
-|
-|
-|2,754
-|6,195
-|4,555
-|-
-! colspan="6" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|
-|
-|}
-{| class="wikitable"
-|+Blackberry
-!
-!28/02/2019
-!28/02/2020
-!28/02/2021
-!28/02/2022
-!28/02/2023
-|-
-!
-!Historic
-!Historic
-!Historic
-!Historic
-!Historic
-|-
-! colspan="6" |Profit and loss
-|-
-|Revenue
-|
-|
-|893
-|718
-|656
-|-
-|Cost of sales
-|
-|
-|250
-|251
-|237
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Gross margin
-|
-|
-|643
-|467
-|419
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Operating expenses
-|
-|
-|
-|
-|
-|-
-|Research and development
-|
-|
-|215
-|219
-|207
-|-
-|Selling, marketing and administration
-|
-|
-|344
-|297
-|340
-|-
-|Amortization
-|
-|
-|182
-|165
-|96
-|-
-|Impairment of goodwill
-|
-|
-|594
-|0
-|245
-|-
-|Impairment of long-lived assets
-|
-|
-|43
-|0
-|235
-|-
-|Gain on sale of property, plant and  equipment, net
-|
-|
-|0
-|0
-|(6)
-|-
-|Debentures fair value adjustment
-|
-|
-|372
-|(212)
-|(138)
-|-
-|Litigation settlement
-|
-|
-|0
-|0
-|165
-|-
-|
-|
-|
-|1,750
-|469
-|1,144
-|-
-|Operating loss
-|
-|
-|(1,107)
-|(2)
-|(725)
-|-
-|Investment income (loss), net
-|
-|
-|(6)
-|21
-|5
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Income (loss) before income taxes
-|
-|
-|(1,113)
-|19
-|(720)
-|-
-|Provision for (recovery of) income taxes
-|
-|
-|(9)
-|7
-|14
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Net income (loss)
-|
-|
-|(1,104)
-|12
-|(734)
-|-
-|Earnings (loss) per share
-|
-|
-|
-|
-|
-|-
-|Basic
-|
-|
-|(1.97)
-|0.02
-|(1.27)
-|-
-|Diluted
-|
-|
-|(1.97)
-|(0.31)
-|(1.35)
-|-
-! colspan="6" |Balance sheet
-|-
-| colspan="6" |'''Assets'''
-|-
-| colspan="6" |'''Current'''
-|-
-|Cash and cash equivalents
-|
-|
-|
-|378
-|295
-|-
-|Short-term investments
-|
-|
-|
-|334
-|131
-|-
-|Accounts receivable, net of allowance of  $1 and $4, respectively
-|
-|
-|
-|138
-|120
-|-
-|Other receivables
-|
-|
-|
-|25
-|12
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Income taxes receivable
-|
-|
-|
-|9
-|3
-|-
-|Other current assets
-|
-|
-|
-|159
-|182
-|-
-|
-|
-|
-|
-|
-|
-|-
-|
-|
-|
-|
-|1,043
-|743
-|-
-|Restricted cash and cash equivalents
-|
-|
-|
-|28
-|27
-|-
-|Long-term investments
-|
-|
-|
-|30
-|34
-|-
-|Other long-term assets
-|
-|
-|
-|9
-|8
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Operating lease right-of-use assets, net
-|
-|
-|
-|50
-|44
-|-
-|Property, plant and equipment, net
-|
-|
-|
-|41
-|25
-|-
-|Goodwill
-|
-|
-|
-|844
-|595
-|-
-|Intangible assets, net
-|
-|
-|
-|522
-|203
-|-
-|
-|
-|
-|
-|
-|
-|-
-|
-|
-|
-|
-|2,567
-|1,679
-|-
-| colspan="6" |'''Liabilities'''
-|-
-| colspan="6" |'''Current'''
-|-
-|Accounts payable
-|
-|
-|
-|22
-|24
-|-
-|Accrued liabilities
-|
-|
-|
-|157
-|143
-|-
-|Income taxes payable
-|
-|
-|
-|11
-|20
-|-
-|Debentures
-|
-|
-|
-|0
-|367
-|-
-|Deferred revenue, current
-|
-|
-|
-|207
-|175
-|-
-|
-|
-|
-|
-|397
-|729
-|-
-|Deferred revenue, non-current
-|
-|
-|
-|37
-|40
-|-
-|Operating lease liabilities
-|
-|
-|
-|66
-|52
-|-
-|Other long-term liabilities
-|
-|
-|
-|4
-|1
-|-
-|Long-term debentures
-|
-|
-|
-|507
-|0
-|-
-|
-|
-|
-|
-|
-|
-|-
-|
-|
-|
-|
-|1,011
-|822
-|-
-|Commitments and contingencies
-|
-|
-|
-|
-|
-|-
-|Shareholders' equity
-|
-|
-|
-|
-|
-|-
-|Capital stock and additional paid-in  capital
-|
-|
-|
-|
-|
-|-
-|Preferred shares: authorized unlimited  number of non-voting, cumulative, redeemable and retractable
-|
-|
-|
-|0
-|0
-|-
-|Common shares: authorized unlimited  number of non-voting, redeemable, retractable Class A common shares and  unlimited number of voting common shares
-|
-|
-|
-|
-|
-|-
-|Issued and outstanding - 582,157,203  voting common shares (February 28, 2022 - 576,227,898)
-|
-|
-|
-|2,869
-|2,909
-|-
-|Deficit
-|
-|
-|
-|(1,294)
-|(2,028)
-|-
-|Accumulated other comprehensive loss
-|
-|
-|
-|(19)
-|(24)
-|-
-|
-|
-|
-|
-|1,556
-|857
-|-
-|
-|
-|
-|
-|2,567
-|1,679
-|-
-! colspan="6" |Cash flow statement
-|-
-| colspan="6" |'''Cash flows from  operating activities'''
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Net income (loss)
-|
-|
-|(1,104)
-|12
-|(734)
-|-
-|Adjustments to reconcile net income  (loss) to net cash provided by (used in) operating  activities:
-|
-|
-|
-|
-|
-|-
-|Amortization
-|
-|
-|198
-|176
-|105
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Stock-based compensation
-|
-|
-|44
-|36
-|34
-|-
-|Gain on sale of investment
-|
-|
-|0
-|(22)
-|0
-|-
-|Impairment of goodwill
-|
-|
-|594
-|0
-|245
-|-
-|Impairment of long-lived assets
-|
-|
-|43
-|0
-|235
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Gain on sale of property, plant and  equipment, net
-|
-|
-|0
-|0
-|(6)
-|-
-|Debentures fair value adjustment
-|
-|
-|372
-|(212)
-|(138)
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Operating leases
-|
-|
-|(4)
-|(16)
-|(16)
-|-
-|Other
-|
-|
-|(5)
-|(3)
-|(5)
-|-
-|Net changes in working capital items
-|
-|
-|
-|
-|
-|-
-|Accounts receivable, net of allowance
-|
-|
-|29
-|44
-|18
-|-
-|Other receivables
-|
-|
-|(11)
-|0
-|13
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Income taxes receivable
-|
-|
-|(4)
-|1
-|6
-|-
-|Other assets
-|
-|
-|55
-|15
-|(1)
-|-
-|Accounts payable
-|
-|
-|(11)
-|2
-|2
-|-
-|Accrued liabilities
-|
-|
-|(20)
-|(16)
-|(11)
-|-
-|Income taxes payable
-|
-|
-|(15)
-|5
-|9
-|-
-|Deferred revenue
-|
-|
-|(79)
-|(50)
-|(29)
-|-
-|Net cash provided by (used in) operating  activities
-|
-|
-|82
-|(28)
-|(263)
-|-
-| colspan="6" |'''Cash flows from investing activities'''
-|-
-|Acquisition of long-term investments
-|
-|
-|(5)
-|(1)
-|(3)
-|-
-|Proceeds on sale, maturity or  distribution from long-term investments
-|
-|
-|0
-|35
-|0
-|-
-|Acquisition of property, plant and  equipment
-|
-|
-|(8)
-|(8)
-|(7)
-|-
-|Proceeds on sale of property, plant and  equipment
-|
-|
-|0
-|0
-|17
-|-
-|Acquisition of intangible assets
-|
-|
-|(36)
-|(31)
-|(34)
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Acquisition of  short-term investments
-|
-|
-|(1,039)
-|(916)
-|(514)
-|-
-|Acquisition of restricted short-term  investments
-|
-|
-|(24)
-|0
-|0
-|-
-|Proceeds on sale or maturity of  restricted short-term investments
-|
-|
-|0
-|24
-|0
-|-
-|Proceeds on sale or maturity of  short-term investments
-|
-|
-|1,047
-|1,104
-|717
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Net cash provided by (used in) investing  activities
-|
-|
-|(65)
-|207
-|176
-|-
-| colspan="6" |'''Cash flows from financing activities'''
-|-
-|Issuance of common shares
-|
-|
-|19
-|10
-|6
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Payment of finance lease liability
-|
-|
-|(1)
-|0
-|0
-|-
-|Repurchase of 3.75% Debentures
-|
-|
-|(610)
-|0
-|0
-|-
-|Issuance of 1.75% Debentures
-|
-|
-|365
-|0
-|0
-|-
-|
-|
-|
-|
-|
-|
-|-
-|Net cash provided by (used in) financing  activities
-|
-|
-|(227)
-|10
-|6
-|-
-|Effect of foreign exchange gain (loss)  on cash, cash equivalents, restricted cash, and  restricted cash equivalents
-|
-|
-|2
-|(1)
-|(3)
-|-
-|Net increase (decrease) in cash, cash  equivalents, restricted cash, and restricted cash  equivalents during the period
-|
-|
-|(208)
-|188
-|(84)
-|-
-|Cash, cash equivalents, restricted cash,  and restricted cash equivalents, beginning of period
-|
-|
-|426
-|218
-|406
-|-
-|Cash, cash equivalents, restricted cash,  and restricted cash equivalents, end of period
-|
-|
-|218
-|406
-|322
-|-
-! colspan="6" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|28.00%
-|34.96%
-|36.13%
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|195.97%
-|65.32%
-|174.39%
-|-
-|Tax rate (%)
-|
-|
-|0.81%
-|36.84%
-| -1.94%
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|31.61%
-|47.29%
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|4.93%
-|5.43%
-|6.25%
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|89.97%
-|2.13%
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|0%
-|0%
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|0%
-|0%
-|}
-{| class="wikitable"
-|+Investec
-!
