📈 Rate boost for fintech Wise

Good morning. In today’s update - Wise shares jumped after more than tripling profits, PE group TDR is looking to offload health club David Lloyd and JD Sports slid after warning of softening demand in North America.

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Markets

• UK markets broke their losing streak on Tuesday as the FTSE 100 squeezed a 0.1% gain, whilst the more domestically-focussed FTSE 250 rose 0.4%.

• Miners made a strong start to the day after China announced potential stimulus plans - Rio Tinto (+0.6%) and Glencore (+0.7%) finished higher, despite giving back some early gains.

• BT suffered after analysts at UBS downgraded the stock to a ‘Sell’, sending shares 3.6% lower.

Corporate News

London-based money transfer platform Wise boasted a 200%+ jump in profits for the year ending in March, driven by higher interest rates and a jump in customers; profit before tax surged to £146m (from £44m the previous year). Both CEO Kristo Kaarmann and CFO Matt Briers are set to leave the company. (Link, Wise)

JD Sports shares tanked after warning that a “softening” in North American demand was offsetting growth in other areas; however, the sports retailer maintained its forecast for the year, expecting pre-tax profits of around £1bn. Shares dropped 2.7%. (Link, JD)

Just 24 hours after enjoying gains on the back of its Lucid Motors deal, Aston Martin shares were brought back to earth on Tuesday after dropping its sales targets; despite reiterating a medium-term forecast of £2bn in revenue, the carmaker refrained from announcing a sales volume target at its capital markets day, spooking investors (shares closed down 9.2%). (Link)

Shares in Telecom Plus surged after reporting its best-ever annual performance on the back of sky-high energy prices and a jump in customer numbers; revenue increased by around 60% to £2.5bn for the year to March, with Chairman Charles Wigoder expecting only a “modest” headwind from the energy price cap decrease going forward. (Link, TP)

Despite a stalemate on the sale front, Manchester United upped its financial forecasts after stronger commercial and matchday ticket performance - revenue is expected to be around £635m for the year to June. (Link)

Deals

The private equity owner of fitness and leisure club David Lloyd is reportedly on the verge of launching a sales process, hoping to bring in upwards of £2bn; TDR has roped in bankers from Morgan Stanley to advise. (Link)

In today’s VC update:

• Dexory - a warehouse robotics startup - raised a $19m Series A funding round led by Atomico, with participation from logistics giant Maersk. (Link)

• Upp - a marketing startup using AI to help online retailers optimise advertising budgets - raised a $10m seed round led by US-based Bonfire Ventures. (Link)

• Edge Solutions - a Scotland-based company developing technology to help repair wind turbines - announced plans to raise a £2m funding round. (Link)

Economy / General

Supermarket executives hit back at government accusations they were profiteering, claiming earnings had taken a hit last year after not passing on all price increases to customers - "We make 4 pence in every pound, which I don't think is an example of profiteering” - Tesco’s Gordon Gafa. (Link)

… On that note, UK food inflation eased for the second consecutive month as supermarkets cut the cost of staples, including milk, cheese and eggs; according to the BRC, shop price inflation fell to 8.4% in June, down from 9% in May. (Link)

The UK and EU have “turned a page” after agreeing a long-awaited cooperation pact for financial services; the forum will be held twice a year, allowing the sides to discuss regulatory changes, international developments and risks to markets. (Link)

🌎 Global Snapshot

News

Delta Air Lines shares surged after raising profit estimates on the back of continued strength in travel demand and customer upgrades; CEO Ed Bastian claimed April-June could be a record quarter, leading to upgraded full-year earnings per share forecasts of $6. (Link)

US consumer confidence jumped to its highest level in two years, driven by optimism over the strength of the labour market; however, most consumers still expect a recession at some point this year, despite that number dropping. (Link)

Canadian private equity giant Brookfield is eyeing a deal for annuities provider American Equity, having tabled a $4.3bn proposal to the board; the bid equates to a 35% premium for shareholders and comes just months after a $4bn offer from Elliot Investment Management was rejected. (Link)

Shares in Unity surged 15% after the gaming platform announced the launch of an AI marketplace; AI companies will be able to offer solutions to game developers through the platform, including story dialogue and graphics generation. Analysts at Wells Fargo also upgraded the stock today. (Link)

Markets

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