Three things you need to know as the UK financial markets open, from Tony Cross.
#1. UK economic headwinds continue to support Begbies
Insolvency specialist Begbies Traynor LON:BEG have their interim results out today which invariably provide some broader insight as to the health of the UK economy. Pre-tax profits are up 16% for the period, split between organic and acquired growth. Management note that additional headwinds for UK businesses from recent tax changes and stubbornly high interest rates will likely maintain insolvency levels, although concede that the national insurance hike will cost them as a business an additional £1.25m per annum, with mitigation measures under consideration here. Full year performance remains on track.
#2. Melrose bucks wider sector trend, eyes strong growth in FY26
Aerospace technology provider Melrose LON:MRO released a trading update today, with revenues for the period up by 7%, despite the widely reported supply chain issues facing the industry. Full year performance remains on track, whilst looking further ahead, the company expects to reach £700m in operating profits next year, up from the forecast £550-£570m for the current year.
#3. Order timing issues see full year performance scaled back
Judges Scientific LON:JDG has published a trading update this morning. The company noted in September that difficult market conditions were taking a toll on the business but the situation now seems to be improving as the second half progresses. However, achievement of the expectations for the full year – revised downwards in July – were reliant on the delivery of specific orders which are now not expected to be booked before the year end. Adjusted FY EPS is now forecast to land between 270p and 300p, down from the 375p posted for FY23.
