UKX

UK Two-Year Gilt Yield Shows Rate Peak Could be Sooner than Expected

1333 GMT - The U.K. two-year gilt yield indicates the key rate is likely to peak and then be cut sooner than some people expect, AJ Bell investment director Russ Mould and financial analyst Danni Hewson say in a note. "The two-year gilt yield has a history of leading the Bank of England Base Rate by six to nine months," the analysts say. "That suggests the bond markets don't believe the Bank of England's tough talk and thinks rates may peak and then be cut sooner than some think," they say. The U.K. two-year gilt yield is at 3.412% according to Tradeweb, down 20 basis points from the last day of trading in 2022. (miriam.mukuru@wsj.com)

Companies News: 

St. James's Place 2022 Funds Under Management Fell

St. James's Place PLC on Thursday reported funds under management at the end of 2022 that slightly missed consensus expectations.

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Foxtons Sees 2022 Revenue, Adjusted Profit Ahead of Market Views But Expects Tougher 2023

Foxtons Group PLC said Thursday that 2022 revenue and adjusted operating profit are expected to be ahead of market expectations, though it sees the first half of 2023 as being more challenging.

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Jet2 PLC to Beat FY 2023 Profit Forecasts After Strong Winter Bookings

Jet2 PLC said Thursday that it expects to beat fiscal 2023 adjusted pretax profit market forecasts amid strong winter bookings.

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Diageo 1H Pretax Profit Rose on Better-Than-Expected Sales, Higher Pricing

Diageo PLC said Thursday that pretax profit rose in the first half of fiscal 2023, supported by better-than-expected sales volumes due to higher prices, and raised its dividend payout.

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Tate & Lyle Sees FY 2023 Adjusted Profit Rising in Line With Views After 3Q Revenue Increased

Tate & Lyle PLC said Thursday that revenue rose in its third quarter, and that it expects to meet market views for higher fiscal 2023 adjusted pretax profit.

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Royal Mail Owner International Distribution Services 3Q Revenue Fell

International Distribution Services PLC, or IDS, said Thursday that revenue for the third quarter of fiscal 2023 fell, and that due to continuing industrial disputes it expects negative in-year trading cashflow at Royal Mail in fiscal 2024.

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Mitie Group Expects to Meet FY 2023 Profit Forecast

Mitie Group PLC said Thursday that its performance during the third quarter of the year continued to be strong and that it is on track to meet adjusted operating profit forecasts for the year ending March 31.

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Britvic 1Q Revenue Rose on Higher Prices Despite Volume Fall

Britvic PLC said Thursday that first-quarter revenue rose, driven by stronger pricing and a robust Christmas trading.

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Best of the Best Posts Lower 1H Revenue, Pretax Profit

Best of the Best PLC on Thursday reported lower revenue and pretax profit for the first half of fiscal 2023 as inflation weighed on consumer spending.

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Provident Financial To Become Vanquis Banking, Names New CEO

Provident Financial PLC on Thursday said it is changing its name to Vanquis Banking Group plc and that it has appointed a new chief executive officer as Malcolm Le May is stepping down from the role.

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Diageo 1H Pretax Profit Rose on Better-Than-Expected Sales, Higher Pricing -- Update

Diageo PLC said Thursday that pretax profit rose in the first half of fiscal 2023, supported by better-than-expected sales volumes due to higher prices, and raised its dividend payout.

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Animalcare Anticipates 2022 Decline in Revenue

Animalcare Group PLC on Thursday said that its 2022 underlying earnings are anticipated to be approximately in line with market expectations, but that its revenue will decline.

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Playtech Sees 2022 Adjusted Earnings Significantly Rising On-year

Playtech PLC said Thursday that it has continued to perform strongly since its first-half results in September and it now expects 2022 adjusted earnings to significantly rise on-year.

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Rank Group Swung to 1H Pretax Loss; Backs FY 2023 Profit Guidance

Rank Group PLC said Thursday that it swung to a pretax loss for the first half of fiscal 2023 as a small increase in revenue was offset by higher costs and impairment charges, and backed its full-year guidance.

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PPHE Hotel Group Sees 2022 Financial Performance Above Views

PPHE Hotel Group Ltd. said Thursday that it expects its financial performance for 2022 to exceed market expectations and that its booking momentum has continued into January, supporting the board's confidence in its outlook.

