BOE's Inflation Outlook Seen Posing Risk to Pound
1041 GMT - Sterling could depreciate as the Bank of England's
expectations for inflation to ease significantly over the course of
the year might be too optimistic, Commerzbank says. The BOE's
inflation outlook suggests its interest rate rise cycle could soon
end, Commerzbank currency analyst You-Na Park-Heger says in a note.
However, inflation could prove more stubborn than the BOE expects
as the central bank admits the economy and labor market will be
more robust than previously anticipated, she says. "As we see the
risk that inflation might not ease as quickly and that the BOE
might drop behind the curve with its monetary policy, we remain
sceptical regarding sterling and expect weaker GBP levels over the
coming months." (renae.dyer@wsj.com)
Companies News:
Diageo Names Debra Crew as CEO as Ivan Menezes Retires
Diageo PLC on Tuesday said its Chief Executive Ivan Menezes
intends to retire after 10 years in the role, and will be replaced
by current Chief Operating Officer Debra Crew.
---
Ocado Backs FY 2023 Views After 1Q Retail Revenue Rose on Higher
Orders
Ocado Group PLC said Tuesday that first-quarter sales of Ocado
Retail Group, the joint venture it co-owns with Marks & Spencer
Group PLC, rose and that guidance for fiscal 2023 remains
unchanged.
---
Halma Buys FirePro for EUR150 Mln
Halma PLC said Tuesday that it has bought aerosol-based fire
suppression system company FirePro for 150 million euros ($162
million).
---
John Wood 2022 Revenue Rose; Adjusted Earnings at Top End of
Guidance
John Wood Group PLC said Tuesday that 2022 revenue rose while
adjusted earnings were at the top end of guidance.
---
Personal Group Swung to 2022 Pretax Loss on Impairment
Charge
Personal Group Holdings PLC said Tuesday that it swung to a
pretax loss in 2022 due to an impairment charge, but revenue rose
thanks to growth across business areas.
---
A.G. Barr FY 2023 Pretax Profit Rose; Sees Short-Term Margin Hit
Ahead
A.G. Barr PLC said Tuesday that pretax profit for fiscal 2023
rose driven by robust sales growth but warned that margins are
expected to be hit by several factors in the short-term.
---
S&U FY 2023 Pretax Profit Fell; Sees Good Current
Trading
S&U PLC on Tuesday reported a lower pretax profit for fiscal
2023 despite growing revenue and said current trading is good.
---
Nanoco 1H Revenue Rose, Loss Flat; Expects Orders by End
2023
Nanoco Group PLC said Tuesday that revenue rose in the first
half of its fiscal year, its pretax loss was flat and that it
expects orders for its commercial-production materials by the end
of 2023.
---
Softcat Sees FY 2023 Ahead of Views Despite 1H Pretax Profit
Slip
Softcat PLC said Tuesday that pretax profit fell on the back of
lower revenue and higher expenses, but raised its dividend payout
and expects performance of fiscal 2023 to be ahead of its
expectations.
---
United Utilities Expects FY 2023 Revenue, Performance Payment to
Miss Guidance
United Utilities Group PLC said Tuesday that it expects its
fiscal 2023 revenue and a performance-related payment to miss
guidance.
---
Team17 2022 Profit Fell Slightly After Acquisition Costs; CEO to
Depart
Team17 Group PLC said Tuesday that pretax profit fell slightly
in 2022 as acquisition-related costs jumped, and that Chief
Executive Debbie Bestwick plans to step down once a suitable
successor can be found.
---
Unbound Group in GBP6.8 Mln Takeover Talks With WoolOvers
Group
Unbound Group PLC said Tuesday that it is in talks with
WoolOvers Group Ltd. over a potential 6.8 million pound ($8.4
million) takeover that it would be minded to recommend to
shareholders if a firm offer is made.
---
Bellway 1H Pretax Profit Fell on Safety Expense, Initiates
Buyback
Bellway PLC said Tuesday that its pretax profit for the first
half-year ended Jan. 31 fell, but revenue rose thanks to an
increase in average selling prices and it is launching a share
buyback program.
---
Journeo 2022 Pretax Boosted by Fleet Sales, Customer
Investment
Journeo PLC said Tuesday that 2022 pretax profit rose, boosted
by higher fleet sales and an increase in investment by bus
operators, but that pressure on global supply chains is likely to
persist well into this year and beyond.
---
Mortgage Advice Bureau Sees 2023 in Line With Views
Mortgage Advice Bureau (Holdings) PLC on Tuesday posted a lower
pretax profit for 2022 despite higher revenue, and said that it
sees 2023 in line with expectations as it anticipates a stronger
second half of the year.
