Increased UK Political Uncertainty Considered Negative for Pound

0848 GMT - Global risk appetite continues to drive sterling's performance but the rise in U.K. political uncertainty after two top ministers resigned is a negative development for the currency, MUFG Bank says. U.K. Health Secretary Sajid Javid and U.K. Chancellor of the Exchequer Rishi Sunak resigned on Tuesday following a string of scandals under Prime Minister Boris Johnson. "While lingering political uncertainty in the U.K. is unlikely to be the main driver of the pound, it adds to current bearish fundamentals that have dragged cable [GBP/USD] below the 1.2000-level," MUFG currency analyst Lee Hardman says in a note. GBP/USD rises 0.2% to 1.1969 and EUR/GBP falls 0.3% to 0.8569. (renae.dyer@wsj.com)

 
Companies News: 

Ten Entertainment's 1H Sales Growth Rose on Strong Demand

Ten Entertainment Group PLC said Wednesday that its total, first-half sales growth had increased compared to prepandemic levels, and it expects its full-year performance to beat its current expectations.

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Topps Tiles' 3Q Sales Rose, With Margins and Costs in Line With Views

Topps Tiles PLC said Wednesday that sales for the third quarter of its fiscal 2022 increased on year, and that sales, margins and operating costs remain in line with management views.

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AO World to Raise GBP40 Mln to Boost Balance Sheet, Liquidity

AO World PLC said Wednesday that it is seeking to raise 40 million pounds ($47.8 million) via a share placing and primary bid offer which will strengthen its balance sheet and increase liquidity to historic levels.

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Trainline Updates FY 2023 Views on Fast Passenger Volume Recovery

Trainline PLC said Wednesday that it has updated its guidance for fiscal 2023, as rail passenger volume across Europe recovery was faster than expected.

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Attraqt Group's 1Q Revenue Increased on Strong Bookings

Attraqt Group PLC said Wednesday that revenue increased in the first half of 2022, as it continued to benefit from a strong performance in relation to logo and enterprise bookings.

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Robert Walters's Nonexecutive Chairman Ron Mobed to Step Down on July 15

Robert Walters PLC said Wednesday that Ron Mobed will step down as the company's nonexecutive chairman on July 15.

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Numis 3Q Rev Rose Vs. 2Q; FY Performance Expected to Meet Market Views

Numis Corp. said Wednesday that revenue in the third quarter of fiscal 2022 rose from the second quarter, and this also reflected an improvement compared with the first half.

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ProCook FY22 Pretax Profit Fell on One-Off Costs; Early FY23 Sales Slipped

ProCook Group PLC said Wednesday that its fiscal 2022 reported pretax profit fell, though revenue rose on increased numbers of customers, while sales have dropped going into fiscal 2023.

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Assura Says 1Q Trading Strong on Back of Growing Portfolio

Assura PLC said Wednesday that its performance for the first quarter of fiscal 2023 was strong, as it continues to progress its acquisition and development pipelines.

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Surface Transforms Sees Return to Profitability in 2022 After 1H Revenue Rose

Surface Transforms PLC said Wednesday that revenue increased materially in the first half of the year and it expects a return to profitability for 2022 as a whole.

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Sirius Real Estate Meeting Early FY 2023 Views; Expects Rents to Rise

Sirius Real Estate Ltd. said Wednesday that it was meeting its expectations in early fiscal 2023, despite economic uncertainty and the inflationary environment across Europe, and it expects to further increase average rental rates over the rest of the fiscal year.

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Coats Group to Buy Footwear Solutions Provider for $237 Mln -- Deal Digest

ACQUIRER: Coats Group PLC.

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Robert Walters Expects 2022 Profit to Top Market Views on Record 2Q Fee Income

Robert Walters PLC said Wednesday that it achieved record net fee income for the second quarter, and that it expects full-year profit to exceed market expectations.

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Impact Healthcare Raises GBP22.3 Mln in Share Issue to Buy Care Homes

Impact Healthcare REIT PLC said Wednesday that it has raised total gross proceeds of around 22.3 million pounds ($26.7 million) through a placing and offer, in order to acquire a pipeline of identified care homes.

 
Market Talk: 

UK Could Benefit From 'Diligent' Replacement for Prime Minister

0914 GMT - The resignations of two senior U.K. ministers, Chancellor Rishi Sunak and Health Secretary Sajid Javid, may be the prelude to the eventual fall of Prime Minister Boris Johnson, Berenberg's senior economist Kallum Pickering says in a note. If the fight to oust Johnson gets any messier, and is followed by a noisy leadership contest, increased near-term uncertainty may add downward pressure to U.K. risk markets and sterling, he warns. "While the questions about whether Johnson will finally be out, who may succeed him, and even which party may be running the country next year adds to near-term uncertainty, the U.K. is set to benefit if Johnson were to be replaced by a more diligent and serious individual," Pickering says. (maria.martinez@wsj.com)

Ten Entertainment Shares Look Cheap Given Strong Potential

0902 GMT - Ten Entertainment's first-half results saw a strong increase in sales and the profit run rate is ahead of Peel Hunt's upgraded numbers, driven by strong demand for its value offer and limited cost pressure, but shares still look cheap. The bowling and entertainment center operator's exposure to cost inflation is limited, as it has a gross margin of more than 85%, a labor ratio below 20%, and energy costs fixed until September 2024, Peel Hunt analysts Douglas Jack and Ivor Jones say in a note. Given Ten's strong underlying performance, the share price looks highly attractive, the brokerage says. Peel Hunt retains its buy rating and 400 pence price target. Shares are up 4.9% at 223.0 pence. (joseph.hoppe@wsj.com)

Ten Entertainment's 1H Results Strike Big

0858 GMT - Ten Entertainment's strong 2021 momentum has clearly persisted into the first half of 2022, with 46% like-for-like sales growth as it benefits from the structural shift towards value family entertainment and competitive socializing, Liberum says. The bowling and entertainment center operator's footfall is 43% higher than 2019 levels, more than enough to outpace inflationary pressures while holding game prices at pre-coronavirus pandemic levels, Liberum analyst Anna Barnfather says in a research note. Ten's shares look relatively undervalued given its earnings potential, and the brokerage's own 370 pence price target looks undemanding, Liberum says, raising its full-year adjusted pretax profit expectations by 17% to GBP23.0 million. Liberum retains its buy rating on Ten's stock. Shares are up 6.4% at 226.0 pence. (joseph.hoppe@wsj.com)

UK's Political Turmoil Highlights Challenges Ahead for Its Leadership

0833 GMT - U.K. Prime Minister Boris Johnson is likely to resist any calls to resign and may survive in the very near term, but a change in leadership seems unavoidable and it is highly unlikely that Johnson remains PM beyond this year, Citi economist Benjamin Nabarro says. The government isn't likely to be able to unify around a clear strategy given the current pressures, while a leadership contest within a divided Conservative Party looks unlikely to deliver a clear path forward either, he says. "In the months ahead, we see the U.K. heading into a once in a generation squeeze in living standards, absent a defined strategy and facing deep governmental division," Nabarro says. "The risk of profound policy error is therefore significant," he says. (xavier.fontdegloria@wsj.com)

 

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

(END) Dow Jones Newswires

July 06, 2022 05:34 ET (09:34 GMT)

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