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Inspecs Group 3Q Orders Fell Due to European Slowdown; Won't Pay Dividend

Inspecs Group PLC said Thursday that order flow during the third quarter of last year fell due to a slowdown in its European markets, leading to a decline in fourth-quarter sales, but that it has entered the new year with a good order book.

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IG Group Holdings 1H Pretax Profit Slipped; Share Buyback Extended

IG Group Holdings PLC on Thursday said its half-year pretax profit fell slightly amid higher costs from increased headcount and foreign-exchange headwinds, which were partly offset by a rise in revenue.

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Record PLC Assets Under Management Equivalent Rose 6% Quarter on Quarter

Record PLC on Thursday reported a 6% rise in assets under management equivalent over the quarter, with continued growth in its more traditional currency hedging products and performance fees.

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TClarke to Report Rise in 2022 Pretax Profit, Revenue

TClarke PLC said Thursday that it expects to report a rise in pretax profit and revenue for 2022, and that its overall financial performance should be in line with market expectations.

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CVS Group Says It Is Meeting Full-Year Market Views After 1H Revenue Rose

CVS Group PLC said Thursday that its first-half revenue rose and it is performing in-line with market expectations for the full-year.

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Novacyt 2022 Revenue Fell in Line With Views on Lower Covid-19-Related Demand

Novacyt S.A. said Thursday that 2022 revenue fell, but was in line with the board's expectations given a drop in Covid-19-related sales.

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Greencore Shares Drop After Flagging FY 2023 at Lower End of Market Views

Greencore Group PLC shares fell Thursday after it warned that the outturn for fiscal 2023 would be at the lower end of market views.

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3i Group Shares Top FTSE After 3Q NAV Per Share Rose

Shares in 3i Group PLC rose 5.6% on Thursday after the company said its net asset value per share at the end of the third-quarter was higher than a quarter prior.

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Diaceutics Shares Rise After 2022 Revenue Materially Beat Market Views

Diaceutics PLC shares rose Thursday after the company said 2022 revenue significantly increased materially ahead of market expectations.

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Smart Metering Systems Expects Jump in 2022 Revenue

Smart Metering Systems PLC said Thursday that it expects revenue to increase in 2022 after it sped up smart meter installations.

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Rotala Shares Rise on High Premium Tender Offer Plan

Shares of Rotala PLC rose 18% in early trade on Thursday after the company said it will return 10.0 million pounds ($12.4 million) to shareholders via a high premium tender offer.

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Hemogenyx Pharmaceuticals Shares Fall on Discounted Fund Raising

Shares of Hemogenyx Pharmaceuticals PLC fell as much as 19% on Thursday after the company said that it has raised 4.1 million pounds ($5.1 million) via a discounted share placing and will use the money to fund trials of its HEMO-CAR-T product and for the development of other products.

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Time Finance Shares Rise on Higher 1H Profit, Better Full-Year Expectations

Time Finance PLC shares rose Thursday after the company said its first-half pretax profit and revenue rose, and that it sees full-year performance significantly beating market views.

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Just Group Confident of Hitting 2022 Profit Growth Target After Revenue Rose

Just Group PLC on Thursday posted a 17% rise in 2022 revenue and said it is confident it will meet its expectations for underlying operating profit growth for the year.

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Fevertree Sees 2022 Ebitda in Line With Views Amid Cost Pressures

Fevertree Drinks PLC said Thursday that it expects 2022 Ebitda to fall, but to be in line with expectations following actions to offset significant cost pressures.

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One Heritage Group Shares Fall on Rising Impairments

Shares in One Heritage Group PLC fell Thursday after the company warned on rising impairments.

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Fintel Expects Higher 2022 Revenue, Adjusted Ebitda

Fintel PLC said Thursday that it expects to report an increase of revenue and Ebitda for 2022 which is in line with the company's expectations.

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DotDigital Sees 1H Revenue Rising, FY 2023 Meeting Market Views

dotDigital Group PLC said Thursday that it expects to report that revenue for the first half of fiscal 2023 rose, and it sees full-year results meeting market views.

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Eurocell 2022 Sales Rose, Sees Pretax Profit Meeting Market Views

Eurocell PLC said Thursday that its 2022 total sales rose, and it expects pretax profit to meet market expectations.

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Learning Technologies Shares Climb After 2022 Revenue Rose Ahead of Views

Shares in Learning Technologies Group PLC rose Thursday after the company said it expects to report an increase in 2022 revenue, and that both it and adjusted EBIT will be ahead of consensus expectations.

