FTSE 100 Rises as Omicron Jitters Fade
The FTSE 100 rises 1.1% to a near three-week high of 7317
points, according to FactSet. "After a strong session to kick off
the week with the FTSE 100 rallying more than 1.5%, the U.K. index
is enjoying gains once again alongside the other major European
bourses as some of the Omicron jitters begin to taper at least for
now," Interactive Investor analyst Victoria Scholar says. Ferguson
advances 4.8% after the plumbing and heating products distributor
raised its full-year outlook following a strong first quarter.
Ashtead Group gains 2.6% after the equipment rental company posted
higher second-quarter profit and lifted its full-year expectations.
Mining shares gain as commodity prices rise after the People's Bank
of China eased monetary policy.
Liontrust to Buy Majedie Asset Management for GBP120 Mln
Liontrust Asset Management PLC said Tuesday that it is buying
Majedie Asset Management Ltd. for 120 million pounds ($159.2
million) in shares and cash, a deal that will boost Liontrust's
existing institutional proposition.
W.H. Ireland Group 1H Pretax Profit Fell as Revenue Rose
W.H. Ireland Group PLC said Tuesday that first-half pretax
profit decreased as revenue rose.
Supreme 1H Pretax Profit Rose on Higher Revenue, Declares
Supreme PLC said Tuesday that its pretax profit for the first
half of fiscal 2022 has increased, backed by higher revenue, and it
declared a dividend payout.
Carr's FY 2021 Profit, Revenue Rose Ahead of Management
Carr's Group PLC said Tuesday that its fiscal 2021 pretax profit
and revenue rose ahead of management's improved expectations, and
raised its dividend.
Tritax EuroBox FY 2021 Profit Rose
Tritax EuroBox PLC said Tuesday that its fiscal 2021 profit rose
on increased rental income and improved property valuations.
Premier Miton Group FY 2021 Pretax Profit Rose, Increases
Premier Miton Group PLC on Tuesday posted a rise in pretax
profit for fiscal 2021 and increased its dividend payout.
CareTech FY 2021 Pretax Profit, Revenue Rose; Increases Final
CareTech Holdings PLC said Tuesday that fiscal 2021 pretax
profit and revenue rose, and that it has increased the final
dividend after robust performance in its core activities.
Paragon Banking FY 2021 Pretax Profit Rose on Credit Loss
Paragon Banking Group PLC on Tuesday reported an 80% rise in
pretax profit for fiscal 2021 as it released Covid-based provisions
booked previously against credit losses.
Somero Enterprises Raises Guidance on Strong 2H Performance
Somero Enterprises Inc. said Tuesday that it has raised its
guidance for 2021 after experiencing strong business momentum in
the second half of the year.
Shanta Gold Shares Drop After Cutting 2021 Production
Shares in Shanta Gold Ltd. fell Tuesday after it downgraded
full-year gold production guidance for its New Luika mine in
Mercia Asset Management 1H Pretax Profit Rose on Higher
Mercia Asset Management PLC on Tuesday reported a 38% rise in
pretax profit for the first half of fiscal 2022 and said it expects
the strong momentum to continue.
Tandem Group Sees 2021 Profit in Line With or Ahead of Market
Tandem Group PLC said Tuesday that it expects to report a profit
for 2021 in line with or slightly ahead of market expectations as
it benefits from a robust performance.
Franchise Brands CFO Chris Dent to Step Down After 2021
Franchise Brands PLC said Tuesday that Chief Financial Officer
Chris Dent will leave the company shortly after it releases its
results for 2021 to take up the post of CFO at UP Global Sourcing
Sivota Agrees to $12.0 Mln Reverse Takeover of Apester; Shares
Sivota PLC said Tuesday that it has agreed to take a controlling
stake in Apester Ltd. in a reverse takeover for $12.0 million, and
as such trading of its shares have been suspended.
Liontrust's Majedie Purchase Is a Surprise
1049 GMT - U.K. sustainability-focused investment manager
Liontrust Asset Management's purchase of Majedie Asset Management
Ltd. for GBP120 million is a surprise, Ryan Hughes at AJ Bell says.
Although given the company's owner-managed structure and strong
independence it wasn't a name mentioned regularly as a takeover
target, its ability to tap into Liontrust's wider resources and
hopefully grow the assets was clearly a strong pull, Hughes says.
