Author: Fiona Craig

Scotch Corner Designer Village is planning to raise £25.5 million through an initial public offering on the Aquis Exchange to help finance the next stage of construction of its planned outlet retail and leisure destination in North Yorkshire.

The development will be located at Scotch Corner, a prominent junction on the A1(M) near Richmond, and is widely recognised as a key gateway between the North East, Yorkshire and the North West. The site is visible to traffic as far away as the M6 motorway, roughly 50 miles away.

The project spans a 50-acre site with full planning permission for approximately 182,500 square feet of branded outlet retail units, cafés and restaurants, alongside landscaped public spaces. Initial groundworks have already been completed, with the village expected to open in autumn 2027.

IPO to fund main construction phase

The planned equity raise of £25.5 million will come from the issue of new shares in Scotch Corner Designer Village (SCDV) as part of its listing on the Aquis market. The funds will be used primarily to finance the main construction phase of the development.

In addition to the IPO proceeds, the company is seeking £33.2 million through 14% secured mezzanine loan notes. The remainder of the project’s funding will be provided through £67 million in senior debt, which has already been secured.

The founders will contribute the existing freehold site to the company at admission in exchange for shares valued at £16.5 million at the issue price of 250 pence per share, representing roughly 40% of the company. This reflects a modest discount to the £43.6 million valuation placed on the site by Savills after accounting for approximately £26 million of accrued debt.

Development already largely pre-let

Developers say the scheme is already about 70% pre-let, with a further 11% of space currently at heads-of-terms stage with prospective tenants.

Outlet villages are regarded as one of the faster-growing segments within the retail sector, and the Scotch Corner project aims to establish a major outlet destination in the North of England. The site also offers scope for future expansion across both retail and leisure uses.

The development sits within a catchment area of around 4.5 million people within a one-hour drive, while approximately 29 million vehicles pass through Scotch Corner each year.

Brands confirmed for the village include M&S, Superdry, Tommy Hilfiger, Calvin Klein and Wagamama, alongside around 60 additional retailers and hospitality operators.

Projected value and returns

The scheme is expected to reach a gross development value of roughly £169 million at completion, including land earmarked for a second phase of expansion.

Through the Aquis listing, the project aims to create £42 million in equity value, comprising £16.5 million contributed through the land and £25.5 million raised through the IPO. Phase one will be funded through the mezzanine facility arranged around the time of listing, together with the £67 million senior debt package.

Developers estimate the project could generate an internal rate of return of around 21.75% per year over a 5.5-year period, with an equity multiple of 2.58 times — rising to 2.88 times when surplus income is included. The forecast assumes refinancing once the site becomes operational following the construction phase and a four-year stabilisation period.

The project is expected to become free cash flow positive about 12 months after the IPO. Dividends to shareholders are projected to begin from 2027 and increase in line with rental income as the outlet village matures.

U.S. stock index futures indicated a modestly weaker open on Wednesday, suggesting markets could retreat after posting gains during the previous two sessions.

Futures slipped following the release of fresh data from the Labor Department showing that producer prices in the United States rose significantly more than economists had expected in February.

The producer price index for final demand increased by 0.7% during the month, after rising 0.5% in January. Economists had anticipated a smaller gain of 0.3%.

The report also showed that the annual rate of producer price growth accelerated to 3.4% in February from 2.9% in the previous month. Analysts had expected the yearly rate to remain unchanged.

The stronger inflation data, combined with the recent jump in crude oil prices tied to the conflict in the Middle East, could intensify concerns about the inflation outlook.

At the same time, investors may remain cautious ahead of the Federal Reserve’s policy decision scheduled for later in the day.

While the central bank is widely expected to keep interest rates unchanged, traders will be closely watching the latest economic projections from Fed officials.

Following a recovery rally in the previous session, stocks advanced again early on Tuesday before losing momentum as the day progressed. Although the major averages retreated from their intraday highs, they still managed to end the session in positive territory.

The benchmarks added to Monday’s gains, moving further away from the three-month closing lows recorded on Friday. The Nasdaq rose 105.35 points, or 0.5%, to finish at 22,479.53, the S&P 500 gained 16.71 points, or 0.3%, to close at 6,716.09, and the Dow edged up 46.85 points, or 0.1%, to 46,993.26.

Early strength on Wall Street reflected traders’ efforts to look past the recent swings in oil prices, which have played a major role in shaping market sentiment in recent sessions.

Stocks extended the rebound seen a day earlier even as crude prices recovered after Monday’s pullback.

Oil climbed after Iran launched a series of attacks on the United Arab Emirates, targeting Dubai’s international airport and the Fujairah oil terminal, marking a significant escalation in the ongoing conflict.

