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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May 22, 2024

Hopes of UK summer rate cut fade

Macro

UK annual inflation rate for April came in higher than expected, albeit at 2.3%, closer to the magic trend than most other developed nations. The odds for a UK rate cut next month have lengthened, and the Pound popped higher, heading towards $1.28.   

The MoM core inflation rate was much higher than expected, at 0.9% versus 0.6% last time, reflecting underlying services inflation.    

UK Companies

M&S results confirmed its ongoing rehabilitation as the UK’s favourite retailer.

ARM and Lansdowne Partners have been revealed as cornerstone investors in the upcoming Raspberry Pi IPO.  

4imprint updated that it continues to make further market share gains. Revenue was up 6% in the first four months of 2024, and it is on track to meet market expectations.  

Artisanal Spirits said it will focus on delivering profit and maintaining a high-quality, committed, and engaged membership. It remains on track to meet FY consensus EBITDA of £1m.

Close Bros issued a broadly positive update, including Winterflood benefitting from marginally improved market conditions in the quarter. It currently estimates the total impact from the FCA motor finance review and any subsequent potential customer compensation to be single-digit millions.

Idox updated that its H1 revenue growth was over 20%. Its net debt is c.£6.6m compared to £14.7m six months ago. Its M&A pipeline is healthy. (Note here). 

MusicMagpie Q2 trading has been broadly in line with management’s expectations. 

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