Sterling Stands to Benefit From Higher Rates
1246 GMT - Sterling stands to benefit as the Bank of England
looks set to raise interest rates further, Ebury says. Markets are
pricing in more than four additional rate increases, while a peak
rate above 6.0%, from 4.5% currently, cannot be ruled out, Ebury
strategist Matthew Ryan says in a note. "Our bullish view of
sterling rests on this prospect, as well as the resiliency of U.K.
domestic demand," he says. "Most signs point to only relatively
modest growth in the U.K. this year, though this is far better than
previously anticipated, and growth forecasts continue to be revised
higher." GBP/USD rises to a near one-week high of 1.2446 and
EUR/GBP falls to a five-and-a-half-month low of 0.8632, according
to FactSet. (renae.dyer@wsj.com)
COMPANIES NEWS:
Unilever CFO Graeme Pitkethly to Step Down End of May 2024
Unilever said Tuesday that Chief Financial Officer Graeme
Pitkethly intends to retire from the company by the end of May
2024.
---
Greencore Swung to 1H Pretax Loss; Launches GBP10 Mln Share
Buyback Program
Greencore Group said Tuesday that it swung to a pretax loss for
the first half of fiscal 2023 after booking higher costs, and that
it was launching a new share buyback program.
---
Sportech Four-Month Business Met Expectations; Backs Full-Year
Outlook
Sportech said Tuesday that business for the first four months of
2023 has been in line with the board's expectations, backing
management's full-year outlook.
---
Hollywood Bowl Group 1H Pretax Profit Fell on Higher Costs
Hollywood Bowl Group said Tuesday that it is trading in line
with its expectations so far in fiscal 2023 as it posted a fall in
pretax profit for the first half on heavier employee and
property-related costs.
---
Hochschild Mining CEO Ignacio Bustamante to Step Down; COO
Eduardo Landin to Replace Him
Hochschild Mining said Tuesday that Chief Executive Officer
Ignacio Bustamante will step down on Aug. 26 and that it has
appointed Chief Operating Officer Eduardo Landin as the new
CEO.
---
Softcat 3Q Gross Invoiced Income, Gross Profit, Operating Profit
Rose
Softcat said Tuesday that it has delivered further year-on-year
growth in gross invoiced income, gross profit and operating profit
in the third quarter of fiscal 2023.
---
Likewise Revenue Growth Continues in Line With Market
Expectations
Likewise said Tuesday that its businesses in both residential
and commercial flooring have continued to experience revenue growth
since its mid-May update, and that it is performing in line with
current market expectations.
---
STM Group Sees Higher Client Asset Income, Lower New Business in
2023
STM Group on Tuesday said it sees higher income generated from
client assets in 2023 offsetting lower new business and
non-recurring costs linked to its strategic review.
---
SpaceandPeople Swung to 2022 Pretax Loss on Higher Costs; Began
2023 Strongly
SpaceandPeople said Tuesday that it swung to a 2022 pretax loss
after booking higher costs, but has started 2023 in a strong
position.
---
Malvern International Sees Rise in 2023 Junior Division
Revenue
Malvern International said Tuesday that it expects to report a
rise in 2023 revenue for the junior division, and that English
language teaching programs revenue at the end of April was above
the 1.1 million pounds ($1.4 million) for the first six months of
2022.
---
DWF Group Sees 8% Revenue Growth for FY 2023
DWF Group on Tuesday said it expects to report revenue growth of
8% for fiscal 2023 as it saw an acceleration in growth in the third
and fourth quarters.
---
XLMedia Sells Some Personal Finance Assets for $1.3 Mln
XLMedia said Tuesday that it has sold some of its personal
finance assets for $1.3 million as part of the company's plan to
exit noncore activities and focus on the sports and gaming
business.
---
Woodbois Shares Fall After Announcing Vote on Share Nominal
Value Reduction
Shares in Woodbois fell Tuesday after it said it was convening a
general meeting to vote on resolutions proposing to reduce the
nominal value of ordinary shares as well as to renew and widen the
waiver of pre-emption rights so it may meet current exceptional
circumstances.
---
LendInvest to Sell Buy-to-Let Residential Mortgages for GBP243
Mln
LendInvest on Tuesday said it is selling its buy-to-let
residential mortgages to Chetwood Financial for a cash
consideration of 243 million pounds ($300.3 million) which includes
proceeds from cancelled interest-rate derivatives.
---
Celadon Pharmaceuticals Shares Rise on New GBP7 Mln Line of
Credit
Celadon Pharmaceuticals shares rose Tuesday after it said it has
secured a 7 million pound ($8.6 million), two-year committed line
of credit with a U.K.-based investor and current minor
shareholder.
