Lower inflation weakens Sterling
Macro & Overnight
Weaker Sterling and lower 10-year bond yields reflect the easing of UK rate rise fears.
Maybe the UK is an inflation laggard, not a hopeless outlier.
This week we hear rate decision news from the Fed on Wednesday, ECB on Thursday and the BoJ on Friday.
UK Company News
Beeks Financial Cloud reported on several Private Cloud contracts won in July, with a total contract value of over $4 million. These include a significant win, via a partner, with one of the UK’s largest banks. It said that its pipeline has the potential to be transformational for the Company.
Ecora announced the opportunity to acquire a royalty over one of the world’s most significant undeveloped copper projects in a deal to acquire a 0.25% Net Smelter Return (“NSR”) royalty over all metal production from the open pit of the Vizcachitas copper project in Chile, owned by Los Andes Copper Ltd (“Los Andes”), for a total cash consideration of $20 million.
Forward Partners issued an update focusing on its strong deal flow, particularly from early-stage companies leveraging generative AI.
Forward’s last reported NAV was 72p per share from March (down from 101p). Its share price is currently at a 65% discount to its most recent NAV. Public market investors struggle to accept private market valuations.
Moneysupermarket reported H1 Revenue up 11%, gross margin maintained at 68% with insurance up 23%, led by car, while travel continued its strong recovery. Energy switching is not expected to return in 2023, and headwinds from interest rates hit loans and mortgage conversion. The Group will be towards the upper end of market expectations for the year.
M&C Saatchi‘s CEO is to retire. Zillah Byng-Thorne, will act as executive chair as a new CEO is sought.
S4 Capital updated that its revenue in the second quarter was below budget, particularly in May and June, reflecting the challenging macroeconomic conditions. Its full-year like-for-like net revenue growth will be 2-4%, as opposed to 6-10%. Net debt at £115 million will rise by the year-end, in line with the targeted range of £180-220 million.
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.