UK Public Finances Overshoot Give Chancellor Little Room for Giveaways

UK Public Finances Overshoot Give Chancellor Little Room for Giveaways

1131 GMT - The U.K.'s May public finances limit Chancellor Jeremy Hunt's fiscal headroom, with net borrowing excluding banking at GBP20.05 billion, above consensus expectations and the Office for Budget Responsibility's forecast of GBP18.3 billion, Ruth Gregory, deputy chief U.K. economist at Capital Economics writes. Some of May's overshoot in borrowing reflected the recent rises in RPI inflation--pegged to index-linked gilts--causing high debt interest payments of GBP7.7 billion, she says. The inflation release suggests more of this to come, and it is likely the OBR will have to revise up its borrowing forecast to account for higher interest rates, she adds. The figures cast further doubt on the Chancellor's ability to unveil big pre-election tax cuts while meeting its fiscal rules, Gregory says. ([e-mail])

COMPANIES NEWS:

THG CEO Transfers Special Share; 1H Adjusted Earnings Expected to Rise

THG said Wednesday that chief executive and founder Matthew Moulding has transferred a special share he held, ending all rights attached to it, and that the company expects a significant increase in adjusted earnings for the first half.

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Berkeley Group FY 2023 Profit, Revenue Rose; Calls for Certainty in Regulatory Environment

Berkeley Group Holdings said Wednesday that pretax profit rose and beat consensus for fiscal 2023 as revenue increased, and that the future delivery of new homes was jeopardized by a planning environment and regulatory uncertainty and called for this to be resolved.

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Liontrust Asset Management FY 2023 Pretax Profit Dropped on Lower Flows, Higher Costs

Liontrust Asset Management on Wednesday posted a fall in pretax profit for fiscal 2023 after it saw net outflows and a negative market and investment performance, and booked heavier administration expenses.

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Halfords FY 2023 Pretax Profit Fell on Costs; Sees Profit Growth FY 2024

Halfords Group said Wednesday that pretax profit for fiscal 2023 fell sharply, hit by cost inflation and market headwinds, but said it expects profit growth in the year ahead.

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Gemfields' June Ruby Auction Brings in $80.4 Mln

Gemfields Group on Wednesday said that it has secured revenue of $80.4 million from a ruby auction held from June 5 to June 20.

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GCP Infrastructure Investments 1H Profit Fell on Lower Electricity Prices

GCP Infrastructure Investments said Wednesday that profit for the first half of fiscal 2023 fell on lower electricity prices, and that the risk to economic activity remains due to the cost-of-living crisis and high borrowing costs.

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Revolution Beauty to Postpone AGM After Boohoo Request

Revolution Beauty Group said Wednesday that its board will propose to postpone the company's annual general meeting which was scheduled for June 27 after it received a requisition from shareholder Boohoo Group to remove three directors.

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Alfa Financial Software Enters Into Possible Offer Agreement With EQT Fund Management

Alfa Financial Software Holdings said Wednesday that its majority shareholder, CHP Software and Consulting, has entered into an agreement with EQT Fund Management in respect of a possible offer for the entire issued and to be issued share capital of the company at 208 pence ($2.66) a share, valuing the company at GBP614.4 million.

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Esken Shares Drop After Warning of Uncertain Future Amid Division Sales

Shares in Esken fell Wednesday after the company warned of an uncertain future while it looks to sell its two divisions and said it would face severe liquidity issues should the sale of its renewables business not be completed before the end of December.

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Nichols Names David Taylor as Interim CFO

Nichols said Wednesday that it has appointed David Taylor as interim chief financial officer, effective immediately.

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Bushveld Shares Fall After Company Says It Needs Extra Liquidity, Names CEO

Shares in Bushveld Minerals fell Wednesday after the company said it needs extra liquidity to meets its obligations over the coming year, and that it has appointed Craig W. Coltman as its new chief executive.

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Tekmar Group Shares Jump After Narrowed 1H Loss, CFO Appointment

Shares in Tekmar Group rose Wednesday after the company said its pretax loss for the first half of fiscal 2023 narrowed and revenue rose, and appointed Leanne Wilkinson as chief financial officer.

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Keywords Studios Names Robert Kingston as Finance Chief

Keywords Studios said Wednesday that it has appointed Robert Kingston as its new chief financial officer, starting July 1.

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Polarean Imaging Appoints Christopher Von Jako as New CEO

Polarean Imaging said Wednesday that it has appointed Christopher von Jako as its new chief executive officer with immediate effect to replace Richard Hullihen, who is retiring.