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Strix Group Achieved Recently-Lowered 2022 Profit Guidance

Strix Group PLC said Thursday that adjusted post-tax profit for 2022 met the lowered guidance provided for in November.

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Argentex Nine-Month Revenue Rose on Robust Demand

Argentex Group PLC said Thursday that revenue for the nine months to December increased driven by a robust client demand.

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United Oil & Gas 2022 Production in Line With Guidance -- Energy Comment

United Oil & Gas PLC reported production for 2022 in line with its guidance and said the board has started a cost cutting program to cut expenses by 15% this year.

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Hansard Global 1H New Business Fell on Challenging Investment Environment

Hansard Global PLC said Thursday that new business decreased in the first half of fiscal 2023.

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Velocys Sees 2022 Meeting Market Views; Confident for Year Ahead

Velocys PLC said Thursday that it expects to meet market expectations for 2022, and that it is confident for the year ahead.

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Flowtech Fluidpower to Report 2022 Revenue Rise; Underlying Profit in Line With Views

Flowtech Fluidpower PLC said Thursday that it expects to report a rise in revenue for 2022, and for underlying profit to be in line with market expectations.

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Aquis Exchange Sees 2022, 2023 In Line With Views

Aquis Exchange Ltd. said on Thursday it expects to report 2022 results in line with market expectations and that it also sees 2023 performance aligned with views.

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Skillcast Expects Higher 2022 Revenue as Recurring Subscriptions Increase

Skillcast Group PLC said Thursday that revenue for 2022 is expected to increase driven by growth in recurring subscriptions, but that it sees adjusted Ebitda swinging to a loss.

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Empresaria 2022 Net Fee Income Rose; Adjusted Pretax Profit Seen in Line With Views

Empresaria Group PLC said Thursday that 2022 net fee income rose 8% on a constant currency basis, and that adjusted pretax profit is expected to be in line with market expectations.

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Hostmore Chairman Gavin Manson to Retire; Stephen Welker Named

Hostmore PLC said Thursday that Chairman Gavin Manson will retire at the annual general meeting in May and that Stephen Welker will replace him in the role.

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Parity Swung to 2022 Pretax Profit Despite Net Fee Income Drop

Parity Group PLC said Thursday it swung to a pretax profit in 2022 on the sale of its trademark, a refocus on recruitment and increasing customer-facing headcount, and despite a fall in net fee income.

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Mode Global Holdings Shares Dive on Wind Down Plan

Shares of Mode Global Holdings PLC fell 56% on Thursday after the company said that it plans to wind down the customer operations for a number of its businesses, including Fibermode Ltd., JGOO Ltd. and Greyfoxx Ltd.

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Chamberlin to Raise GBP650,000 via Discounted Share Placing, Subscription

Chamberlin PLC said Thursday that it will raise around 650,000 pounds ($806,260) via a discounted share placing and a subscription, and that it will use the funds to provide working capital to support its growth strategy and strengthen the balance sheet.

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Diageo's 1H US Sales Misses Market Expectations -- Earnings Review

Diageo PLC reported its first half of fiscal 2023 performance on Thursday. Here's what we watched:

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MGM, Entain to Boost Investment in BetMGM

By Will Feuer

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Applied Graphene Materials Shares to be Halted Wednesday on FY 2022 Accounts Delay

Applied Graphene Materials PLC said Thursday that it won't be able to publish its fiscal 2022 report by the required deadline and as a consequence trading in its shares will be suspended on Wednesday.

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Lansdowne Oil & Gas Raises GBP300,000 to Fund Barryroe Field, Working Capital

Lansdowne Oil & Gas PLC said Thursday that it has raised 300,000 pounds ($372,120) via a share placing and will use the money to meet its share of the Barryroe field costs as well as working capital requirements through to the end of May.

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LondonMetric Property Chairman Patrick Vaughan to Step Down in July

LondonMetric Property PLC said Thursday that Chairman Patrick Vaughan will step down from the board on July 11 and be replaced by Alistair Elliott.

