Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

June 26, 2023

Putin experiments with coalition government

Macro & Overnight

The attempted Russian coup, what we call an election, over the weekend didn’t prove conclusive. However, the unexpectedly strong showing from the opposition has resulted in a weakened President Putin, forced into a fragile coalition with his former catering manager, now turned warlord.

No market evidence exists of increased concern for global stability. The value of the Dollar, gold, oil and US Treasuries are broadly unchanged from Friday’s close. Crisis, what crisis?

UK Company News

Cake Box, the celebration cake franchisor, reported FY revenue up 5.6% to £34.8m, gross margin increased to 49.4% and cash flow from operations of £6.3m (2022: £5.3m). It had £7.4m cash at period end (2022: £6.6m), a 4.1% growth in online sales for the year to £13.8m, and it opened 20 new franchise stores, with 205 franchise stores in operation at the end of FY23. Cake Box also expanded its supermarket kiosks and invested in baking facilities at Enfield, leading to an improved baking yield. Like-for-like sales grew by 1.0% in franchise stores last year, while franchisee total turnover was up 9.6% to £72.1m. It has a new target of 400 UK stores. 

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.