-!31/03/2021
-!31/03/2022
-!31/03/'''2023'''
-|-
-!
-!Historic
-!Historic
-!Historic
-|-
-! colspan="4" |Profit and loss
-|-
-|Interest income
-|
-|1,951,209
-|3,397,341
-|-
-|Interest income calculated using the effective interest method
-|
-|1,717,776
-|2,890,776
-|-
-|Other interest income
-|
-|233,433
-|506,565
-|-
-|Interest expense
-|
-|(1,005,939)
-|(2,101,584)
-|-
-|'''Net interest income'''
-|
-|'''945,270'''
-|'''1,295,757'''
-|-
-|Fee and commission income
-|
-|864,639
-|832,213
-|-
-|Fee and commission expense
-|
-|(46,423)
-|(52,860)
-|-
-|Investment (loss)/income
-|
-|27,974
-|(17,145)
-|-
-|Share of post-taxation profit  of associates and joint venture  holdings
-|
-|79,556
-|29,149
-|-
-|Trading income/(loss) arising from
-|
-|
-|
-|-
-|– customer flow
-|
-|128,277
-|131,204
-|-
-|– balance sheet  management and other  trading activities
-|
-|(21,128)
-|57,714
-|-
-|Other operating income
-|
-|12,190
-|4,386
-|-
-|'''Total operating income before expected credit loss impairment charges'''
-|
-|'''1,990,355'''
-|'''2,280,418'''
-|-
-|Expected credit loss  impairment charges
-|
-|(28,828)
-|(81,089)
-|-
-|'''Operating income'''
-|
-|'''1,961,527'''
-|'''2,199,329'''
-|-
-|Operating costs
-|
-|(1,233,948)
-|(1,350,835)
-|-
-|'''Operating profit before goodwill, acquired intangibles and strategic actions'''
-|
-|'''727,579'''
-|'''848,494'''
-|-
-|Impairment of goodwill
-|
-|(1,962)
-|(890)
-|-
-|Amortisation of acquired intangibles
-|
-|(15,477)
-|(15,160)
-|-
-|Amortisation of acquired intangibles of associates
-|
-|(9,249)
-|(1,542)
-|-
-|Closure and rundown of the Hong  Kong direct investments business
-|
-|(1,203)
-|(450)
-|-
-|'''Operating profit'''
-|
-|'''699,688'''
-|'''830,452'''
-|-
-|Net gain/(implementation costs)  on distribution of associate to shareholders
-|
-|(2,427)
-|154,438
-|-
-|Financial impact of Group restructures
-|
-|—
-|(4,968)
-|-
-|'''Profit before taxation'''
-|
-|'''697,261'''
-|'''979,922'''
-|-
-|Taxation on operating profit before goodwill, acquired intangibles and strategic actions
-|
-|(143,309)
-|(179,704)
-|-
-|Taxation on acquired intangibles and strategic actions
-|
-|2,422
-|17,213
-|-
-|'''Profit  after taxation'''
-|
-|'''556,374'''
-|'''817,431'''
-|-
-|Profit attributable to non-controlling interests
-|
-|(40,170)
-|(12,566)
-|-
-|'''Earnings attributable to shareholders'''
-|
-|'''516,204'''
-|'''804,865'''
-|-
-|Earnings attributable to ordinary shareholders
-|
-|475,469
-|764,446
-|-
-|Earnings attributable to perpetual preferred securities and other  Additional Tier 1 security holders
-|
-|40,735
-|40,419
-|-
-! colspan="4" |Balance sheet
-|-
-|'''Assets'''
-|
-|
-|
-|-
-|Cash and balances at central banks
-|3,517,100
-|5,998,270
-|6,437,709
-|-
-|Loans and advances to banks
-|2,637,436
-|2,552,061
-|1,450,627
-|-
-|Non-sovereign and non-bank cash placements
-|439,841
-|684,983
-|644,065
-|-
-|Reverse repurchase agreements and cash collateral on securities borrowed
-|3,575,713
-|4,609,778
-|3,632,658
-|-
-|Sovereign debt  securities
-|3,711,623
-|4,148,867
-|4,751,646
-|-
-|Bank debt securities
-|1,121,730
-|1,515,210
-|939,509
-|-
-|Other debt securities
-|1,364,235
-|1,229,287
-|1,229,392
-|-
-|Derivative financial instruments
-|1,683,214
-|1,590,513
-|1,386,134
-|-
-|Securities arising  from trading activities
-|1,024,671
-|683,329
-|1,632,391
-|-
-|Investment portfolio
-|909,050
-|912,872
-|1,330,907
-|-
-|Loans and advances to customers
-|26,041,087
-|29,561,088
-|29,911,158
-|-
-|Own originated loans and advances to customers securitised
-|401,912
-|375,763
-|272,879
-|-
-|Other loans and advances
-|102,135
-|128,284
-|142,726
-|-
-|Other securitised assets
-|140,087
-|123,888
-|103,151
-|-
-|Interests in associated undertakings and joint venture holdings
-|679,157
-|734,434
-|53,703
-|-
-|Current taxation assets
-|60,325
-|33,653
-|69,322
-|-
-|Deferred taxation assets
-|246,622
-|259,370
-|258,126
-|-
-|Other assets
-|2,237,646
-|2,139,354
-|1,581,693
-|-
-|Property and equipment
-|329,972
-|335,420
-|278,561
-|-
-|Investment properties
-|832,061
-|820,555
-|722,481
-|-
-|Goodwill
-|259,805
-|258,404
-|262,632
-|-
-|Software
-|58,968
-|9,443
-|15,401
-|-
-|Other acquired intangible assets
-|12,574
-|44,152
-|41,136
-|-
-|Non-current assets classified as held for sale
-|51,783
-|79,229
-|35,761
-|-
-|
-|'''51,438,747'''
-|'''58,828,207'''
-|'''57,183,768'''
-|-
-|Other financial instruments at fair value through profit or loss in respect of liabilities to customers
-|52,405
-|59,549
-|110,891
-|-
-|
-|'''51,491,152'''
-|'''58,887,756'''
-|'''57,294,659'''
-|-
-|'''Liabilities'''
-|
-|
-|
-|-
-|Deposits by banks
-|2,403,712
-|3,178,668
-|3,617,524
-|-
-|Derivative financial instruments
-|2,231,166
-|2,581,315
-|2,424,036
-|-
-|Other trading liabilities
-|326,189
-|275,589
-|202,256
-|-
-|Repurchase agreements and cash collateral on securities  lent
-|1,003,312
-|863,285
-|936,564
-|-
-|Customer accounts (deposits)
-|34,449,430
-|40,118,412
-|39,555,669
-|-
-|Debt securities in issue
-|1,892,319
-|2,043,640
-|1,802,586
-|-
-|Liabilities arising on securitisation of own originated loans and advances
-|160,646
-|238,370
-|163,787
-|-
-|Liabilities arising  on securitisation of other assets
-|108,281
-|95,885
-|81,609
-|-
-|Current taxation liabilities
-|78,790
-|41,631
-|83,183
-|-
-|Deferred taxation liabilities
-|40,333
-|19,624
-|26,545
-|-
-|Other liabilities
-|1,951,122
-|2,315,841
-|1,873,714
-|-
-|
-|'''44,645,300'''
-|'''51,772,260'''
-|'''50,767,473'''
-|-
-|
-Liabilities to customers under  investment contracts
-|49,798
-|56,475
-|108,370
-|-
-|Insurance liabilities, including unit-linked liabilities
-|2,607
-|3,074
-|2,521
-|-
-|
-|'''44,697,705'''
-|'''51,831,809'''
-|'''50,878,364'''
-|-
-|Subordinated liabilities
-|1,480,951
-|1,316,191
-|1,084,630
-|-
-|
-|'''46,178,656'''
-|'''53,148,000'''
-|'''51,962,994'''
-|-
-|'''Equity'''
-|
-|
-|
-|-
-|Ordinary share  capital
-|247
-|247
-|247
-|-
-|Ordinary share  premium
-|1,517,852
-|1,516,024
-|1,208,161
-|-
-|Treasury shares
-|(267,508)
-|(318,987)
-|(564,678)
-|-
