Sterling Lifted by Higher UK Real Yields, But This Could Change

1131 GMT - Sterling is currently reaping the benefits of higher U.K. inflation-adjusted real yields but this could change, Deutsche Bank says. "Going forward, with core inflation dynamics in the U.K. starting to stand out versus other major economies, sterling ought to remain very sensitive to any negative repricing in U.K. real yields," Deutsche analysts say in a note. The risk/reward is skewed to the downside in sterling, they say. Data last week showed U.K. core inflation unexpectedly accelerated to 6.8% in April, prompting the market to raise its interest rate expectations for the Bank of England. GBP/USD rises to a near 2-week high of 1.2483 and EUR/GBP falls 0.1% to 0.8587, according to FactSet. (renae.dyer@wsj.com)

COMPANIES NEWS:

Auto Trader FY 2023 Pretax Profit Fell on Rising Costs; Names New Chairman Designate

Auto Trader Group said Thursday that fiscal 2023 pretax profit fell slightly on operating costs, although revenue rose on strong retailer revenue, and named Greggs's Matt Davies as chairman designate to replace Ed Williams.

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Pennon Group Swung to FY 2023 Pretax Loss on Inflationary Costs

Pennon Group said Thursday that it swung to a pretax loss in fiscal 2023 as inflation-driven power and financing costs weighed on its earnings.

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ITM Power Sees FY 2023 Revenue Beating Guidance, Loss Meeting Expectations

ITM Power said Thursday that it now expects fiscal 2023 revenue and net cash to exceed previous guidance, and its adjusted loss to meet expectations.

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Dr. Martens FY 2023 Profit Slipped Despite Record Revenue; Plans Buyback

Dr. Martens said Thursday that its fiscal 2023 pretax profit slipped despite hitting record revenue, and that it plans to conduct a share buyback.

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ME Group Lifts FY 2023 Guidance After First-Half Pretax Profit, Revenue Rose

ME Group International said Thursday that it has raised its full fiscal-year guidance on the back of strong revenue and pretax profit growth in the first half of fiscal 2023.

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Quantum Blockchain Technologies Raises GBP1 Mln via Discounted Share Placing

Quantum Blockchain Technologies said Thursday that it has raised 1 million pounds ($1.2 million) via a discounted share placing and will use the money toward research and development, with a particular focus on its bitcoin mining machine learning algorithms and software product release.

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Duke Royalty 4Q Recurring Revenue Rose to Record High; Sees Further 1Q Growth

Duke Royalty said Thursday that its recurring cash revenue continued to grow to record levels in the fourth quarter of fiscal 2023, and that it expects further growth in the first quarter of the new year.

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Westminster Group 2022 Pretax Loss Narrowed as Revenue Rose

Westminster Group said Thursday that 2022 pretax loss narrowed as revenue increased, and that performance for the first quarter was ahead of its expectations.

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Rockfire Resources Raises GBP880,000 via Subscription for Greek Zinc Project

Rockfire Resources said Thursday it raised 880,000 pounds ($1.1 million) via a discounted subscription and that it will use the proceeds to start resource upgrade drilling at its Molaoi zinc project in Greece and an updated JORC mineral resource estimate.

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Clontarf Raises GBP350,000 in Share Placing

Clontarf Energy said Thursday that it has raised 350,000 pounds ($435,505) via a placing of shares at a price of 0.08 pence a share.

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Network International Gets Deadline Extension for Both Takeover Offers

Network International said Thursday that the U.K. Takeover Panel has extended the deadline until June 9 for bidders Brookfield Asset Management, and CVC Advisers and Francisco Partners Management to either make a formal offer for the company or walk away.

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Rotala Agrees to Depot Sale for GBP30.4 Mln

Rotala said Thursday that it has conditionally agreed to the sale of its depot in Bolton, England and most of the related vehicles for a cash consideration of around 30.4 million pounds ($37.8 million).

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Team PLC to Raise Extra Funds This Year; 1H Pretax Loss Narrowed

Team PLC said Thursday that it will need to raise extra funds over the next twelve months, and posted a narrowed pretax loss for the first half of fiscal 2023.

