The FTSE 100 closed Wednesday down 0.2% to 7744 points amid a
weaker trading in global markets while travel and leisure stocks
continued their positive streak. Insurer Aviva lead a short list of
risers, up 3.3%, after reporting a positive update to its
general-insurance businesses. British Airways owner IAG rose 2% on
the back of easyJet forecasting a return to annual profit supported
by strong demand for travel despite the cost-of-living crisis, CMC
chief market analyst Michael Hewson says in a note. Amid the top
fallers, Ocado closed down 4.9%, while credit-reporting agency
Experian was down 3.7% and Scottish Mortgage Investment Trust fell
2.9% after posting a negative return for the year ended March
31.
Companies News:
Fresnillo 2022 Gold Production Fell, Sees 2023 Production
Potentially Rising
Fresnillo PLC on Wednesday said its 2022 gold production fell in
line with expectations though silver production rose, and it
forecast a range including potentially higher gold production in
2023.
---
Quilter 4Q Assets Under Management Down On Year
Quilter PLC on Wednesday said its fourth-quarter assets under
management and administration came in below those of a year earlier
due to slower activity in equity markets and slightly lower bond
yields in the three-month period.
---
Aviva Estimates GBP50 Mln Cost Due to UK December Weather
Aviva PLC said Wednesday that it expects the cold weather in the
U.K. during December to cost around 50 million pounds ($61.6
million) and that its overall weather experience for the quarter
year is marginally above the long-term averages, although in line
for the year as a whole.
---
J.D. Wetherspoon 1H Sales Rose On Year But Remain Short of
Prepandemic Levels
J.D. Wetherspoon PLC said Wednesday that sales for the first
half of fiscal 2023 rose on year though remained below prepandemic
levels, and said it was cautiously optimistic for the
full-year.
---
easyJet Expects to Beat FY 2023 Pretax Profit Market Consensus
After 1Q Revenue Rose
easyJet PLC said Wednesday that it expects to beat fiscal 2023
market consensus for pretax profit after first-quarter revenue
rose, and that booking strength continues across the second quarter
and into the summer season.
---
CMC Markets Sees FY 2023 Net Operating Income in Line With
Views
CMC Markets PLC said Wednesday that net operating income for
fiscal 2023 is on track to meet market expectations, but didn't
provide any figures
---
Tullow Oil to Report Higher Revenue, Free Cash Flow Ahead of
Guidance for 2022
Tullow Oil PLC said Wednesday that it expects to report a rise
in revenue for 2022, and that free cash flow for the year will be
around $267 million and ahead of guidance.
---
Polymetal Meets 2022 Production Expectations; Sees 2023 Costs
Rising Slightly
Polymetal International PLC said Wednesday that it met
production guidance in 2022, and guided for roughly flat production
and slightly higher costs in fiscal 2023.
---
Next Fifteen Sees FY 2023 Revenue Grow 55% On Year
Next Fifteen Communications Group PLC on Wednesday said it
expects fiscal 2023 results to be in line with management
expectations after a strong second half.
---
Pendragon to Beat 2022 Underlying Pretax Profit Forecasts After
Strong 4Q
Pendragon PLC said Wednesday that it expects to beat 2022
underlying pretax profit market expectations after a strong
fourth-quarter performance.
---
OnTheMarket Expects Higher Adjusted Operating Profit for FY
2023
OnTheMarket PLC said Wednesday that its adjusted operating
profit for fiscal 2023 is expected to rise in line with management
expectations.
---
hVIVO Shares Rise on Expected Higher 2022 Revenue; To Make
Shareholder Distribution
Shares in hVIVO PLC rose Wednesday after the company said it
expects to report a year-on-year rise in revenue for 2022 and that
it intends to make a shareholder distribution in respect of 2022's
financial performance.
---
Home REIT Confirms Tenant Hasn't Paid Rent; Working to Fix
Issues
Home REIT PLC confirmed Wednesday that tenant Lotus Sanctuary
CIC hasn't paid rent for the quarter to Nov. 30, and it was working
constructively with Lotus to fix the tenant's operational
issues.
---
Keywords Studios Expects 2022 Revenue, Adjusted Pretax Profit to
Exceed Recent Guidance
Keywords Studios PLC said Wednesday that it expects to beat
previously forecast revenue and adjusted pretax profit expectations
for 2022 as it benefited from high demand for its services,
particularly the create and globalize service lines.
---
Watkin Jones FY 2022 Pretax Profit Fell on Exceptional
Charge
Watkin Jones PLC on Wednesday said its pretax profit for fiscal
2022 was 64% lower as it booked an exceptional charge and said it
sees margin pressures continuing into fiscal 2023.