-|Other reserves
-|(788,222)
-|(650,228)
-|(850,742)
-|-
-|Retained income
-|3,772,628
-|4,069,776
-|4,553,011
-|-
-|'''Ordinary shareholders’ equity'''
-|'''4,234,997'''
-|'''4,616,832'''
-|'''4,345,999'''
-|-
-|Perpetual preference share capital and premium
-|174,053
-|174,869
-|136,259
-|-
-|'''Shareholders’ equity excluding non-controlling interests'''
-|'''4,409,050'''
-|'''4,791,701'''
-|'''4,482,258'''
-|-
-|Other Additional Tier 1 securities in issue
-|335,111
-|411,683
-|398,568
-|-
-|Non-controlling interests
-|568,335
-|536,372
-|450,839
-|-
-|– Perpetual preferred securities issued  by subsidiaries
-|72,750
-|—
-|—
-|-
-|– Non-controlling interests in partially held subsidiaries
-|495,585
-|536,372
-|450,839
-|-
-|'''Total equity'''
-|'''5,312,496'''
-|'''5,739,756'''
-|'''5,331,665'''
-|-
-|'''Total liabilities and  equity'''
-|'''51,491,152'''
-|'''58,887,756'''
-|'''57,294,659'''
-|-
-! colspan="4" |Cash flow statement
-|-
-|'''Cash inflow from operating activities'''
-|
-|
-|
-|-
-|Profit before  taxation adjusted for non-cash, non-operating items and other  required
-|
-|
-|
-|-
-|adjustments
-|
-|816,404
-|1,009,019
-|-
-|Taxation paid
-|
-|(152,140)
-|(171,292)
-|-
-|Increase in operating assets
-|
-|(3,321,970)
-|(2,710,850)
-|-
-|Increase in operating liabilities
-|
-|5,729,246
-|2,342,880
-|-
-|'''Net cash inflow from operating activities'''
-|
-|'''3,071,540'''
-|'''469,757'''
-|-
-|
-'''Cash flows from investing activities'''
-|
-|
-|
-|-
-|Cash flow on acquisition of Group operations, net of cash  acquired
-|
-|—
-|(9,720)
-|-
-|Cash inflow on disposal of Group operations
-|
-|14,274
-|12
-|-
-|Derecognition of cash on disposal of subsidiaries
-|
-|(4,152)
-|—
-|-
-|Cash outflow on acquisition of associates and joint venture  holdings
-|
-|(8,780)
-|—
-|-
-|Cash flow on disposal of associates and joint venture  holdings
-|
-|39,222
-|565
-|-
-|Cash flow on acquisition of property, equipment, software and other  intangible assets
-|
-|(9,323)
-|(30,337)
-|-
-|Cash flow on disposal of property, equipment, software and other  intangible assets
-|
-|4,324
-|25,487
-|-
-|'''Net cash (outflow)/inflow from investing activities'''
-|
-|'''35,565'''
-|'''(13,993)'''
-|-
-|'''Cash flows from financing activities'''
-|
-|
-|
-|-
-|Dividends paid to ordinary shareholders
-|
-|(178,418)
-|(260,673)
-|-
-|Dividends paid to other equity  holders
-|
-|(83,524)
-|(71,268)
-|-
-|Acquisition of non-controlling interest
-|
-|443
-|118
-|-
-|Repurchase of perpetual preference shares
-|
-|(77,835)
-|(19,379)
-|-
-|Proceeds on issue  of other Additional Tier 1 securities in issue
-|
-|67,552
-|22,787
-|-
-|Repayment of other  Additional Tier 1 securities in issue
-|
-|—
-|(15,951)
-|-
-|Cash flow on acquisition of treasury shares, net of related  costs
-|
-|(71,836)
-|(262,248)
-|-
-|Share buyback of ordinary share  capital
-|
-|(36,150)
-|(56,863)
-|-
-|Proceeds on subordinated liabilities raised
-|
-|421,506
-|460,934
-|-
-|Repayment of subordinated liabilities
-|
-|(583,918)
-|(665,648)
-|-
-|Lease liabilities paid
-|
-|(45,743)
-|(46,493)
-|-
-|'''Net cash outflow from financing activities'''
-|
-|'''(587,923)'''
-|'''(914,684)'''
-|-
-|'''Effects of exchange rates on cash and cash equivalents'''
-|
-|'''90,928'''
-|'''(196,806)'''
-|-
-|'''Net (decrease)/increase in cash and cash equivalents'''
-|
-|'''2,610,110'''
-|'''(655,726)'''
-|-
-|Cash and cash  equivalents at the beginning of the year
-|
-|6,489,630
-|9,099,740
-|-
-|'''Cash and cash equivalents at the end of the year'''
-|
-|'''9,099,740'''
-|'''8,444,014'''
-|-
-|
-'''Cash and cash equivalents is  defined as including:'''
-|
-|
-|
-|-
-|Cash and balances at central banks
-|
-|5,998,270
-|6,437,709
-|-
-|On demand loans  and advances to banks
-|
-|2,414,562
-|1,359,689
-|-
-|Non-sovereign and  non-bank cash placements
-|
-|684,983
-|644,065
-|-
-|Expected credit  loss on cash  and cash equivalents
-|
-|1,925
-|2,551
-|-
-|'''Cash and cash equivalents at the end of the year'''
-|
-|'''9,099,740'''
-|'''8,444,014'''
-|-
-! colspan="4" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|}
-{| class="wikitable"
-|+Jefferies Financial Group, Inc.
-!
-!30/11/2020
-!30/11/2021
-!30/11/2022
-|-
-!
-!Historic
-!Historic
-!Historic
-|-
-! colspan="4" |Profit and loss
-|-
-|(In thousands, $)
-|
-|
-|
-|-
-|Revenues
-|
-|
-|
-|-
-|Investment banking
-|2,501,494
-|4,365,699
-|2,807,822
-|-
-|Principal transactions
-|1,928,143
-|1,617,336
-|833,757
-|-
-|Commissions and other fees
-|822,248
-|896,015
-|925,494
-|-
-|Asset management fees and revenues
-|34,209
-|72,084
-|80,264
-|-
-|Interest
-|1,009,548
-|956,318
-|1,183,638
-|-
-|Other
-|584,805
-|1,038,012
-|1,318,288
-|-
-|Total revenues
-|6,880,447
-|8,945,464
-|7,149,263
-|-
-|Interest expense
-|1,029,926
-|931,638
-|1,170,425
-|-
-|Net revenues
-|5,850,521
-|8,013,826
-|5,978,838
-|-
-|Non-interest expenses
-|
-|
-|
-|-
-|Compensation and benefits
-|2,944,071
-|3,554,760
-|2,589,044
-|-
-|Floor brokerage and clearing fees
-|266,592
-|301,860
-|347,805
-|-
-|Underwriting costs
-|95,636
-|117,572
-|42,067
-|-
-|Technology and communications
-|335,065
-|388,134
-|444,011
-|-
-|Occupancy and equipment rental
-|95,754
-|106,254
-|108,001
-|-
-|Business development
-|70,797
-|109,772
-|150,500
-|-
-|Professional services
-|176,280
-|215,761
-|240,978
-|-
-|Depreciation and amortization
-|158,439
-|157,420
-|172,902
-|-
-|Cost of sales
-|338,588
-|470,870
-|440,837
-|-
-|Other expenses
-|302,216
-|337,318
-|387,131
-|-
-|Total non-interest expenses
-|4,783,438
-|5,759,721
-|4,923,276
-|-
-|Earnings before income taxes
-|1,067,083
-|2,254,105
-|1,055,562
-|-
-|Income tax expense
-|298,673
-|576,729
-|273,852
-|-
-|Net earnings
-|768,410
-|1,677,376
-|781,710
-|-
-|Net earnings (loss) attributable to  noncontrolling
-|
-|
-|
-|-
-|interests
-| -5,271
-|3,850
-| -2,397
-|-
-|Net loss attributable to redeemable  noncontrolling
-|
-|
-|
-|-
-|interests
-| -1,558
-| -826
-| -1,342
-|-
-|Preferred stock dividends
-|5,634
-|6,949
-|8,281
-|-
-|Net earnings attributable to Jefferies  Financial Group Inc.
