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 14, 2024

Sticky UK wage growth a concern for MPC

Macro

UK unemployment rose marginally in March to 4.3%, while average earnings increased at the same rate of 5.7% over the three months to March. 

This latter figure will cause concern among the BoE rate-setters as wages feed through to inflation.   

Screenshot 2024-05-14 083124

UK Companies

Angling Direct reported revenue increased by 10.2% to £81.7m, including record UK sales of £77.4m, helped by developing its own brand offer. Q1 FY25 sales increased by 4.0% despite the suboptimal weather. It has set new medium-term financial objectives, including a UK business generating £100m annual revenues and EBITDA over £6m and moving the European business through to break-even.

Treatt, the supplier of natural extracts and ingredients, reported H1 results that align with expectations, an improving outlook, and a growing order pipeline.  

Headlam, the flooring distributor, warns that it has not seen the usual seasonal uplift and is lowering its guidance materially. It reduces costs, which will realise a cash benefit from disposing of surplus property and reducing working capital.

Currys has raised guidance for the FY based on a stronger-than-expected recovery in its Nordic region. 

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