The precision engineering firm Carclo published a full year trading update this morning which received a jubilant reception from investors. Performance in H2 was ahead of management expectations, following a focus on margin improvement and restructuring and there’s optimism that the company remains poised to deliver further growth in FY25. However there’s still a weighty net debt position that is being slowly unwound, so whether the 61% advance in early trade is warranted remains to be seen.
Nat West was the latest UK bank to publish its Q1 update, which was released this morning. Net interest margin was up six basis points from the previous quarter, but down twenty basis points from a year ago, whilst the Return on Tangible Equity was also squeezed. That resulted in profits of £987m against £1341m for the same period in 2023, whilst impairment losses were £93m, just 0.1% of gross customer loans. Expectations had been for a poor set of earnings to be reported from the banks but as the latest to impress, the 3.5% uplift an hour into the day is notable.
After BHP group tabled a bid for Anglo American yesterday, management at the target company have this morning rejected the offer on the basis that it undervalues the asset. A core part of the defence is that Copper – which accounts for 30% of the company’s total production – is seen as being poised for rampant value growth in the years ahead, but this isn’t new information. Given the repeated stories about London not providing accurate valuations for many companies, this plays to the agenda but surely means that management cannot persist with the status quo. Shifting the listing venue or accepting a bid at some point become the only viable options. In early trade Anglo was down less than 1%, still carrying most of those bid-inspired gains.
Headlines we expect on Monday
Biome Technologies Final Results
This time last year Revenues £6.2m, Group operating loss £0.7m
