Pound Climbs, Bond Yields Fall Again

The pound rose and gilt yields fell a second day after reports that Chancellor Kwasi Kwarteng will publish debt-reducing plans early, a day after a U-turn over widely criticized tax cuts for the wealthy.

Companies News: 

Legal & General Backs 2022 Operating Profit; Capital Generation Despite Volatility

Legal & General Group PLC said Tuesday that it continues to benefit from positive momentum in the second half, despite the increased market volatility, and backed its guidance for the full-year operating profit and capital generation.


Greggs 3Q Sales Rose, Backs Full-Year Outlook

Greggs PLC said Tuesday that sales for the third quarter of the year rose 15% compared with the same period of 2021, and backed its expectations for the full-year.


Morses Club Chairman to Step Down

Morses Club PLC said Tuesday that Chairman Nigel Knowles will step down, effective Nov. 4.


Watkin Jones Expects to Miss FY 2022 Market Views on Delayed Sales

Watkin Jones PLC said Tuesday that it expects to have missed market views for fiscal 2022 operating profit due to a delay in two sales, though its second-half performance was better than the first.


Gresham Technologies Sees 2022 Revenue Ahead of Market Views

Gresham Technologies PLC said Tuesday that it expects revenue and earnings to be ahead of market expectations for 2022, and committed renewals to boost revenue in 2023.


Made.com In Sale Discussions; Profitability Strategy Needs GBP45 Mln-GBP70 Mln

Made.com Group PLC said Tuesday that it has begun discussions with a number of parties regarding the group's sale.


Porvair Sees FY 2022 Ahead of Market Views After Strong Start to 4Q

Porvair PLC said Tuesday that it had a strong start to the fourth quarter and that it expects results for the year ending Nov. 30 to be ahead of market expectations.


Character Group Sees FY 2022 Meeting Market Views; Expects FY 2023 Slip

Character Group PLC said Tuesday that it expects fiscal 2022 to meet market expectations as sales momentum persisted, but sees fiscal 2023 slipping on macroeconomic headwinds.


Inspiration Healthcare 1H Pretax Profit Fell on Supply-Chain Issues

Inspiration Healthcare Group PLC said Tuesday that pretax profit for the first half of fiscal 2022 fell amid higher costs and supply-chain issues.


Uniphar Acquires US Healthcare Agency Inspired Health

Uniphar PLC said Tuesday that it has acquired the U.S.-based healthcare agency Inspired Health for an undisclosed sum.


MGC Pharmaceuticals Appoints Yifat Steuer COO, Deputy CEO

MGC Pharmaceuticals Ltd. said Tuesday that Yifat Steuer has been appointed chief operating officer and deputy chief executive officer, and that Brett Mitchell's role as chairman has transitioned from an executive to a nonexecutive position.

Markewt Talk: 

Greggs Shrugs Off Difficult Backdrop With Resilient 3Q

1030 GMT - Greggs has delivered a particularly resilient third quarter despite the backdrop of a hot summer period, tough prior year comparisons in August and the impact of the Queen's death, Goodbody says. The U.K. bakery chain benefits from a strong value proposition, notable given plenty of nervousness on the U.K. consumer outlook and consequences from the squeeze on disposable income, Goodbody analyst Jason Molins says. "With its fully integrated model and increasing presence across channels and formats, we believe the business should prove more defensive than the market is giving it credit for," the Irish brokerage says. Goodbody reiterates its buy recommendation. Shares are up 8.9% at 1,876.0 pence. (joseph.hoppe@wsj.com)

Greggs Offers Clear Value for Money on Strong 3Q

1028 GMT - Greggs has reported a robust third quarter, with a 9.7% increase in like-for-like sales and reiterating full-year expectations, and the shares now offer clear value, Jefferies says. The U.K. bakery chain has noted considerable economic uncertainty, but highlights its value-for-money positioning is "ever-more" important, and that business is meeting previous expectations, Jefferies analysts Andrew Wade and Grace Gilberg say in a research note. "Another impressively resilient update from Greggs and, while the business will continue to face inflationary pressures in 2023, we remain confident that it is as well-positioned as any we cover," the U.S. bank says. Jefferies retains its buy rating and 3,250.0 pence price target. Shares are up 8.8% at 1,875.0 pence. (joseph.hoppe@wsj.com)

Greggs Looks Well Placed to Weather Economic Turbulence

0957 GMT - Greggs gains 10% after the U.K. bakery-shop chain reported higher third-quarter sales and backed its full-year expectations. Although Greggs faces higher food, energy and wage costs, it is well-positioned as a defensive play to navigate a U.K. recession thanks to its cheap and popular drinks and snacks, Interactive Investor says. Its nationwide spread of stores also gives it a cushion if some parts of the country suffer more than others in an economic downturn, the financial-services firm says. "Year-to-date, the stock is down by more than 40% amid the market turmoil, which means the shares are now heavily discounted and much more attractively valued than in January," Interactive Investor Head of Investment Victoria Scholar writes. (philip.waller@wsj.com)

Legal & General's Update Seen as Resilient Amid Uncertainties

0926 GMT - Legal & General's update showed a resilient performance given current market uncertainty, Citi analyst Andrew Baker says in a research note. The FTSE 100-listed insurance company hasn't experienced any difficulty in meeting collateral calls on its annuity portfolio given that the group hasn't been a forced seller of gilts or bonds, the analyst notes. Rising interest rates and widening credit spreads are boosting demand for global pension risk transfer while funding deficits reduce, Baker adds. L&G also has the busiest global pension risk transfer pipeline it has ever seen for the remainder of 2022 and into 2023, the analyst adds. (michael.susin@wsj.com)

Porvair's FY 2022 Outlook Prompts Estimate Upgrades

0828 GMT - Filtration company Porvair reported a strong start to 4Q and an improved outlook for FY 2022 with margins sustained at good levels at its three divisions, Peel Hunt analyst Andrew Shepherd-Barron says in a note. The U.K. brokerage raises its adjusted pretax profit estimates for fiscal years 2022, 2023, and 2024 to GBP17.1 million, GBP17.2 million and GBP17.9 million, from GBP16.1 million, GBP16.6 million and GBP17.2 million, respectively. "With multiple long-term fundamental drivers in place, we believe Porvair is well positioned for the next few years," Shepherd-Barron says. Peel Hunt rates the stock buy and has a 750 pence target price. Shares are up 2.8% at 514 pence. (anthony.orunagoriainoff@dowjones.com)


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

(END) Dow Jones Newswires

October 04, 2022 06:57 ET (10:57 GMT)

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