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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August 18, 2023

Barbenheimer boosts Everyman

Macro & Overnight

July UK retail sales were disappointing.

There is further evidence of the Chinese slowdown morphing into a full-blown financial crisis as Evegrande files for bankruptcy in the US.

Long bond yields are rising across the globe. Yield curves are flattening, but not in a good way.

UK Company News

Everyman Cinema reported record July trading due to Barbie and Oppenheimer releases, with revenue of £10.6m (July 2022: £7.1m) and EBITDA of £2.6m (July 2022: £1.3m). It now operates 41 cinemas. It is confident that the company’s FY financial performance will align with market expectations. 

Impact Healthcare REIT, the care home landlord has purchased a new £50m interest rate cap. It caps its interest payments at 4.0% for two years, expiring on 15 August 2025, for £1.76 million. The Group has now hedged or fixed the interest rates on 92% (£175 million) of its current drawn debt of £191 million. The weighted average cost of drawn debt is 4.66% based on SONIA of 5.4%. At current hedging and drawn debt levels, an increase of 50 bps in SONIA will result in a 4 bps increase in the weighted average cost of drawn debt.



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