"The fund ranges of the two companies look a decent fit, however
there is the chance of some consolidation of the enlarged fund
range, not least because Liontrust will have 19 funds that each
have less than GBP100 million in assets as they still look to tidy
up the assets from their previous purchases," Hughes says.
Ashtead Gets Rental-Revenue Boost From Volume Increase
1014 GMT - Ashtead Group shares rise 3% after the plant-hire
group reported higher second-quarter profit and forecast full-year
performance ahead of its previous expectations. The latest results
show increased volumes of equipment out on loan have driven rental
revenue higher, AJ Bell says. "Joe Biden's $1.2 trillion
infrastructure bill should provide a positive backdrop for Ashtead
in the U.S., which is its main operating region. Yet Covid still
presents a challenge in 2022," Bell's investment director Russ
Mould says. "Any prolonged setbacks to economic activity could have
a negative knock-on effect to construction activity, causing
project delays. This risk will keep Ashtead on its toes."
Uber Eats, Deliveroo Seen as Most Exposed to EU Gig-Economy
0956 GMT - Uber Eats and Deliveroo will likely be the most
exposed food delivery platforms to a European Union proposal that
could pave the way for gig-economy workers to be treated as
employees rather than contractors, Bryan Garnier says. "Deliveroo
and Uber Eats will be the most exposed, bearing in mind that both
are quite active in Europe, beyond the U.K...[and] rely on
freelancers," Bryan Garnier says. On the other hand, the European
investment bank sees Just Eat and Germany's Delivery Hero as
minimally exposed, citing their existing employment model as well
as the relatively low percentage of revenue they generate in the
Ferguson's Strong 1Q Anticipates Further Momentum
0907 GMT - Ferguson's organic sales growth of 24.5% in its
first-quarter results show a persistence of fourth-quarter
performance, Jefferies says, noting that second-quarter revenue
growth should be similar to the first. While market consensus for
fiscal 2022 appears to imply second-half revenue growth will taper
to negative, Jefferies says this is too bearish a forecast. The
bank retains its buy rating on the supplier of plumbing products
and 13,992.0 pence price target. Shares are up 4.8% at 12,120
SSE Change of Course Could Be Distant Despite Shareholder
0907 GMT - Following Elliott's letter to SSE calling for the
company to separate the renewables and the networks businesses, RBC
Capital Markets says it agrees with most points being made by
Elliott, although a change of course from SSE management could be
some way away. Elliott, one of the largest SSE shareholders, says
the group has potential for a 2,100 pence share price, implying
GBP5 billion upside from current levels. However, RBC values the
FTSE 100 energy company at 1,800 pence. "Hence we see less upside
to our valuation on the renewables side and see plenty of
attractive alternatives for investors to gain exposure to this
there (notably RWE and Enel)," the Canadian bank says.
Ferguson's Strong 1Q Means Upgrades Are Likely
0859 GMT - Ferguson's strong performance in the first quarter
exceeded expectations, and upgrades are likely for both growth and
margin performance forecasts given the momentum built up, Citi
says. The plumbing-and-heating products distributor's
outperformance was driven by strong growth in the U.S. and higher
margin performance, while it continues to benefit from inflationary
tailwinds and better management of supply-chain pressures, the U.S.
bank's Ami Galla says. "We expect upgrades to both consensus
organic growth expectations and margin performance on the back of
the strong first-quarter growth momentum, and expectations of
persistent inflation in finished goods benefiting fiscal 2022,"
Citi says, retaining its neutral rating and 11,100 pence price
target. Shares are up 4.7% at 12,115 pence.
Sterling Could Stabilize Even if BOE Delays Rate Rise
0754 GMT - The Bank of England is likely to hold off on raising
interest rates at its December 16 meeting but that won't have a
material impact on sterling, Commerzbank says. "The current
coronavirus situation and the uncertainty in this context make a
rate hike in December seem increasingly unlikely," Commerzbank
currency analyst You-Na Park-Heger says. However, this is largely
priced in by the market so sterling could stabilize at current
levels for now, she says. GBP/USD rises 0.1% to 1.3280 and EUR/GBP
drops 0.1% to 0.8503.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at email@example.com
(END) Dow Jones Newswires
December 07, 2021 06:15 ET (11:15 GMT)
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