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 14, 2023

Dechra starts avalanche?

UK Company News

Dechra, the animal healthcare supplier has announced a possible £40.70 cash offer from private equity. This offer represents an enterprise value of around £4.63 billion, a 47% premium. 

This deal is the first significant sign of the much talked about M&A avalanche about to hit under-priced UK mid-market champions. It also represents c£4bn refilling the depleting cash balances of UK mid and small-cap funds.   

Dr Martens updated that Q4 revenue was flat in constant currency, impacted by continued soft DTC in America. It now expects FY23 EBITDA to be around £245m due to higher costs at the LA DC and lower wholesale revenue. 

The challenging consumer environment anticipated has yet to materialise to the extent envisaged. AO World, the online electrical retailer, continues to see positive traction from cost control measures. It updates profit guidance to the top end of profit guidance.

Both AO and Marks Electrical appear to benefit from John Lewis’s issues. 

Superdry now expects revenue performance to be between £615m and £635m. The increasing uncertainty arising from the final weeks of trading and the actions associated with the reorganisation of the wholesale division make the assessment of full-year profit challenging. Therefore, the Board has decided to withdraw the previously issued guidance of broadly breakeven for our FY23. 

YouGov has a new CEO.

Have a good weekend.


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