London shares close in the red on Wednesday as new inflation
figures worry investors, according to CMC Markets analyst Michael
Hewson. "Concerns about inflation, transitory or otherwise have
continued to dominate sentiment today, as worries over the pace and
persistence of rising prices, temper optimism over the wider global
recovery story," he says. Meanwhile, airlines continue to suffer
from holiday cancellations, with the likes of Ryanair Holdings PLC
and easyJet PLC pulling down the FTSE 100, the analyst says.
Companies News:
UK Regulator Clears AstraZeneca's Alexion Deal
The U.K. Competition and Markets Authority said Wednesday that
it won't refer AstraZeneca PLC's anticipated acquisition of Alexion
Pharmaceuticals Inc. for further review.
---
Boohoo Closes Middle East Partnership With Alshaya
Boohoo Group PLC said Wednesday that it has signed a partnership
with MH Alshaya Co. WLL to operate Debenhams in the Middle East and
build its presence in the region.
---
Barratt Developments FY21 Completions Rose, Expects Profit to
Beat Market Views
Barratt Developments PLC said Wednesday that selling prices and
completions in fiscal 2021 rose amid strong customer demand and
underlying market strength, and it expects adjusted profit to beat
market views.
---
Ashmore's Fourth-Quarter Assets Under Management Rose
Ashmore Group PLC said Wednesday that assets under management
for the fourth quarter of fiscal 2021 rose when compared with the
previous quarter.
---
Water Intelligence to Raise $9.5 Mln to Fund Growth
Water Intelligence PLC said Wednesday that it plans to raise
$9.5 million via a share placing and subscription and will use the
money to drive growth as part of its five-year plan.
---
McBride Sees FY 2021 Adjusted Pretax, Operating Profit in Line
With Views
McBride PLC said on Wednesday that it anticipated fiscal 2021
adjusted pretax and adjusted operating profit to be in line with
current market expectations, and that the board doesn't expect to
propose a final dividend for the year ended June 30.
---
SSP Group CEO to Step Down at End of Year
SSP Group PLC said Wednesday that Chief Executive Simon Smith
has advised the board of his intention to step down at the end of
2021 to pursue a new opportunity at a private-equity-backed
business.
---
M Winkworth Declares 2Q Dividend, Special Dividend After High
Sales
M Winkworth PLC said Wednesday that it will pay a dividend of
2.2 pence (3 cents) to shareholders for the second quarter, and
declared a special dividend due to a strong performance.
---
Dunelm 4Q Sales Doubled; Expects to Beat FY 2021 Pretax Profit
Forecasts
Dunelm Group PLC on Wednesday said that sales for the fourth
quarter of fiscal 2021 more than doubled and that it now expects
full-year pretax profit to beat market forecasts.
---
Numis Says 3Q Revenue Was Strong, Sees Further Expansion
Numis Corp. said Wednesday that it expects to report a record
performance for the whole year, with revenue rising on year in the
third quarter, although at a slightly slower pace than in the first
half.
---
Finsbury Food Group FY 2021 Revenue Rose on Strong 2H
Performance
Finsbury Food Group PLC said Wednesday that it delivered a
strong performance in the second half of the year, with fiscal 2021
revenue rising 2.3%, close to pre-pandemic levels.
---
Liontrust 1Q Assets Under Management Increased
Liontrust Asset Management PLC said Wednesday that assets under
management rose in the first quarter of fiscal 2022 compared with
the previous quarter.
---
Knights Group FY 2021 Pretax Profit Rose on Higher Revenue; No
Final Dividend
Knights Group Holdings PLC said Wednesday that pretax profit
rose on higher revenue in fiscal 2021, but that it isn't declaring
a final dividend given the cost-cutting measures taken throughout
the year.
---
Alpha FX 1H Revenue Rose
Alpha FX Group PLC said Wednesday that revenue nearly doubled
for the first half of the year, adding that all its divisions were
profitable and delivered strong growth.
---
SIG PLC Sees Strong 1H Revenue, Profit; Raises 2021 Profit
Guidance
SIG PLC said Wednesday that its first half had strong revenue
growth and better-than-expected underlying operating profit, and it
raised its full-year profit outlook.
---
DP Eurasia 1H Sales Rose on Strong Turkish Level of Demand
DP Eurasia NV said Wednesday that sales for the first half rose
58% due to the unprecedented level of demand in Turkey, and against
weak comparables for the first half of 2020 both in Turkey and
Russia.
---
Portmeirion Group 1H Revenue Rose, Confident on Outlook
Portmeirion Group PLC said Wednesday that revenue for the first
half of 2021 rose and it is confident in its outlook for the rest
of the year despite supply chain-related challenges.