-|769,605
-|1,667,403
-|777,168
-|-
-|
-|
-|
-|
-|-
-|Basic earnings per common share
-|$                    2.68
-|$                                       6.29
-|$                    3.13
-|-
-|Diluted earnings per common share
-|$                    2.65
-|$                                       6.13
-|$                    3.06
-|-
-! colspan="4" |Balance sheet
-|-
-|ASSETS
-|
-|
-|
-|-
-|Cash and cash equivalents
-|
-|10,755,133
-|9,703,109
-|-
-|Cash and securities segregated and on  deposit for regulatory
-|
-|
-|
-|-
-|purposes or deposited with clearing and  depository organizations
-|
-|1,015,107
-|957,302
-|-
-|Financial instruments owned, at fair  value (includes securities
-|
-|
-|
-|-
-|pledged of $14,099,136 and $12,723,502  at November 30, 2022 and
-|
-|
-|
-|-
-|2021, respectively)
-|
-|18,024,621
-|18,666,296
-|-
-|Investments in and loans to related  parties
-|
-|1,587,409
-|1,426,817
-|-
-|Securities borrowed
-|
-|6,409,420
-|5,831,148
-|-
-|Securities purchased under agreements to  resell
-|
-|7,642,484
-|4,546,691
-|-
-|Securities received as collateral, at  fair value
-|
-|7,289
-|100,362
-|-
-|Receivables:
-|
-|
-|
-|-
-|Brokers, dealers and clearing  organizations
-|
-|2,454,918
-|1,792,937
-|-
-|Customers
-|
-|1,615,822
-|1,225,137
-|-
-|Fees, interest and other
-|
-|582,756
-|568,921
-|-
-|Premises and equipment
-|
-|911,230
-|906,864
-|-
-|Goodwill
-|
-|1,745,098
-|1,736,114
-|-
-|Other assets (includes assets pledged of  $1,032,353 and $990,389 at
-|
-|
-|
-|-
-|November 30, 2022 and 2021,  respectively)
-|
-|3,356,024
-|3,595,985
-|-
-|Total assets
-|
-|56,107,311
-|51,057,683
-|-
-|LIABILITIES AND EQUITY
-|
-|
-|
-|-
-|Short-term borrowings
-|
-|221,863
-|528,392
-|-
-|Financial instruments sold, not yet  purchased, at fair value
-|
-|9,267,090
-|11,056,477
-|-
-|Securities loaned
-|
-|1,525,721
-|1,366,025
-|-
-|Securities sold under agreements to  repurchase
-|
-|8,446,099
-|7,452,342
-|-
-|Other secured financings (includes  $1,712 and $102,788 at fair value
-|
-|
-|
-|-
-|at November 30, 2022 and 2021,  respectively)
-|
-|4,487,224
-|2,037,843
-|-
-|Obligation to return securities received  as collateral, at fair value
-|
-|7,289
-|100,362
-|-
-|Payables:
-|
-|
-|
-|-
-|Brokers, dealers and clearing  organizations
-|
-|3,952,093
-|2,628,727
-|-
-|Customers
-|
-|4,461,481
-|3,578,854
-|-
-|Lease liabilities
-|
-|548,295
-|533,708
-|-
-|Accrued expenses and other liabilities
-|
-|3,334,371
-|2,573,927
-|-
-|Long-term debt (includes $1,583,828 and  $1,843,598 at fair value at
-|
-|
-|
-|-
-|November 30, 2022 and 2021,  respectively)
-|
-|9,125,745
-|8,774,086
-|-
-|Total liabilities
-|
-|45,377,271
-|40,630,743
-|-
-|MEZZANINE EQUITY
-|
-|
-|
-|-
-|Redeemable noncontrolling interests
-|
-|25,400
-|6,461
-|-
-|Mandatorily redeemable convertible  preferred shares
-|
-|125,000
-|125,000
-|-
-|EQUITY
-|
-|
-|
-|-
-|Common shares, par value $1 per share,  authorized 600,000,000
-|
-|
-|
-|-
-|shares; 226,129,626 and 243,541,431  shares issued and outstanding,
-|
-|
-|
-|-
-|after deducting 90,334,082 and  72,922,277 shares held in treasury
-|
-|243,541
-|226,130
-|-
-|Additional paid-in capital
-|
-|2,742,244
-|1,967,781
-|-
-|Accumulated other comprehensive loss
-|
-| -372,143
-| -379,419
-|-
-|Retained earnings
-|
-|7,940,113
-|8,418,354
-|-
-|Total Jefferies Financial Group Inc.  common shareholders' equity
-|
-|10,553,755
-|10,232,846
-|-
-|Noncontrolling interests
-|
-|25,885
-|62,633
-|-
-|Total equity
-|
-|10,579,640
-|10,295,479
-|-
-|Total liabilities and equity
-|
-|56,107,311
-|51,057,683
-|-
-! colspan="4" |Cash flow statement
-|-
-|Cash flows from  operating activities:
-|
-|
-|
-|-
-|Net earnings
-|768,410
-|1,677,376
-|781,710
-|-
-|Adjustments to reconcile net earnings to  net cash
-|
-|
-|
-|-
-|provided by operating activities:
-|
-|
-|
-|-
-|Depreciation and amortization
-|136,475
-|144,255
-|189,343
-|-
-|Deferred income taxes
-|64,667
-|96,890
-| -70,396
-|-
-|Share-based compensation
-|40,038
-|78,160
-|43,919
-|-
-|Bad debt expense
-|48,157
-|55,876
-|46,846
-|-
-|(Income) loss on investments in and  loans to related
-|
-|
-|
-|-
-|parties
-|75,177
-| -149,885
-|36,287
-|-
-|Distributions received on investments in  related parties
-|63,134
-|110,963
-|82,161
-|-
-|Gain on sale of subsidiaries and  investments in related parties
-|                           -
-|                                             -
-| -319,041
-|-
-|Other adjustments
-|320,611
-| -89,004
-| -601,303
-|-
-|Net change in assets and liabilities:
-|
-|
-|
-|-
-|Securities deposited with clearing and  depository organizations
-|751
-|34,237
-|                           -
-|-
-|Receivables:
-|
-|
-|
-|-
-|Brokers, dealers and clearing  organizations
-| -666,491
-| -136,614
-|631,672
-|-
-|Customers
-|185,266
-| -329,026
-|384,097
-|-
-|Fees, interest and other
-| -153,463
-| -28,340
-|200,672
-|-
-|Securities borrowed
-|714,664
-|520,455
-|548,567
-|-
-|Financial instruments owned
-| -877,088
-| -1,314,603
-| -773,523
-|-
-|Securities purchased under agreements to  resell
-| -752,171
-| -2,552,607
-|3,047,353
-|-
-|Other assets
-|167,889
-| -225,916
-| -230,722
-|-
-|Payables:
-|
-|
-|
-|-
-|Brokers, dealers and clearing  organizations
-|294,397
-|2,173,266
-| -1,288,912
-|-
-|Customers
-|442,913
-|210,055
-| -882,576
-|-
-|Securities loaned
-|270,261
-| -282,403
-| -139,557
-|-
-|Financial instruments sold, not yet  purchased
-| -1,014,535
-|992,199
-|1,875,957
-|-
-|Securities sold under agreements to  repurchase
-|799,794
-|133,423
-| -952,584
-|-
-|Lease liabilities
-| -52,553
-| -64,377
-| -89,689
-|-
-|Accrued expenses and other liabilities
-|1,179,136
-|527,910
-| -715,432
-|-
-|'''Net cash provided by operating  activities'''
-|'''2,055,439'''
-|'''1,582,290'''
-|'''1,804,849'''
-|-
-|Cash flows from investing activities:
-|
-|
-|
-|-
-|Contributions to investments in and  loans to related
-|
-|
-|
-|-
-|parties
-| -1,666,323
-| -2,339,447
-| -351,645
-|-
-|Capital distributions from investments  and repayments of
-|
-|
-|
-|-
-|loans from related parties
-|1,552,161
-|2,310,186
-|286,578
-|-
-|Originations and purchases of automobile  loans, notes and
-|
-|
-|
-|-
-|other receivables
-| -813,867
-| -611,486
-| -527,929
-|-
-|Principal collections of automobile  loans, notes and
-|
-|
-|
-|-
-|other receivables
-|686,114
-|394,387
-|434,487
-|-
-|Net payments on premises and equipment,  and other assets
-| -176,958
-| -165,605
-| -224,301
-|-
-|Proceeds from sales of subsidiaries and  investments in
-|
-|
-|
-|-
-|related parties, net of expenses and  cash of operations sold
-|179,654
-|                                             -
-|333,149
-|-
-|Deconsolidation of asset management  entity
-|                           -
-|                                             -
-| -23,107
-|-
-|Proceeds from sales and maturities of  investments and
-|
-|
-|
-|-
-|loan receivables
-|69,321
-|3,274
-|3,588
-|-
-|Other
-|4,215
-| -1,174
-|8,641
-|-
-|'''Net cash used in investing activities'''
-|'''-165,683'''
-|'''-409,865'''
-|'''-60,539'''
-|-
-|Cash flows from  financing activities:
-|
-|
-|
-|-
-|Proceeds from short-term borrowings
-|1,619,820
-|1,005,000
-|3,659,098
-|-
-|Payments on short-term borrowings
-| -1,368,255
-| -1,556,090
-| -3,338,000
-|-
-|Proceeds from issuance of long-term  debt, net of
-|
-|
-|
-|-
-|issuance costs
-|1,516,693
-|2,488,493
-|1,198,565
-|-
-|Repayment of long-term debt
-| -1,716,276
-| -1,646,224
-| -824,894
-|-
-|Net proceeds from (payments on) other  secured financings
-|218,010
-|1,197,231
-| -2,448,731
-|-
-|Net change in bank overdrafts
-| -34,663
-|8,216
-| -14,569
-|-
-|Proceeds from contributions of  noncontrolling interests
-|19,617
-|4,325
-|64,880
-|-
-|Payments on distributions to  noncontrolling interests
-| -1,694
-| -16,263
-| -2,629
-|-
-|Purchase of common shares for treasury
-| -816,871
-| -269,400
-| -859,593
-|-
-|Dividends paid
-| -160,940
-| -222,798
-| -280,104
-|-
-|Other
-|1,034
-|1,804
-|2,752
-|-
-|Net cash provided by (used in) financing  activities
-|'''-723,525'''
-|'''994,294'''
-|'''-2,843,225'''
-|-
-|Effect of exchange rate changes on cash,  cash
-|
-|
-|
-|-
-|equivalents and restricted cash
-|18,306
-| -3,387
-| -22,143
-|-
-|Net increase (decrease) in cash, cash  equivalents and
-|
-|
-|
-|-
-|restricted cash
-|1,184,537
-|2,163,332
-| -1,121,060
-|-
-|Cash, cash equivalents and restricted  cash at beginning
-|
-|
-|
-|-
-|of period
-|8,480,435
-|9,664,972
-|11,828,304
-|-
-|Cash, cash equivalents and restricted  cash at end of
-|
-|
-|
-|-
-|period
-|9,664,972
-|11,828,304
-|10,707,244
-|-
-|Supplemental disclosures of cash flow  information
-|
-|
-|
-|-
-|Cash paid during the period for:
-|
-|
-|
-|-
-|Interest
-|1,080,368
-|936,272
-|1,164,093
-|-
-|Income taxes, net
-|25
-|727,126
-|214,066
-|-
-! colspan="4" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|}
-{| class="wikitable"
-|+Barclays Bank Plc
-! colspan="1" rowspan="1" |
-! colspan="1" rowspan="1" |31/12/2020
-! colspan="1" rowspan="1" |31/12/2021
-! colspan="1" rowspan="1" |31/12/'''2022'''
-|-
-!