---
Oxford BioDynamics Shares Fall on Wider 1H Loss, Need for More
Cash
Oxford BioDynamics shares fell Tuesday after it said its
first-half pretax loss widened on higher costs and it will need to
generate more cash for the remainder of the year.
---
Empyrean Energy Shares Fall On Share Placement at 22%
Discount
Shares in Empyrean Energy fall after the company raised 1.52
million pounds ($1.9 million) in a share placement at a 22%
discount.
---
Spectra Systems Names Edward Spies as New CFO
Spectra Systems said Tuesday that Edward Spies has been
appointed chief financial officer, upon completion of due diligence
by its nominated adviser.
---
Norcros Names Steve Good as New Chairman
Norcros said Tuesday that it has appointed Steve Good as its new
chairman, replacing Acting Chair David McKeith, who will retire at
the annual general meeting on July 26.
---
Kazatomprom Chairman Neil Longfellow to Step Down
NAC Kazatomprom said Tuesday that Chairman Neil Longfellow will
resign on June 21, the date of a shareholder-convened extraordinary
general meeting.
---
Surface Transforms Names Stephen Easton New COO
Surface Transforms said Tuesday that is has appointed Stephen
Easton as the new chief operating officer, effective Sept. 4.
---
Tremor International Shares Fall After 1Q Earnings Drop
Shares in Tremor International fell 12% on Tuesday after the
company posted a slump in first-quarter earnings due to the weak
advertising environment and its integration of Amobee.
---
MGC Pharmaceuticals Nonexecutive Chairman Brett Mitchell to Step
Down; Stephen Parker Named Interim Chair
MGC Pharmaceuticals said Tuesday that Nonexecutive Chairman
Brett Mitchell will step down from the board effective June 1, and
that Stephen Parker, currently a nonexecutive director, will
replace him as interim nonexecutive chair.
---
RHI Magnesita Shares Jump on Cash Offer for 20% Stake
Shares in RHI Magnesita rose 23% on Tuesday after the company
said Ignite Luxembourg Holdings is seeking to buy 20% of its share
capital, which values the group at around 1.34 billion pounds
($1.66 billion).
---
China Nonferrous Gold Executive Director Hui Zhang Resigns;
Appoints Zhishuo Feng
China Nonferrous Gold said Tuesday that Executive Director Hui
Zhang tendered his resignation and that Zhishuo Feng has been
appointed executive director with immediate effect.
---
Asda Acquires EG's Estate in UK, Ireland to Boost Convenience
Strategy
Asda said Tuesday that it has acquired EG Group's U.K. and
Ireland operations for an enterprise value of around 2.27 billion
pounds ($2.80 billion) in order to accelerate its convenience
growth strategy.
---
Trending: Asda Acquires EG Group's Operations in UK, Ireland
0935 GMT- Asda is among the most mentioned companies across news
items over the past three hours, according to Factiva data, after
the U.K. supermarket chain said it had acquired of EG Group's U.K.
and Ireland operations as part of its plans to accelerate the
company's convenience growth strategy. The acquisition of RG's
estates for an enterprise value of around 2.27 billion pounds
($2.80 billion) will create a group with a combined revenue of
almost GBP30 billion and is expected to generate synergies of
around GBP100 million over the next three years, Asda said. Dow
Jones & Co. owns Factiva. (michael.susin@wsj.com)
---
DP Poland 2022 Ebitda Seen Below Previous Views Due to Higher
Costs
DP Poland said Tuesday that it expects to report earnings before
interest, taxes, depreciation and amortization for last year below
previous expectations due to higher utilities costs, but that sales
for the first four months of the new year were up.
MARKET TALK:
Lloyds Banking To Face Challenging Quarters As Interest Rate
Tailwinds Pass
1158 GMT - Lloyds Banking Group faces challenges ahead as
interest rates seem to have peaked and any boon it was enjoying
seems to be in the past, AlphaValue says in a note tweaking its
estimates on the back of the British bank's first-quarter results
at the start of the month. The brokerage reduced its earnings
before interest and taxes forecast by 5% after cutting its net
interest income projections by 3%. It upgrades its earnings per
share forecasts by 7.4% for 2023 and by 3.9% for 2024 to 6.79 pence
for both years. "However, these upgrades were driven by volatile
and consequently hard-to-predict non-operating charges (notably
related to insurance adjustments)," analyst David Grinsztajn
writes. AlphaValue rates the stock reduce.
