Sterling Faces Further Underperformance Amid High UK
Inflation
0941 GMT - Sterling is the second worst performing G10 currency
after the Norwegian krone so far in February and faces further
underperformance, MUFG Bank says. "If inflation angst was to return
and given the less compelling evidence of an inflation drop in the
UK compared to elsewhere, we could see further underperformance,"
MUFG analyst Derek Halpenny says in a note. The OECD forecast more
sticky inflation in the U.K. compared with elsewhere, he says.
Meanwhile, data since Brexit showed the U.K. suffered the highest
increase in inflation compared with the U.S., eurozone and Japan,
he says. GBP/USD rises 0.5% to 1.2101 after hitting a one-month low
of 1.1960 on Tuesday, according to FactSet. EUR/GBP falls 0.2% to
0.8887. (renae.dyer@wsj.com)
Companies News:
Barratt Developments 1H Pretax Profit Rose; Reservation Rate
Improved in January
Barratt Developments PLC said Wednesday that it saw a rise in
pretax profit for the first half of fiscal 2023 and said its
private reservation rate has modestly improved in January.
---
Smurfit Kappa 2022 Pretax Profit Rose, Boosted by Investment
Program
Smurfit Kappa Group PLC said Wednesday that pretax profit rose
in 2022, with performance reflecting the continuing benefits of the
investment program.
---
Severn Trent Backs FY 2023 View
Severn Trent PLC said Wednesday that there have been no material
changes to the business performance or outlook since its half-year
earnings in November and backed its fiscal 2023 outlook.
---
Ashmore Group 1H Pretax Profit Halved; Sees Outperformance As
Markets Recover
Ashmore Group PLC said Wednesday that pretax profit more than
halved in the first half of fiscal 2023 as market volatility in the
period led to losses on investments, and that emerging markets are
set to outperform as markets recover.
---
Grainger Early FY 2023 Rent, Occupancy Rose
Grainger PLC said Wednesday that rent and occupancy rose in the
first four months of fiscal 2023.
---
Tate & Lyle Updates Five-Year Targets for Revenue, Earnings
Growth
Tate & Lyle PLC said Wednesday that it expects to deliver
revenue growth of 4% to 6% a year in the five years to March 2028,
underpinned by high single-digit growth in its food and beverage
solutions division.
---
M&C Saatchi Sees 2022 Net Revenue at GBP271.4 Mln, Headline
Pretax Profit at GBP31.8 Mln
M&C Saatchi PLC said Wednesday that 2022 net revenue is
expected to be 271.4 million pounds ($327 million) and headline
pretax profit is seen at GBP31.8 million.
---
Sosandar to Raise up to GBP4.5 Mln to Fund Growth
Sosandar PLC said Wednesday that it is planning to raise up to
4.5 million pounds ($5.4 million) via a share placing and will use
the money to capitalize on the opportunities in its markets and to
accelerate future growth.
---
FirstGroup to Buy Ensign Bus Company for Undisclosed Sum
FirstGroup PLC said Wednesday that it is buying Ensign Bus
Company Ltd. for an undisclosed sum.
---
Future Sees FY 2023 Adjusted Operating Profit in Line on
Continuing Good Performance
Future PLC said Wednesday that it expects to deliver fiscal 2023
adjusted operating profit in line with expectations as its
diversification of revenue streams and content verticals, together
with the operational leverage, continue to deliver.
---
PZ Cussons 1H Pretax Profit, Revenue Rose; Backs Full-Year
Guidance
PZ Cussons PLC said Wednesday that pretax profit significantly
rose for the first half of fiscal 2023 together with revenue, and
backed its full-year guidance.
---
Renold Sees FY 2023 Profit Ahead of Views on Strong
Performance
Renold PLC said Wednesday that it now sees fiscal 2023
underlying operating profit above current market forecasts as it
has performed strongly since its interim results, with order intake
running ahead of sales.
---
Cenkos Securities Sees 2022 Underlying Profit at Break Even
Cenkos Securities PLC said Wednesday that it expects to break
even at underlying profit level for 2022 due to significantly
depressed market conditions over the year, and that it has seen an
encouraging start to 2023.
---
Speedy Hire Expects One-off Writedown After Identifying GBP20.4
Mln Equipment Shortfall
Speedy Hire PLC said Wednesday that it expects a one-off
non-cash writedown after a count of its hire equipment identified a
shortfall worth around 20.4 million pounds ($24.6 million).
---
Beazley Names Clive Bannister as Chair Designate
Beazley PLC said Wednesday that it has appointed Clive Bannister
as chair designate and non-executive director with immediate
effect.
