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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April 30, 2024

China survey data indicate continued growth

Macro

Asian currency volatility has lessened, and precious metals prices have weakened. 

China’s PMI data aligned with expectations, showing modest improvements and staying above the 50 measure, indicating growth. 

UK Companies

Card Factory reported revenue of £511m, +10.3% yoy, LFL revenue grew +7.6%, net debt reduced from £57m to £34m due to operating cash generation and working capital management. It has ambitions to reach £650 million in sales, PBTax margins of 14% and 90 net new stores by the end of FY27. It also resumed dividend payments. 

IG Design reported a net cash balance of $95 million (FY23: $50m) and expects to deliver profit before tax of $25.9m (FY23: $9.2m), which is ahead of market expectations. Although the external environment remains uncertain, it remains confident. 

Kelso, the invest minnow which focuses on unlocking trapped value in the UK stock market, reported its latest portfolio holdings as THG (52.5%), NCC (20.6%), Angling Direct (12.3%) and TheWorks (11.6%). 

McBride anticipates that adjusted operating profit will be c.10% ahead of current market expectations and that net debt / adjusted EBITDA will be close to 1.6x by 30 June 2024. Input costs for chemicals and packaging remain at similar levels as they were in its last update in February.

Telecom Plus reported strong organic customer growth (14.1%). It has now reported double-digit percentage customer growth for each of the last five half-year periods and said that its customer growth rate continues into the new financial year. 

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