 
Market Talk: 

Diageo 1H Looks Disappointing as US Sales Fall Short of Hopes

1036 GMT - Diageo shares are among the biggest FTSE 100 fallers, down 7% after the Johnnie Walker whisky and Smirnoff vodka maker reported a first-half sales slowdown and said it expected trading conditions to stay tough. While sales and earnings topped expectations, driven by stronger trading in Europe, Latin America and Asia, North American trading was soft and the outlook was cautious, Citigroup says. North America organic sales rose 3%, compared to market forecasts of 6.7%, while a 2% increase in U.S. spirit organic sales was particularly low and well below recent market expectations of about 10%, Citi says. "Diageo's 1H 2023 result is disappointing and we expect the stock to trade lower today," Citi analysts say in a note. (philip.waller@wsj.com)

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Fevertree Drinks Guidance Implies No Margins Improvement

1043 GMT - Fevertree Drinks' FY 2023 guidance is very disappointing given the group's previous comments on profitability improvement amid reversing freight costs and U.S. supply ramp-up, RBC Capital Markets analysts Emma Letheren and James Edwardes Jones say in a note. The mixer-maker's guidance for Ebitda at the mid-point of the GBP36 million-GBP42 million range, compared with market consensus of GBP47 million, implies further deterioration in its margins, they say. With no improvements expected for FY 2023 margins, Fevertree's profitability trajectory is concerning, they add. "We've been nervous about the discretionary nature of its products and pricing power in the current macroeconomic environment and this print has cemented those concerns," the analysts highlight. (michael.susin@wsj.com)

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St. James's Place Shows Resilience Despite Lighter 4Q Flows, RBC Says

1058 GMT - St. James's Place's 4Q update showed resilience of the wealth manager's model under varying market conditions despite reporting lighter-than-expected quarterly flows, RBC Capital Markets says. Net flows for the quarter were 10% below consensus, showing a slight slowdown from the previous quarter, RBC says. "The result demonstrates that STJ is not immune from the challenging macro conditions faced by the WM market, reflected by the results reported by peers over recent weeks," says analyst Ben Bathurst. However, he flags that 2022 annualized inflows at 6.4% are sector-leading and sees appeal in the shares for investors with a longer-term view given that macro uncertainty will hinder short-term recovery. RBC has a sector perform rating on the stock. Shares edge down 0.75% to 1,190.5 pence. (elena.vardon@wsj.com)

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Fevertree's Production Cost Bottles Prospects

1114 GMT - Fevertree's cost outlook for FY 2023 has deteriorated further and the cost to produce glass bottles is three times higher than 2021 levels due to the impact of energy prices, Liberum analysts say in a note, after downgrading the stock rating to hold from buy. Glass bottles represent around 80% of the London-listed mixer-maker's sales mix and are a key factor to the premium positioning of its brands, they say. However, this places the group at a disadvantage in passing the costs through pricing when compared with its competitors that mostly use PET plastic bottles, they add. Liberum cuts the target price to 1,000.0 pence from 1,100 pence. (michael.susin@wsj.com)

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Royal Mail Owner IDS Operating Loss Guidance Seen as Too Optimistic

1118 GMT - Royal Mail Owner International Distribution Services released a 3Q update ahead of schedule so as to release its financial figures ahead of the "vote no" union campaign, Bernstein analyst Alex Irving says in a note. Although guidance for trading cashflow at Royal Mail was revised down to negative from positive, operating loss guidance remains overly optimistic as it assumes no further strike action and the union accepting a pay settlement in line with the company's "best and final" offer, which has already been rejected, he says. Meanwhile the GLS division remains fine with a narrowed guidance range, but a midpoint at EUR390 million, Irving says. Shares are up 2.3% at 224.60 pence. (anthony.orunagoriainoff@dowjones.com)

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St. James's Place 2022 Gross Flows Were Its Second-Best Despite 4Q Miss, Citi Says

1119 GMT - St. James's Place's miss on fourth-quarter flows in a difficult macro backdrop might weigh on shares and overshadow strong annual gross flows, says Citi in a note. "As always, we caution reading too much into one quarter's flows and zooming out, 2022 was the second-best gross flows achieved in SJP's history," says analyst Andrew Baker. Citi rates the stock neutral with a target price of 1,207 pence. Shares edge down 0.46% at 1,194.0 pence. (elena.vardon@wsj.com)

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IG Group Shares Look Attractive After Strong 1H, RBC Says

1132 GMT - IG Group Holdings shares look appealing and trade at an undemanding valuation, says RBC Capital Markets in a note, after the online-trading company published strong half-year results. "A high operating margin, low debt levels, strong cash generation and positive exposure to higher interest rates mean we consider IGG to among the better insulated financials amid the uncertain macro-environment," says analyst Ben Bathurst. IG sees adjusted pretax profit margin in the mid-40s for fiscal 2023 and GBP25 million in interest income from client cash balances outside the U.S, which RBC says is an incremental positive as it is unlikely to be baked into current consensus. The brokerage has an outperform rating on the stock and price target of 1,000 pence. Shares rise 1.8% at 794.0 pence. (elena.vardon@wsj.com)