---
Renalytix Shares Fall on $20.3 Mln Fund Raising
London-traded shares of Renalytix PLC fell as much as 14% on
Wednesday after the company said it is raising $20.3 million via a
placing of ordinary and American depositary shares, and that it
will use the money for sales and marketing, clinical product
development, and corporate support and financing costs.
---
Cellular Goods Shares Fall After Cannaray Brands, Love CBD Deal
Collapses
Shares of Cellular Goods PLC fell 30% on Wednesday after the
company said that it no longer plans to buy Cannaray Brands Ltd.
and Love CBD Health Ltd. from Cannaray Ltd. as announced in
September.
Market Talk:
Speedy Hire's Net Asset Value Hit From Value Shortfall Is
Disappointing
0858 GMT - Speedy Hire disclosed a GBP20.4 million shortfall in
its equipment value bringing a disappointing 10% hit to tangible
NAV, though procedures have been tightened and an external
investigation started, Liberum says. The equipment-and-tool-hire
company still has significant upside to its share price, but
Liberum cuts its target price to 70 pence from 80 pence. "This is
harsh given that future cash flows, strategy and earnings power are
unaffected by this non-cash write-down, but we think it right to
err on the side of caution as investors might choose to wait until
further updates," the U.K. brokerage's analysts say in a research
note. Liberum retains its buy rating on Speedy's stock. Shares are
down 12% at 36.95 pence. (joseph.hoppe@wsj.com)
---
Ashmore 1H Beat Driven by One-Offs
0848 GMT - Ashmore Group's first-half headline results were
mainly driven by non-recurring items, Citi says in a note, pointing
to a "low quality" beat. Adjusted Ebitda at GBP63 million was 6%
above consensus driven by better performance fees and foreign
exchange hedging effects, with reported pretax profit missing
consensus by 19% on seed capital related items. "We see the
[underlying] trends broadly in line," Citi analyst Samarth Agrawal
says. The U.S. bank rates the stock sell with a 210 pence target
price. (elena.vardon@wsj.com)
---
Barratt Development Delivers 1H Outperformance Amid Seasonal
Pickup
0846 GMT - Barratt Development's first-half results delivered a
slight beat to market expectations with underlying pretax profit of
GBP522 million ahead of Citi's GBP503 million estimate and market
consensus of GBP502 million. The house builder reported encouraging
recent trading with a private sales rate in the first four weeks of
the second half at 0.49 beating Citi's expectations of 0.47, the
U.S. bank's analyst Ami Galla says in a research note. "The
seasonal pickup in trading is likely to support broader sector
sentiment ahead of spring and focus [for investors] is likely to be
on the strength of the customer base and underlying pricing
trends," Citi says, retaining its buy rating and 499 pence target
price on the stock. Shares are up 0.5% at 462.3 pence.
(joseph.hoppe@wsj.com)
---
DCC Shares Look Good Value After Recent Underperformance
0841 GMT - DCC's short third-quarter update was short but
in-line and it expects the full-year to show strong growth, though
its shares have underperformed recently on the company's consumer
exposure, conglomerate nature and energy-transition uncertainty,
RBC Capital Markets says. The marketing and support-services group
current share price provides good value and the risk to reward
remains in favor within an expensive broader sector, RBC analysts
say in a research note. "We think the stock is cheap and that
management remains under pressure to demonstrate value," the
Canadian bank says. RBC retains its outperform rating and 4,800
pence price target on DCC's stock. Shares are down 0.1% at 4,660.0
pence. (joseph.hoppe@wsj.com)
---
Smurfit Kappa 2022 Ebitda a Record, But 4Q Looks to Have Fallen
Short
0815 GMT - Smurfit Kappa Group posted record 2022 Ebitda of
EUR2.36 billion, slightly above EUR2.3 billion guidance, and with
box volumes down 2%, with some de-stocking and downtime in the
second half, Jefferies analysts Cole Hathorn and Michele Filippig
say in a research note. The paper-based packaging company's fourth
quarter Ebitda of EUR588 million, however, seems to have fallen
short of buy-side expectations, which had moved higher to around
EUR600 million, they say. Elsewhere, the outlook is encouraging
despite macro uncertainty and the company has started 2023 well, in
good shape operationally and financially, they add. Jefferies has a
buy rating on the stock with a target price of 3,700 pence. Shares
trade down 2.8% at 3,390.00 pence. (kyle.morris@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
February 08, 2023 04:58 ET (09:58 GMT)
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