The FTSE 100 closed down 0.2% Tuesday affected by Vodafone's uninspiring 1H numbers and downgraded outlook for the year. Furthermore, the U.K.'s economic data revealed rising inflation and an increasing national jobless rate with the country on the brink of recession. Ocado was the session's biggest faller, down 17%, followed by Vodafone, down 7.9%, and Endeavour Mining, down 2.9%. Centrica, the day's biggest riser, closed up 3.4%, followed by Melrose Industries and Scottish Mortgage Investment Trust, up 3.3% and 3.1% respectively.
Companies News:
BAE Systems Says 2H Performance Good So Far; Backs Guidance
BAE Systems PLC said Tuesday that its operational performance in the second half to date has been good despite challenging conditions, and backed its guidance for the year.
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Melrose Industries Group Revenue Up 14% Between July 1 and October 31
Melrose Industries PLC said Tuesday that its performance for the period of July 1 to Oct. 31 has been in line with the board's expectations, with revenue up 14% and operating profit substantially higher.
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UK Competition Regulator to Probe CapCo, Shaftesbury Deal
The U.K. competition regulator said Tuesday that it is considering whether the merger between Capital & Counties Properties PLC and Shaftesbury PLC might substantially reduce competition.
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Imperial Brands FY 2022 Pretax Profit Fell Amid Higher Costs; Raises Dividend
Imperial Brands PLC said Tuesday that pretax profit for fiscal 2022 fell as it booked increased costs and revenue declined, and raised its dividend payout.
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Morses Club to Constrain Lending as Funder Won't Provide an Advance
Morses Club PLC said Tuesday that it will take steps to constrain lending as its funders have confirmed that they won't provide a peak trading advance against its loan book for the period from Nov. 15 to Feb. 14.
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Ninety One 1H Pretax Profit Fell Amid Challenging Backdrop
Ninety One PLC said Tuesday that pretax profit fell in the first half of fiscal 2023 and reported outflows amid a challenging macroeconomic backdrop, and said that it expects these pressures to continue.
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Hornby Appoints Oliver Raeburn as New CEO
Hornby PLC said Tuesday that it has appointed Oliver Raeburn as group chief executive officer from early next year, whereupon Executive Chairman Lyndon Davies will step down to a nonexecutive role.
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Vodafone Sets New EUR1 Bln Costs-Saving Target as Macroeconomic Environment Worsens
Vodafone Group PLC on Tuesday reported a rise in pretax profit and revenue for the first half of fiscal 2023, but updated its guidance for the full year amid the challenging macroeconomic environment and set a new costs-savings target of more than 1 billion euros ($1.03 billion).
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Land Securities Swung to 1H Pretax Loss on Market Yield Shift
Land Securities Group PLC said Tuesday that it swung to a pretax loss in the first half of fiscal 2023, as shifts in market yields offset growth in earnings and revenue.
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DX (Group) Appoints Mark Hammond as New Executive Chairman
DX (Group) PLC said Tuesday that Mark Hammond has been appointed as executive chairman with immediate effect after Ron Series decided to retire.
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Workspace Group 1H Pretax Profit Rose Significantly on Higher Rent
Workspace Group PLC said Tuesday that first-half pretax profit and revenue rose significantly on higher net rental income and a swing to profit on the fair value of investment properties.
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Pressure Technologies to Raise Up to GBP2.5M to Support Working Capital
Pressure Technologies PLC said Tuesday that it is planning to raise up to 2.5 million pounds ($2.9 million) via a share placing and retail offer, and will use the money to support its short-term working capital requirements, while it progresses with longer-term financing opportunities.
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Speedy Hire 1H Pretax Profit Fell on Higher Costs; Sees FY 2023 in Line With Views
Speedy Hire PLC said Tuesday that pretax profit fell for the first half of fiscal 2023 due to increasing costs, but added that it is confident to deliver full-year performance in line with the management expectations.
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Baron Oil to Raise Up to GBP6 Mln; Shares Fall
Shares in Baron Oil PLC fell Tuesday after it said that it will raise around 6 million pounds ($7.1 million) via a discounted placing, a subscription and a retail offer.
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DX (Group) Shares Rise as FY 2022 Pretax Profit, Revenue Increase
Shares in DX (Group) PLC rose 8% on Tuesday after it said that pretax profit and revenue rose on the back of the successful execution of the growth strategy and investment.
Market Talk:
UK Labor-Market Tightness Expected to Gradually Unwind as Economy Weakens
1013 GMT - The U.K. labor market is no longer tightening, but it will likely take a few more months before the hit of the downturn in business confidence emerges in the data, Pantheon Macroeconomics' chief U.K. economist Samuel Tombs says in a note. "Employment usually lags changes in the wider economy, and surveys are beginning to show that many businesses are imposing a hiring freeze in response to the outlook for falling demand and rising borrowing costs," he says. Meanwhile, pay growth remained far too speedy for the Bank of England in the third quarter, but an upcoming slowdown in hiring should ease the pressure on businesses to pay more to retain staff, Tombs says. (xavier.fontdegloria@wsj.com)
Vodafone's EUR500 Mln Energy Headwind Seen to Hit Fiscal 2024 Numbers
0959 GMT - Consensus estimates for Vodafone Group's fiscal 2024 should fall as an expected EUR500 million energy-cost headwind is digested, Jefferies analysts Jerry Dellis and Yi Hsin Yeoh say in a research note. The U.K.-based telecommunications company tightened its fiscal 2023 adjusted Ebitda guidance range to the lower end and trimmed its free cash flow target as expected, say the analysts. Second-quarter service revenue trends worsened more-than-expected in Italy and Germany, but the U.K. was better on this front, they say. Jefferies has a hold rating on the stock with a target price of 100.00 pence. Shares trade down 6.8% at 97.12 pence. (kyle.morris@dowjones.com)
LandSec Looks Well Placed But Likely Recession Will Weigh
0954 GMT - Since its new strategy update, Land Securities looks well placed to quickly improve its positioning and performance while limiting any temporary loss of earnings, all else being equal, RBC Capital Markets says. However, the property developer and investor is still likely to face a recession scenario given the relatively high proportion of variable revenues compared with peers as well as its exposure to London offices,RBC analysts say in a note. "It also risks slowing its implementation of its new strategy or leading to less attractive terms on capital recycling in our view," the Canadian bank says. RBC retains its sector perform rating and 550 pence price target on the stock. Shares are down 0.9% at 618.0 pence. (joseph.hoppe@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
11-15-22 1246ET
