FTSE 100 Closes Down 1.5% as Retailers Fall

The FTSE 100 closed down 1.5% on Thursday, with global markets downbeat despite gains for oil. High inflation concerns and weaker economic sentiment drove the retail sector into negative terrain, with online grocer Ocado falling 3.9% and retailer Kingfisher down 3.6%. "It's been another weak session for European markets as the early week optimism over the dropping of restrictions in China gives way to the reality [of] China's zero-covid strategy," Chief Market Analyst at CMC Markets UK Michael Hewson says in a note. On the brighter side, Melrose Industries rose 4.2%, continuing its rally for the week.

 
Companies News:

FirstGroup Rejects Bid Proposal From I Squared

FirstGroup PLC said Thursday that the proposed cash offer by private equity company I Squared Capital Advisors (UK) LLP "significantly undervalues" its continuing operations and future prospects, and has therefore rejected it.

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Tate & Lyle FY 2022 Revenue, Adjusted Pretax Profit Rose; Announces Special Dividend

Tate & Lyle PLC said Thursday that revenue and adjusted pretax profit rose in fiscal 2022 as volumes increased, mix management was strong and utilizing cost discipline amid inflationary headwinds.

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CMC Markets FY 2022 Pretax Profit, Rev Fell on Strong Prior-Year Comparatives

CMC Markets PLC said Thursday that pretax profit fell for fiscal 2022 as revenue decreased because of a strong comparative, and that it continued to see uncertainty in financial markets and other sectors.

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DFS Furniture 4Q Production, Deliveries Miss Expectations

DFS Furniture PLC said Thursday that its production and deliveries are lower than expected in the fourth quarter of the fiscal year.

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AO World to Close German Business; Focus on UK

AO World PLC said Thursday that it has decided to close its German business given the deteriorating outlook, and following a review that was launched in January.

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Mitie Group Swung to FY 2022 Pretax Profit, Reinstates Dividend; Announces Share Buyback

Mitie Group PLC said Thursday that it swung to a pretax profit for fiscal 2022, and that it had reinstated the final dividend and announced a share buyback.

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British American Tobacco Backs 2022 Guidance -- Update

British American Tobacco PLC on Thursday reiterated 2022 guidance for revenue and earnings growth.

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Remgro Consortium's GBP3.41 Bln Offer Proposal for Mediclinic Rejected

Remgro Ltd. said Thursday that it has put forward a 3.41 billion-pound ($4.28 billion) offer proposal to buy Mediclinic International PLC which has been rejected by the London-listed private healthcare-services group's board.

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Peel Hunt FY 2022 Pretax Profit, Revenue Fell on Strong Prior-Year Comparatives

Peel Hunt Ltd. said Thursday that fiscal 2022 pretax profit fell as revenue decreased because of a strong comparative, and that it expects equity capital markets activity in the first half of fiscal 2023 to continue in line with that seen in the fourth quarter.

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Norcros FY 2022 Pretax Profit Rose on Higher Revenue

Norcros PLC said Thursday that its pretax profit rose in fiscal 2022 on increased revenue, and that revenue in the two months to the end of May was around 1% ahead of the prior-year period and around 25% ahead of the same period in 2019.

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Lekoil Appoints New Chairman, Directors

Lekoil Ltd. said Thursday that it has appointed Olapade Durotoye as nonexecutive chairman as part of its managed succession planning.

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Fuller Smith & Turner Swung to FY 2022 Pretax Profit on Higher Revenue

Fuller Smith & Turner PLC said Thursday that it swung to a pretax profit for fiscal 2022 as revenue increased because of its estate being open to business for a longer period than in the prior year, and that it is returning to a progressive dividend policy.

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ITM Power Sees Widened FY 2022 Ebitda Loss

ITM Power PLC said Thursday that it expects to report a widened adjusted Ebitda loss for fiscal 2022 due to increased skills acquisitions costs and around 14 million pounds ($17.6 million) in project delivery and production ramp up costs.

