Daily Business Live

Public borrowing falls; Calnex beats expectations


5pm: Blue chips lower

The FTSE 100 closed down 21.8 points at 7,029.79.

9am: FTSE subdued

The FTSE 100 made a slow start to proceedings despite the positive mood in Asia. After opening higher it was trading 5 points lower at 7,046.48.

The big riser was the software group Aveva which advanced 4.6% after the group staged a strong second half revenue recovery.

A recovery in the US tech sector benefited Scottish Mortgage Investment Trust, a big investor in Silicon Valley, which enjoyed a 1.5% bump.

On the FTSE 250 Royal Mail advanced 4.6% after Monday’s bullish call by JP Morgan, which was followed today by an upgrade from Peel Hunt.

7.30am: Ted Baker refinances

High street fashion chain Ted Baker has secured an extension to its revolving credit facility (RCF) with its existing lending syndicate and has delayed the publication of its full-year results until 27 May as a result of “disruption caused by Covid on the audit processes”.

The new financing agreement extends the retailer’s revolving credit facility maturity to November 2023 and amends the covenants. As a result, the company says it has the necessary cash and liquidity to continue the successful delivery of its transformation plan.

7am: Calnex beats expectations

Tommy Cook of Calnex

Calnex, the provider of test and measurement solutions for the global telecommunications sector, has seen revenue growth of 31% to £18m, exceeding the Linlithgow-based company’s expectations.

Underlying EBITDA grew 32% to £5.5m and adjusted profit before tax by 43% to £5.1m.

The business, whose order book is almost entirely from overseas customers, continues to benefit from the evolutionary trends affecting the telecoms sector, said Tommy Cook, CEO.

“Calnex is well positioned and we anticipate that results in FY22 will be consistent with FY21”.

In a call with Daily Business, Mr Cook said all parts of the business had grown, enabling the company to boost its payroll in line with its plans at the time of last year’s IPO. It has hired 25 over the past year taking total numbers to 107 and expects that to rise to 120 by the end of the year.

He said the company was due to release a number of product lines which had met with an encouraging response from customers.

7am: Public borrowing falls

Public borrowing fell to £31.7 billion in April from £47.3bn a year earlier when the public finances first felt the full impact of the COVID pandemic, official figures showed on Tuesday.

7am: Hoctor-Duncan hire confirmed

River & Mercantile Group has confirmed the appointment of Alex Hoctor-Duncan, global head of Aberdeen Standard Investments, to the board as an executive director, responsible for strategic development. The appointment is expected to take effect later this year following the conclusion of his contractual responsibilities. 

Full story here

Global Markets

The FTSE 100 is forecast to continue upward after three days of gains and a positive session on Wall Street as confidence slowly improves following the mid-month inflation worries.

London’s blue chips look set for a 12-point uplift, according to the IG spread betting platform, after closing 33.5 points or 0.5% higher at 7,051.59.

A recovery in tech stocks saw the Nasdaq Composite rise 1.4% while the S&P 500 was 1% higher and the Dow Jones Industrial Average ended the session 0.5% to the good.

The Shanghai Composite in China surged 1.8% and Hong Kong’s Hang Seng index rose 1.38%

In Japan, the Nikkei 225 gained 0.49% while South Korea’s Kospi lifted 0.68%.

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