-!Historic
-!Historic
-!Historic
-|-
-! colspan="4" |Profit and loss
-|-
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |£m
-| colspan="1" rowspan="1" |£m
-| colspan="1" rowspan="1" |£m
-|-
-| colspan="1" rowspan="1" |Continuing operations
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Interest and similar income
-| colspan="1" rowspan="1" |6,006
-| colspan="1" rowspan="1" |5,672
-| colspan="1" rowspan="1" |11,779
-|-
-| colspan="1" rowspan="1" |Interest and similar expense
-| colspan="1" rowspan="1" |(2,846)
-| colspan="1" rowspan="1" |(2,599)
-| colspan="1" rowspan="1" |(6,381)
-|-
-| colspan="1" rowspan="1" |Net interest income
-| colspan="1" rowspan="1" |3,160
-| colspan="1" rowspan="1" |3,073
-| colspan="1" rowspan="1" |5,398
-|-
-| colspan="1" rowspan="1" |Fee and commission income
-| colspan="1" rowspan="1" |7,417
-| colspan="1" rowspan="1" |8,581
-| colspan="1" rowspan="1" |8,171
-|-
-| colspan="1" rowspan="1" |Fee and commission expense
-| colspan="1" rowspan="1" |(1,758)
-| colspan="1" rowspan="1" |(1,994)
-| colspan="1" rowspan="1" |(2,745)
-|-
-| colspan="1" rowspan="1" |Net fee and commission income
-| colspan="1" rowspan="1" |5,659
-| colspan="1" rowspan="1" |6,587
-| colspan="1" rowspan="1" |5,426
-|-
-| colspan="1" rowspan="1" |Net trading income
-| colspan="1" rowspan="1" |7,076
-| colspan="1" rowspan="1" |5,788
-| colspan="1" rowspan="1" |7,624
-|-
-| colspan="1" rowspan="1" |Net investment expense
-| colspan="1" rowspan="1" |(121)
-| colspan="1" rowspan="1" |(80)
-| colspan="1" rowspan="1" |(323)
-|-
-| colspan="1" rowspan="1" |Other income
-| colspan="1" rowspan="1" |4
-| colspan="1" rowspan="1" |40
-| colspan="1" rowspan="1" |69
-|-
-| colspan="1" rowspan="1" |Total income
-| colspan="1" rowspan="1" |15,778
-| colspan="1" rowspan="1" |15,408
-| colspan="1" rowspan="1" |18,194
-|-
-| colspan="1" rowspan="1" |Staff costs
-| colspan="1" rowspan="1" |(4,365)
-| colspan="1" rowspan="1" |(4,456)
-| colspan="1" rowspan="1" |(5,192)
-|-
-| colspan="1" rowspan="1" |Infrastructure costs
-| colspan="1" rowspan="1" |(816)
-| colspan="1" rowspan="1" |(1,054)
-| colspan="1" rowspan="1" |(900)
-|-
-| colspan="1" rowspan="1" |Administration and general expenses
-| colspan="1" rowspan="1" |(4,202)
-| colspan="1" rowspan="1" |(4,375)
-| colspan="1" rowspan="1" |(4,879)
-|-
-| colspan="1" rowspan="1" |Litigation and conduct
-| colspan="1" rowspan="1" |(76)
-| colspan="1" rowspan="1" |(374)
-| colspan="1" rowspan="1" |(1,427)
-|-
-| colspan="1" rowspan="1" |Operating expenses
-| colspan="1" rowspan="1" |(9,459)
-| colspan="1" rowspan="1" |(10,259)
-| colspan="1" rowspan="1" |(12,398)
-|-
-| colspan="1" rowspan="1" |Share of post-tax results of associates and joint ventures
-| colspan="1" rowspan="1" |7
-| colspan="1" rowspan="1" |4
-| colspan="1" rowspan="1" |3
-|-
-| colspan="1" rowspan="1" |Profit/(loss) on disposal of subsidiaries, associates and joint ventures
-| colspan="1" rowspan="1" |126
-| colspan="1" rowspan="1" |(12)
-| colspan="1" rowspan="1" |1
-|-
-| colspan="1" rowspan="1" |Profit before Impairment
-| colspan="1" rowspan="1" |6,452
-| colspan="1" rowspan="1" |5,141
-| colspan="1" rowspan="1" |5,800
-|-
-| colspan="1" rowspan="1" |Credit impairment (charges)/releases
-| colspan="1" rowspan="1" |(3,377)
-| colspan="1" rowspan="1" |277
-| colspan="1" rowspan="1" |(933)
-|-
-| colspan="1" rowspan="1" |Profit before tax
-| colspan="1" rowspan="1" |3,075
-| colspan="1" rowspan="1" |5,418
-| colspan="1" rowspan="1" |4,867
-|-
-| colspan="1" rowspan="1" |Taxation
-| colspan="1" rowspan="1" |(624)
-| colspan="1" rowspan="1" |(830)
-| colspan="1" rowspan="1" |(485)
-|-
-| colspan="1" rowspan="1" |Profit after tax
-| colspan="1" rowspan="1" |2,451
-| colspan="1" rowspan="1" |4,588
-| colspan="1" rowspan="1" |4,382
-|-
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Attributable to:
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Equity holders of the parent
-| colspan="1" rowspan="1" |1,774
-| colspan="1" rowspan="1" |3,957
-| colspan="1" rowspan="1" |3,650
-|-
-| colspan="1" rowspan="1" |Other equity instrument holders
-| colspan="1" rowspan="1" |677
-| colspan="1" rowspan="1" |631
-| colspan="1" rowspan="1" |732
-|-
-| colspan="1" rowspan="1" |Total equity holders of the parent
-| colspan="1" rowspan="1" |2,451
-| colspan="1" rowspan="1" |4,588
-| colspan="1" rowspan="1" |4,382
-|-
-| colspan="1" rowspan="1" |Profit after tax
-| colspan="1" rowspan="1" |2,451
-| colspan="1" rowspan="1" |4,588
-| colspan="1" rowspan="1" |4,382
-|-
-! colspan="4" |Balance sheet
-|-
-| colspan="4" rowspan="1" |Assets
-|-
-| colspan="1" rowspan="1" |Cash and balances at central banks
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |169,085
-| colspan="1" rowspan="1" |202,142
-|-
-| colspan="1" rowspan="1" |Cash collateral and settlement balances
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |88,085
-| colspan="1" rowspan="1" |107,862
-|-
-| colspan="1" rowspan="1" |Loans and advances at amortised cost
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |145,259
-| colspan="1" rowspan="1" |182,507
-|-
-| colspan="1" rowspan="1" |Reverse repurchase agreements and other similar secured lending
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |3,177
-| colspan="1" rowspan="1" |725
-|-
-| colspan="1" rowspan="1" |Trading portfolio assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |146,871
-| colspan="1" rowspan="1" |133,771
-|-
-| colspan="1" rowspan="1" |Financial assets at fair value through the income statement
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |188,226
-| colspan="1" rowspan="1" |211,128
-|-
-| colspan="1" rowspan="1" |Derivative financial instruments
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |262,291
-| colspan="1" rowspan="1" |302,976
-|-
-| colspan="1" rowspan="1" |Financial assets at fair value through other comprehensive income
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |45,908
-| colspan="1" rowspan="1" |45,084
-|-
-| colspan="1" rowspan="1" |Investments in associates and joint ventures
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |24
-| colspan="1" rowspan="1" |26
-|-
-| colspan="1" rowspan="1" |Goodwill and intangible assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |1,449
-| colspan="1" rowspan="1" |1,665
-|-
-| colspan="1" rowspan="1" |Property, plant and equipment
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |1,248
-| colspan="1" rowspan="1" |1,379
-|-
-| colspan="1" rowspan="1" |Current tax assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |589
-| colspan="1" rowspan="1" |737
-|-
-| colspan="1" rowspan="1" |Deferred tax assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |2,981
-| colspan="1" rowspan="1" |4,583
-|-
-| colspan="1" rowspan="1" |Retirement benefit assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |3,879
-| colspan="1" rowspan="1" |4,743
-|-
-| colspan="1" rowspan="1" |Other assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |2,706
-| colspan="1" rowspan="1" |4,209
-|-
-| colspan="1" rowspan="1" |Total assets
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |1,061,778
-| colspan="1" rowspan="1" |1,203,537
-|-
-| colspan="4" rowspan="1" |Liabilities
-|-
-| colspan="1" rowspan="1" |Deposits at amortised cost
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |262,828
-| colspan="1" rowspan="1" |291,579
-|-
-| colspan="1" rowspan="1" |Cash collateral and settlement balances
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |79,047
-| colspan="1" rowspan="1" |96,811
-|-
-| colspan="1" rowspan="1" |Repurchase agreements and other similar secured borrowing
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |12,769
-| colspan="1" rowspan="1" |11,965
-|-
-| colspan="1" rowspan="1" |Debt securities in issue
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |48,388
