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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March 27, 2023

Europe’s bank shares steady

Macro & Overnight

All eyes in the markets remain on the banks for evidence of where the banking crisis goes next. The London opening is calm, and European bank share prices are steady.

Over the weekend, First Citizens Bank bought the remains of SVB, but there were no other bailouts or rescues.

The Chair of the Saudi National Bank resigned for personal reasons. Unrelated to his role last week in the demise of one of the world’s G-SIBs.


UK Company News

CML Microsystems, the mixed-signal, RF and microwave semiconductor supplier, issued an update. It expects FY23 to align with current market expectations, with revenues of circa £20.5m and profit before taxation close to £3.1m. The forward order book remains healthy and underpins the outlook for further growth across the next financial year. (Note here). 

Industrial LED lighting supplier Dialight reported FY revenues up 29% and £5m operating profit. Lower margins were due to cost inflation and supply chain disruption. The outlook remains challenging, and it expects global supply chain disruptions to continue in the short term, with some alleviation in H2. 

Payments group Equals reported revenue had increased by 58%and that it expects trading for FY-2023 to be ahead of current expectations. It is undertaking an operational shift towards larger corporate clients while controlling risks. The company has also announced some small acquisitions adding further capability to its offering. 

IQGeo, the geospatial software provider to utilities, reported organic revenue growth of 57% and lower gross margins of 59% (2021: 64%). It updated on a positive outlook for the business and its prospects.  

Structural steel group Severfield updated on its performance. The start of the financial year has been strong, and it expects to deliver a full-year result in line with current expectations. (Note here). 

Thungela, the JSE and LSE-listed thermal coal miner, said that the fundamentals supporting thermal coal remain firmly in place. However, prices softened in early 2023. While price levels observed in 2022 are unlikely to be repeated, it expects prices to remain robust. In the longer term, it anticipates strong coal demand from emerging Asian markets, where coal is likely to remain part of the energy mix for at least the next two decades. ESG investors, avert your eyes now.



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