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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July 13, 2023

Finncap signals tough times in UK small cap broking

UK Company News

Barratts updated that its profit will align with current market expectations. It experienced a significant deterioration in demand during the second quarter and, whilst the position improved during the third quarter, reservations slowed more than typical seasonal trends from mid-May to the end of June. For the year ahead, based on current market conditions and the reservation rates experienced over the past six weeks with its order book position, enhanced through PRS, it anticipates total home completions will be in a range of 13,250 to 14,250. It has a well-capitalised balance sheet and a solid forward sales position. 

Diploma said its first nine months of trading have been strong, as expected. It announced the acquisition of DICSA, a market-leading distributor of fluid power solutions into the European Seals aftermarket for c.£170m. It is immediately accretive, adding ca.5% to EPS growth during the first full year of ownership. Its acquisition pipeline is active.  

Dominos Pizza Group appoints Andrew Rennie as CEO, an experienced Domino’s operator.  

Since the start of its financial year, Dr Martens‘ trading has been in line with expectations. This included expected lower wholesale revenues and the strategic decisions to reduce EMEA supply and cease sales to its China distributor.

Finncap reported revenue of £32.9m (FY22: £52.5m), down 37% and an LBT of £1.7m (vs FY22: Adjusted PBT of £9.3m). Q1 revenue of £8.7m was up 32% on Q1 FY23, and the merger with Cenkos is expected to complete in Q3.

Spirent reported a recovery in customer spending and order intake in the second quarter following a slow start to the year. 

Trustpilot revenue increased 18% with H1 adj. EBITDA of approximately $3m. It is upgrading profitability guidance for FY23. It said that resilient trading combined with improved operational efficiency, it now expects like-for-like full-year adj. EBITDA above the top end of the range of market expectations. 

Watches of Switzerland said that its FY24 guidance remains unchanged from that provided with its Q4 trading update. 

Wood Group said good trading in the first half enabled it to confirm its full-year outlook.

Prognosticator 

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