-| colspan="1" rowspan="1" |60,012
-|-
-| colspan="1" rowspan="1" |Subordinated liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |32,185
-| colspan="1" rowspan="1" |38,253
-|-
-| colspan="1" rowspan="1" |Trading portfolio liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |53,291
-| colspan="1" rowspan="1" |72,460
-|-
-| colspan="1" rowspan="1" |Financial liabilities designated at fair value
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |251,131
-| colspan="1" rowspan="1" |272,055
-|-
-| colspan="1" rowspan="1" |Derivative financial instruments
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |256,523
-| colspan="1" rowspan="1" |289,206
-|-
-| colspan="1" rowspan="1" |Current tax liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |688
-| colspan="1" rowspan="1" |422
-|-
-| colspan="1" rowspan="1" |Deferred tax liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |6
-| colspan="1" rowspan="1" |—
-|-
-| colspan="1" rowspan="1" |Retirement benefit liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |246
-| colspan="1" rowspan="1" |184
-|-
-| colspan="1" rowspan="1" |Other liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |7,249
-| colspan="1" rowspan="1" |10,779
-|-
-| colspan="1" rowspan="1" |Provisions
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |1,110
-| colspan="1" rowspan="1" |858
-|-
-| colspan="1" rowspan="1" |Total liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |1,005,461
-| colspan="1" rowspan="1" |1,144,584
-|-
-| colspan="4" rowspan="1" |Equity
-|-
-| colspan="1" rowspan="1" |Called up share capital and share premium
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |2,348
-| colspan="1" rowspan="1" |2,348
-|-
-| colspan="1" rowspan="1" |Other equity instruments
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |9,693
-| colspan="1" rowspan="1" |10,691
-|-
-| colspan="1" rowspan="1" |Other reserves
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |861
-| colspan="1" rowspan="1" |(1,464)
-|-
-| colspan="1" rowspan="1" |Retained earnings
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |43,415
-| colspan="1" rowspan="1" |47,378
-|-
-| colspan="1" rowspan="1" |Total equity
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |56,317
-| colspan="1" rowspan="1" |58,953
-|-
-| colspan="1" rowspan="1" |Total liabilities and equity
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |1,061,778
-| colspan="1" rowspan="1" |1,203,537
-|-
-! colspan="4" |Cash flow statement
-|-
-| colspan="1" rowspan="1" |Reconciliation of profit before tax to net cash flows from operating activities:
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Profit before tax
-| colspan="1" rowspan="1" |3,075
-| colspan="1" rowspan="1" |5,418
-| colspan="1" rowspan="1" |4,867
-|-
-| colspan="1" rowspan="1" |Adjustment for non-cash items:
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Credit impairment charges/(releases)
-| colspan="1" rowspan="1" |3,377
-| colspan="1" rowspan="1" |(277)
-| colspan="1" rowspan="1" |933
-|-
-| colspan="1" rowspan="1" |Depreciation, amortisation and impairment of property, plant, equipment and intangibles
-| colspan="1" rowspan="1" |441
-| colspan="1" rowspan="1" |683
-| colspan="1" rowspan="1" |483
-|-
-| colspan="1" rowspan="1" |Other provisions, including pensions
-| colspan="1" rowspan="1" |634
-| colspan="1" rowspan="1" |85
-| colspan="1" rowspan="1" |1,188
-|-
-| colspan="1" rowspan="1" |Net loss/(profit) on disposal of investments and property, plant and equipment
-| colspan="1" rowspan="1" |(119)
-| colspan="1" rowspan="1" |12
-| colspan="1" rowspan="1" |8
-|-
-| colspan="1" rowspan="1" |Other non-cash movements including exchange rate movements
-| colspan="1" rowspan="1" |(2,362)
-| colspan="1" rowspan="1" |1,968
-| colspan="1" rowspan="1" |(13,491)
-|-
-| colspan="1" rowspan="1" |Changes in operating assets and liabilities
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Net (increase)/decrease in cash collateral and settlement balances
-| colspan="1" rowspan="1" |4,098
-| colspan="1" rowspan="1" |3,633
-| colspan="1" rowspan="1" |(1,078)
-|-
-| colspan="1" rowspan="1" |Net (increase)/decrease in loans and advances at amortised cost
-| colspan="1" rowspan="1" |7,142
-| colspan="1" rowspan="1" |(7,190)
-| colspan="1" rowspan="1" |(30,617)
-|-
-| colspan="1" rowspan="1" |Net decrease/(increase) in reverse repurchase agreements and other similar secured lending
-| colspan="1" rowspan="1" |(7,250)
-| colspan="1" rowspan="1" |5,804
-| colspan="1" rowspan="1" |2,452
-|-
-| colspan="1" rowspan="1" |Net increase in deposits at amortised cost
-| colspan="1" rowspan="1" |31,148
-| colspan="1" rowspan="1" |18,132
-| colspan="1" rowspan="1" |28,751
-|-
-| colspan="1" rowspan="1" |Net increase/(decrease) in debt securities in issue
-| colspan="1" rowspan="1" |(4,113)
-| colspan="1" rowspan="1" |18,965
-| colspan="1" rowspan="1" |11,624
-|-
-| colspan="1" rowspan="1" |Net (decrease)/increase in repurchase agreements and other similar secured borrowing
-| colspan="1" rowspan="1" |8,411
-| colspan="1" rowspan="1" |2,326
-| colspan="1" rowspan="1" |(804)
-|-
-| colspan="1" rowspan="1" |Net increase in derivative financial instruments
-| colspan="1" rowspan="1" |(1,604)
-| colspan="1" rowspan="1" |(3,655)
-| colspan="1" rowspan="1" |(8,002)
-|-
-| colspan="1" rowspan="1" |Net decrease/(increase) in trading portfolio assets
-| colspan="1" rowspan="1" |(14,327)
-| colspan="1" rowspan="1" |(19,207)
-| colspan="1" rowspan="1" |13,100
-|-
-| colspan="1" rowspan="1" |Net increase in trading portfolio liabilities
-| colspan="1" rowspan="1" |10,927
-| colspan="1" rowspan="1" |7,152
-| colspan="1" rowspan="1" |19,169
-|-
-| colspan="1" rowspan="1" |Net (increase)/decrease in financial assets and liabilities at fair value through the income statement
-| colspan="1" rowspan="1" |2,889
-| colspan="1" rowspan="1" |(14,960)
-| colspan="1" rowspan="1" |(1,978)
-|-
-| colspan="1" rowspan="1" |Net increase in other assets
-| colspan="1" rowspan="1" |(93)
-| colspan="1" rowspan="1" |(2,235)
-| colspan="1" rowspan="1" |(3,311)
-|-
-| colspan="1" rowspan="1" |Net increase in other liabilities
-| colspan="1" rowspan="1" |13
-| colspan="1" rowspan="1" |2,082
-| colspan="1" rowspan="1" |1,834
-|-
-| colspan="1" rowspan="1" |Corporate income tax paid
-| colspan="1" rowspan="1" |(12)
-| colspan="1" rowspan="1" |(1,239)
-| colspan="1" rowspan="1" |(144)
-|-
-| colspan="1" rowspan="1" |'''Net cash from operating activities'''
-| colspan="1" rowspan="1" |'''42,275'''
-| colspan="1" rowspan="1" |'''17,497'''
-| colspan="1" rowspan="1" |'''24,984'''
-|-
-| colspan="1" rowspan="1" |Purchase of debt securities at amortised cost
-| colspan="1" rowspan="1" |(7,890)
-| colspan="1" rowspan="1" |(6,931)
-| colspan="1" rowspan="1" |(20,014)
-|-
-| colspan="1" rowspan="1" |Proceeds from redemption or sale of debt securities at amortised cost
-| colspan="1" rowspan="1" |3,527
-| colspan="1" rowspan="1" |2,424
-| colspan="1" rowspan="1" |12,925
-|-
-| colspan="1" rowspan="1" |Purchase of financial assets at fair value through other comprehensive income
-| colspan="1" rowspan="1" |(57,640)
-| colspan="1" rowspan="1" |(44,058)
-| colspan="1" rowspan="1" |(43,139)
-|-
-| colspan="1" rowspan="1" |Proceeds from sale or redemption of financial assets at fair value through other comprehensive income
-| colspan="1" rowspan="1" |53,367
-| colspan="1" rowspan="1" |47,601
-| colspan="1" rowspan="1" |42,157
-|-
-| colspan="1" rowspan="1" |Purchase of property, plant and equipment and intangibles
-| colspan="1" rowspan="1" |(303)
-| colspan="1" rowspan="1" |(758)
-| colspan="1" rowspan="1" |(540)
-|-
-| colspan="1" rowspan="1" |Disposal of subsidiaries and associates, net of cash disposed
-| colspan="1" rowspan="1" |736
-| colspan="1" rowspan="1" |65