The Israeli military also said it had begun a “wide-scale wave of strikes” across Iran’s capital and intensified attacks on Hezbollah targets in Lebanon.

Meanwhile, several U.S. allies — including Germany, Spain, Italy, Australia and Japan — declined President Donald Trump’s request to help secure the Strait of Hormuz, a crucial passage through which roughly one-fifth of the world’s energy shipments move.

Investors appeared hesitant to make major moves ahead of the Federal Reserve’s monetary policy announcement.

Oil services companies rallied alongside rising crude prices, pushing the Philadelphia Oil Service Index up about 3%.

Airline stocks also posted strong gains, with the NYSE Arca Airline Index jumping 2.8% after several carriers raised their revenue outlook for the first quarter.

Shares of computer hardware companies, oil producers and brokerage firms also moved higher during the session, while pharmaceutical stocks lagged behind.

Eli Lilly (NYSE:LLY) weighed on the pharmaceutical sector, sliding 5.9% after HSBC Securities downgraded the drugmaker’s shares to Reduce from Hold.

Gold prices slipped below the $5,000-per-ounce threshold during Asian trading on Wednesday as investors grew cautious ahead of the Federal Reserve’s widely anticipated interest rate decision later in the day.

The precious metal had briefly moved back above the $5,000 level earlier in the session but reversed direction as ongoing hostilities in the conflict involving the United States, Israel and Iran kept markets concerned about the war’s potential inflationary impact.

Spot gold declined 0.4% to $4,987.09 at 01:18 ET (05:18 GMT), while gold futures dropped 0.4% to $4,990.44 per ounce.

Other precious metals also moved lower. Spot silver fell 0.3% to $79.0345 per ounce, while platinum lost 0.6% to $2,116.40 per ounce.

Safe-haven support limited despite Middle East tensions

Escalating tensions in the Middle East provided only modest support for gold, which struggled to stay above $5,000 this week even as U.S. and Israeli forces continued strikes against Iran, prompting retaliatory responses from Tehran.

The conflict showed little sign of easing after an Israeli airstrike earlier in the week killed Iranian security chief Ali Larijani. Oil prices remained above $100 per barrel amid continued worries about possible supply disruptions.

Markets are increasingly concerned about the inflationary consequences of the conflict, especially as crude prices climbed toward levels not seen in nearly four years following disruptions to shipping through the critical Strait of Hormuz.

Higher energy prices could push central banks toward a more hawkish stance. On Tuesday, the Reserve Bank of Australia raised interest rates and warned that the conflict could contribute to renewed inflationary pressure.

Attention turns to Fed and other central banks

Investors are now focusing on a series of central bank meetings scheduled over the coming days.

The Federal Reserve will announce its latest policy decision later on Wednesday, followed by rate announcements from the Bank of Japan, the European Central Bank, the Swiss National Bank and the Bank of England later in the week.

Markets broadly expect the Fed to keep rates unchanged, but attention will center on whether policymakers believe the conflict with Iran could fuel inflation and influence the future path of interest rates.

According to CME FedWatch data, traders are now largely pushing back expectations for any Fed rate cuts until at least September.

An extended period of elevated interest rates typically weighs on gold, as higher yields increase the opportunity cost of holding non-yielding assets.

Although gold still retains some of its gains for the year, prices have pulled back sharply from the record high near $5,600 per ounce reached in late January.

Oil prices edged lower this morning after Iraq reached an agreement with Turkey that helped calm fears about crude supply disruptions caused by the blockade of the Strait of Hormuz.

Brent crude was trading near $102 per barrel, down roughly 1%, after briefly slipping below the $100 threshold earlier in the session, while U.S. West Texas Intermediate (WTI) crude dropped to about $93.40 per barrel.

The retreat in prices followed Iraq’s announcement that some of its oil exports would resume through a pipeline route to a Turkish port. The arrangement, reached with the authorities of Iraqi Kurdistan, allows shipments to bypass the Strait of Hormuz.

In a statement, the state-owned company responsible for oil fields in northern Iraq confirmed “the start of operations at the Sarlo pumping station, with the resumption of pumping and export of oil from Kirkuk to the Turkish port of Ceyhan, with an initial export capacity of 250,000 barrels per day.”

The Kurdistan Region’s Ministry of Natural Resources also said that pumping operations began at 6:30 a.m. local time (4:30 a.m. GMT) to export oil “through the Kurdistan pipeline to the Turkish port of Ceyhan.”

