Market Prognosis

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

February 7, 2024

Barratts acquires Redrow as UK house prices show more stability

Macro 

Amid further signs that the auto market is shifting back to internal combustion engines, Ford and Toyota posted better than expected results. China also announced measures to avoid a trade war with the EU over its “dumping” of EVs. 

The Halifax house price survey indicates that UK house prices rose 1.3% in January. 

UK Company News 

Barratt has agreed all-share offer for Redrow. The enlarged group expects cost synergies of at least £90 million from procurement savings and rationalising divisional and central functions. The combined revenue for FY23 was c.£7.5bn with c.22,642 completions. 

Creo, the medical device company for robotic surgery applications, updated a 13% revenue growth and ongoing cost control. Gross margin improved, but it will report an EBITDA loss of £16.4m (FY22: £20.8m). Cash was at £22.8m. Its Speedboat UltraSlim has been used successfully in procedures in the UK, USA, LATAM and APAC, with a 120% increase in the number of users. It has also started clinical market development with its MicroBlate range. Its licensing partnerships with Intuitive and CMR have progressed well during 2023. It remains confident of our goal to achieve cashflow break even in 2025. 

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