-| colspan="1" rowspan="1" |—
-|-
-| colspan="1" rowspan="1" |Other cash flows associated with investing activities
-| colspan="1" rowspan="1" |11
-| colspan="1" rowspan="1" |4
-| colspan="1" rowspan="1" |—
-|-
-| colspan="1" rowspan="1" |'''Net cash from investing activities'''
-| colspan="1" rowspan="1" |'''(8,192)'''
-| colspan="1" rowspan="1" |'''(1,653)'''
-| colspan="1" rowspan="1" |'''(8,611)'''
-|-
-| colspan="1" rowspan="1" |Dividends paid and other coupon payments on equity instruments
-| colspan="1" rowspan="1" |(982)
-| colspan="1" rowspan="1" |(1,452)
-| colspan="1" rowspan="1" |(963)
-|-
-| colspan="1" rowspan="1" |Issuance of subordinated liabilities
-| colspan="1" rowspan="1" |3,856
-| colspan="1" rowspan="1" |9,099
-| colspan="1" rowspan="1" |15,381
-|-
-| colspan="1" rowspan="1" |Redemption of subordinated liabilities
-| colspan="1" rowspan="1" |(4,746)
-| colspan="1" rowspan="1" |(7,241)
-| colspan="1" rowspan="1" |(8,367)
-|-
-| colspan="1" rowspan="1" |Issue of shares and other equity instruments
-| colspan="1" rowspan="1" |1,134
-| colspan="1" rowspan="1" |1,072
-| colspan="1" rowspan="1" |3,134
-|-
-| colspan="1" rowspan="1" |Repurchase of shares and other equity instruments
-| colspan="1" rowspan="1" |(903)
-| colspan="1" rowspan="1" |—
-| colspan="1" rowspan="1" |(2,136)
-|-
-| colspan="1" rowspan="1" |Capital contribution
-| colspan="1" rowspan="1" |—
-| colspan="1" rowspan="1" |—
-| colspan="1" rowspan="1" |750
-|-
-| colspan="1" rowspan="1" |Vesting of employee share schemes
-| colspan="1" rowspan="1" |(300)
-| colspan="1" rowspan="1" |(356)
-| colspan="1" rowspan="1" |(413)
-|-
-| colspan="1" rowspan="1" |'''Net cash from financing activities'''
-| colspan="1" rowspan="1" |'''(1,941)'''
-| colspan="1" rowspan="1" |'''1,122'''
-| colspan="1" rowspan="1" |'''7,386'''
-|-
-| colspan="1" rowspan="1" |Effect of exchange rates on cash and cash equivalents
-| colspan="1" rowspan="1" |1,669
-| colspan="1" rowspan="1" |(4,231)
-| colspan="1" rowspan="1" |10,235
-|-
-| colspan="1" rowspan="1" |Net increase in cash and cash equivalents
-| colspan="1" rowspan="1" |33,811
-| colspan="1" rowspan="1" |12,735
-| colspan="1" rowspan="1" |33,994
-|-
-| colspan="1" rowspan="1" |Cash and cash equivalents at beginning of year
-| colspan="1" rowspan="1" |139,314
-| colspan="1" rowspan="1" |173,125
-| colspan="1" rowspan="1" |185,860
-|-
-| colspan="1" rowspan="1" |Cash and cash equivalents at end of year
-| colspan="1" rowspan="1" |173,125
-| colspan="1" rowspan="1" |185,860
-| colspan="1" rowspan="1" |219,854
-|-
-| colspan="1" rowspan="1" |Cash and cash equivalents comprise:
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-| colspan="1" rowspan="1" |
-|-
-| colspan="1" rowspan="1" |Cash and balances at central banks
-| colspan="1" rowspan="1" |155,902
-| colspan="1" rowspan="1" |169,085
-| colspan="1" rowspan="1" |202,142
-|-
-| colspan="1" rowspan="1" |Loans and advances to banks with original maturity less than three months
-| colspan="1" rowspan="1" |7,281
-| colspan="1" rowspan="1" |6,473
-| colspan="1" rowspan="1" |6,229
-|-
-| colspan="1" rowspan="1" |Cash collateral balances with central banks with original maturity less than three months
-| colspan="1" rowspan="1" |9,086
-| colspan="1" rowspan="1" |9,690
-| colspan="1" rowspan="1" |10,625
-|-
-| colspan="1" rowspan="1" |Treasury and other eligible bills with original maturity less than three months
-| colspan="1" rowspan="1" |856
-| colspan="1" rowspan="1" |612
-| colspan="1" rowspan="1" |858
-|-
-| colspan="1" rowspan="1" |Cash and cash equivalents at end of year
-| colspan="1" rowspan="1" |173,125
-| colspan="1" rowspan="1" |185,860
-| colspan="1" rowspan="1" |219,854
-|-
-! colspan="4" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
-|}
-{| class="wikitable"
-|+HSBC Holdings Plc
-!
-!31/12/20
-!31/12/21
-!31/12/22
-|-
-!
-!Historic
-!Historic
-!Historic
-|-
-! colspan="4" |Profit and loss
-|-
-|Net  interest income ($m)
-|
-|26,489
-|32,610
-|-
-|Net fee  income
-|
-|13,097
-|11,451
-|-
-|Other  operating income
-|
-|9,966
-|7,666
-|-
-|Net  operating income before change in expected credit losses and other credit  impairment charges
-|
-|49,552
-|51,727
-|-
-|Change  in expected credit losses and other credit impairment charges
-|
-|928
-|(3,592)
-|-
-|Total  operating expenses
-|
-|(34,620)
-|(33,330)
-|-
-|  of which: staff expenses<sup>1</sup>
-|
-|(18,742)
-|(18,366)
-|-
-|Share  of profit in associates and joint ventures
-|
-|3,046
-|2,723
-|-
-|Profit/(loss)  before tax
-|
-|18,906
-|17,528
-|-
-|Tax  credit/(charge)
-|
-|(4,213)
-|(858)
-|-
-|Profit/(loss)  after tax
-|
-|14,693
-|16,670
-|-
-|Profit/(loss)  attributable to:
-|
-|
-|
-|-
-|  - ordinary shareholders of the parent  company ('PAOS')
-|
-|12,607
-|14,822
-|-
-|  - preference shareholders of the parent  company
-|
-|7
-|—
-|-
-|  - other equity holders of the parent  company
-|
-|1,303
-|1,213
-|-
-|  - non-controlling interests
-|
-|776
-|635
-|-
-|
-|
-|
-|
-|-
-|(Increase)/decrease  in present value of in-force insurance  business ('PVIF') (net of tax)
-|
-|(58)
-|(264)
-|-
-|Impairment  of goodwill and other intangible assets (net of tax)
-|
-|608
-|531
-|-
-|PAOS  net of PVIF and goodwill impairment
-|
-|13,157
-|15,091
-|-
-|
-|
-|
-|
-|-
-|Reported  significant items - Totals ($m)
-|
-|
-|
-|-
-|Revenue
-|
-|(538)
-|(3,618)
-|-
-|ECL
-|
-|—
-|—
-|-
-|Operating  expenses
-|
-|(2,472)
-|(2,864)
-|-
-|Share  of profit in associates and joint ventures
-|
-|—
-|                               —
-|-
-|
-|
-|
-|
-|-
-|Adjusted  ($m)
-|
-|
-|
-|-
-|Net  operating income before change in expected credit losses and other credit  impairment charges<sup>1</sup>
-|
-|47,020
-|55,345
-|-
-|  of which: net interest income
-|
-|24,894
-|32,602
-|-
-|  of which: net fee income
-|
-|12,488
-|11,451
-|-
-|Change  in expected credit losses and other credit impairment charges
-|
-|754
-|(3,592)
-|-
-|Total  operating expenses
-|
-|(30,104)
-|(30,466)
-|-
-|Share  of profit in associates and joint ventures
-|
-|2,933
-|2,723
-|-
-|Profit/(loss)  before tax
-|
-|20,603
-|24,010
-|-
-|
-|
-|
-|
-|-
-|
-|
-|Year to date
-|Year to date
-|-
-|Earnings  metrics
-|
-|31-Dec-21
-|31-Dec-22
-|-
-|Return  on average equity (annualised)
-|
-|7.1 %
-|8.7%
-|-
-|Return  on average tangible equity (annualised)
-|
-|8.3 %
-|9.9%
-|-
-|Earnings  per share ($)
-|
-|0.62
-|0.75
-|-
-|Adjusted  ECL / average gross loans (annualised)
-|
-|(0.08)%
-|0.36 %
-|-
-|
-|
-|
-|
-|-
-|Dividends
-|
-|
-|
-|-
-|Dividends  per share - declared in respect of the period ($)
-|
-|0.25
-|0.32
-|-
-|Dividends  paid during the period, net of scrip ($m)
-|
-|4,480
-|5,330
-|-
-|Value  of scrip issued during period ($m)
-|
-|—
-|—
-|-
-|
-|
-|
-|
-|-
-|Revenue  significant items ($m)
-|
-|
-|
-|-
-|Customer  redress programmes
-|
-|11
-|8
-|-
-|Disposals,  acquisitions and investment in new businesses
-|
-|—
-|(2,799)
-|-
-|Fair  value movements on financial instruments
-|
-|(242)
-|(579)
-|-
-|Restructuring  and other related costs
-|
-|(307)
-|(248)
-|-
-|
-|
-|
-|
-|-
-|Cost  significant items ($m)
-|
-|
-|
-|-
-|Costs  of structural reform
-|
-|—
-|—
-|-
-|Customer  redress programmes
-|
-|(49)
-|31
-|-
-|Disposals,  acquisitions and investment in new businesses
-|
-|—
-|(18)
-|-
-|Impairment  of goodwill and other intangibles
-|
-|(587)
-|4
-|-
-|Past  service costs of guaranteed minimum pension benefits equalisation
-|
-|—
-|—
-|-
-|Restructuring  and other related costs
-|
-|(1,836)
-|(2,881)
-|-
-|Settlements  and provisions in connection with legal and regulatory matters
-|
-|—
-|—
-|-
-|
-|
-|
-|
-|-
-|Share  of profit in associates and joint ventures significant items ($m)
-|
-|
-|
-|-
-|Impairment  of goodwill
-|
-|—
-|—
-|-
-! colspan="4" |Balance sheet
-|-
-|Assets  – reported ($m)
