UKX FTSE 100 Index

UK Online Retail Sales Continues to Lose Market Share

1157 GMT - The latest sales-monitor report from the British Retail Consortium showed that online channel sales in May continued to lose market share despite favorable comparatives as consumer behavior is shifting after the pandemic, Shore Capital analyst Clive Black says in a note. The monthly report showed a fall by 3% in online non-food sales in May, compared with a decline of 8.5% the same period a year ago, while the proportion of items bought online decreased to 36.3% in the month from 37.1% a year ago. "No doubt the trend will settle, but it remains a concern for those keen on both grocery and non-food online stocks", he says. (michael.susin@wsj.com)

COMPANIES NEWS:

Unilever Starts Search for New Chair, FT Reports

Unilever has begun the search to replace Chairman Nils Andersen, the Financial Times reports.

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British American Tobacco Backs 2023 Guidance, Existing Strategy

British American Tobacco on Tuesday reiterated 2023 guidance for revenue and earnings growth, and backed its existing strategy.

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AB Foods to Buy National Milk Records for GBP48.0 Mln

Associated British Foods said Tuesday that it has agreed to buy National Milk Records for 48.0 million pounds ($59.7 million) as part of a plan to expand its agri-food business.

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Property Franchise Expects to Meet Full-Year Views; Early 2023 Revenue Flat on Year

Property Franchise said Tuesday that it remains confident in meeting its full-year expectations, with revenue and management service fees for the first four months of 2023 flat on year.

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N. Brown Group Swung to FY 2023 Pretax Loss On Inflationary Pressure, Allianz Settlement

N. Brown Group said Tuesday that it swung to a pretax loss in the fiscal 2023, mainly due to a continuing adverse market environment and a settlement to Allianz following a legal dispute, and that it expects the inflationary environment to continue to hurt results.

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Paragon Banking Upgrades FY 2023 Guidance, Buyback

Paragon Banking Group on Tuesday updated its fiscal 2023 guidance for mortgage lending volumes and net interest margin as it launched a second 50.0 million pound ($62.2 million) share buyback program for the year.

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Argo Blockchain Swung to 1Q Pretax Loss; Mulling Options to Improve Balance Sheet

Argo Blockchain on Tuesday reported a swing to pretax loss for the first quarter of 2023, reflecting lower revenue and mining margins and a reduction in foreign exchange gains, and said it was evaluating options to strengthen its balance sheet.

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Zephyr Energy Raises GBP3.15Mln to Fund Project in Utah

Zephyr Energy said Tuesday that it has raised 3.15 million pounds ($3.9 million) via a share placing and subscription and will use the money for capital expenditure at its Paradox Basin project in Utah, U.S.

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Chemring 1H Pretax Profit Fell on Lower Revenue; Backs Guidance

Chemring Group said Tuesday that pretax profit for the first half of fiscal 2023 fell as revenue in the countermeasures and energetics division was hurt by delays to order intake, and backed its guidance for the year.

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Gooch & Housego 1H Pretax Profit Rose on Revenue Growth

Gooch & Housego on Tuesday backed its guidance for fiscal 2023 after posting a rise in first-half pretax profit following growth across its markets during the period.

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Billington Says 2023 Performance Is in Line With Market Views

Billington Holdings on Tuesday said it has started 2023 positively and that it is performing in line with market expectations.

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FireAngel Safety Shares Drop on GBP12.2 Mln Open Offer, Placing and Subscription

FireAngel Safety Technology shares fell Tuesday after it said it plans to raise up to around 12.2 million pounds ($15.2 million) through an open offer and a placing and subscription of shares, using proceeds to reduce net debt and for working capital.

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XLMedia Completes Personal Finance Asset Portfolio Disposal

XLMedia on Tuesday said it has sold off its entire personal finance asset portfolio as it disposed of its Money Under 30 domain and website.

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Gfinity Shares Fall on Partial Athlos Sale; Esports Division Closure

Shares in Gfinity fell Tuesday after the company said it has sold 72.5% of its Athlos subsidiary to Tourbillon Group UK for 1 pound ($1.24), and that it is closing down its esports division.

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Ethernity Networks Secured Components for Fibre Controller Contracts

Ethernity Networks on Tuesday said it secured the supply of components allowing it to fulfill its fibre controller contracts and bring in $3.3 million in revenue in 2023.

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Croma Security Solutions Shares Rise on GBP6.5 Mln Subsidiary Sale

Shares in Croma Security Solutions Group rose Tuesday after it said it had conditionally agreed to sell its subsidiary Vigilant Security (Scotland) to M&W Security for 6.5 million pounds ($8.1 million) plus intercompany balances of GBP1.1 million repayable to the company.

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Woodbois Agrees with Sydbank to Repay Outstanding $2.8 Mln by End-December

Woodbois said Tuesday that it has agreed with Sydbank that its outstanding balance of around $2.8 million will be repaid by no later than Dec. 29.

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B.P. Marsh & Partners to Return up to GBP13 Mln to Shareholders Over Three Years

B.P. Marsh & Partners on Tuesday set out a plan to return up to 13 million pounds ($16.2 million) to shareholders over the next three years via dividends and share buybacks.