---
Inland Homes Shares Fall on Downgraded Guidance for FY 2022
Pretax Loss
Inland Homes PLC shares fell Wednesday after it said that it
expects a wider pretax loss for fiscal 2022 than previously guided,
and said it has sold its greenfield strategic land portfolio given
strengthening government restrictions.
---
XP Factory Sees 2022 Revenue, Adjusted Ebitda Significantly
Rising
XP Factory PLC said Wednesday that it expects to report
significantly increased revenue and adjusted earnings for 2022,
reflecting underlying growth and the first year of revenue from its
Boom Battle Bar brand acquisition.
---
Rurelec Shares Fall on Liquidity Warning
Shares in Rurelec PLC fell Wednesday after the company said its
liquidity position will become acute in the second quarter of
2023.
---
Van Elle Shares Fall After CEO Warns of Challenges
Shares in Van Elle Holdings PLC fell Wednesday as Chief
Executive Mark Cutler warned of more challenging market conditions
in the short term, though the company's board is confident in
achieving market expectations for the full year.
---
Gresham House Sees 2022 Adjusted Operating Profit at Top End of
Market Views
Gresham House PLC said Wednesday that it expects adjusted
operating profit for 2022 to be at the top end of market forecasts,
and that assets under management at year-end are expected to be up
20%.
---
Ascential Shares Soar After 2022 Results to Beat Views, Proposed
Reorganization
Shares in Ascential PLC rose 24% on Wednesday after the company
said its revenue and core profit for 2022 are expected to beat
market expectations an that it intends to spin off one of its
businesses and sell another as part of a reorganization of its
portfolio.
---
Epwin Group Sees 2022 Adjusted Pretax Profit in Line With
Views
Epwin Group PLC said Wednesday that it expects to report
adjusted pretax profit for last year in line with market
expectations, as pricing increases helped it deliver higher
sales.
---
Beowulf Mining Shares Fall on $11.2 Mln Discount Fundraise
Plans
Beowulf Mining PLC shares fell Wednesday after it said it will
raise up to 9.1 million pounds ($11.2 million) in a discount
fundraising to maintain the pace of development at the Kallak
iron-ore project.
---
Lords Group Shares Rise on Expectations of 2022 Beating Market
Forecasts
Shares of Lords Group Trading PLC rose 11% on Wednesday after
the company said that it expects to report a record performance for
last year and to beat market forecasts, boosted by its merchanting
unit.
---
Fonix Mobile to Pay Higher 1H Dividend on Gross Profit, Adjusted
Ebitda Rise
Fonix Mobile PLC said Wednesday that gross profit and adjusted
Ebitda both rose 12% over the first half of fiscal 2023 and that it
expects to declare an increased interim dividend in March, in line
with its policy.
---
Scancell Swung to 1H Pretax Loss, Net Assets Fell
Scancell Holdings PLC said Wednesday that it swung to a pretax
loss for the first half of fiscal 2023, and that net assets
fell.
---
eEnergy Is Cautiously Optimistic for FY 2023 After 1H Revenue
Rose
eEnergy Group PLC said Wednesday that its revenue significantly
rose in the first half of fiscal 2023 and it was cautiously
optimistic for the full year.
---
Ergomed Sees 2022 Adjusted Earnings Meeting Market Views; Names
New CFO
Ergomed PLC said Wednesday that it expects to report an adjusted
Ebitda for 2022 in line with market expectations while revenue
rose, and appointed Jonathan Curtain as incoming chief financial
officer.
---
Hargreaves Services Raises Interim Dividend After 1H Pretax
Profit Rose on Robust Performance
Hargreaves Services PLC said Wednesday that pretax profit for
the first half of fiscal 2023 increased on the back of a robust
performance, and raised its interim dividend.
---
Hill & Smith Sees 2022 Operating Profit at Top End of Market
Forecasts
Hill & Smith PLC said Wednesday that operating profit for
2022 is expected to be at the top end of market expectations after
a strong finish to the year and an outperformance in its U.S.
business.
---
Oakley Capital's 2022 Net Asset Value Rose On Year
Oakley Capital Investments Ltd. on Wednesday said its net asset
value at the end of 2022 was 21% higher than a year prior and that
it sees resilient business in 2023.
---
Tintra Appoints Paul James as COO
Tintra PLC said Wednesday that Paul James has been appointed as
chief operating officer, and that although this isn't a board
position he will be responsible for the operational rollout of its
strategy.
---
Biome Technologies Expects 2022 Revenue, Adjusted Ebitda Loss to
Meet Market Views
Biome Technologies PLC said Wednesday that it expects to report
higher revenue and adjusted loss before interest, taxes,
depreciation and amortization for 2022 to meet market
expectations.
