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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November 23, 2022

The pets are OK

Macro & Overnight

It continues to be a quiet macro-news week, partly due to the US Thanks Giving break.

China’s zero-Covid approach has become central to financial markets. Is it opening up or closing down?

Oil prices have calmed down, but with colder weather in Europe, natural gas prices rose 10% yesterday.

UK Company News

Alpha Financial Markets has announced CEO succession plans. 

Coats, the industrial thread and footwear component manufacturer, said that pricing and productivity actions continue to offset inflationary pressures. They are trading in line with their full-year expectations.

Vet owner CVS Group reported sales increasing by 7.4% in the four months to 31 October 2022. The company continues to invest in practice refurbishment, relocations, clinical equipment and technology. Margins are within their ambition of between 19% and 23%. The Group continues to see good operating cash conversion with borrowings well within the comfort zone. 

Pets at Home reported a strong H1 and raised guidance in the same pet care sector. 

Dialight, the LED lighting supplier for heavy industrial applications, expects an unchanged full-year outlook. It is mindful of the current economic backdrop and continuing supply chain disruptions, particularly since the year’s final two months are a seasonally critical trading period.

Domino’s franchise operator DP Eurasia Group saw system sales increase by 11.6%, reflecting a focus on strategic pricing, product innovation and digital development. It continues to trade in line with its formal guidance. Russia continues to operate in a “difficult geo-political and economic environment” with a negative LfL performance. In Russia, the company remains focused on store network optimization and efficiency. They stated that “this business will continue to operate in a self-sustained manner.”

Genus, the animal genetics company, reported that the Chinese porcine market has recovered since September. Profits are currently anticipated to be in line with expectations, albeit with performance weighted to the second half. COVID restrictions in China present continuing challenges.

Motoring retailer Halfords said that H2 trading has remained strong in needs-based areas, but the more discretionary areas have softened. Full-year profits are now expected to be at the lower end of the forecast range.

Full-year results are expected to be slightly ahead of expectations for Marlowe, the business-critical services and software supplier. The company continues to be supported by the non-discretionary nature of our services & software, driven by regulatory requirements.

Online travel portal Hostelworld reported that trading is ahead of FY19 and has raised guidance ahead of today’s CMD.

Prognosticator

 

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