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FireAngel Mulls Sale of Company, Shuffles Board Amid Widened 2022 Pretax Loss

FireAngel Safety Technology said Tuesday that its 2022 pretax loss widened, named a new chief executive and chair and said it will undertake a strategic review that may involve a sale of the company.

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APQ Global Shares Fall on Widened 2022 Pretax Loss

Shares in APQ Global fell Tuesday after the company said its 2022 pretax loss widened after booking a higher loss on financial assets at fair value, and that the dividend remained on hold until further notice.

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Oxford Metrics Shares Rise on Higher 1H Pretax Profit Due to Strong Demand

Oxford Metrics shares rose Wednesday after the company said first-half pretax profit rose significantly, and that it was well-placed to beat full-year market expectations.

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Brand Architekts Chairman Roger McDowell Taking Temporary Leave

Brand Architekts Group said Tuesday that Chairman Roger McDowell is taking a sabbatical for family health reasons with immediate effect.

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Genuit Group CFO Paul James Plans to Step Down by End of September

Genuit Group said Tuesday that Chief Financial Officer Paul James intends to step down this year to take up a role at a privately-owned company.

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Team17 Group Appoints Steve Bell as New CEO from January

Team17 Group said Tuesday that it has appointed Steve Bell as chief executive officer from January, replacing Debbie Bestwick who will step down at the end of this year.

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Marwyn Acquisition Co. II Names Will Self as New CEO

Marwyn Acquisition Co. II said Tuesday that it has appointed Will Self as chief executive officer, effective immediately.

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AFC Energy's Chief Operating Officer Jim Gibson to Step Down

Hydrogen technology company AFC Energy said Tuesday that Chief Operating Officer Jim Gibson intends to step down from his role at the end of his contractual notice period and as executive director from Friday.

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Accsys Technologies New CEO Jelena Arsic Van Os to Start on July 1

Accsys Technologies on Tuesday said that Jelena Arsic van Os will take up the chief executive role on July 1.

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TomCo Shares Fall on Changes to Tar Sands Takeover Option

Shares in TomCo Energy fell Tuesday after the company said it has agreed to certain amendments with Tar Sands to the exclusive takeover option held by TomCo's subsidiary Greenfield Energy, which owns a 10% interest in Tar Sands.

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Shell's Home Energy Retail Unit to Exit UK, Netherlands and Germany

Shell said Tuesday that its home energy retail unit will pull out of the U.K., Netherlands and Germany, with a sales process already underway.

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Camellia to Sell BF&M Stake for $100.0 Mln

Camellia said Tuesday that it will sell its entire interest in associate company BF&M to Bermuda Life Insurance Company for a total consideration of $100.0 million.

MARKET TALK:

Central Asia Markets Share Price Provides Attractive Risk-Reward

1122 GMT - Central Asia Markets shares are trading at attractive levels given recent pullback, RBC Capital Markets analyst Tyler Broda writes in a research note. "Although the ongoing mining method transition at [the Sasa mine] and a further deterioration in the economic environment remain risks, we see current levels as providing an attractive risk-reward," Broda says. The company, which produces copper, zinc and lead in Kazakhstan and North Macedonia, should still see the next twelve months relatively challenging, but the recent pullback in shares are overdone, the analyst says. RBC has lifted its rating on the stock to outperform from sector perform, while keeping its price target of 245.00 pence. (christian.moess@wsj.com)

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Anglo American's Operational Stability Should Return

1050 GMT - Anglo American should be able to restore some of its operational stability after a tough past 12 months, RBC Capital Markets analyst Tyler Broda writes in a research note. The diversified mining group previously had an operating track record that was near best-in-class, but has posted forgettable results as challenges mounted. Shares are down 37% over the past year versus the STOXX 600 index being down 18%. However, operational momentum is returning and Anglo American should be a relative beneficiary from improved sector sentiment, Broda says. RBC lifts its rating on the stock to outperform from sector perform and its price target to 2,700 pence from 2,500 pence. Shares are down 0.2% at 2,410.00 pence. (christian.moess@wsj.com)

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Chemring's 2H Order Book Revenue Forecast Points to Upgrades

1024 GMT - Chemring's 1H update is strong and should reignite interest in the defense company's equity story, analysts at Jefferies say in a note. Its organic revenue potential is greater than what the market expects and is underpinned by cyclical improvements at its energetics business and structural growth at cybersecurity arm Roke, the analysts say. Although FY 2023 guidance remains the same, numbers have been derisked thanks to an 11% adjusted Ebita beat, the analysts say. "Order book cover of 2H FY 2023 forecast revenue is ahead of history, meaning future upgrades remain on the cards," the analysts say. Jefferies rates the stock buy and has a 360 pence target price. Shares are up 8.8% at 292 pence. (anthony.orunagoriainoff@dowjones.com)

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Chemring's 1H Guidance Prompts Upgrades