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Fevertree Drinks Loses Fizz Amid Bottle-Cost Battle

1137 GMT - Fevertree Drinks shares drop 6% after the mixer maker reported worse-than-expected full-year revenue and forecast continued cost pressures. The company said the impact of higher energy prices on the cost of glass bottles would be significant in 2023. Energy prices are a big cost in manufacturing glass bottles and Fevertree makes most of its sales from products sold in them, Hargreaves Lansdown says. "When 80% of your sales are bottled in glass, any fluctuation in energy prices is bound to have a material impact on your costs," HL analyst Aarin Chiekrie writes. "While European energy prices have recently pulled back, they're still at least three times higher than in 2021." (philip.waller@wsj.com)

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Royal Mail Owner IDS's Stabilizing Plan Is Making Good Progress Amidst Labor Strife

1153 GMT - Royal Mail Owner International Distribution Services' trading update shows the effect of multiple labor strikes with consumers and businesses frustrated at the situation and turning to competitors, perhaps never to return, AJ Bell analyst Russ Mould says in a note. U.K. operations saw a large decline in parcel and letter volumes, which has compounded problems in the business, with strikes costing it around GBP200 million and the parent company wanting to avoid accusations of not paying workers enough whilst doling out cash to shareholders, Mould says. Still despite all this, its plan to stabilize the business is making good progress, he says. "That might explain the positive share price action in response to the trading update," Mould says. Shares are up 1.9% at 223.70 pence. (anthony.orunagoriainoff@dowjones.com)

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European Stocks Rise Ahead of Likely Modest US Losses

1211 GMT - European stocks mostly rise after mixed Asia trading and ahead of an expected slightly lower U.S. open. The Stoxx Europe 600 gains 0.4%, the FTSE 100 edges 0.1% higher and the CAC 40 advances 0.6%, though the DAX retreats about 0.1%. Brent crude increases 0.7% to $86.78 a barrel. IG futures data show the Dow opening at 33721, versus Wednesday's close of 33743. "Stock markets were mixed in Asia, with the picture still incomplete thanks to public holidays in key markets such as China and Australia," IG analysts say in a note. "Investors get their first look at U.S. 4Q GDP today and while growth is expected to slow from 3Q, it's forecast to remain at an acceptable level." (philip.waller@wsj.com)

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Women Recycle More Than Men, App Says

0745 ET - Women are more likely to recycle than men using apps, bolstering the so-called eco-gender gap that argues recycling falls under the umbrella of domestic work that is often left to women, according to a survey of around 400,000 users of recycling app Bower in the UK and Nordics. Bower, which partners with consumer giants Nestle, L'Oreal and Unilever, says that the number of women is almost double than the number of men on its platform that pays users to recycle. Bower recently raised around $4.7M as it expands into the US and UK. (dieter.holger@wsj.com)

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Just Group Shares Don't Reflect Its Marked Transformation, RBC Says

1256 GMT - Just Group has completed a marked capital transformation in the last three years, says RBC Capital Markets in a note after the specialist financial-services company reported good operating profit growth for 2022. The brokerage flags management's smart and innovative actions which have been aided by the continuing tailwind of rising interest rates. "We do not believe this transformation or the enhanced future growth opportunity is reflected in the current share price," says analyst Mandeep Jagpal. RBC has an outperform rating on the stock with price target at 155 pence. Shares are up 1.5% at 84.5 pence. (elena.vardon@wsj.com)

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Provident Financial's 2023 Profit Seen Under Pressure From IFRS9 Provisioning

1340 GMT - Provident Financial PLC's 2023 pretax profit estimates are likely to see a material fall as cost of risk increases from accounting provisions, says Peel Hunt in a note. The brokerage says current consensus of around GBP130 million could roughly halve in view of the group's accelerated volumes since under IFRS9 requirements lenders have to book provisions equal to expected losses for the first 12 months of new lending. "Although short-term earnings estimates are under pressure, the longer-term benefits of faster growth should in principle exert upward pressure on forecasts for years after 2023," says Peel Hunt. The U.K. brokerage rates the stock add with price target at 377 pence. Shares rise 4.2% at 224.8 pence. (elena.vardon@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

January 26, 2023 09:45 ET (14:45 GMT)

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