UKX

BOE Rate Rise on Thursday Could Be Its Last

0903 GMT - The Bank of England is expected by most in the market to raise interest rates by 50 basis points on Thursday, but this could mark the end of its current rate-rising cycle, James Lynch, investment manager at Aegon Asset Management, says in a note. "Our expectation for the BOE is that they are indeed coming towards the end of the hiking cycle but, with little commentary from the MPC members, it is quite difficult to gauge the exact timing and peak of the policy rate," he says in a note. Nevertheless, "we are thinking it could be lower than market expectations and, possibly February could be the last hike," he says. The fact that the nine members of the MPC are split on policy rates is a another difficulty, he says. (emese.bartha@wsj.com)

 
Companies News: 

Airtel Africa 3Q Pretax Profit Fell on Rising Costs

Airtel Africa PLC said Thursday that third-quarter pretax profit fell despite a revenue increase, due to inflationary pressures across its markets.

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Superdry CEO Julian Dunkerton Has No Plans to Take Company Private

Superdry PLC founder and Chief Executive Officer Julian Dunkerton said Thursday that he has no plans to take the company private.

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BT Group Nine-Month Pretax Profit Fell Depreciation Offset Ebitda Growth

BT Group PLC said Thursday that nine-month pretax profit fell due to increased depreciation that offset earnings before interest, taxes, depreciation and amortization growth.

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Shell Joins US Oil Majors in Posting Record 2022 Profit

LONDON--Shell PLC became the latest oil giant to post record annual profit last year, joining U.S. peers in surging back from early pandemic losses on soaring energy prices.

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Cranswick Says 3Q Revenue Grew; Sees In-Line FY 2023 Outlook

Cranswick PLC on Thursday said its full-year outlook remains in line with the board's expectations as it saw revenue growth accelerating in the third quarter of fiscal 2023.

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Shell Joins U.S. Oil Majors in Posting Record 2022 Profit -- WSJ

By Jenny Strasburg

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JTC Sees Double-Digit 2022 Revenue Growth; Ebitda at Top End of Market Views

JTC PLC said Thursday that for 2022 it booked double-digit net organic revenue growth and that underlying earnings before interest, taxes, depreciation and amortization will be at the top end of the range of market expectations

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James Halstead Sees 1H Pretax Profit Slipping But Remains Positive for FY 2023

James Halstead PLC said Thursday that it expects profit for the first half of fiscal 2023 to be slightly hit by continued though improving headwinds, and expectations for the full-year performance remain positive.

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ScS Group 10-Weeks Order Intake Rose; To Meet FY 2023 Market Views

ScS Group PLC said Thursday that like-for-like order intake rose in the last 10 weeks and that it is on track to meet fiscal 2023 market expectations.

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Hotel Chocolat Appoints Jon Akehurst as CFO

Hotel Chocolat Group PLC said Thursday that it has appointed Jon Akehurst as chief financial officer with effect in May 2023.

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Safestyle Sees 2022 Swing to Underlying Pretax Loss, Revenue Rising

Safestyle UK PLC said Thursday that it expects to swing to an underlying pretax loss for the year ended Jan. 1, in-line with market expectations, and revenue to rise.

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Shell Adds $41 Billion in Profit to Record Annual Haul From Oil Majors -- WSJ

By Jenny Strasburg

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BT Group Nine-Month Pretax Profit Fell as Depreciation Offset Ebitda Growth -- Update

BT Group PLC said Thursday that nine-month pretax profit fell due to increased depreciation that offset earnings before interest, taxes, depreciation and amortization growth.

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Renishaw 1H Pretax Profit Fell on Higher Costs

Renishaw PLC said Thursday that pretax profit fell for the first half of fiscal 2023 after it higher costs, and that weaker demand in the semiconductor and electronics sectors was offset by revenue growth from strategic priorities.

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Dillistone Expects to Report 2022 Revenue Growth on Improving Performance

Dillistone Group PLC said Thursday that it expects to report full-year revenue growth for 2022 after improving performance trends continued through the second half.

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Altona Rare Earths Now Raise GBP1.3 Mln Ahead of Delayed AIM IPO

Altona Rare Earths PLC said Thursday that it now plans to raise 1.3 million pounds ($1.6 million) through a share placing ahead of a planned initial public offering on London's junior AIM, after a previous fundraise expired.

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Shell 4Q Net Profit Boosted by Higher LNG, Deferred Taxes -- Energy Comment

Shell PLC on Thursday reported a 54% rise in net profit for the fourth quarter compared with the earlier quarter, which it attributed to higher liquefied natural gas trading and optimization results, favorable deferred tax movements and partly offset by lower realized oil and gas prices, and higher operating expenses. Here's what the energy giant had to say:

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PCI-PAL 1H Revenue Rose, Sees FY 2023 in Line With Views

PCI-PAL PLC said Thursday that first-half revenue rose and that adjusted Ebitda loss was better than expected as the group pipeline continues to grow.

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Xpediator Shares Rise as 2022 Pretax Profit Seen Ahead of Views

Shares in Xpediator PLC rose 13% on Thursday after the company said that it expects to report 2022 revenue at just below 400 million pounds ($494.9 million) with adjusted pretax profit significantly ahead of previous management guidance of GBP9.0 million.

