Attach a timber frame to the reverse side of the pegboard. Drill the pegboard to the wall by screwing in at each corner and two more in the middle for extra support. (The frame allows you the space behind the pegboard to get the hooks through.)
Insert pegs and tie string from one side to the other (or do as we did and use curtain wire) and use pegs or S-hooks to hang tea towels or utensils off it. You can also use S-hooks to hang small baskets straight off the pegboard.
NB: For the hanging wire we used Dignitet curtain wire from Ikea; you could also use golf or other pegs and string or curtain wire