After the war in the Middle East erupted on February 28 — following the joint Israeli-U.S. offensive against Iran — Iraq, a founding member of OPEC, halted all oil exports. The country typically ships around 3.5 million barrels per day, and authorities had been searching for alternative routes after Iran effectively rendered the Strait of Hormuz impassable.

According to estimates cited by Bloomberg, however, the reopening of the pipeline will only partially restore export volumes to levels seen before the conflict.

Meanwhile, reports suggest the United Arab Emirates may assist the United States with maritime transport operations in the Strait of Hormuz, potentially becoming the first country to respond positively to Donald Trump’s call for international support to secure the strategic shipping lane.

Oil markets also reacted to fresh data on U.S. inventories released overnight, which showed a larger-than-expected increase in crude stockpiles.

Figures from the American Petroleum Institute (API) revealed that inventories rose by 6.60 million barrels last week, compared with expectations for a decline of about 0.6 million barrels.

The API report often signals a similar outcome in the official U.S. inventory figures published by the Energy Information Administration (EIA), which are due later today at 3:30 PM CET.

Despite the latest drop in prices, analysts at OCBC believe crude will likely remain above $100 per barrel in the near term given the absence of clear signs that tensions between the United States and Iran are easing.

The bank expects the $100 level to remain broadly stable through mid-2026, far above its earlier forecast of $70, before easing toward roughly $79 per barrel in early 2027.

OCBC said the conflict has now entered its third week without any meaningful diplomatic breakthrough, leaving shipping through the Strait of Hormuz severely constrained and keeping global oil markets under pressure.

“The ongoing paralysis of shipping is forcing Gulf producers to shut down production, raising the risk that temporary disruptions will turn into more lasting supply losses,” OCBC commodity analysts said.

The bank added that mitigation measures — including alternative pipeline routes, releases of strategic petroleum reserves and continued Iranian exports — could offset up to 10 million barrels per day, but a prolonged disruption would still leave a considerable supply deficit.

OCBC warned that oil markets may now be approaching what it called a “moderately severe” supply shock scenario, with risks tilted toward further price increases if tensions persist.

Other banks and research firms have also revised their forecasts for Brent and WTI prices in response to the tensions surrounding the Strait of Hormuz.

Barclays expects Brent to average about $85 per barrel in 2026, assuming shipping traffic through the strait normalizes within two to three weeks. If disruptions extend to four to six weeks, however, prices could climb toward $100 per barrel. ANZ has also lifted its forecast for the first quarter of 2026 to $100 from $90.

Goldman Sachs forecasts Brent averaging $75 per barrel over the next three months and $71 over the next twelve months. BMI estimates prices will average $67 in the third quarter of 2026 and $69 in the fourth quarter.

Citigroup sees Brent at $75 per barrel in the first quarter of 2026, $78 in the second and $68 in the third, while Bank of America expects prices to average about $80 in the second quarter of 2026 before falling toward $65 in 2027 as supply surpluses return.

HSBC has also raised its projections, expecting Brent prices around $80 in 2026. UBS warned that a prolonged disruption to shipping through the Strait of Hormuz could push Brent above $100 per barrel, with prices above $120 likely to trigger significant demand destruction.

In a more extreme scenario, Macquarie estimates that if the Strait were closed for several weeks, crude prices could surge to $150 per barrel or even higher.

European equities began Wednesday’s session higher as investors prepared for the Federal Reserve’s upcoming interest rate decision while closely following developments in the ongoing conflict involving Iran.

At 04:09 ET (08:09 GMT), the pan-European Stoxx 600 rose 0.5% to 605.42. Germany’s DAX advanced 0.6%, France’s CAC 40 gained 0.7%, and the UK’s FTSE 100 edged 0.2% higher.

European markets benefited from a positive lead from Asia, where gains in technology stocks helped lift investor sentiment.

Despite the early strength, markets remained cautious ahead of the Fed’s widely anticipated policy announcement. The central bank is broadly expected to keep interest rates unchanged after its two-day meeting, though uncertainty persists regarding the future path of borrowing costs.

Investors are particularly focused on comments from Federal Reserve Chair Jerome Powell and other policymakers regarding how monetary policy could evolve as inflation risks rise amid the conflict in Iran.

Concerns have intensified following the closure of the Strait of Hormuz, a crucial shipping route south of Iran through which roughly 20% of global oil supply passes. The disruption has driven a sharp rise in energy prices. Market participants fear that higher oil and gas costs could reignite inflation globally and push central banks toward a more hawkish stance.

European economies, like many across Asia, rely heavily on imported energy, leaving them especially vulnerable to any prolonged disruption in shipments through the Strait of Hormuz. Meanwhile, the European Central Bank—set to announce its own rate decision on Thursday—is not currently expected to cut rates this year despite recent signs that inflation is moderating and economic growth remains subdued.

