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 24, 2024

Filtronic enters low earth orbit

Macro

Another day, another view from a BoE MPC member, this time Chief Economist Hugh Pill, warned that rates might not be coming down as soon as some of his colleagues had suggested. The value of the £ rose against a slightly weaker $.   

The US tech sector recovered, which was led by a +10% rise in Tesla’s share price based on its Q1 results. 

Following the US passing the bill to supply Ukraine with a further $65bn funding, the UK announced plans to increase its defence spending significantly over the coming years

UK Companies

Software vendor ActiveOps, in a FY update, said revenue was ahead by 9%, with SaaS sales up 11% amidst a weak backdrop for training and implementation services. It increased its cash position to £17.6m (FY 2023: £15.4m) ahead of forecasts. It plans to invest in its global sales operation in the coming year. 

Filtronic has announced a strategic agreement with SpaceX in the LEO space market. The agreement includes an initial irrevocable purchase order of $19.7m (£15.8m) to supply E-band SSPA modules, scheduled for delivery in FY2025. Filtronic is issuing 21,712,109 warrants to SpaceX across two tranches to enable SpaceX to subscribe for up to 10% of the Company’s existing share capital on the condition that SpaceX places a minimum of $60m of orders under the agreement.  

So, Elon Musk lands in Sedgefield and sends the Filtronic share price into low Earth orbit. This remarkable deal will grab many financial headlines as Filtronic becomes a de facto operating subsidiary of SpaceX.    

Gear4Music updated that its revenue was 5% lower over the year, but profits were in line with expectations as it continues to prioritise gross margins. (Note here).   

North oil explorer Serica said, “Any ‘windfall’ due to high commodity prices is long gone, and the high tax situation is ill-suited to a mature oil and gas basin such as the UK North Sea.” It has also announced a £15m share buyback plan. 

Sanderson Design reported a 3% lower FY revenue in a challenging consumer environment, helped by a significant increase in licensing sales. (Note here). 

 

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