Good morning, it's Paul & Graham here!

Today's report is now finished. Sorry we had to cut a few corners today, due to Mello, but hopefully we still covered enough to keep you happy!

Autumn Statement day, which I'm listening to. I'll probably comment on in this weekend's podcast, once I've studied the detail. Here's a snapshot of what I jotted down during Hunt's speech -

  • It's a half:half mixture of tax rises & spending cuts, totalling £55 bn. 
  • Investors are being hit with effectively the phasing out of both the dividend allowance (£2k to £1k, then £0.5k over 3 years), and the same for CGT allowance (£12.3k to £6k to £3k) - that's a nasty measure, which will particularly hurt small investors.
  • High earners also hit, with the 45% rate of income tax threshold falling from £150k to £125k. 
  • Income tax personal allowances frozen for another 2 years, so a big continuing stealth tax there. 
  • Windfall taxes increasing from 25% to 35% for energy company profits, and a new 45% windfall tax on electricity generators, combined will raise £14bn next year. 
  • Business rates revaluation will go ahead in 2023, which he claims will help smaller shops & pubs pay less. 
  • Nuclear power prioritised, with Sizewell C going ahead. 
  • Largest ever increase in national living wage, to £10.42
  • Pensions triple lock maintained, increasing it by £872, largest ever increase (but it would be, in £ terms)

Those struck me as the main points, but I'll look at the detail again at a later stage.


Agenda

Paul's Section:

Water Intelligence (LON:WATR) - a detailed Q3 update, which is in line with expectations for profit. Shares look expensive, but the track record of earnings growth is impressive. Probably priced about right. No divis.

Ilika (LON:IKA) [quick comment] today’s update looks awful. Expecting a £9m EBITDA loss for FY 4/2023, with projected £14m cash remaining at that year end. So the cash runway is looking like it will be back with the begging bowl (again) probably in late 2023 or early 2024. Ilika has been promising jam tomorrow as a listed company for 12 years now, but not delivered anything of commercial substance. Occasionally there’s a speculative mania in its shares, e.g. last year was the biggest ever. It’s down almost 90% from that peak now. The market cap is £43m even after today’s 40% fall. Anyone buying or…

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