---
Marlowe Sees FY 2023 in Line With Market Views, Expects Further
Revenue Growth
Marlowe PLC said Tuesday that performance for fiscal 2023 is
expected to be in line with market expectations, supported by an
accelerating revenue growth.
---
Xaar 2022 Profit Fell as Some Units Book Losses, Revenue
Rose
Xaar PLC said Tuesday that pretax profit fell in 2022 as it
booked some losses in business units, but that revenue rose.
---
Pennpetro Energy to Raise GBP1.5 Mln; Shares Fall
Shares in Pennpetro Energy PLC fell Tuesday after it said that
it will raise 1.5 million pounds ($1.8 million) via a discounted
placing and a subscription, and that it will use proceeds to fund
its share of a first production well in Texas.
---
Eleco 2022 Pretax Profit Fell Amid Transition to
Software-as-a-Service Model
Eleco PLC said Tuesday that its 2022 pretax profit and revenue
fell as the company transitions to a software-as-a-service
business.
---
Corcel Raises GBP1.1 Mln Via Premium Placing With New Investor
Group
Corcel PLC said Tuesday that it is raising 1.1 million pounds
($1.4 million) via a premium share placing with a group of new
investors and will use the money toward acquisitions and for
working capital.
---
Petershill Partners Swung to 2022 Pretax Loss; to Launch $50M
Buyback
Petershill Partners PLC on Tuesday posted a swing to pretax loss
as it reported its first full year of results since listing in
London in September 2021, and said it intends to launch a new $50
million share buyback in 2023.
---
Animalcare 2022 Profit Fell as Demand Slipped
Animalcare Group PLC said Tuesday that 2022 pretax profit and
revenue declined due to a fall in demand and new laws coming into
force in the European Union.
---
Altitude Group Shares Rise on Expansion of US Presence
Shares in Altitude Group PLC rose Tuesday after the company said
it has secured new contracts in the U.S., and that it expects
fiscal 2023 adjusted earnings to be ahead of market
expectations.
---
BP Confirms Nonbinding Offer to Take NewMed Energy Private With
ADNOC
BP PLC said Tuesday that it and Abu Dhabi National Oil Co. have
made a nonbinding offer to take NewMed Energy LP private.
---
Good Energy Shares Rise After 2022 Results Were Boosted by
Higher Pricing
Shares in Good Energy Group PLC rose 13% on Tuesday after the
company posted a rise in its 2022 results, benefiting from higher
pricing, and said its current trading is line with its views.
---
Amaroq Minerals Agrees to $49.5 Mln in Loans, Considers Iceland
Listing
Amaroq Minerals Ltd. said Tuesday that it has agreed to $49.5
million in financing that it will use to accelerate production and
cashflow generation at its Nalunaq gold-development project in
Greenland, and that it is considering listing on Iceland's Nasdaq
Exchange.
---
Mission Group 2022 Pretax Profit Fell on One-Off Charge
Mission Group PLC on Tuesday posted a drop in 2022 pretax profit
due to a one-off restructuring charge and said 2023 performance is
currently in line with its views.
---
Sabien Technology Nine-Month Revenue Ahead of Previous Full
Fiscal Year
Sabien Technology Group PLC said Tuesday that revenue for the
first nine months of fiscal 2023 was higher than for the whole of
fiscal 2022, and that its M2G business has secured further orders
from the U.K. government.
---
Unikmind Gets Low Acceptance Count From Kape Technology
Shareholders
Unikmind Holdings Ltd. said Tuesday that it has received
acceptances for its 1.25 billion pound ($1.54 billion) offer for
Kape Technologies PLC from shareholders owning 144,638 Kape
shares.
---
eEnergy Optimistic On Meeting 2023 Views After Swing to 1H
Pretax Profit
eEnergy Group PLC on Tuesday said it swung to a pretax profit
for the first half of fiscal 2023 and that it is optimistic about
meeting full-year views on a strong start to the second half.
---
Holders Technology Appoints Mehul Shah As Finance Director
Holders Technology PLC on Tuesday named Mehul Shah as its group
finance director as Paul Geraghty retires from the board.
---
ActiveOps Appoints Ken Smith as CFO
ActiveOps PLC said Tuesday that Ken Smith has been appointed as
chief financial officer with effect from May 1.
---
Cleantech Lithium Appoints Steve Kesler Executive Chairman
Cleantech Lithium PLC said Tuesday that Steve Kesler has been
appointed executive chairman with immediate effect.
