June 22, 2023

How long have you fixed your mortgage for? 

Macro & Overnight

Interest rates remain a hot topic for all markets with the BoE decision. Today’s question is, will it be a quarter or a half-point rise? From tomorrow it will be, for how long can we take the strain of these rates?

How long have you fixed your mortgage for? Is the new dinner party conversation topic of choice?

UK Company News

Alpha Financial Markets said FY revenue increased by 44.8%, profit before tax increased by 38.8%, and a cash balance of £59.2m. The consulting market has experienced increased competition and lengthening sales cycles. However, it remains confident of delivering full-year results in line with current market expectations.

NCC issued a trading and strategy update and the appointment of a new CFO. The adverse conditions that led to the 31 March Trading Update have stabilised. However, further management restructuring is underway to get the company back on a growth path.   

Packaging minnow Robinson said profits were substantially lower over the first five months and that despite agreeing on substantial price increases, it has been unable to cover the total inflation in costs in the period. The Board will continue to prioritise the management of costs and cash flow. CEO is stepping down. 

Rockwood Strategic, the focused small-cap investment fund, expects the pickup in trade buyer acquisition activity and public-to-private transactions to accelerate in the coming years for the part of the UK stock market it targets. Other solutions will emerge if the stock market doesn’t fairly value or provide growth capital to UK-listed small companies. It believes this dynamic should deliver absolute NAV growth for the current portfolio holdings.

XPS Pensions results demonstrated the non-cyclical, resilient and predictable nature of our business and opportunities for growth. The company expects demand for its services to remain high as it helps clients navigate the complex and evolving regulatory pension backdrop. It is confident in delivering against expectations for the current year.

Volex FY revenue increased by 17.6%, with an underlying operating margin of 9.3%. The new financial year started with good momentum and solid customer demand. It is making progress towards delivering on its five-year plan.

Prognosticator 

This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.

Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position,  and/or may perform services or solicit business from, any of the companies or related securities mentioned.

Any prices quoted in our research are as at the previous day’s close.