---
Celsius Resources Expects GBP14.8 Mln Market Cap at Start of
London Trading in Late January
Celsius Resources Ltd. expects a market capitalization of 14.8
million pounds ($18.2 million) when its shares start trading on
London's junior AIM later this month, it said Wednesday.
---
Forterra Expects 2022 Earnings to Beat Management Views After
Price Increases
Forterra PLC said Wednesday that it expects its 2022 earnings to
be slightly ahead of management views as it increased prices to
offset inflation costs, but that it saw a softening in demand
toward the end of the year.
---
Broadcom's $61 Bln Acquisition of VMware Faces UK Regulator
Probe
The U.K. Competition and Markets Authority said Wednesday that
it has begun a review into chip maker Broadcom Inc.'s planned $61
billion acquisition of VMware Inc. and has set a deadline of March
22 for its initial decision.
---
Ex-Janus Henderson analyst accused of insider dealing, money
laundering -- Financial News
Redinel Korfuzi is accused of using confidential inside
information to help him and four other individuals net profits of
GBP1.5m
---
Diageo's 1H Sales Poised To Grow, 2H Prompts Caution -- Earnings
Preview
Diageo PLC is scheduled to report results for the first half of
fiscal 2023 on Thursday. Here's what you need to know:
Market Talk:
J.D. Wetherspoon Sales Close to Prepandemic Levels
1146 GMT - J.D. Wetherspoon's holiday performance update was in
line with commentary from its peers with strong business throughout
the festive period and like-for-like sales almost meeting
prepandemic levels, Jefferies says. The pub operator said it
remains "cautiously optimistic" for 2023 and hasn't flagged any
incremental cost pressures nor any hit from strikes or snow,
Jefferies analysts say in a research note. The company has
financial and product characteristics that should mitigate
pressures, including a mostly freehold estate, high leverage with
interest-rate swaps now terminated, strong offer pricing compared
with peers, fixed utility costs and long-term food-and-drink
contracts, the U.S. bank says. Jefferies retains its buy rating and
479.0 pence price target on J.D. Wetherspoon's stock.
(joseph.hoppe@wsj.com)
---
J.D. Wetherspoon's Performance Missing Prepandemic Levels Is
'Damaging'
1149 GMT - J.D. Wetherspoon's Christmas business was better
on-year, but that is unsurprising--what is damaging is it is still
below prepandemic levels, AJ Bell says. The pub operator always
prized volume over margins, so given how fast costs are rising it
is unsurprising that profitability is pressured, AJ Bell investment
director Russ Mould says in a market comment. Chair Tim Martin
labels supermarkets as the culprit, as people buy booze in shops
and drink at home--a situation he notes is exacerbated by
differences in tax treatment, the brokerage says. "Barring some
kind of concession by the government, all Wetherspoons can do is
redouble its efforts to make its venues appealing places for people
to visit, rather than just somewhere to buy relatively inexpensive
drinks," Mould says. Shares are down 2.9% at 465.0 pence.
(joseph.hoppe@wsj.com)
---
Diageo 1H Likely to Show Little Signs of Change in Consumer
Behavior
1157 GMT - Diageo's 1H performance is expected show early signs
of slowing premiumisation trends--the action of making a brand more
appealing by emphasizing its superior quality or exclusivity--in
North America, Citi analysts say in a note. "(In North America) we
expect overall trading to have held up well, but for management to
highlight early signs of changing consumer behavior with value and
standard brands declining less and the rate of premiumisation to
higher-end products easing," they say. As for emerging markets,
they are likely to be resilient led by India and Latin America,
Citi says. Overall, trading is expected to have limited signs of
significant changes in consumer behavior or downtrading to date,
the U.S. bank says. (michael.susin@wsj.com)
---
DiscoverIE Better Than Peers at Passing on Costs, Says Shore
Capital
1158 GMT - DiscoverIE has been more successful than peers in
passing on costs due to its customized solutions and its products
representing a relatively small proportion of clients' budgets,
says Shore Capital. Analysts Tom Fraine and Akhil Patel say the
electronic components maker's gross margin has remained robust
despite copper and aluminum prices decreasing, signaling price
increases may have moderated in the third quarter. They add that
operational leverage and M&A could drive further margin
expansion. Shore rates the stock hold, noting the group looks well
placed to benefit from long-term trends. Shares are up 4.6% at
828.0 pence. (elena.vardon@wsj.com)
---
J.D. Wetherspoon Sales Growth Reverses, Guidance Seen as
Tenuous
1203 GMT - J.D. Wetherspoon's like-for-like sales slowed to 2%
below prepandemic levels over the last 12 weeks, having been 0.4%
above in the first 14 weeks to early November, Peel Hunt says. The
pub operator's high operational gearing in its low pricing/low
margin model leaves forecasts hugely sensitive to small changes in
sales and Peel Hunt will consider cutting forecasts after an
analyst meeting, Douglas Jack and Ivor Jones say in a research
note. "We believe the combination of a tough trading environment
and current fixed energy contracts maturing in July leave forecast
risk weighted to the downside," the analysts say. Peel Hunt retains
its hold rating and 550 pence price target on the stock. Shares are
down 2.7% at 466.2 pence. (joseph.hoppe@wsj.com)
---
Upcoming Central Bank Meetings Likely to Drive Up Bond
Yields
1220 GMT - Upcoming meetings by the U.S. Federal Reserve Bank,
the European Central Bank and the Bank of England are expected to
deliver interest-rate increases which "could be a tough environment
for all asset classes," RBC Capital Markets analysts say in a note.