1000 GMT - Chemring's 1H results and reiterated FY 2023 guidance, which implies a performance weighted toward 2H, are in line with analysts' expectations, Berenberg's George McWhirter and Philip Buller say in a note. The defense company's results point to tangible signs of swelling demand across its defense businesses, with 1H record order intake and an upgrade to medium-term guidance for cybersecurity arm Roke, the analysts say. Berenberg raises EPS estimates by 1%-4% over FY 2023 to FY 2025, and increases its outer-year countermeasures and energetics division revenue forecast by 35% to GBP180 million in FY 2027 after factoring a GBP90 million investment in new capacity due to swelling demand. Berenberg has a buy rating on the stock and a 360 pence target price. (anthony.orunagoriainoff@dowjones.com)

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Concerns on Paragon Banking's Exposure to Rates Seem Overdone

0946 GMT - Paragon Banking Group's first-half results and upgraded guidance suggest the concerns on the impact of rising interest rates on buy-to-let mortgage demand and impairments--which have weighed on shares--are currently overdone, Shore Capital says in a note after the property-and-business lender's half-year update. The raised mortgage lending and net interest margin guidance along with the buyback should drive a high single-digit percentage upgrade to the brokerage's already top-end earnings forecast, analyst Gary Greenwood writes. "Notwithstanding the uncertain economic environment, the outlook remains cautiously optimistic," he adds. Shares are up 7.5% at 541 pence, having lost 4% year to date. (elena.vardon@wsj.com)

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Property Franchise's Update Highlights Inherent Advantages

0944 GMT - Property Franchise delivered a reassuring update, highlighting likely opportunities in an uncertain market outlook which should help investors realize the resilient characteristics inherent in the company's model, Canaccord Genuity says. The franchised sales-and-letting agency is well-run, strongly cash generative and soundly funded and therefore is likely to emerge from the current downcycle in an even stronger competitive position, Canaccord analysts Justin Bates and Portia Patel say in a research note. "We believe the current valuation offers an attractive entry point, given the stage of the cycle and support of the dividend," the Canadian investment bank says. Canaccord retains its buy rating and 470 pence price target on the stock. Shares are flat on 310.0 pence. (joseph.hoppe@wsj.com)

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AO World's Costs Strategy Seen Directing Profits

0939 GMT - AO World is no longer a loss-making business after the group ironed out its costs, Shore Capital analysts Bradley Hughes and Clive Black say in a note as the U.K. investment group initiates its coverage of the stock with a buy rating. The online electrical-goods retailer is setting up to generate free cash flow and high-single-digit growth following a retrenchment from Europe, costs control improvement and refocus on profit, they say. The group's guidance implied a 2H Ebitda margin running at more than 6%, suggesting the group is already ahead of its guided 5% target, they say. "Consensus is currently too conservative on the gross margin contribution from delivery charging but too bullish on revenue growth, in our view," the analysts say. (michael.susin@wsj.com)

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Paragon Banking's Guidance Hike, Strong 1H Lift Shares

0934 GMT - Paragon Banking Group's raised guidance and strong first-half results sent its shares 7.5% higher at 541 pence. The specialist U.K. property-and-business lender lifted its net interest margin guidance as it posted a 22% increase in underlying profits for the six month period and outlined a second GBP50 million share buyback for the year. Jefferies points to the partial reversal of the previous year's fair value gains which weigh on statutory earnings but not on its underlying operational results, adding that its CET1 and total capital ratios are well above required levels. "We keep our [price target] at GBP7, and look to the buyback and higher consensus forecasts to catalyse the share price," Jefferies analysts write, rating the stock buy. (elena.vardon@wsj.com)

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Auto Trader's Fundamentals to Likely Drive Growth, Dividend Progression

0911 GMT - Auto Trader reported a robust FY 2023 performance and an encouraging outlook despite macroeconomic headwinds, Shore Capital analyst Roddy Davidson says in a note. The London-listed digital automotive marketplace's FY 2023 profitability was dragged by the inclusion of Autorama, which was already expected, he says. However, the group is anticipated to drive attractive EPS growth ahead, dividend-per-share progression and a robust cash generation which could lead to further share buybacks, the analyst says. "We believe the group's stock valuation looks undemanding relative to this potential and its fundamental attractions following a period of muted share price performance," he says. Shore upgrades the rating on the stock to buy from hold. (michael.susin@wsj.com)

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Gooch & Housego's Update Provides Extra Confidence

0909 GMT - Gooch & Housego's revenue growth and strong order book provides some additional confidence, finnCap says in a note after the U.K. manufacturer of optical products posted higher on-year first-half results. A sharper focus on operational delivery given the CEO's strategic review and progressive pickup in capacity should lead to significant profit and cash gains, analyst David Buxton says. "The shares remain at a significant discount to its peers and as margin and operational improvements come through, we see upside to the valuation," Buxton writes. finnCap keeps forecasts unchanged as well as its target price at 820 pence on the stock. Shares trade flat at 558 pence. (elena.vardon@wsj.com)

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(END) Dow Jones Newswires

June 06, 2023 08:27 ET (12:27 GMT)

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