UKX

UK on 2023 Recession Course, But 2024 GDP Seen Rising

1321 GMT - The U.K.'s 4Q 2022 GDP is expected to flatline with December's GDP shrinking to a more sizeable 0.4% month-on-month, driven by broad-based weakness across the construction, manufacturing and services sectors, Deutsche Bank analyst Sanjay Raja says in a note. Although 2022 GDP growth is expected at around 4.1% the U.K. is still on course for a 2023 technical recession with activity expected to fall in the first two quarters, Raja says. Expectations are for 2023 GDP shrinking by 0.5% and expanding by 0.8% next year, with GDP crossing its pre-pandemic peak in 4Q, 2024, he says. "While the U.K. remains firmly on course for a negative growth year in 2023, we now think that the oncoming recession will be shorter and shallower," Raja says. (anthony.orunagoriainoff@dowjones.com)

Companies News: 

React FY 2022 Earnings Rose Amid Organic Revenue Growth, LaddersFree Acquisition

React Group PLC said Tuesday that fiscal 2022 earnings rose as revenue benefited from organic growth and the acquisition of LaddersFree in May.

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BP Adds $28 Billion to Record Full-Year Profits of Oil Giants

LONDON--BP PLC became the latest oil giant to post record annual profit last year, joining peers on both sides of the Atlantic in capitalizing on soaring energy prices.

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Morgan Advanced Materials Sees 2022 Beating Market Views, Expects 2023 Profit Hit

Morgan Advanced Materials PLC said Tuesday that it expects its 2022 performance to slightly exceed market expectations, though it expects production inefficiencies to hit 2023 adjusted operating profit.

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Mattioli Woods 1H Pretax Profit Rose

Mattioli Woods PLC on Tuesday posted a rise in half-year pretax profit and said that outlook for fiscal 2023 remains in line with expectations.

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BP Adds Nearly $28 Billion to Record Full-Year Profits of Oil Giants -- WSJ

By Jenny Strasburg

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Ferrexpo Gets Ukrainian Court Order Freezing Subsidiary's Bank Accounts

Ferrexpo PLC said Tuesday that it has received a court order issued at the request of a prosecutor in Ukraine, to freeze the bank accounts of one of its subsidiaries based in the country, Ferrexpo Poltava Mining.

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Zinc Media Sees 2022 Revenue, Adjusted Earnings Ahead of Views After Strong 4Q Performance

Zinc Media Group PLC said Tuesday that revenue and adjusted earnings before interest, taxes, depreciation and amortization for 2022 are expected to be ahead of current market expectations after it booked a strong fourth-quarter performance boosted by its The Edge film content business.

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BNY Mellon funds boss Hanneke Smits named 30% Club chair -- Financial News

Smits succeeds Ann Cairns, and says she will keep up the pressure on both gender and racial diversity in the City

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Numis Flags Continuation of Difficult Market Conditions

Numis Corp. said on Tuesday that its revenue for the first four months of fiscal 2023 was similar to the second-half run-rate of fiscal 2022 as it experienced a continuation of difficult market conditions but said it is well-placed to deliver when volumes recover.

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Ormonde Mining Shares Suspended After Peak Nickel Stake Buy, Takeover Possibility

Ormonde Mining PLC shares were suspended Tuesday after it said it has acquired a 20% stake in Peak Nickel Ltd. for 450,000 pounds ($540,810), with options to include further acquisitions, including a full takeover.

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BP Adds Nearly $28 Billion to Record Full-Year Profits of Oil Giants -- WSJ

By Jenny Strasburg

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Sanderson Design Sees FY 2023 Revenue Broadly Flat

Sanderson Design Group PLC said Tuesday that revenue for fiscal 2023 is expected to be broadly flat on year after strong performances from the Morris & Co. brand, licensing and North America, but a hit from the withdrawal from the Russian market.

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BP Slows Transition to Renewable Energy as It Posts Record Profits -- WSJ

By Jenny Strasburg

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BP 4Q Profit Fell on Quarter But Rose on Year -- Energy Comment

BP PLC on Tuesday reported a 41% fall in its headline replacement cost profit for the fourth quarter of the year when compared with the third quarter, but a rise from the fourth quarter of 2021. The company attributed the result to below average gas marketing and trading result after the exceptional result in the third quarter, lower oil and gas realizations, a higher level of refinery turnaround and maintenance activity, and lower marketing margins and seasonally lower volumes. Here's what the oil giant had to say:

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Frenkel Topping Sees 2022 Revenue in Line With Views

Frenkel Topping Group PLC said Tuesday that it expects to report higher 2022 revenue in line with expectations and is keeping its 2023 outlook unchanged after a strong start to the year.