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Net Zero Infrastructure Plans Reverse Takeover of LINE Hydrogen; Shares Suspended

Net Zero Infrastructure said Thursday that it has signed a non-binding letter of intent to buy LINE Hydrogen (Australia) for an undisclosed consideration paid in new shares, and that its stock listing has accordingly been suspended.

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Avacta Group Buys Coris Bioconcept for Up to GBP10.4 Mln

Avacta Group on Thursday said it has bought Coris Bioconcept for up to 10.4 million pounds ($12.9 million).

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Chaarat Gold Signs Preliminary Investment Agreement With Xiwang International

Chaarat Gold Holdings said Thursday that it has signed a preliminary investment agreement and a strategic cooperation agreement with Xiwang International Company in respect to a potential equity investment of $250 million from Xiwang in the company.

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Grafenia Says Adjusted Payment Not yet Received From PFI After Subsidiary Sales

Grafenia said Thursday that it hasn't yet received an adjusted installment from PFI Group due Wednesday, part of a sale of Grafenia's subsidiaries Works Manchester and Grafenia Operations to the latter.

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Triad Group Appoints Charlotte Rigg As Deputy Chair

Triad Group on Thursday named Charlotte Rigg as its deputy executive chair.

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More Acquisitions Shares Dive as Trading Resumed After Failed Megasteel Takeover

Shares of More Acquisitions fell as much as 31.6% on Thursday as the company returned from suspension after saying last week that Megasteel had withdrawn from a takeover deal due to alleged abusive behavior by parties claiming to be More shareholders.

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Aurrigo International Buys GB Wiring Systems for GBP250,000 -- Deal Digest

ACQUIRER: Aurrigo International, a transport technology company which floated in London in September.

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Enteq Technologies Taps Mark Ritchie as New CFO

Enteq Technologies said Thursday that it has appointed Mark Ritchie as chief financial officer, effective June 16, succeeding David Steel.

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Edenville Energy Shares Rise on GBP1.5 Mln Subscription; Board Reshuffle

Edenville Energy shares rose Thursday after it said it has raised almost 1.5 million pounds ($1.9 million) through direct subscriptions by two African-focused mining investment groups, and shuffled its management.

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Silver Bullet Data Services Shares Fall on Possible Fund Raising Need

Shares of Silver Bullet Data Services Group fell 24% on Thursday after the company said that it might need to raise extra funds in the short term, despite reporting a narrowed pretax loss for last year on higher revenue.

MARKET TALK:

Easing of Spot Prices for Raw Materials Could Lead to Slight Deflation in 2024

1139 GMT - Raw materials spot prices have further eased in May and could now potentially drive a slight cost deflation next year, analysts at JPMorgan say in a note. According to the U.S. bank, the decline in spot prices can be seen across most agri-commodities, as well as in packaging and European gas prices. "We now see overall food, HPC [household and personal care] and beverages cost of goods sold inflation set to be plus 6% in 2023 followed by minus 3% in 2024," the analysts say, adding the decline is expected to be mainly driven by household and personal care products due to the prices of oil derivatives like caustic soda, used to make cleaning products like soaps and detergents.(giulia.petroni@wsj.com)

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ITM Power's Update Offers Comfort Given Recent Headwinds

1109 GMT - ITM Power confirmed earnings guidance and indicated its 12-month plan is on track, which is comforting given it stumbled through 2022 with headwinds hitting operational and commercial performance and a surprise CEO departure raising questions on the firm's near-term prospects, RBC Capital Markets says. The clean-fuel and energy-storage company's appointment of Dennis Schulz as its new CEO is positive and should facilitate a quick turnaround in a fast-growing electrolyzer market, RBC analysts say in a research note. "We rate the shares outperform given significant de-rating relative to peers, and potential for order pick-up in the calendar year ahead," the Canadian bank says. RBC retains its 260 pence price target on the stock. Shares are up 0.02 pence at 69.26 pence. (joseph.hoppe@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

June 01, 2023 08:23 ET (12:23 GMT)

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