---
Intelligent Ultrasound Expects Widened 1H Operating Loss, Higher
Sales
Intelligent Ultrasound Group PLC said Wednesday that it expects
to report a widened operating loss for the first half of 2021,
despite an increase in revenue driven by a strong recovery in its
simulation division.
---
Mission Group Says 1H Performance Exceeded Board's
Expectations
Mission Group PLC said Wednesday that despite pandemic lockdown
restrictions, it has experienced a sequential on-quarter recovery
in revenue and profit over the first half of the year, with
business exceeding the board's expectations.
---
eBay Sells 125 Mln Shares in Adevinta to Private Equity Firm
Permira for $2.25 Bln
E-commerce company eBay Inc. said Wednesday that it has agreed
to sell around 125 million of its shares in Adevinta ASA to private
equity firm Permira for $2.25 billion.
---
Allergy Therapeutics Expects to Beat FY 2021 Revenue
Forecasts
Allergy Therapeutics PLC said Wednesday that it expects to
report market beating revenue for fiscal 2021 as it benefited from
a strong euro.
---
PRS REIT 4Q Completions, Rental Value Rose
PRS REIT PLC said Wednesday that it completed more homes in the
fourth quarter of fiscal 2021 than the prior year and that its
estimated annual rental value rose.
---
Hurricane Energy Says 2Q Revenue Was Strong, Net Free Cash
Rose
Hurricane Energy PLC said Wednesday that second-quarter revenue
was strong, and that its net free cash increased.
---
Coats Group 1H Sales Rose
Coats Group PLC said Wednesday that group sales for the first
half rose, and that it expects its performance for the year to be
moderately ahead of the board's previous expectations.
---
Challenger Energy Completes Saffron Well Study in Trinidad &
Tobago, Signs Loan Term Sheet
Challenger Energy Group PLC said Wednesday that logging of the
Saffron-2 well in Trinidad & Tobago has been completed, and
entered a term sheet for a $10 million loan.
---
Blencowe Resources Shares Fall on Discounted Share Placing
Shares in Blencowe Resources PLC fell as much as 11% in early
trade Wednesday after the company said it has raised 235,000 pounds
($324,676) via a discounted share placing, and will use the money
toward its Orom-Cross graphite project in northern Uganda.
---
Science in Sport Swung to 1H Underlying Profit on Higher
Revenue
Science in Sport PLC said Wednesday that it swung to an
underlying profit for the first half as revenue rose and
supply-chain efficiencies and a continued online shift helped its
margin.
---
Kromek FY 2021 Pretax Profit Narrowed, Revenue Fell
Kromek Group PLC said Wednesday that its fiscal 2021 pretax loss
narrowed though revenue fell, and it has secured a number of new
orders.
---
IQE Expects Lower 1H Revenue, Adjusted Earnings, But in Line
With Views
IQE PLC said Wednesday that it expects to report lower revenue
and adjusted earnings for the first half of 2021, but that its
performance was in line with management expectations.
---
Pharos Energy Warns of Posting 1H Loss, Revenue Fall
Pharos Energy PLC said Wednesday that revenue is expected to
decline for the first half of the year when compared with the
year-earlier period.
---
Guild Esports Chairman Steps Down, Appoints Derek Lew as
Successor
Guild Esports PLC said Wednesday that its Executive Chairman
Carleton Curtis has decided to step down and leave the company, and
that director Derek Lew has been appointed nonexecutive
chairman.
---
Arecor Therapeutics' 1H Performance Progressed in Line with
Views
Arecor Therapeutics PLC said Wednesday that its first-half
performance was in line with expectations.
---
Remote-Monitoring Company Big Technologies Plans to Float on
London's AIM
Big Technologies PLC said Wednesday that it plans to float on
London's junior AIM market later this month.
---
Altona Rare Earths Appoints Cedric Simonet as COO
Altona Rare Earths PLC said Wednesday that it has appointed
Cedric Simonet as its chief operating officer with immediate
effect.
---
LendInvest Shares Rise in London Stock Market Debut
Shares of LendInvest PLC rose as much as 10% in early trade
Wednesday as the company started trading on the London Stock
Exchanges Junior AIM, implying a market capitalization of 281.7
million pounds ($389.2 million).
---
Bradda Head to Raise GBP6.2 Mln in London Float to Develop
Lithium Portfolio
Bradda Head Ltd. said Wednesday that it plans to float on
London's AIM, raising 6.2 million pounds ($8.6 million) to advance
development of a portfolio of lithium assets.