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Anglo American Signs $100M Sustainability-Linked Loan With IFC

Anglo American PLC said Thursday that it has signed a $100 million sustainability-linked loan agreement with International Finance Corp.

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Remgro Consortium's GBP3.41 Bln Offer Proposal for Mediclinic Rejected -- Update

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Sistema 1Q Net Loss Widened as Value of Ozon Holding Fell

Sistema JSFC said Thursday that its first-quarter net loss widened after it booked provisions for deferred tax assets after the decrease in the value of Ozon shares.

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Kistos Says 2022 Has Begun on Strong Note; Continues to Evaluate Growth Opportunities

Kistos PLC said Thursday that it has started 2022 on a strong footing and that it continues to evaluate several potential growth opportunities that meet its investment criteria.

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Northbridge Shares Rise on Improved 2022 Outlook

Shares in Northbridge Industrial Services PLC rose Thursday after the power reliability equipment provider raised its expectations for 2022.

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Scotgold to Meet or Exceed 2Q Production Guidance -- Commodity Comment

Scotgold Resources Ltd. said Thursday that it could exceed its gold production target for the second quarter. Here's what the owner of the Cononish mine in Scotland had to say:

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Vh Global Sustainable Energy Opportunities to Raise Up to GBP150 Mln

Vh Global Sustainable Energy Opportunities PLC said Thursday that it plans to raise up to 150 million pounds ($188.1 million), and that it will use the proceeds to invest in its pipeline.

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Senior to Buy Spencer Aerospace Manufacturing for GBP48 Mln

Senior PLC said Thursday that it has agreed to acquire California-based Spencer Aerospace Manufacturing, LLC for 48 million pounds ($60.2 million), and that the transaction will be funded using its current borrowing facilities.

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Citius Resources to Buy AUC Mining in Reverse Takeover Deal; Trading Halted

Citius Resources PLC said Thursday that it has agreed to buy AUC Mining (U) Ltd. for two million pounds ($2.5 million) in an all-share deal classified as a reverse takeover under London Stock Exchange listing rules.

 
Market Talk:

British American Tobacco Enjoys Strong 1H

0915 GMT - British American Tobacco is enjoying a strong first half of the year, Russ Mould at AJ Bell says. This is a highly cash generative business that can afford bumper returns to shareholders as it can put up prices without unduly affecting demand, thanks to the addictiveness of its core product, the analyst says in a note. The industry is facing regulatory pressure, however, with the U.K. government set to argue for an increase in the minimum age at which you can buy tobacco products, Mould says. Shares in the U.K.-based tobacco group slip 0.4% after the trading update. (jaime.llinares@wsj.com)

Fuller, Smith & Turner's Sales Improve, But Costs Weigh

0914 GMT - Fuller, Smith & Turner shares rise 2% to 580 pence after the pub group reported what brokerage Peel Hunt describes as a good improvement in latest trading. The company's sales and pretax profit in the year to March matched expectations and . total sales recovered to being up 4% over the first 10 weeks of 2022/23 versus pre-pandemic levels, Peel says, though it says it's cutting its 2022/23 pretax profit forecast by 5% due to higher energy costs. "Based on improving trading and recent share-price weakness, we're upgrading our recommendation from add to buy," Peel analyst Douglas Jack says in a note, reiterating his 800p target price. (philip.waller@wsj.com)

DFS Furniture Shares Slump After 4Q Falls Short

0907 GMT - DFS Furniture drops 17% to 154 pence after the retailer reported lower-than-expected fourth-quarter production and deliveries, blaming slowing market-wide demand. Peel Hunt estimates volumes dropped 2-3% in the last two months, after a rise of 10% or more in March, implying profit forecasts are too high. "We take this year's GBP75 million to GBP60m, next year's GBP85m to GBP65m," Peel analysts write in a note, though they say the company's cash generation remains robust. "We believe the competition is struggling and history tells us DFS should emerge from crises stronger. We have no doubt this will recur but for now, a sector multiple is the best we can hope for. We reduce our target price from 375p to 260p. Buy." (philip.waller@wsj.com)

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

June 09, 2022 12:20 ET (16:20 GMT)

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