The FTSE 100 closed Friday up 0.11% as a collapse in the pound's strength helped avert a further drop in stock prices. The pound may have helped the FTSE 100 avoid the losses seen throughout Europe and the U.S., yet trouble lays ahead as consumer confidence hits a record low, IG Group PLC senior market analyst Joshua Mahony said in a note. "The resurgence in the dollar seen this week serves to highlight the growing feeling that we are on the cusp of another slump, as investors prepare to head for the exit doors once again," Mr. Mahoney said. The collapse in European currencies won't much help alleviate inflationary fears, with a weaker pound and euro meaning imports become increasingly more expensive, he said.

 
Companies News: 

Revolution Beauty Shares Fall on Risk of Trading Suspension Due to Report Delay

Revolution Beauty Group PLC shares fell on Friday after the company said it doesn't expect to report its fiscal 2022 results by the Aug. 31 deadline, and that share trading will be suspended as a consequence of the delay.

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Braemar Shipping Services Director Re-Election, Auditor Remuneration Passed With Low Level of Support

Braemar Shipping Services PLC said Friday that the resolutions to reelect Joanne Lake as a director and to determine the auditor's remuneration received a low number of votes at its annual general meeting but were still passed.

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Some Samsung Motions Rejected at Texas Trial, Nanoco Says

Nanoco Group PLC said Friday that the judge in its litigation in Texas against Samsung for willful infringement of its intellectual property has rejected a number of motions proposed by the South Korean company.

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Kinovo Swung to FY 2022 Pretax Profit on Business Refocus; Shares Rise

Kinovo PLC shares rose on Friday after the company swung to a pretax profit for fiscal 2022 while Ebitda doubled as the business repositioned into three key areas.

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Global Ports Investments Swung to 1H Pretax Loss on Higher Costs; 2022 Outlook Uncertain

Global Ports Investments PLC said Friday that it swung to a pretax loss for the first half of 2022 after booking higher costs, and that the market outlook in the Baltic basin remained well below 2021.

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Altona Rare Earths to Raise GBP1.1 Mln Ahead of Planned AIM IPO

Altona Rare Earths PLC said Friday that it plans to raise 1.1 million pounds ($1.3 million) via a share placing ahead of a planned initial public offering on London's junior AIM.

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Kazatomprom 1H Revenue, Profit Rose on Uranium Market Recovery

NAC Kazatomprom JSC said Friday that net profit and revenue jumped on year as the uranium market recovered as the social and environmental impacts of energy infrastructure, as well as energy security in relation to the Russia-Ukraine conflict, were in focus.

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HICL Acquires Minority Stake in Cross London Trains

HICL Infrastructure Co. said Friday that it has agreed to acquire a minority equity position in Cross London Trains, known as XLT, from funds managed by Equitix Investment Management.

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Volex 1Q Revenue Rose on Customer Demand; Performance in Line With Views

Volex PLC said Friday that revenue grew for the first quarter of fiscal 2023 and that its performance had been strong and in line with management's expectations amid positive customer demand.

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Magnit 1H Net Profit Rose on Robust Retail Sales

Magnit said net profit for the first half of 2022 rose, driven by a significant increase in revenue.

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Made Tech FY 2022 Revenue Rose on Robust Pipeline, Record Sales Bookings

Made Tech Group PLC said Friday that revenue for fiscal 2022 more than doubled as the group benefited from a robust pipeline and record sales bookings.

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Advanced Oncotherapy Raises GP1.5 Mln via Premium Share Subscription

Advanced Oncotherapy PLC said Friday that it has raised 1.5 million pounds ($1.8 million) via a premium share subscription and will use the money for general corporate purposes as it progresses the "Light" system at 230 MeV--a metric for proton beams--to full operation by the end of this summer.

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Global Ports Holding 1Q 2023 Revenue Rose on Higher Passenger Numbers

Global Ports Holding PLC said Friday that revenue for the first quarter of fiscal 2023 rose as cruise passenger numbers surged, and that its current performance was in line with guidance.