---
Edenville Energy Sees Reduced Washed Coal Production At Rukwa
Project
Edenville Energy PLC on Tuesday said it expects the production
of washed coal to be reduced at its Rukwa coal project in Tanzania
as long as seasonal rains continue.
---
Union Jack Oil Declares Interim Dividend of 0.3 Pence a Share
Following Review
Union Jack Oil PLC said Tuesday that it is declaring an interim
dividend of 0.3 pence a share following a review of its capital
requirements.
---
Synthomer Shares Fall on Swing to Pretax Loss in 2022
Shares in Synthomer PLC dropped Tuesday after the company said
it swung to a pretax loss in 2022 due to weakened demand and
challenging macroeconomic conditions.
---
Empresaria 2022 Pretax Profit Rose on Net Interest Income
Growth
Empresaria Group PLC said Tuesday that pretax profit increased
in 2022, as revenue slightly rose helped by strong growth in net
interest income.
Market Talk:
Mission Group's 2025 Growth Targets Are 'Eye-Catching'
1048 GMT - Mission Group's 2022 trading was resilient and its
new growth targets are significant, Shore Capital says in a note.
The U.K. marketing company issued an "eye-catching" operating
income target of GBP100 million by 2025, with a margin performance
trending to 13%, Shore says. "Today's results detail another year
of delivery from TMG and a firm reiteration of its growth focus,
reinforcing our long-standing view that it is a well-managed
business offering investors a range of fundamental attractions,"
analyst Roddy Davidson says. Shore has Mission Group as a house
stock. Shares rise 3.8% at 55 pence. (elena.vardon@wsj.com)
---
Stronger Household Finances Protect Against Financial Crisis
Scenario
1000 GMT - Similarities between current banking turmoil and the
lead-up to the 2008 global financial crisis are becoming too big to
ignore, but key differences, including stronger household finances,
make a reprise unlikely, Tamara Basic Vasiljev, senior economist at
Oxford Economics says in a note. House prices, which rose
dramatically over two pandemic years, are now declining in most
advanced economies, and mortgage rates, which have raised to
unprecedented rates in recent months, are also reversing course,
Vasiljev says. Moreover, households are now in much stronger
financial positions, with lower loan-to-value and debt-to-income
ratios and much healthier savings, she says. That cushions the
sector from real-estate shocks in a way they didn't in the GFC era,
plus the labor market this time looks more resilient, she adds.
(edward.frankl@wsj.com)
---
Eleco's Beat to 2022 Profit Forecast Drives Upgrades
0947 GMT - Eleco's beat to earnings and profit drives upgrades
to 2023 and 2024 forecasts, finnCap analyst Lorne Daniel writes in
a research note. The construction and building software company
booked 2022 Ebitda, EBIT, pretax profit and EPS--all on an adjusted
basis--ahead of finnCap's forecasts. As a result, Eleco's adjusted
pretax profit is now expected to rise to GBP3.8 million in 2023,
from GBP3.6 million in 2022, the U.K. brokerage says. As visibility
has improved, finnCap now also forecast FY 2026 sustained
double-digit revenue growth, rising margins and above GBP9.0
million in adjusted Ebitda in FY 2026. Adjusted Ebitda in 2022 was
GBP5.4 million. Shares are up 2.6% at 78 pence.
(christian.moess@wsj.com)
---
Petershill Partners' Fee-Related Guidance Looks
Disappointing
0943 GMT - Petershill Partners' guidance on partner fee-related
earnings for 2023 of between $220 million and $250 million is
disappointing, says UBS in a note after the investment firm posted
a 2022 performance-driven revenue beat. "We would expect a neutral
response to the results. While the earnings per share and dividend
per share beat and the $50 million of buyback announced are both
positives, the Partner FRE miss and the lower 2023 guidance on
Partner FRE are negatives," analysts at UBS say, referring to the
metric Petershill uses for income drawn from management fees. The
Swiss bank rates the stock buy. Shares edge up 0.9% at 151.8 pence
and have lost 10.2% YTD. (elena.vardon@wsj.com)
---
Mortgage Advice Bureau's Market Share Boost Shows Upside
0930 GMT - Mortgage Advice Bureau's "ballooned" market share
underpins future prospects, Peel Hunt says in a note after the U.K.
property-letting company posted 2022 results in line with views.
The brokerage notes the company's new mortgage-lending market share
of 7.5% in 2022 implies a second-half market share of 8.2% with an
impressive 9% fourth-quarter market share exit, which validates
management's view that share rises fastest when the mortgage market
is slow. "The investment case has stabilized and the medium-term
opportunity is increasing as market share rises," Peel Hunt says,
pointing to a positive trend in structural drivers despite cyclical
factors affecting short-term results. The brokerage has a buy
rating on the stock. Shares are up 1.6% at 630 pence.