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Hydrogen Utopia Shares Rise After Agreement to Buy Carbon Capture and Sequestration Stake

Shares in Hydrogen Utopia International rose 22% on Wednesday after the group agreed to buy a stake in Carbon Capture and Sequestration.

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Restaurant Group CFO to Step Down; Mark Chambers Named as Replacement

Restaurant Group said Wednesday that Chief Financial Officer Kirk Davis will step down in September after more than five years in the role, and that Mark Chambers has been named as his successor.

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Haydale Graphene Industries Shares Fall on Delayed Projects, Higher Costs

Shares in Haydale Graphene Industries fell Wednesday after the company said a number of projects expected to start in June will be delayed, and warned on higher adjusted administrative costs for fiscal 2023.

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Vast Resources Shares Rise After Debt Extension Deal

Vast Resources shares rose on Wednesday after the group announced that it has secured an extension of its debt owed to A&T Investments and Mercuria Energy Trading.

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Integrated Diagnostics Names Ahmed El Gebeily as Incoming CFO

Integrated Diagnostics Holdings said Wednesday that it has appointed Ahmed El Gebeily as incoming chief financial officer, effective Aug. 15.

MARKET TALK:

U.K. Wealth Stocks Have Scope To Turn More Positive On Structural Growth Names

1125 GMT - The valuations of U.K. wealth stocks have suffered from short-term pressures from cyclical headwinds but the sector remains an attractive pocket of structural growth, Barclays says in a note. St. James's Place--which analysts upgrade to overweight and rank highest among peers--is well placed to continue to benefit from addressing the substantial advice gap underpinning growth in the affluent channel, they write. Other businesses with strong positioning in the fast-growing affluent and mass-affluent channels such as IntegraFin, Hargreaves Lansdown and AJ Bell--which it raises to equalweight--rank higher than those exposed to the slower growth high-net-worth channel. These include Rathbones--which it cuts to underweight--and Quilter, also placed among those that has consistently been losing market share alongside Abrdn. ([e-mail])

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BOE Launches Program Exploring Risks in Banks and Non-Bank Financial Institutions

1120 GMT - The Bank of England has launched a program exploring risks in the banking and non-banking sector to support U.K.'s financial stability, said BOE's Financial Stability, Strategy and Risk director Lee Foulger at the Norges Bank policy conference on Wednesday. "The BOE will be conducting a system-wide exploratory scenario (SWES) exercise involving non-banks as well as banks to help us to map out risks," he said. The aim of the exercise is to gain a better undertanding of the risks to the U.K. financial sector, Foulger said. "Exercises such as this are crucial to enhancing our understanding of vulnerabilities and our ability to respond to them," he said. ([e-mail])

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Halfords Faces Economic Pressure, But Shares Look Cheap

1117 GMT - Halfords shares look cheap despite economic uncertainty, Peel Hunt says, upgrading the U.K. car-accessory and bike retailer to buy from add and its price target to 275 pence from 250p. Halfords finished the year to the end of March solidly, has started 2023/24 well and management voiced increased confidence about the outlook, Peel says. Still, the consumer and economic background remains a concern, the brokerage says, though it raises its profit forecasts for 2023/24 and 2024/25. "On these numbers, the shares look decidedly cheap in our view and if management can maintain this forecast momentum, the shares should finish 2023 much higher," Peel analysts say in a note. Shares rise 5% to 202p.([e-mail])

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Halfords's Performance Accelerates on Business Model Switch

1105 GMT - Halfords's FY 2023 performance shows that the shift toward a more service-oriented model is bearing fruit, Peel Hunt analysts say in a note. The motoring-and-cycling retailer's performance is also expected to be boosted by synergies from acquisitions along with cost savings measures and emerging tailwinds, they add. "The shape of Halfords's progress over the next few years may look a little odd, but that is because-despite the slightly better costs outlook-it will likely be FY2025E before the full benefit is felt," the analysts add. Peel Hunt upgrades the recommendation on the stock to buy from add and target price to 275 pence from 250 pence. ([e-mail])

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GCP Infrastructure Faces Limited Liquidity

1103 GMT - For GCP Infrastructure, liquidity remains an issue, Liberum analyst Joseph Pepper says in a note. While the company confirmed its GBP15 million buyback program, any further buybacks or reinvestments now appear limited, he says. The investment company has drawn GBP154 million from its revolving credit facility of GBP190 million, meaning investable cash currently remains constrained, the analyst says. Liberum rates the stock hold. ([e-mail])

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Halfords Needs Earnings Momentum For More Share Gains

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06-21-23 0752ET