Berkeley, Rivals Rise as Traders Shrug Off Price Fears

1046 GMT - Berkeley Group shares top the FTSE 100 risers, up 4.8% after the U.K. house-builder reported higher first-half pretax profit and revenue and raised its full-year earnings expectations. "Berkeley Group shares have perked up considerably, rallying over 4% this morning on a very good set of numbers," IG analyst Chris Beauchamp says. "A lack of concern about inflation has provided a further reason for investors to jump back in. Housebuilders generally have moved higher this morning, helped by the Berkeley numbers and the generally bullish tone prevailing in markets." Still, Taylor Wimpey's gains lag rivals, rising 1.3% as the builder said Pete Redfern will step down as chief executive after more than 14 years.

 
Companies News: 

TUI FY 2021 Loss Narrowed, Missing Market Views

TUI AG on Wednesday reported a narrowed net loss for fiscal 2021, which missed full-year market expectations, and said that the first winter quarter of 2022 is nearly fully booked.

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Taylor Wimpey CEO Pete Redfern to Step Down

Taylor Wimpey PLC said Wednesday that Pete Redfern will step down as chief executive officer after more than 14 years in the role.

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Quiz Swung to a 1H Pretax Loss

Quiz PLC on Wednesday reported a swing to a pretax loss for the first half of fiscal 2022 and said that revenue in the first two months of the second half has increased significantly, in line with pre-Covid-19 levels.

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Berkeley Group 1H Profit, Revenue Increased; Raises FY 2022 Guidance

Berkeley Group Holdings PLC said Wednesday that pretax profit and revenue increased for the first half of fiscal 2022, and raised its full-year earnings expectations.

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Centrica to Sell Spirit Energy's Oil & Gas Assets in Norway

Centrica PLC said Wednesday that it has agreed to the sale of Spirit Energy's oil-and-gas assets in Norway to Equinor ASA and Sval Energi AS for $1.08 billion.

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Stagecoach Group 1H Pretax Soars on Back of Lower Debts

Stagecoach Group PLC said Wednesday that its pretax profit increased on the back of passenger volumes recovery and the reduction of its net debt.

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McColl's Retail FY Revenue, Adjusted Ebitda Set to Decline

McColl's Retail Group PLC said Wednesday that revenue and adjusted Ebitda declined during fiscal 2021 as a whole due to supply-chain disruptions and Covid-19 restrictions, and warned about the business continuing to be hit during the current financial year.

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Glanbia Plans EUR50 Mln Share Buyback Program

Glanbia PLC said Wednesday that it is starting a 50 million euro ($56.3 million) share buyback program to reduce its share capital.

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Equals Group Year-To-Date Revenue Rose; Already Beat Full-Year Views

Equals Group PLC said Wednesday that it has already significantly exceeded its full-year expectations for both adjusted earnings and revenue.

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Games Workshop Says Performance Is In Line With Expectations

Games Workshop Group PLC said Wednesday that its performance since September has been in line with expectations.

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SSP Group FY 2021 Pretax Loss Narrowed on Lower Costs

SSP Group PLC said Wednesday that its fiscal 2021 pretax loss narrowed as revenue decreased after it booked lower costs and said that revenue for the first nine weeks of the new year are averaging 66% of 2019 levels.

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Alpha FX Group Expects to Beat Market Views for 2021 Earnings

Alpha FX Group PLC said Wednesday that its performance has remained strong since the first half of 2021, adding that it expects to close 2021 with revenue and earnings ahead of most market views.

 
Market Talk: 

Centrica's Sale of Norwegian Oil & Gas Assets Should Please Investors

0846 GMT - Investors will be happy to see Centrica shed its interest in the Norwegian Spirit oil-and-gas assets, which should fetch just under GBP400 million in proceeds after the closing of hedging-related costs and minority distributions from the GBP800 million sale, RBC Capital Markets says. It should also be taken positively that Centrica has passed on the GBP830 million of decommissioning costs, the bank says. Given that the Norwegian assets were prominently oil-focused, the deal leaves the remaining U.K. portfolio stationed in gas assets, RBC adds. "We still think this newsflow will be positively received by the market where expectations for any positive net cash disposal by Centrica are very low." Shares in the owner of British Gas are up 0.5%.

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Berkeley Group Looks Focused on Investment, Not Returns

0827 GMT - Berkeley Group's first half was reassuringly positive, but its investment cycle keeps ticking on, Jefferies says. The house builder reports net cash of GBP845 million, and while the group appears to have the pipeline to reach its target gross margin on the land bank, management reports that it will make a net GBP700 million investment into land and build over the coming years, the U.S. bank says. "This suggests a later timing of the inflection in working capital and a push back of the substantial capital return potential of the group," Jefferies says, retaining its buy rating on Berkeley's stock and price target of 4,635 pence. Shares are up 4.4% at 4,840 pence.

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Centamin Delivers on Sukari Potential, But Cost Guidance Disappoints

0825 GMT - Centamin has announced a review for its flagship Sukari gold mine in Egypt. Gold reserves have been increased by 1.1 million ounces, enabling a mine schedule of at least 12 years which will enable the company to reach annual production of 500,000 ounces. The update has delivered on Sukari's potential and suggests more upside to come as exploration and underground expansion accrue over time, RBC Capital Markets says. Also, with $256 million on the balance sheet, the group might look to return some cash to shareholders, RBC says. On the downside, forward guidance, especially for 2022 costs, is disappointing, the bank says. The new cost guidance midpoint of $1,350 an ounce is ahead of $1,038 previously.

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Berkeley's Uplifted Outlook Points to a Strong Future

0825 GMT - Berkeley Group's positive first half came broadly in line with expectations, but the outlook points to a strong uplift in profits by fiscal 2025, Citi says. The house builder has noted a resilient sales market and upgraded its pretax profit forecasts for the next three years, culminating in GBP625 million in profit by fiscal 2025, the U.S. bank says. "We expect consensus estimates to move higher, especially for fiscal 2023 to fiscal 2024 on the back of the revised guidance, with scope for further outperformance into fiscal 2024," Citi says, retaining its buy rating on Berkeley's stock and price target of 5,094 pence. Shares are up 4.5% at 4,844 pence.

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Taylor Wimpey Is in Solid Shape Despite CEO Departure, Says Citi

0823 GMT - Taylor Wimpey is being left in solid shape by its departing CEO Pete Redfern, says Citi. The U.S. bank says the senior management team is experienced and it highlights CFO Chris Carney and COO Jennie Daly. Redfern announced his exit after nearly 15 years with the U.K. house builder where he navigated it through some challenging times during the global financial crisis and the coronavirus pandemic, it says. "The current strategy also remains well underpinned by land investments made over the last 18 months and the balance sheet remains in good shape to drive growth and higher returns to shareholders," Citi says. The bank has a buy rating on the stock and a target price of 210 pence. Shares trade 0.2% higher at 168.15 pence.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

December 08, 2021 06:05 ET (11:05 GMT)

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