Investment bank Peel Hunt said revenues grew “in line” with guidance over the past six months as it was also impacted by inflationary cost increases and higher interest rates.
The London-listed firm said it has seen a “prolonged period of adverse market conditions” since the end of 2021.
It told shareholders that group revenues have increased by around 3.2% to approximately £42.4 million for the six months to September 30.
The firm also said its costs are in line with expectations but have seen continued inflationary pressure.
In a statement, the company said: “Whilst there has been a focus on costs during the period, this has been against headwinds of inflationary cost increases, particularly in service provider and technology costs, with interest rate rises impacting our debt facilities.
“As a result, costs have increased broadly in line with inflation over the period.”
It added that its long-term debt now stands at £15 million, having come down from around £30 million in September last year.
Peel Hunt stressed the strength of its balance sheet in order to “weather” the continued weak spell facing the financial markets and suggest the recent slow down in inflation could bring reason for optimism.
“Whilst exact timing of recovery cannot be predicted, there are encouraging signs that interest rate rises are bringing inflation under control, and we may be nearing the end of the current tightening cycle,” the company added.
“We have the balance sheet strength and regulatory capital to weather the remainder of this cyclical downturn and are well positioned to benefit from the strength of our platform and considerable operational gearing as market conditions normalise.”
Shares in the company were 1.8% lower in early trading.