Proactive Investors - Peel Hunt (LON:PEEL) said it expects equity market conditions to remain muted but that sentiment towards potential UK initial public offers (IPOs) is improving.
Trading volumes remain "low" and capital markets transactions continue to be "subdued" in London, the City broker said, expecting these trends "to continue until there are meaningful signs of recovery in the UK economy and fund outflows reverse".
In a year-end update, the firm said full-year revenues for the 12 months to 31 March to come in at £85.5 million, up 4% from the prior year, but with a loss "broadly in line" with forecasts for the second year in succession.
Dealmaking was the main factor behind revenue growth, offsetting a decline in execution services in line with overall lower market volumes, and a small fall in research revenues.
Peel Hunt added 18 clients to take its total to 150 by the year end, of which 43 are in the FTSE 350 with a total market cap of £110 billion.
"Whilst IPO activity in the UK remains muted, there has been more activity in Europe and sentiment towards IPOs is improving in the UK, with investors increasingly willing to engage in relation to high quality companies," it said.
As reported last month, its RetailBook IPO platform recently raised funds to begin operating as a fully independent business, which is expected in the coming months.