-|
-|
-|
-|-
-|Cash  and balances at central banks
-|
-|403,018
-|327,002
-|-
-|Items  in the course of collection from other banks
-|
-|4,136
-|7,297
-|-
-|Hong  Kong Government certificates of indebtedness
-|
-|42,578
-|43,787
-|-
-|Trading  assets
-|
-|248,842
-|218,093
-|-
-|Financial  assets designated and otherwise mandatorily measured at fair value through  profit or loss
-|
-|49,804
-|45,063
-|-
-|Derivatives
-|
-|196,882
-|284,146
-|-
-|Loans  and advances to banks
-|
-|83,136
-|104,882
-|-
-|Loans  and advances to customers (net)
-|
-|1,045,814
-|924,854
-|-
-|Reverse  repurchase agreements – non-trading
-|
-|241,648
-|253,754
-|-
-|Financial  investments
-|
-|446,274
-|425,564
-|-
-|Prepayments,  accrued income and other assets<sup>1</sup>
-|
-|139,982
-|272,785
-|-
-|Current  tax assets
-|
-|970
-|1,230
-|-
-|Interests  in associates and joint ventures
-|
-|29,609
-|29,254
-|-
-|Goodwill  and intangible assets
-|
-|20,622
-|21,321
-|-
-|Deferred  tax assets
-|
-|4,624
-|7,498
-|-
-|Total  assets
-|
-|2,957,939
-|2,966,530
-|-
-|
-|
-|
-|
-|-
-|Liabilities  – reported ($m)
-|
-|
-|
-|-
-|Hong  Kong currency notes in circulation
-|
-|42,578
-|43,787
-|-
-|Deposits  by banks
-|
-|101,152
-|66,722
-|-
-|Customer  accounts
-|
-|1,710,574
-|1,570,303
-|-
-|Repurchase  agreements – non-trading
-|
-|126,670
-|127,747
-|-
-|Items  in the course of transmission to other banks
-|
-|5,214
-|7,864
-|-
-|Trading  liabilities
-|
-|84,904
-|72,353
-|-
-|Financial  liabilities designated at fair value
-|
-|145,502
-|127,327
-|-
-|Derivatives
-|
-|191,064
-|285,764
-|-
-|Debt  securities in issue
-|
-|78,557
-|78,149
-|-
-|Accruals,  deferred income and other liabilities<sup>2</sup>
-|
-|123,778
-|247,837
-|-
-|Current  tax liabilities
-|
-|698
-|1,135
-|-
-|Liabilities  under insurance contracts
-|
-|112,745
-|114,844
-|-
-|Provisions
-|
-|2,566
-|1,958
-|-
-|Deferred  tax liabilities
-|
-|4,673
-|2,422
-|-
-|Subordinated  liabilities
-|
-|20,487
-|22,290
-|-
-|Total  liabilities
-|
-|2,751,162
-|2,770,502
-|-
-|
-|
-|
-|
-|-
-|Equity  – reported ($m)
-|
-|
-|
-|-
-|Called  up share capital
-|
-|10,316
-|10,147
-|-
-|Share  premium account
-|
-|14,602
-|14,664
-|-
-|Other  equity instruments
-|
-|22,414
-|19,746
-|-
-|Other  reserves
-|
-|6,460
-|(9,141)
-|-
-|Retained  earnings
-|
-|144,458
-|152,068
-|-
-|Total  shareholders' equity
-|
-|198,250
-|187,484
-|-
-|Non-controlling  interests
-|
-|8,527
-|8,544
-|-
-|Total  equity
-|
-|206,777
-|196,028
-|-
-|Total  liabilities and equity
-|
-|2,957,939
-|2,966,530
-|-
-! colspan="4" |Cash flow statement
-|-
-|'''Profit before tax'''
-|8,777
-|18,906
-|17,528
-|-
-|'''Adjustments for non-cash items:'''
-|
-|
-|
-|-
-|Depreciation, amortisation and impairment
-|5,241
-|4,286
-|3,873
-|-
-|Net loss/(gain) from  investing activities
-|(541)
-|(647)
-|11
-|-
-|Share of profits in associates and joint  ventures
-|(1,597)
-|(3,046)
-|(2,723)
-|-
-|Loss on disposal of subsidiaries, businesses, associates and joint ventures
-|—
-|—
-|2,639
-|-
-|Change in expected credit losses gross of recoveries and other credit impairment charges
-|9,096
-|(519)
-|3,907
-|-
-|Provisions including pensions
-|1,164
-|1,063
-|635
-|-
-|Share-based payment  expense
-|433
-|467
-|400
-|-
-|Other non-cash items included in profit before  tax
-|(906)
-|510
-|(1,084)
-|-
-|Elimination of exchange differences<sup>1</sup>
-|(25,749)
-|18,937
-|49,127
-|-
-|'''Changes in operating assets  and liabilities'''
-|
-|
-|
-|-
-|Change in net trading securities and  derivatives
-|13,150
-|(9,226)
-|20,181
-|-
-|Change in loans and advances to banks and customers
-|(14,131)
-|(11,014)
-|31,799
-|-
-|Change in reverse repurchase agreements – non-trading
-|9,950
-|552
-|(23,405)
-|-
-|Change in financial assets designated and otherwise mandatorily measured at fair value
-|(1,962)
-|(4,254)
-|8,344
-|-
-|Change in other  assets
-|(19,610)
-|19,899
-|(10,771)
-|-
-|Change in deposits by banks and customer accounts
-|226,723
-|95,703
-|(91,194)
-|-
-|Change in repurchase agreements – non-trading
-|(28,443)
-|14,769
-|4,344
-|-
-|Change in debt securities in issue
-|(9,075)
-|(16,936)
-|12,518
-|-
-|Change in financial liabilities designated at fair value
-|(6,630)
-|(11,425)
-|(13,647)
-|-
-|Change in other liabilities
-|20,323
-|(10,935)
-|15,978
-|-
-|Dividends received  from associates
-|761
-|808
-|944
-|-
-|Contributions paid to defined benefit plans
-|(495)
-|(509)
-|(194)
-|-
-|Tax paid
-|(4,259)
-|(3,077)
-|(2,776)
-|-
-|'''Net cash from operating activities'''
-|182,220
-|104,312
-|26,434
-|-
-|Purchase of financial investments
-|(496,669)
-|(493,042)
-|(520,600)
-|-
-|Proceeds from the sale and maturity of financial investments
-|476,990
-|521,190
-|495,049
-|-
-|Net cash flows  from the purchase and sale of property, plant and equipment
-|(1,446)
-|(1,086)
-|(1,285)
-|-
-|Net cash flows  from purchase/(disposal) of customer and loan portfolios
-|1,362
-|3,059
-|(3,530)
-|-
-|Net investment in intangible assets
-|(2,064)
-|(2,479)
-|(3,125)
-|-
-|Net cash flow from acquisition and disposal of subsidiaries, businesses, associates and joint  ventures
-|(603)
-|(106)
-|(989)
-|-
-|'''Net cash from investing activities'''
-|(22,430)
-|27,536
-|(34,480)
-|-
-|Issue of ordinary share  capital and other  equity instruments
-|1,497
-|1,996
-|—
-|-
-|Cancellation of shares
-|—
-|(707)
-|(2,285)
-|-
-|Net purchases of own shares for market-making and investment purposes
-|(181)
-|(1,386)
-|(91)
-|-
-|Net cash flow from change in stake of subsidiaries
-|—
-|                          —
-|(197)
-|-
-|Redemption of preference shares  and other equity  instruments
-|(398)
-|(3,450)
-|(2,266)
-|-
-|Subordinated loan  capital issued
-|—
-|                          —
-|7,300
-|-
-|Subordinated loan capital repaid<sup>2</sup>
-|(3,538)
-|(864)
-|(1,777)
-|-
-|Dividends paid  to shareholders of the parent company and non-controlling interests
-|(2,023)
-|(6,383)
-|(6,970)
-|-
-|'''Net cash from financing activities'''
-|
-|(10,794)
-|(6,286)
-|-
-|'''Net increase/(decrease) in cash and cash equivalents'''
-|155,147
-|121,054
-|(14,332)
-|-
-|Cash and cash equivalents at 1  Jan
-|293,742
-|468,323
-|574,032
-|-
-|Exchange differences in respect of cash and cash equivalents
-|19,434
-|(15,345)
-|(38,029)
-|-
-|'''Cash and  cash equivalents at 31 Dec<sup>3</sup>'''
-|468,323
-|574,032
-|521,671
-|-
-|'''Cash and cash equivalents comprise:'''
-|
-|
-|
-|-
-|– cash and balances at central banks
-|304,481
-|403,018
-|327,002
-|-
-|– items in the course of collection from other banks
-|4,094
-|4,136
-|7,297
-|-
-|– loans and advances to banks of one month  or less
-|51,788
-|55,705
-|72,295
-|-
-|– reverse repurchase agreements with banks of one month or less
-|65,086
-|76,658
-|68,682
-|-
-|– treasury bills, other bills and certificates of deposit less than three months
-|30,023
-|28,488
-|26,727
-|-
-|– cash collateral and net settlement accounts
-|17,194
-|11,241
-|19,445
-|-
-|– cash and cash equivalents held for sale<sup>4</sup>
-|—
-|—
-|8,087
-|-
-|– less:  items in the course of transmission to other banks
-|(4,343)
-|(5,214)
-|(7,864)
-|-
-|'''Cash and  cash equivalents at 31 Dec<sup>3</sup>'''
-|468,323
-|574,032
-|521,671
-|-
-! colspan="4" |Metrics
-|-
-|Cost of goods sold as a proportion of revenue (%)
-|
-|
-|
-|-
-|Operating expenses as a proportion of revenue (%)
-|
-|
-|
-|-
-|Tax rate (%)
-|
-|
-|
-|-
-|Depreciation and amortisation rate (%)
-|
-|
-|
-|-
-|Fixed Capital Investment (FCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Working Capital Investment (WCInv) as a proportion of revenue (%)
-|
-|
-|
-|-
-|Net borrowing as a proportion of revenue (%)
-|
-|
-|
-|-
-|Interest expense as a proportion of revenue (%)
-|
-|
-|
 |}
 == References and notes ==
 <references />