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Victorian Plumbing Names Dan Barton as New CFO as Paul Meehan Steps Down

Victorian Plumbing Group PLC on Tuesday that Daniel Barton has been chosen as its new chief financial officer, replacing Paul Meehan who will be stepping down from the role on March 31 to pursue other opportunities.

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Smartspace Software Shares Rise on FY 2023 Revenue Increase

Smartspace Software PLC shares rose Tuesday after it said it expects fiscal 2023 revenue to rise and losses to beat market expectations.

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Ebiquity Sees 2022 Revenue 20% Higher on Year

Ebiquity PLC said Tuesday that performance for 2022 was in line with market expectations, with revenue set to be 20% higher on year.

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Water Intelligence 2022 Pretax Profit Slipped, Buys Back Nashville Franchise

Water Intelligence PLC on Tuesday said its 2022 pretax profit fell slightly due to non-cash expenses as it posted a 31% rise in revenue and said it has reacquired its Nashville franchise.

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Ixico Sees Double-Digit Revenue Growth in Fiscal 2024

Ixico PLC said Tuesday that it continues to see fiscal 2023 revenue of 7 million pounds ($8.4 million) and that it now expects double-digit revenue growth for fiscal 2024.

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Brooks Macdonald Names Richard Price as Acting Chairman as Alan Carruthers Resigns

Brooks Macdonald Group PLC on Tuesday said Chairman Alan Carruthers has resigned from the board with immediate effect due to health issues.

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Deepverge Appoints Andrew Waters as Chief Financial Officer

Deepverge PLC said Tuesday that it has appointed Andrew Waters as chief financial officer with immediate effect.

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East Imperial Sees 2022 Revenue Jump on Broad Sales Growth

East Imperial PLC said Tuesday that 2022 revenue increased 16% on year to around 3.2 million pounds ($3.8 million), driven by increased sales across all markets.

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Serica Energy Says Portfolio Production Was Strong in January

Serica Energy PLC said Tuesday that production performance of both the Serica and Tailwind portfolios has remained strong despite challenging weather in January.

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Trending: BP's Enormous 2022 Profits Will Increase Windfall Tax Demand

0959 GMT - BP PLC is among the most mentioned topics across news items over the past three hours, according to Factiva data, after the energy giant reported a record profit for last year on soaring energy prices, alongside a new $2.75 billion share buyback. The oil-and-gas giant posted a 2022 underlying replacement-cost profit of $27.7 billion, significantly improving over 2021's $12.82 billion and beating its own previous record of $26.2 billion in 2008. It also generated adjusted earnings of $60.75 billion for the year, up from $37.32 billion a year prior. Shareholders will be pleased with the buyback, and BP hiked its dividend to 6.16 cents a share from 6.01 cents in the third quarter. However, the results--much like peer Shell PLC's on Thursday--will likely intensify demand for further windfall taxes, AJ Bell investment director Russ Mould wrote. "The more money companies like BP make, the stronger the calls for them to give some of it back through tax. The answer from the energy companies remains the same--yes, shareholders are getting some of the bounty via dividends, which is the normal course of business, but a lot of the profit is also being reinvested in renewable-energy projects which will benefit people down the line," Mr. Mould said. Dow Jones & Co. owns Factiva. (joseph.hoppe@wsj.com)

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Hummingbird Resources Agrees on $15 Mln Investment; Settles Guinea Mine Deferred Consideration

Hummingbird Resources PLC said Tuesday that investment company CIG SA has agreed to invest $15 million into the company via a conditional subscription agreement, and that it will settle the deferred consideration on Guinea's Kouroussa mine.

