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 24, 2023

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 

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