UK Budget Deficit Exceeds Estimate In August

The UK budget deficit exceeded the official estimate in August, despite a notable increase in tax revenue, as high inflation raised the debt servicing costs, data published by the Office for National Statistics revealed Wednesday.

Public sector net borrowing excluding public sector banks declined to GBP 11.8 billion from GBP 14.4 billion last year.

However, this was GBP 5.8 billion more than the GBP 6.0 billion forecast by the Office for Budget Responsibility and also GBP 6.5 billion more than in pre-coronavirus period. The level expected by economists was GBP 8.45 billion.

Data showed that central government debt interest payable grew GBP 1.5 billion to GBP 8.2 billion in August, the highest August figure since monthly records began in April 1997.

The increase in debt interest payable is largely due to the surge in inflation as interest payable on index-linked gilts rise in line with the Retail Prices Index.

At the same time, central government receipts increased by GBP 5.6 billion to GBP 69.6 billion. Of these receipts, tax revenue rose by GBP 3.9 billion to GBP 51.4 billion.

In the financial year to August, PSNB excluding banks was GBP 58.2 billion. This was GBP 21.4 billion less than in the same period last year but GBP 0.2 billion more than the OBR forecast.

At the end of August, public sector net debt excluding public sector banks increased to GBP 2,427.5 billion, or around 96.6 percent of gross domestic product.

JD Sports Fashion H1 Adj. Profit Declines; Maintains Headline Profit Guidance

JD Sports Fashion Plc (JD.L) said its result for the first half was at the top end of the Board’s expectations with headline profit before tax and exceptional items on IFRS 16 basis of 383.5 million pounds compared to 439.5 million pounds, last year. Adjusted earnings per share was 5.23 pence compared to 5.83 pence, restated, prior year. Looking forward, the Board maintained its view that the headline profit before tax and exceptional items for the year end 28 January 2023 will be in line with the record performance for the year ended 29 January 2022.

On an IFRS 16 basis, profit before tax declined to 298.3 million pounds from 364.6 million pounds, previous year. Earnings per ordinary share was 3.58 pence compared to 4.44 pence, restated, last year.

On a proforma IAS 17 basis, headline profit before tax and exceptional items declined to 388.1 million pounds from 451.5 million pounds, prior year.

Revenue increased to 4.42 billion pounds from 3.89 billion pounds, previous year. Total revenue growth in organic retail businesses was 5%, for the first half period.

The Board proposed paying an interim dividend of 0.13 pence. This dividend will be paid on 6 January 2023 to shareholders on the register at 9 December 2022.

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Murray Income Trust Slips To Loss In FY22; Lifts Dividend; Says Confident In Outlook

Murray Income Trust (MUT.L) reported Thursday that its fiscal 2022 net return before tax was a loss of 40.64 million pounds, compared to last year’s profit of 161.50 million pounds.

Return per Ordinary share was a loss of 35.2 pence, compared to profit of 165.1 pence last year.

Revenue return per share grew 20.2 percent to 40.5 pence from 33.7 pence a year ago.

Income grew to 51.02 million pounds from 35.98 million pounds in the prior year.

Further, the Board has declared a fourth interim dividend per share of 11.25p, payable on September 15. This makes a total for the Year of 36.0p, an increase of 4.3% on the 34.5p per share paid in the previous year.

Looking forward, the company said it is confident in the outlook, even though the outlook is becoming more difficult with a tightening policy backdrop and inflationary challenges coupled with the implications of the Russian invasion of Ukraine, all leading to slower global growth.

Charles Luke and Iain Pyle, Investment Manager, said, “.. we feel comfortable maintaining our long term focus on investments in high quality companies with robust competitive positions and strong balance sheets, which are led by experienced management teams and are capable of delivering sustainable earnings and dividend growth.”

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CVS Group FY22 Earnings Climb

CVS Group Plc (CVSG.L), a British veterinary service provider, on Thursday posted an improvement in earnings for the fiscal 2022, amidst an increase in sales and a reduction in costs relating to business combinations.

For the 12-month period to June, the UK-based firm posted a pre-tax profit of 36 million pounds, compared with 33.1 million pounds a year ago.

Excluding items, pre-tax earnings were at 75.5 million pounds, versus 66.2 million pounds of 2021.

After tax, profit was at 25.7 million pounds or 35.9 pence per share, higher than last year’s 19.3 million pounds or 27.1 pence per share.

Adjusted income per share rose to 85.8 pence from 75.1 pence per share, reported in the previous fiscal.

Operating income stood at 42.8 million pounds as against 40.1 million pounds of previous fiscal.

Adjusted EBITDA totaled at 107.4 million pounds, higher than 97.5 million pounds of last year.

The Group’s revenues improved to 554.2 million pounds from 510.1 million pounds of 2021.

CVS Group’s like-for-like sales growth was at 8 percent, compared with 17.4 percent reported a year ago.

The Board has recommended a final dividend of 7 pence per share, higher than last year’s final dividend of 6.5 pence per share.

Loop Media Offers 2.5 Mln Shares At $5/shr In IPO

California-based short-form video company, Loop Media, announced their IPO on September 21 at $5 per share which will be available for trading for retailers from Spetember 22 under “LPTV” on the NYSE.

The company intends to raise $12 million and has offered 2.5 million shares for the initial public offering. The offering will run till September 26. The company has recently transitioned to a advertising-based business model and managed to draw a better revenue year-over-year, according to reports.

Roth Capital Partners is acting as the underwriters of the deal and will be offered a 30-day period to purchase an additional 360K shares at $5.