(elena.vardon@wsj.com)
---
GSK Needs Licensing, Bolt-On Deals to Sustain Business
1149 GMT - Sales of GSK's respiratory syncytial virus vaccine
Arexvy are expected to peak at $4 billion and could surpass
consensus, Jefferies analysts say in a note. This drug, together
with singles jab Shingrix and HIV treatments, is expected to
contribute to consensus-beating revenue and earnings per share, the
analysts add. In general, the British pharma giant offers robust
double-digit EPS growth until 2028, which is going to be marked by
HIV patent expiries and saturation of the U.S. market for Shingrix,
the analysts say. However, the company still needs further
in-licensing or bolt-on deals to sustain the business after that,
they add. (cecilia.butini@wsj.com)
---
Greencore Investors Will Be Pleased With Retained Guidance
1111 GMT - Greencore's 1H adjusted EBIT of GBP3.6 million was
lower on year, but ahead of analysts' expectations, Shore Capital's
Clive Black and Darren Shirley say in a note. The convenience-food
manufacturer wants to be more profitable and productive with a base
to yield sustainable earnings and cash-flow growth, having worked
hard to mitigate and offset rising costs, the analysts say. Shore's
current 2H pretax profit expectations are GBP48 million and GBP50
million for the year, in line with management guidance. "We believe
that investors will also be pleased and relieved to see the
retained guidance, looking thereafter to the shape and magnitude of
ongoing earnings," the analysts say. Shore Capital has Greencore as
a house stock. (anthony.orunagoriainoff@dowjones.com)
---
Intermediate Capital's Resilience Foretells Recovery
1007 GMT - The resilience of Intermediate Capital Group's
business model signals its future recovery, Credit Suisse says in a
note. The asset manager offers resilient Fund Management Company
earnings in the near-term and has potential for strong earnings and
assets under management growth in the future as market conditions
improve, analysts Haley Tam and Elvis Anoma-Amoabeng write. "Longer
term, ICP's diversified asset base and investment track record
should enable it to benefit from a recovery in fundraising and
transaction activity, with significant upside potential as it grows
fund sizes in both established and new product areas," they add.
Credit Suisse rates the stock outperform and has a price target at
1,660 pence. Shares, which are up 19% year to date, trade at 1,369
pence. (elena.vardon@wsj.com)
---
Hollywood Bowl's Impressive 1H Reaffirms Prospects
0945 GMT - Hollywood Bowl Group's first-half results were
impressive with record sales on continued customer demand, leaving
it well-placed to continue executing, Berenberg says in a note
after the bowling operator posted 3.5% like-for-like revenue growth
and said trading continues to be aligned with management's
expectations. "With its market-leading position in the U.K. and
growth opportunities in Canada, the continued cash flow generation
of the business, the success of its refurbishment and new center
opening strategy, our confidence in the company's future prospects
are further reaffirmed by this set of results," analysts Jack
Cummings and Matthew Chadwick write. Berenberg lifts its target
price to 370 pence and keeps its buy rating on the stock. Shares
edge up 0.2% at 260.5 pence. (elena.vardon@wsj.com)
---
DWF Group's Better 2H Shows Value on Offer
0944 GMT - DWF Group's improving second half shows the value it
has to offer, Berenberg says in a note. The provider of legal and
business services said it sees more than 8% revenue growth in
fiscal 2023 as its third and fourth quarters saw double-digit
growth. "Given the strength of this update in a period of relative
macroeconomic weakness, we believe the resilience of DWF and its
growth strategy will become increasingly clear to the market," the
German bank's analysts write, adding that current valuation implies
a dramatic rerating opportunity over the coming periods which will
reward shareholders in time. Berenberg rates the stock buy. Shares,
which are down 20% year to date, rise 3.2% at 64 pence.
(elena.vardon@wsj.com)
---
Hollywood Bowl's Canada Performance Makes 1H Shine
0935 GMT - Hollywood Bowl Group scored a strike with its strong
Canada performance, AJ Bell says after the bowling operator's
first-half results, which included a strong contribution from its
recent acquisitions in the country. "There is a genuine bowling
culture in Canada which may well be receptive to Hollywood Bowl's
approach of reviving tired and grimy bowling alleys and giving them
a bit of shine," investment director Russ Mould writes in a market
comment. The approach continues to serve it in the U.K. as well and
the dividend hike is a genuine display of faith in the company's
prospects and suggests resilient demand for ten-pin bowling, Mould
adds. Shares edge up 0.2% at 260.5 pence.
(elena.vardon@wsj.com)
---
Hunting's New Order Underpins Robust International Outlook
0934 GMT - Hunting's record single order shows the growing
importance of its international business, Jefferies analysts Mark
Wilson and Jamie Franklin write in a research note. "Today's update
builds on the company's previous commentary of an overall robust
outlook across U.S. and international [businesses]," the analysts
say. In addition, the energy-services group should have less acute
working capital demands with this new order, given the contract
spans three years, they add. Jefferies keeps a buy rating on the
stock. Shares are up 17.4% at 236.50 pence.
(christian.moess@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
May 30, 2023 09:12 ET (13:12 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Oct 2023 to Nov 2023
FTSE 100
Index Chart
From Nov 2022 to Nov 2023