---
Miner Central Copper Resources Plans London IPO
Mining company Central Copper Resources Ltd. said Wednesday that
it plans to float on London's junior AIM and that it plans to raise
funds to advance copper projects in Congo and Zambia.
---
Poolbeg Pharma to Raise GBP25 Mln in London IPO
Poolbeg Pharma PLC said Wednesday that it plans to raise 25
million pounds ($34.5 million) and float on London's junior AIM on
July 19.
---
Intu Debenture Agrees to Settle Additional Liabilities With
Administrators
Intu Debenture PLC said Wednesday that it has agreed to settle
previously announced additional liabilities with its administrators
found during the administrators' due-diligence process.
Market Talk:
AstraZeneca Seen Upgrading EPS Guidance After Alexion Deal
Closure
1118 GMT - AstraZeneca's closure of its Alexion acquisition is
expected to prompt an upgrade to EPS guidance, likely when the
company reports results on July 29, UBS says. The acquisition is
expected to add about $0.40 to the pharma company's standalone EPS
guidance this year, which now stands in a range of between $4.75
and $5, says UBS. Confidence in AstraZeneca's
research-and-development productivity is seen returning as a result
of the acquisition and after the unhelpful Covid-19 vaccine
dynamics that the company has been going through, UBS says. This
should in turn boost confidence in AstraZeneca's growth profile,
according to the Swiss bank. (cecilia.butini@wsj.com)
BOE Seen Facing Pressure to React to Inflation, Lifting
Pound
1114 GMT - June's higher-than-expected U.K. inflation lifted
sterling versus the dollar as this means the Bank of England faces
the same pressure as the Federal Reserve to respond to rising
prices, Silicon Valley Bank says. The data provide evidence that
inflation is running hot in the U.K. and the U.S., encouraging the
BOE and the Fed to monitor price pressures and potentially tighten
monetary policy, Silicon's Sam Cooper says. "The upside surprise in
the U.K.'s consumer price index reading could question the BOE's
view that inflation is transitory as the consumer price gauge
recorded its second beat in two consecutive months." Annual U.K.
rose to 2.5% in June, beating the 2.2% expected by economists in a
WSJ survey. GBP/USD rises 0.4% to 1.3865. (renae.dyer@wsj.com)
BofA Raises UK 2021 Inflation Forecasts After June's Upside
1059 GMT - Bank of America raises its inflation forecasts for
the U.K. in 2021 after earlier stronger-than-expected prices data
for June, though it lowers its projections for 2022. The U.S. bank
now expects the consumer price index and retail price index to
reach 3.3% and 2.0% this year, revising its forecasts 4 basis
points and 11 basis points higher respectively. "We raise our 2021
inflation forecasts again after inflation surprised on the upside
in June," the bank says. CPI inflation rose from 2.1% in May to
2.5% in June, well above the consensus of 2.2% and still above
BofA's higher call of 2.4%. Yet the bank lowers its CPI inflation
forecast by 10 basis points to 2.3% in 2022, as the prospect of
higher prices this year will create tougher base effects for next
year. (lorena.ruibal@wsj.com)
SSP Group Trading Continues to Recover in the Wake of the CEO
Departure
0951 GMT - SSP Group trading continues to pick up as CEO Simon
Smith announces his departure at the end of 2021, Shore Capital
says. The company's recovery is being driven by domestic and
leisure travel, as expected, and most notably in North America,
where U.S. airport passenger volumes have been running at 80% of
2019's level recently, the U.K. investment group says. "Vaccines
and variants will likely dominate sentiment and the pace of
recovery from here but as global travel recovers, we believe that
the group, and Mr. Smith's successor, will be well-positioned to
take advantage of the favorable structural backdrop," Shore says.
Shore Capital rates the stock to buy and has a 264 pence target
price. (anthony.orunagoriainoff@dowjones.com)
McBride's FY Debt, Profits Expected to Be in Line With Views
0941 GMT - McBride's fiscal 2021 profits and net debt are
expected to be in line with consensus, reflecting the 2H's tougher
volume environment and cost inflation, Peel Hunt says. These
conditions are continuing and the company is discussing
margin-recovery actions with customers as these were affected by a
lower volumes, higher cost environment, the U.K. brokerage says.
This was most acute in the liquids category and the supplier of
household and personal-care products aims to apply an immediate
variable pricing surcharge to sales contracts, the broker says.
