The UK initial public offering market may have seen the bottom of its downturn but a question mark hangs over the future pipeline, according to a new report from KPMG.

Neil Austin, head of new issues at KPMG Corporate Finance, said: "Whilst we have a backlog of companies who shelved their plans last year, some of whom may get away in the short term, a question mark hangs over the future pipeline. The largest source by far is the private equity houses' portfolios but the market remains a little wary of such companies and will need to see value."