 
Market Talk: 

Pound's Losses May be Limited Even if BOE Lifts Rates By Less Than Forecast

1018 GMT - The Bank of England could raise interest rates by 25 basis points at Thursday's meeting instead of the 50bp move many expect but any sterling losses may be limited, MUFG Bank says. The BOE is divided with two members voting for no change in rates at the last meeting, which "skews the balance of risks to a smaller move than expected today," MUFG analyst Derek Halpenny says in a note. Sterling's reaction may be modest as its weakness on Wednesday "suggests the market has already begun positioning for this risk," he says. GBP/USD falls 0.3% to 1.2334 wihle EUR/GBP rises to a one-month high of 0.8923, according to FactSet. The BOE's decision is due at 1200 GMT. (renae.dyer@wsj.com)

UK Gilt Yields Fall Ahead of BOE Rate Decision

0959 GMT - U.K. gilt yields fall before a Bank of England decision at 1200 GMT and after the U.S. Federal Reserve Bank cut the pace of rate increases to 25 basis points on Wednesday. Most expect the BOE to raise rates by 50 basis points to 4.0%, though policymakers could opt for a smaller rise. RBC analysts expect a 25 basis-point increase, citing prospects of a sharper fall in inflation in 2H 2023. "Today's meeting will mark the point where the MPC downshifts to a 'normal' pace of rate hike," they say in a note. 10-year gilt yields fall around 12 bps to 3.212%, while 2-year gilt yields drop around 16bps to 3.311%, according to Tradeweb. (miriam.mukuru@wsj.com)

Shell Should Be Wary of Public Backlash to Profit Haul

0955 GMT - Shell needs to be wary of negative public and political reaction to its announcement of record annual profit, AJ Bell says. While shareholders will inevitably be pleased, "the optics aren't great" and will do nothing to quieten demands for further windfall taxes, Bell says. Legal action that the company is facing over claims that oil spills have caused pollution in Nigeria also cast questions over its environmental, social and governance credentials, Bell says. "Shell needs to be careful--already oil and gas prices have retreated from their 2022 highs and if it pursues profit today at the expense of making the business sustainable for the future, the markets may judge it harshly," Bell's investment director Russ Mould writes. (philip.waller@wsj.com)

Cranswick's 3Q Revenue Growth Likely Boosted By Prices, Says Peel Hunt

0942 GMT - Most of Cranswick's third-quarter revenue growth was likely boosted by higher pricing with a slightly positive volume increase, says Peel Hunt in a note, after the British food producer said its revenue growth accelerated in line with first-half momentum. "Trading is likely to be more subdued in 4Q as consumers tighten their belts and pork prices in China have reduced," say analysts Charles Hall and Andrew Ford. Peel Hunt has a hold rating on the stock with a 3,800 pence price target. Shares rise 4.8% at 3,292 pence, its highest price in over six months. (elena.vardon@wsj.com)

BT's Nine-Month Revenue, Ebitda in Line With Consensus

0932 GMT - BT Group's nine-month revenue and Ebitda are in line with consensus expectation, while free cash flow was light versus consensus due to higher level of capex and working capital absorption, Citi's Georgios Ierodiaconou and Siyi He say in a research note. The U.K. telecommunications company's fourth quarter is set to benefit from lower capex at Openreach and receivables in Enterprise, they add. Openreach's broadband line losses were a significant improvement that should at least partly alleviate concerns after the steep decline in the first half, they note. Citi has a buy rating on the stock with a target price of 160 pence.(kyle.morris@dowjones.com)

ScS Seems to Be Emerging From Recession After Reassuring Update

0912 GMT - ScS provided a reassuring update, confirming that trading through the 26 weeks to Jan. 28 has improved despite the U.K. consumer recession, Shore Capital analysts Darren Shirley and Clive Black say in a note. As the upholstered-furniture and floorings retailer has been building momentum, order values are likely to have benefited from higher average selling price, they add. "We leave our forecasts unchanged and reiterate our view that ScS will emerge from the U.K. consumer recession well placed to expand market share and profitability, deliver sustained cash generation, and support optionality from an already cash rich, rock solid, balance sheet," they say. (michael.susin@wsj.com)

Bunzl's Contract Renewal Is Better Than Feared, Says Citi

0904 GMT - The outcome of Bunzl's renewal of its supply contract with its largest customer--which Citi identifies as Walmart--is better than the market feared, says the U.S. bank in a note. Walmart accounts for 9%-10% of the international distribution and services company's revenues, Citi analysts say. They see the contract--which is no longer cost-plus structured--potentially translating into pretax ROCE contribution of around 20% as inventory turnover is high and margins are protected with price volatility being removed. Adjusting mechanisms for operating expenses pressures should yield a relatively stable but low Ebita margin of less than 3% for the contract, they add. Citi rates the stock buy. Shares are up 2.2% at 3,045 pence. (elena.vardon@wsj.com)

BOE to Raise Rates on Thursday But Pause Is In Sight

0857 GMT - Markets are widely expecting the Bank of England to raise interest rates by 50 basis points to 4.0% on Thursday as underlying inflationary pressures, including wage growth, have picked up since December's policy meeting, but a pause in rate increases is in sight, Gurpreet Gill, macro strategist for fixed income at Goldman Sachs Asset Management, says in a note. She expects the BOE to remain concerned around second-round inflation effects given high inflation expectations and firm wage growth, "however, we think a slowdown in inflation over the coming months would support the case for a pause in policy tightening after a terminal rate of 4.25% is reached in March." The BOE's decision is due at 1200 GMT. (emese.bartha@wsj.com)

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

February 02, 2023 05:37 ET (10:37 GMT)

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