Oil prices ease slightly

Brent crude futures, the international benchmark, were last down 1.3% at $102.10 per barrel, while U.S. West Texas Intermediate crude futures fell 2.3% to $93.25 per barrel.

Markets received some relief as crude exports from Iraq’s Kirkuk oil fields to Turkey’s Ceyhan port resumed via pipeline, helping to offset supply disruptions from major Gulf producers during the Iran conflict.

However, oil prices remained elevated as investors saw little evidence of a reduction in tensions across the Middle East. Brent crude has climbed from around $71 per barrel before the joint U.S.-Israeli military campaign against Iran began in late February.

On Tuesday, U.S. forces struck Iranian cruise missile facilities near the Strait of Hormuz using 5,000-pound bombs. Earlier in the week, Israeli operations killed several senior Iranian leaders, while President Donald Trump’s appeal for international assistance to reopen the strait received little support.

TruFin (LSE:TRU), the UK-based fintech and video game publishing group, reported strong revenue growth for 2025, with gross revenue increasing 20% year over year to £65.9 million. Adjusted EBITDA rose even faster, climbing 66% to £12.6 million.

The group’s gaming business, Playstack, was the main contributor to the performance, generating £55.3 million in revenue, up 24% from the previous year. Growth was supported by strong catalogue sales as well as new game launches, including Abiotic Factor and Balatro.

Within TruFin’s fintech operations, the Oxygen division reported revenue growth of 18%. The increase was driven by expansion in its Early Payment programmes, strong client retention and rising demand for its software-as-a-service and partnership-based offerings.

By contrast, revenue at fintech subsidiary Satago declined by 50% following the loss of a major banking contract. In response, the company implemented cost reductions and shifted its strategy toward technology services and recurring servicing revenue.

During 2025, TruFin returned capital to shareholders through £8 million in share buybacks and has announced a further £6 million repurchase programme planned for 2026.

For the year, the group reported fee income of £10.1 million and a pretax loss of £4.1 million.

Looking into 2026, TruFin said revenue for the first two months of the year is tracking in line with board expectations at no less than £9.3 million. The Playstack division plans to launch eight new titles during the year, including Mortal Shell II and Raccoin. Meanwhile, Satago expects subscription revenue growth to accelerate as new partnership agreements are introduced.

Itim Group (LSE:ITIM), the UK-based retail technology software provider, reported largely unchanged revenue for 2025, while profitability declined compared with the previous year.

The company recorded a loss before tax during the period, partly due to a bad debt linked to a retail client that entered administration. Overall results came in below market expectations.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year totalled £1.7 million. During the second half, Itim implemented cost reduction measures that lowered its cost base by more than £1 million.

Management said the difficult trading environment for UK retailers—characterised by cost inflation and weak economic growth—reduced appetite for technology investment among customers. These sector pressures weighed on the company’s performance over the year.

Looking ahead to 2026, Itim expects the recently implemented cost savings to support improved results. The company also anticipates replacing lost revenue through additional business from existing clients as well as new customer opportunities.

Nexteq (LSE:NXQ), the UK-based technology solutions provider, reported full-year revenue of $90.2 million, representing a 4% increase from the previous year, supported primarily by stronger performance in its gaming segment.

Despite the revenue growth, profitability weakened during the period. Adjusted earnings per share declined 29% to $0.04, while gross margin narrowed to 32.8% due to higher component costs. The company recorded adjusted pretax profit of $3.6 million and statutory pretax profit of $3.2 million.

Sales of the company’s Quixant gaming hardware platform increased overall, with new customer wins and expanded product offerings helping to offset lower volumes from its historically largest customer.

Margin pressure during the year was driven largely by rising memory component prices and changes in the customer and product mix. The company noted that demand linked to artificial intelligence applications tightened supply for DDR4 and DDR5 memory components, pushing costs higher.

Nexteq also experienced the impact of customer concentration risk after its largest customer was acquired. The transaction led to a 70% decline in orders from that customer, forcing the company to replace the lost sales with new business that currently carries lower margins.

During the year, Nexteq completed a share buyback programme and purchased a new office in Taipei, with the property acquisition partly financed through a mortgage.

Looking ahead, the company expects Quixant revenue to decline in 2026 following the acquisition of its largest customer. Management also warned that supply chain disruptions, tariffs and broader geopolitical risks are creating uncertainty for customers in the near term.

Over the longer term, Nexteq is targeting revenue of $108 million by the end of 2028, with gross margins of 35–38% and an EBITDA margin of between 10% and 15%.