(elena.vardon@wsj.com)
---
Diageo's Leadership Change Looks Unlikely to Rock Boat
0926 GMT - Shares in Diageo drop 0.6% after the maker of Johnnie
Walker whisky and Smirnoff vodka said chief executive Ivan Menezes
was stepping down. Diageo's decision to replace Menezes with its
chief operating officer Debra Crew--rather than appointing an
external candidate--theoretically lowers the chances of a radical
shift in strategy, AJ Bell says. "The market reaction shows
investors aren't worried about big changes to the business," Bell's
investment director Russ Mould writes, adding that the transition
looks like it will be smooth. (philip.waller@wsj.com)
---
Ocado Drops After Reporting Continued Tough Trading
0906 GMT - Ocado Group falls 3% after the online grocer and
retail-technology specialist's joint venture with Marks &
Spencer said trading in the 13 weeks to Feb. 26 remained tough.
Ocado Retail said its average basket value was flat, average basket
size fell 7.5% and order frequency returned to pre-pandemic levels.
Order frequency came in below RBC Capital Markets's expectations
while basket value was above, RBC says. While Ocado's technology is
industry-leading, the group's mid-term targets look ambitious given
its cash-flow potential, the Canadian bank says. "Moreover, risk of
additional financing, an uncertain recovery at Ocado Retail,
downside risk to group estimates, a lower probability of further
game-changing international deals and a relatively rich valuation
drive our under-perform rating," RBC analysts write.
(philip.waller@wsj.com)
---
Bellway's Strong 1H Results, Guidance Likely to Mean
Upgrades
0905 GMT - Bellway delivered a solid first half with completions
in line with the prior year and selling prices slightly ahead, and
with its fiscal 2023 guidance reiterated there are likely to be
moderate upgrades to market expectations, Peel Hunt says. The house
builder's demand has increased steadily over the year, aided by
stabilization in mortgage rates, and it is well-placed to deliver
11,000 homes this year, Peel Hunt analysts Sam Cullen and Clyde
Lewis write. "With the shares trading at a 30% discount to tangible
net asset value, the company continues to look too cheap to us and
we reiterate our Buy recommendation," they say. Peel Hunt retains
its 2,660 pence price target on the stock. Shares are down 0.7% at
2,026 pence. (joseph.hoppe@wsj.com)
---
Sterling Could Extend Gains Vs Dollar on BOE-Fed Divergence
0904 GMT - Sterling could extend its gains against the dollar as
the Bank of England and Federal Reserve's signals about future
monetary policy diverge, ING says. BOE Governor Andrew Bailey
sounded "relatively hawkish" in remarks Monday as he said the U.K.
banking system was in a sound position and further interest rate
rises were possible if inflationary pressures persist, ING analyst
Francesco Pesole says in a note. The Fed is comparatively more
cautious in its signals about future policy amid banking sector
stress, he says. "With BOE rate expectations now supported, we
think GBP/USD can head towards the key 1.2426 (December high) and
1.2500 resistances on the back of USD weakness and policy
divergence relatively soon." GBP/USD rises 0.1% to 1.2297.
(renae.dyer@wsj.com)
---
Bellway Delivers Solid 1H Results and Strong Returns
0901 GMT - Bellway's first-half results were solid with a
sustained improvement in reservations since January, underlying
operating profit broadly in line with market expectations and a
GBP100 million share buyback, Goodbody says. The house builder's
demand continues to improve, fiscal 2023 guidance has been
reiterated and the shares now offer a double-digit capital return
yield following the buyback announcement, Goodbody analyst Shane
Carberry says in a research note. "This should be more than enough
for a stock trading at a 30% discount to its fiscal 2023 book
value," the Irish brokerage says. Goodbody retains its buy
recommendation on the stock. (joseph.hoppe@wsj.com)
---
Diageo's New CEO Should Bring Evolution, Not Revolution
0846 GMT - Diageo CEO Ivan Menezes's retirement was expected,
but earlier than anticipated, Citi analysts say in a note. The
leader of the London-based maker of Guinness stout and Smirnoff
vodka was expected to step down at end-December, they say, adding
that the appointment of Debra Crew to the position is no surprise.
"It is too early to say what strategic changes Debra may make to
the business in the future, but we believe the strategy will be one
of evolution not revolution-for now." Mr. Menezes lead the group
through a successful transformation into an attractive,
compounding-growth stock with shareholder returns, the analysts
add. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
March 28, 2023 07:09 ET (11:09 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.