Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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June 16, 2023

A sterling recovery

Macro & Overnight

The value of the £ appears to have broken through to a new trading range overnight. At $1.28, this is the highest level since April 2022 and above its median level versus the $ since 2016.

UK Company News

CT Automotive, the designer, developer and supplier of interior components to the automotive industry, reported revenue from continuing operations broadly maintained. However, increased production and distribution costs adversely impacted profitability. Its Balance sheet strengthened following post-period-end fundraising with gross proceeds of $9.6m predominately to support working capital. It said that the chip shortage is subsiding, and it was experiencing a rapid recovery in manufacturing at the Group’s facilities in China. It is confident of achieving its expectations for FY23. 

Currys is considering the sale of its Greek business. 

Peel Hunt reported FY revenue of £82.3m (FY22: £131.0m), and a loss before tax (LBT) of £(1.5)m (FY22: £41.2m). Investment Banking revenues were £23.4m (FY22: £57.9m), with 19 new retained corporate clients, including seven in the FTSE 350. It currently acts for 40 FTSE 350 clients, an increase of 37.9% over the last five years. In Execution Services, revenues remain higher than pre-pandemic levels at £33.8m but down year-on-year due to lower market volumes (FY22: £46.1m). It reported a gradual improvement in its M&A pipeline and said consolidation amongst UK-focused investment banking and financial advisory businesses offered opportunities. It also said it is seeing tentative signs of a pick-up in capital market activity.

Tesco updated that its Q1 performance was in line with expectations, and management reiterated FY guidance.

Travis Perkins updated a resilient performance in the first quarter but has not seen the anticipated easing of market conditions in the second quarter. Its markets continue to be impacted by higher interest rates. However, Toolstation continues to perform in line with UK and European expectations. 

Prognosticator 

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