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BP 4Q Earnings Slightly Miss Mark But Hikes Shareholder Returns -- Earnings Review

BP PLC on Tuesday reported better-than-expected profits for the fourth quarter of 2022, with higher oil and gas prices boosting earnings. Here's what you need to know:

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BP Slows Transition to Renewable Energy as Oil Bonanza Continues -- Update

By Jenny Strasburg

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HSBC poaches JPMorgan's Jamie Markham to lead UK and Europe coverage -- Financial News

The UK lender has hired Markham after more than a decade at the Wall Street giant

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Auction Technology Buys US Listing Site Estatesales.net -- Deal Digest

ACQUIRER: Auction Technology Group PLC

 
Market Talk: 

BP, Rivals Won't Avoid Public Backlash While Bills Rise

1223 GMT - BP and rivals are unlikely to be able to avoid public criticism of rising profits while energy bills are soaring, despite benefits for investors, AJ Bell says. BP's record annual profit and higher dividends helped to drive up the FTSE 100 Tuesday, benefiting pension savers with exposure to U.K. stocks, AJ Bell says. Still, the more money companies like BP make, the stronger the calls for windfall taxes will be, Bell says. "BP's success makes it a target because other people have suffered at the same time it has enjoyed bolstered earnings--namely the public and businesses who have had to stomach higher energy bills," Bell's investment director Russ Mould writes. "Therefore, BP can't sit back and expect praise for its operational and financial performance." (philip.waller@wsj.com)

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BOE Could Cut Bank Rate in 4Q

1243 GMT - The Bank of England could cut the bank rate as soon as in the last quarter of 2023 as the U.K.'s economic activity slows, rate of unemployment rises, and inflation falls, UBS Research economist Dean Turner says in a note. "With the economy slowing, inflation falling, and unemployment rising, we expect the BOE to unwind some of the policy tightening from the past 10 meetings," he says. Turner expects the BOE base rate to peak at 4.25% in March. "With labour market data still signalling tightness, the BOE will likely deliver another small--25 basis points--hike in March, lifting base rates to 4.25%," he says. (miriam.mukuru@wsj.com)

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Big Oil's Profits Are Putting Smaller Companies at Risk

1243 GMT - Oil giants such as BP are profiting while some smaller businesses are struggling to survive amid higher energy costs, insolvency group Begbies Traynor says. While BP reported record annual profit and higher dividends Tuesday, it said it was continuing to make progress in efforts to increase its focus on renewable energy. Still, crippling energy bills are among the reasons for a recent surge in the number of U.K. companies rated as being in critical distress and close to collapse, Begbies says. "While BP's talk about investing for the future to create cleaner, greener energy is laudable, doing so while posting massive profits like this will only increase the calls for a heavier windfall tax," Begbies Traynor partner Julie Palmer writes. (philip.waller@wsj.com)

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Investors Cheer BP's Renewed Focus on Crude Oil

0847 ET - BP's 4Q earnings release is receiving high marks from investors, and not so much for the results themselves which are in-line to slightly positive, but rather for its plan to pivot back to oil and natural gas as profit engines, while also investing in green energy. "An updated medium-to-long-term outlook for investment in the traditional energy space ... represents a positive strategic shift, in our view," says Tudor Pickering in a research note, adding that BP is still also making "incremental capital allocated for the higher return opportunity set in focus energy transition themes (biofuels and convenience/EV charging), resulting in an upsized capex outlook for 2023, and an upsized 2024-2030 capital outlook." Shares rise 4.2% premarket. (dan.molinski@wsj.com)

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Ashmore's Short-Term Recovery Is Unrealistic, Says Numis

1354 GMT - Ashmore Group's shares aren't cheap and it is still too early to call a recovery, says Numis in a note ahead of the fund manager's interim results on Wednesday. "Our view is that even if shorter term sentiment/flows improve for [emerging markets] generally, Ashmore may not pick up its 'fair share' of these flows, given this performance headwind, although it will likely track asset class beta to some extent," says analyst David McCann. Numis sees poor investment performance continuing to cause problems for client retention and sales. It sees Ashmore's 1H pretax profit at GBP67.2 million and net management fees of GBP98.5 million with a stable interim dividend at 4.8 pence per share. The brokerage rates the stock sell. (elena.vardon@wsj.com)

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Fixed Income Assets Seen Attractive Again

1358 GMT - Fixed income valuation has improved considerably over the past few quarters, making the asset class attractive again, MFS IM says in a note. "We are now observing levels of yield not seen in a decade," it says. This is also true for credit spreads, which have widened, but even more so for total yields which have benefited from the combined effects of the rate and spread widening, the asset manager says. From a strategic standpoint, the higher yields offer attractive opportunities as entry points in fixed income considering the historically high correlation of starting yields to subsequent returns, it says. (emese.bartha@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

February 07, 2023 09:17 ET (14:17 GMT)

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