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Joules Group Sees FY 2023 Pretax Loss Significantly Below Market Expectations

Joules Group PLC said Friday that it expects to post a pretax loss for fiscal 2023 that is significantly below current market expectations due to weak trading in the year to date.

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Kingspan 1H Pretax Profit Rose on Higher Revenue, Trading Profit

Kingspan Group PLC said Friday that first-half pretax profit rose on higher revenue boosted by increased trading profit, and that certain pockets of activity across the group experienced a lag in its recovery effort.

 
Market Talk: 

Joules Shares Slump as Sales Fall Sparks Profit Alert

1334 GMT - Joules Group drops 36% to 28 pence after the fashion and homeware brand forecast a pretax loss for 2022/23 due to weak trading in the year to date. The 8% fall in retail sales since the end of May reflected the weather as much as the consumer climate, with Joules's summer staple of waterproofs, wellies and outwear understandably out of favor, Peel Hunt says, cutting its target price to 45 pence from 60 pence, but reiterating its hold recommendation. "The Joules brand continues to resonate well with customers and wholesale partners," Peel Hunt analysts say in a note, adding that the potential tie-up with fashion retailer Next announced earlier this month could help it. Joules is a Peel Hunt corporate client. (philip.waller@wsj.com)

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Cineworld Shares Drop on WSJ Report It Is Preparing Bankruptcy Filing

1325 GMT - Cineworld shares have plunged after people familiar with the matter said it plans to file for bankruptcy within weeks, The Wall Street Journal reported. The cinema chain is expected to file a chapter 11 petition in the U.S. and is considering filing insolvency proceedings in the U.K., the people said. The company said that despite gradual recoveries in attendance since reopening cinemas last year post-coronavirus restrictions, recent admissions have missed expectations due to limited film releases. Cineworld is now weighing up strategic options to generate liquidity and potentially restructure its balance sheet, the Journal said. Shares are down 69% at 3.0 pence. (joseph.hoppe@wsj.com)

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Tesco Looks Strong Even as Consumer Recession Approaches

1230 GMT - Tesco's first-half performance is expected to be in line with Shore Capital's profit expectations given a solid execution of its strategy and competitive position in the U.K., but it will have to deal with a consumer recession that could worsen soon, the investment group says. Tesco's volumes are forecast to be lower in 2H, while the pricing effect on volumes could become challenging after an easing in inflationary pressures, Shore analysts Clive Black and Darren Shirley say. Shore backs its FY 2023 pretax profit expectations of GBP1.98 billion, while retail profit is forecast to be at the lower end of the U.K. grocer's GBP2.4 billion to GBP2.6 billion guidance range. (michael.susin@wsj.com)

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Just Eat Takeaway.com Faces Challenges Despite European Refocus

1137 GMT - Just Eat Takeaway.com's EUR1.8 billion cash injection from the sale of its stake in the iFood joint venture could be helpful in terms of reducing debt and potentially marks a shift in its approach, AJ Bell says. The Amsterdam-based food-delivery group refocusing on Europe--it is also exploring a sale for Grubhub in the U.S.--makes sense considering how fierce the competition is in European markets, AJ Bell financial analyst Danni Hewson says in a note. But it faces a number of issues, including increased costs potentially leading to a rise in delivery prices, cost of living pressures for customers and the need to maintain promotional spend to protect and grow market share, Hewson adds. Shares trade up 39% at EUR23.08.(kyle.morris@dowjones.com)

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Global Ports Holding Looks Well-Placed to Benefit as Cruise Sector Recovers

0950 GMT - Cruise-port operator Global Ports Holding's 1Q update showed the cruise industry continues its recovery as the London-listed company showed a return to material Ebitda, Shore Capital analyst Greg Johnson says in a note. Cruise Ebitda swung to $17.1 million from a $1.7 million Ebitda loss the year before with the number of cruise ports of call up 14% as the industry returns to service, Johnson says. "With the cruise industry returning and significant global capacity growth embedded over the medium term we believe GPH is well-positioned to benefit from the favorable structural trends, in a market which is likely to see increasing demand for the group's expertise and experience," Johnson says. Shore Capital has GPH as a house stock. Shares are flat at 90.90 pence. (anthony.orunagoriainoff@dowjones.com)

