AB Foods Forecasts Lower Fiscal Year Profit as -2-

Harvest Minerals Ltd. said Tuesday that invoiced sales of its organic fertilizer, KP Fertil, rose in the fourth quarter, as well as in 2022, and that it expects sales to rise further in 2023.

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Capricorn Energy CEO Simon Thomson, Nonexecutive Chairwoman Nicoletta Giadrossi Step Down

Capricorn Energy PLC said Tuesday that Chief Executive Simon Thomson and Nonexecutive Chairwoman Nicoletta Giadrossi have stepped down from their roles with immediate effect.

 
Market Talk: 

Sureserve's Growth Visibility Shows Good Value, Says Shore Capital

1019 GMT - Sureserve's rating is undemanding given its growth prospects, revenue visibility and resilience from longer contracts, Shore Capital says in a note. The brokerage upgrades its estimates after the social-housing energy services group's revenue for fiscal 2022 beat expectations and said it is confident looking to fiscal 2023 as its order book already covers 79% of the year's revenue. "In our view, the cash-rich group appears good value given growth prospects reinforced by contracts that have grown from five to six years," says analyst Alastair Stewart. Shore has Sureserve as a house stock. Shares rise 8.6% at 91.8 pence. ([e-mail])

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Sureserve Cash Could Be Deployed in M&A, Peel Hunt Says

1022 GMT - Sureserve shows potential for M&A given fragmented markets and management capabilities, Peel Hunt says in a note. "The rising cash balances (noting the decision to not pay a dividend) and robust M&A pipeline leaves the investor focus on acquisitions given the clear successes (including cross selling) arising from the CorEnergy acquisition," analyst Andrew Nussey says, pointing out that cash balances represent around 20% of its current market cap. The services group's operational momentum and outlook--with potential for double-digit growth--leave the shares undervalued, he says. Peel Hunt rates the stock buy. Shares rise 8.6% at 91.8 pence. ([e-mail])

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Marston's Update Shows Resilience of Community Pub Model

1038 GMT - Marston's update was reassuring as it reported strong momentum in the 16 weeks to Jan. 21, Shore Capital analyst Greg Johnson says in a note. This showed the resilience of the community pub model in the current environment as trading patterns appear unchanged over the last few months, and a limited effect from rail strikes, Johnson says. Furthermore the pub operator has hedged all of FY 2023's electricity costs, is fully hedged for gas until March 2025, and this has been achieved with no change to earnings guidance, Johnson says. This update is seen as supportive of full-year pretax profit estimates of GBP52 million with most of the year-on-year operating profit increase being in the 1H, against soft comparatives, he says. ([e-mail])

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Accrol Shares Look Cheap on Strong Results, Growth

1048 GMT - Accrol has delivered strong first-half results, reflecting successful pass-through of costs, strong volume market share gains and effective control over costs, Liberum says. The U.K. tissue producer's capital investment program in core operations is now complete, and the group has laid out plans to build its own paper mill--funded entirely through its own cash or through debt--which will further increase the resilience, strengthen the leadership position and improve the profitability of the business, Liberum analysts say in a research note. Accrol's key catalysts, single-digit price-to-earnings ratio and free cash flow make its shares undervalued, the brokerage says. Liberum retains its buy rating on the stock and 60 pence price target. Shares are up 7.0% at 31.3 pence. ([e-mail])

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Staffline's 2023 Earnings to Take Hit From Weakening Outlook, Liberum Says

1048 GMT - Staffline's divisions will suffer from a weakening outlook across the sector, Liberum says in a note after the recruitment-and-training company said it sees macroeconomic headwinds persisting and is cautious for 2023. "Low unemployment will continue to constrain volumes in PeoplePlus' skills and restart businesses. The recruitment divisions will be affected by a broader slowdown in the demand for permanent recruiting as demonstrated by the cuts to guidance from [peers] Robert Walters and PageGroup earlier this month," analysts Joe Brent and Alex O'Hanlon say, cutting their EPS estimate for 2023 by 47%. Liberum keeps its buy rating on the stock but cuts its target price to 60.0 pence from 100.0 pence. Shares are up 2.1% at 33.7 pence. ([e-mail])

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UK 15- to 20-Year Gilts Likely to Underperform in Next Two Weeks

1056 GMT - U.K. 15- to 20-year maturity gilts are expected to cheapen over the next two weeks as supply is set to increase when the Debt Management Office issues gilts in the same maturity sector on Feb. 8, RBC analysts say in a note. "The 15-20y sector typically cheapens 2-3 weeks prior to the start of a more regular supply period for the 15-20y sector by the DMO," they say, "Given our recent historical observations, we think the 15-20y sector will begin to cheapen into that supply event." ([e-mail])

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UK's Weak PMI Data Could Support End of BOE's Tightening Cycle in Spring

1102 GMT - U.K. PMI data for January strengthens the case for the Bank of England to stop increasing interest rates soon, Pantheon Macroeconomics senior U.K. economist Gabriella Dickens says in a note. The data point to weakening economic activity, in contrast to the emerging resilience seen in the rest of Europe, she says. Some other details of the survey signal easing employment and abating inflation pressures, Dickens says. "We expect these trends to continue and the [BOE's] Monetary Policy Committee to have enough evidence to hand that the labour market is loosening and CPI inflation is on its way back to target to stop hiking Bank Rate in March, after increasing it by 50bp to 4.0% in February," she says. ([e-mail])

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Netcall Has Upgrades on the Horizon, Says Canaccord Genuity

1107 GMT - Netcall has scope for Ebitda and earnings upgrades in fiscal 2023, Canaccord Genuity says in a note after the customer-experience software company said its sales grew 19% and its profitability 29% in the first half. "We believe Netcall is firmly on the upward trajectory of accelerating growth," say Canaccord analysts, reiterating the group's defensiveness. It flags its unified offering that helps organizations cut costs and run leaner operations, which is underpinning growing demand. The group is well-funded to support investment into product and people, it adds. The brokerage has a buy rating on the stock and a 130 pence price target. Shares rise 2.4% at 108.5 pence. ([e-mail])

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FireAngel's Outlook Is Encouraging, Shore Capital Says

1128 GMT - FireAngel Safety Technology Group's outlook for fiscal 2023 backed by a positive update on fiscal 2022 is most encouraging, Shore Capital says in a note. The supplier of home safety products said it sees significant improvement in its financial journey including higher revenue in the year ahead as societal and regulatory development drive demand for its products. "Having stalled due to macroeconomic headwinds in FY22F, we are encouraged that the gross margin improvement strategy is set to resume in FY23F and beyond," says analyst Rob Sanders. The brokerage sees strong demand for the company's products in coming years and substantial potential upside in the share price long term. Shore has FireAngel as a house stock. Shares rise 11.8% at 9.0 pence. ([e-mail])

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Senior's Brief Update Should Be Well-Received

1131 GMT - Senior PLC's 2022 update was short and to the point but very welcome, and should be a positive catalyst for the share price, Jefferies says. The U.K. engineering company has significant potential and while there is a mixed macroeconomic backdrop and supply-chain challenges, Senior looks well-positioned, Jefferies analysts say in a research note. "We also remain upbeat/confident about the Aerospace recovery over the next few years, which bodes well for the group's wider recovery potential," the U.S. bank says. Jefferies reiterates its buy rating and 190.0 pence price target on Senior's stock. Shares are up 9.7% at 149.6 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

01-24-23 0653ET