Interest-rate hikes are expected to drive up government bond yields
and put downward pressure on equity markets, the analysts say. The
anticipated economic downturn is also likely to negatively affect
equities, according to the Canadian bank.
(miriam.mukuru@wsj.com)
---
EasyJet's Numbers Need to Come Up as Previous Guidance Looks
Overly Cautious
1221 GMT - Considering easyJet's 1Q guidance came at the end of
November and looked pessimistic versus commentary from peers, the
scale of the 1Q beat is significant and reflects either a strong
upturn in December or an overly cautious view at the end of
November, Bernstein analyst Alex Irving says in a note. The budget
airline guided for an increase of around 20% in revenue per seat
which ended up at over 36% as both fares and ancillaries rose
around 20%, and it expects these strong trends to continue into 2Q,
Irving says. "Airline reporting season starts optimistically, and
we expect easyJet to be the first of several strong prints. Earlier
guidance looks overly cautious and numbers will need to come up,"
he says. (anthony.orunagoriainoff@dowjones.com)
---
Direct Line Value Could Be Preserved by Ditching 2023 Dividend,
Says Berenberg
1226 GMT - Direct Line not paying a dividend in 2023 could be
the right option, Berenberg says in a note. The brokerage sees this
as the most effective and cost-efficient option for the insurer as
it tries to recapitalize itself. "While we believe that Direct Line
has the ability to generate good returns in the long term, if the
cancelling of the dividend is announced, we believe that this would
lead to further underperformance," says analyst Thomas Bateman,
cutting Berenberg's rating of the stock to hold from buy. He adds
that this option would help preserve the value of shares over the
long term instead of permanently devaluing them if other options
are utilized. The target price is cut to 160 pence from 272 pence
to reflect a higher cost of equity associated with the shares, he
adds. Shares fall 2.2% at 172.20 pence. (elena.vardon@wsj.com)
---
J.D. Wetherspoon's High-Volume, Low-Margin Structure Looks
Risky
1249 GMT - J.D. Wetherspoon's like-for-like sales remain
stubbornly below prepandemic levels and while the pub operator is
improving, it is still lagging behind the sector's recovery,
Liberum says. This is likely structural with a change in
demographics and behavior creating challenges for its large-site,
high-volume, low-margin model, Liberum analysts say in a research
note. Furthermore, the shift in sales mix toward food sales is
likely to weigh on margins, compounding the effect of inflationary
headwinds, they say. "There is nothing in this update to allay our
concerns that J.D. Wetherspoon's reliance on large, high-volume
sites remain structurally challenged from both a volume recovery
and margin perspective," the brokerage says. Liberum retains its
hold rating and 450 pence price target on J.D. Wetherspoon's stock.
Shares are down 2.6% at 466.4 pence. (joseph.hoppe@wsj.com)
---
Wetherspoon Faces Cost Pressures, Debt Concerns
1255 GMT - J.D. Wetherspoon is facing pressures despite upbeat
longer-term prospects, Panmure Gordon says, downgrading the U.K.
pub group to hold from buy. The company's unique low pricing and
high-volume business model is fundamentally attractive and
management acts in the long-term interest of the business, Panmure
says. Wetherspoon also has plenty of long-term opportunities
including the chance to gain market share from smaller operators
likely to be struggling, the U.K. brokerage says. "However, given
the current cost pressures facing the company, concerns about net
debt and current valuation, we cut to a hold recommendation,"
analyst Alex Chatterton writes, cutting Panmure's target price on
the stock to 460 pence from 640p. Shares fall 3% to 466 pence.
(philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
January 25, 2023 11:59 ET (16:59 GMT)
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