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Sterling Looks Historically Cheap, Says Insight Investment

0930 GMT - Sterling is undervalued by more than 10%, a level rarely observed over recent decades, says Francesca Fornasari, head of currency solutions at Insight Investment, adding that the currency appears to be historically cheap. The average five-year return following periods when valuations have reached these levels has been around 17%, she says. GBP/USD falls to a one-month low of 1.1879, while EUR/GBP rises to a one-week high of 0.8494, according to FactSet. (emese.bartha@wsj.com)

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Made Tech Seems to Be Setting the Path for Growth

0818 GMT - Made Tech Group's FY 2022 performance update showed that the company is laying the foundations for future growth, Berenberg analysts say in a research note as shares rise 9%. The U.K. digital, data and technology-services provider reported robust organic revenue growth while it continued to execute its long-term hiring strategy despite persistent wage inflation, they add. "Impressively, Made Tech has continued to hire aggressively despite challenging macroeconomic conditions, where demand and competition for talent have remained elevated," the analysts say. However, gross profit margin remained flat at 38% due to wage inflation and the continuing hiring of specialist contractors, they highlight. (michael.susin@wsj.com)

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UK Consumer Resilience Unlikely to Last Much Longer

0812 GMT - Capital Economics doubts the recent resilience in U.K. consumer spending will last for much longer. Retail sales volumes increased 0.3% in July on month, driven almost entirely by a strong 4.8% on-month increase in online sales. "With inflation set to surge further, we think the worst of the spending crunch still lies ahead," Capital Economics' senior U.K. economist Ruth Gregory says in a note. But July's rise in retail sales provides another reason to think that the Bank of England will raise interest rates by 50 basis points rather than 25 basis points at its next policy meeting in September. (maria.martinez@wsj.com)

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UK Retail Sales in July Were Resilient but Conditions Will Get Tougher for Consumers

0757 GMT - Although household budgets are feeling the strain of surging living costs, U.K. retail sales were resilient in July, Myron Jobson, senior personal finance analyst at Interactive Investor, says in a note. This is partly due to online sales promotions, which largely contributed to an 4.8% uptick in nonstore retailing, he says. However, looking more broadly, sales volumes fell 1.2% in the three months to July, continuing on the downward trend since last summer, Jobson notes. With inflation reaching a new 40-year high last month and expected to hit 13% later this year, another energy price hike and rising interest rates pushing up borrowing costs, conditions are set to get tougher for consumers, Jobson says. (maria.martinez@wsj.com)

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Dollar's Strong Gains May Fade, Fed Likely to Slow Pace of Rate Rises

0653 GMT - The current strong gains for the U.S. dollar may start to fade as the U.S. Federal Reserve could slow the pace of policy tightening, says Francesca Fornasari, head of currency solutions at Insight Investment. "With the U.S. economy having experienced a 'technical' recession in the first half of 2022 it is clear that monetary tightening is working," she says. This makes it unlikely that the U.S. Federal Reserve will need to increase rates meaningfully beyond what markets are already pricing in, and the pace of interest-rate rises is likely to become less aggressive, she says in a note. The DXY dollar index rises to a one-month high of 107.7200. (emese.bartha@wsj.com)

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Adyen Looks Like the Best Positioned Payment Service Provider

0543 GMT - Adyen is the best positioned payment service provider to serve global omnichannel solutions, Berenberg analyst Tammy Qiu says in a research note. Adyen has a more balanced solution across different channels when compared to its rivals and continues to adapt its single-platform approach and will expand into more emerging markets in the future, Qiu says. "Apart from the large merchants it has always served, we believe that it is continuing to penetrate the SMB merchant market, helping it to continue expanding its addressable market," the analyst says. Adyen has also said it hasn't seen an impact from slowing ecommerce, Qiu points out. Berenberg has a buy rating on the stock with a EUR2,550 target price. (kyle.morris@dowjones.com)

 

Contact: London NewsPlus, Dow Jones Newswires; nihad.ahmed@wsj.com

 

(END) Dow Jones Newswires

August 19, 2022 12:21 ET (16:21 GMT)

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