"The shares are currently trading at close to our target price of
89 pence, which we do not expect to change until the pricing
environment becomes clearer," the broker says. Peel Hunt has an add
rating on the stock. (anthony.orunagoriainoff@dowjones.com)
UK Builders Have Mixed Reaction to Housing-Market News
0938 GMT - U.K. house-builders respond in mixed fashion to
corporate and macro-economic news from the sector. Barratt
Developments rises 0.7% after the construction group forecast
better-than-expected full-year adjusted pretax profit. Still,
others fall as official house-price data shows prices rising 10% in
the year to May, with property prices in London weakest and
north-west England strongest. Such rapid price growth can't
continue forever and the data may well represent a peak, Garrington
Property Finders says. "With the stamp-duty holiday now ended in
Wales and Scotland, and tapering away in England and Northern
Ireland, the temporary stimulus it provided is fading fast,"
Garrington's Chief Executive Jonathan Hopper says. "The more
conventional market dynamics of demand and supply are likely to
drive prices from here." (philip.waller@wsj.com)
Barratt Developments Medium-Term Delivery Looks on Track
0915 GMT - Barratt Developments has posted a positive trading
update, Citi's Ami Galla says, as the home builder reported
increased full-year completions in fiscal 2021 and raised
underlying pretax profit guidance. Underlying consensus
expectations for Barratt's fiscal 2021 earnings are likely to move
up around 3% to 4% on the back of completions, the bank says.
Barratt is progressing well toward driving higher volume growth,
and focus will likely remain on the underlying cost headwinds and
progress on outlet growth--driving volume performance in the medium
term, Galla says. Citi retains a buy rating on stock, with a target
price of 878 pence. Shares are up 0.6% at 701.0 pence.
(joseph.hoppe@wsj.com)
Barratt Developments Offers Strong Mix of Returns and
Targets
0915 GMT - Barratt Developments' recent performance has remained
strong, the balance sheet has strengthened and the forward order
book looks to be in great shape, with the house builder delivering
a good balance of returns and sustainability targets, Peel Hunt
says. While Barratt's balance between selling-price increases and
cost pressures in fiscal 2022 is likely to be favorable, the
biggest challenge will be build rates and, as such, the brokerage
expects to make few changes to its forecasts. "However, having seen
the shares drift back by 11% in the past month, we believe it is
time to upgrade from hold to add," Peel Hunt says, retaining its
800 pence price target. Shares are up 0.6% at 701.0 pence.
(joseph.hoppe@wsj.com)
Barratt Developments Seen as in Good Position Though Some Sector
Caution Remains
0911 GMT - House builder Barratt Developments is well positioned
going into the new financial year despite some caution around the
sector, Interactive Investor analyst Richard Hunter says. Barratt's
share price rose by 29% over the last year, compared with a 15%
rise in the wider FTSE 100, the online investment platform says.
Barratt is upbeat, though the withdrawal of coronavirus-related
government aid programs hasn't yet been felt, strong inflation
readings remind of interest rates rises and completions have been
temporarily inflated by the stamp-duty property tax holiday--but
business is still robust, Interactive Investor says. "With strong
demand and a promising outlook in evidence, market consensus also
remains positive on prospects, coming in at a strong buy," Hunter
says. Shares are up 0.8% at 702.0 pence. (joseph.hoppe@wsj.com)
UK Inflation to Trend Upward in Midterm
0901 GMT - Structural factors such as an aging population,
continued deglobalization in goods trade and fiscal activism are
expected to reinforce the inflationary dynamic in the U.K.,
Berenberg economists say. The bank projects sustained core
inflation within the 2.5% and 3% range by the middle of the decade,
with risks to the outlook tilted to the upside. "Given the long-run
outlook for persistent inflation modestly above central bank
targets in the U.K. and the U.S., a stronger-than-expected
near-term inflation impulse could turn into a sustained trend,"
Berenberg says. "The warning from history is clear--all periods of
high sustained inflation appear temporary at first," the bank says.
(xavier.fontdegloria@wsj.com)
Dunelm Seen Benefiting From Continued Strong Demand
0856 GMT - Dunelm Group has been successful in capitalizing on
its expanding e-commerce amid the coronavirus pandemic, which bodes
well for further progress, according to Interactive Investor
analyst Keith Bowman. The homeware retailer has used the challenges
of the pandemic and closed stores to successfully boost its digital
related sales, Bowman says. "A buoyant housing market and more time
spent at home due to the Covid crisis are likely playing into its
hands. Demand for bedding, curtains, bathroom textiles and
cushions, and newer categories such as dining furniture has proved
strong," the analyst says. (matteo.castia@dowjones.com)
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
July 14, 2021 12:14 ET (16:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Ryanair (LSE:RYA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ryanair (LSE:RYA)
Historical Stock Chart
From Apr 2023 to Apr 2024