Fiscal calendar questioned | Deliveroo | Wickes
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7am: Borrowing and Budget Calendar
Carl Emmerson, deputy director of the Institute for Fiscal Studies, questioned the timing of the October 31 budget plan, just three days after the election of the new prime minister.
Public sector borrowing in the first half of this year was £72bn, almost the same as the Office for Budget Responsibility forecast for this period in March.
But Mr Emmerson says this is just a small guide to the amount of borrowing over this whole financial year, as the huge cost of government support for household and business energy use has only started in earnest. than this month.
“We expect borrowing this year could reach almost £200bn, almost £100bn more than the OBR forecast.
“One of the main objectives of the next Prime Minister and his chosen Chancellor must be fiscal responsibility. We need a credible plan to ensure that public debt can come down over the medium term.
“Given the timeline for determining the next Prime Minister, the degree of economic uncertainty and the importance of getting it right, there are good reasons to take a little longer to make good decisions that have more likely to stand the test of time, rather than going ahead with a major fiscal event just days into the new Prime Minister’s term.
Meal delivery service Deliveroo has been trending towards lower-end annual revenue as consumer budgets squeeze.
Gross transaction value (GTV) growth for the full year is now expected to be in the 4-8% constant currency range, the lower end of the previously reported 4-12% range, qu she had lowered in July.
Will Shu, Founder and CEO of Deliveroo, said: “Throughout 2022 we have adapted financially to the operating environment and continued our path to profitability.
“We now expect H2 2022 Adjusted EBITDA margin to be better than our previous guidance. We continue to be excited about the opportunity ahead and our ability to capitalize on it.
The DIY distributor Wickes announced like-for-like sales growth of 2.6% in the third quarter, compared to 0.8% in the first half.
Following sable’s performance in the third quarter, he continues to expect adjusted pre-tax profit for the full year to be in the range of £72-82m.
Longer term, uncertainties remain regarding consumer confidence and operating cost inflation, the board said.
“In particular, our costs will be impacted by rising energy prices once our energy contract ends in March 2023. If energy costs were to remain at the current price cap for businesses, our energy costs for financial year 2023 would be £7.5m higher than financial year 2022.”
David Wood, CEO, said “the company’s balanced business model leaves us well positioned to continue to outperform the market.”
7am: Rightmove hires a CEO
Estate agent Rightmove has appointed Johan Svanström as managing director to succeed Peter Brooks-Johnson, who will retire after the annual results.
Mr. Svanstrom has worked in the business-to-consumer online marketplace. Following his appointment as Global President of Affiliate Network Brands Hotels.com and Expedia in 2013, he served as part of the Expedia Group’s global leadership team and within five years grew revenue to over $3 billion. dollars and led direct teams of 1,500 people on four continents.
He joined Expedia from McDonald’s. A Swedish national based in the UK, he is currently a partner in the growth advisory team at EQT, part of EQT, the global investment organisation.
Social media downfall
Shares of Meta Platforms, Google-owner Alphabet, and other companies that sell digital ads fell Thursday after Snapchat’s owner Snap inc. blamed inflation for its weakest revenue growth since its IPO five years ago, Reuters reports.
Snap was the first major social media company to report its September quarter results, and its stock fell 25% following the disappointing results after the bell. Snap warned that it would see no revenue growth in the normally busy holiday quarter.
Shares of other companies that sell internet advertising also fell, Facebook owner Meta down about 4%, Alphabet down 2% and pinterest lose almost 8%. In total, the late-trade sale wiped out more than $40 billion in market value from these and other internet advertising companies, including Spotify and Roku.
Snap’s warning comes after already large losses in shares of social media companies, with Meta down around 60% year-to-date and Pinterest down nearly 40%.
Alphabet releases its quarterly results on Tuesday, followed by Meta on Wednesday.
The pound was listed at $1.1196 early Friday, below $1.1294 at the close of London stocks on Thursday.
Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P500 decrease of 0.8% and the Nasdaq Compound decrease of 0.6%.
In Asia, Japan Nikki 225 the index fell by 0.4%, the Shanghai composite increased by 0.4%, while Hang Seng the index in Hong Kong fell 0.8%.