FTSE 100 Closed Higher on Expected Rise in Fed Interest Rates

The FTSE 100 closed up 1.20% on Wednesday as the market anticipates a rise in interest rates by the U.S. Federal Reserve at their meeting later today. "Expectations have risen that policymakers at the U.S. central bank will slam on the brakes hard with a 75 basis-point [interest rate] hike, to stop prices spiralling out of control," Hargreaves Lansdown analyst Susannah Streeter says in a research note. The index was also boosted by Whitbread PLC's share-price performance, rising 6.3% after reporting higher like-for-like sales for the first quarter of fiscal 2023.

Sterling Could Fall After BOE Decision

0813 GMT - Many negatives regarding a U.K. economic slowdown appear to be in sterling's price but there is scope for the currency to weaken further after the Bank of England's policy decision on Thursday, ING says. "We expect a 25 basis points rate hike by the BOE tomorrow, with a three-way split decision (some members voting for no change) which may well force markets to scale down their hawkish bets [rate rise expectations]," ING analysts say. The market is pricing in more than seven rate rises by year-end, which look overdone, they say. GBP/USD rises 0.3% to 1.2036 but EUR/GBP gains 0.4% to 0.8714 after hitting a one-year high of 0.8728 earlier.([e-mail])

 
Companies News: 

DP Poland 2021 Reported Pretax Loss Widened; System Sales in Early 2022 Rose

DP Poland PLC said Wednesday that its 2021 reported pretax loss widened despite a rise in revenue and that year-to-date system sales rose 25% on year in 2022.

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WANdisco 2021 Pretax Loss Widened on Lower Revenue, Increased Costs

WANdisco PLC said Wednesday that its pretax loss for 2021 widened after it booked lower revenue and increased costs.

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Severfield FY 2022 Pretax Profit Fell, Raises Dividend

Severfield PLC said Wednesday that pretax profit for fiscal 2022 slightly fell, despite increased revenue, driven by higher costs and that it increased its dividend payout.

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NAHL Group Meeting Market Views; Backs Guidance

NAHL Group PLC said Wednesday that it continued to perform in line with market expectations since it published its full-year results on March 29, and retained its full-year guidance.

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Scancell Holdings to Expand Phase 2 Trial of SCIB1 Vaccine for Melanoma Patients

Scancell Holdings PLC said Wednesday that it will expand the Phase 2 Scope clinical trial of its SCIB1 vaccine in metastatic melanoma patients.

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Tatton Asset Management FY 2022 Pretax Profit, Revenue Rose

Tatton Asset Management PLC said Tuesday that its pretax profit, revenue and assets under management grew in fiscal 2022.

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Dewhurst 1H Pretax Profit Rose

Dewhurst Group PLC said Wednesday that first-half pretax profit rose and reported revenue was slightly lower in a challenging market environment.

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Base Resources Reiterates 2022 Guidance as Kenya Operations Restart

Base Resources Ltd. said Wednesday that it has restarted mining operations at its Kwale mineral sands project in Kenya, and confirmed that it remains on track to achieve full-year production guidance.

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WANdisco Raises Around $19.8 Mln for Sales, Marketing, Working Capital

WANdisco PLC said Wednesday that it has raised around $19.8 million through a subscription, with the proceeds to be used to support sales and marketing programs and for working capital.

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SourceBio International Says It Has Performed Well in 2022 So Far, Is Optimistic for Full Year

SourceBio International PLC said Wednesday that it has performed well in 2022 to date, and that the board was optimistic for the remainder of the year.

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Eckoh FY 2022 Pretax Profit Fell; Sees Higher FY 2023 Revenue, Profit

Eckoh PLC said Wednesday that fiscal 2022 pretax profit fell after booking higher costs, and that it expects a significant rise in revenue and profit in fiscal 2023.

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Dillistone Expects 2022 Performance in Line With Market Views

Dillistone Group PLC said Wednesday that it expects its full-year performance to be in line with market expectations.

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DP Poland to Acquire Domino's Croatia for GBP2.4 Mln

DP Poland PLC said Wednesday that it has agreed to acquire All About Pizza d.o.o for a total consideration of around 2.4 million pounds ($2.9 million), to be satisfied through the issue of shares.

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DP Poland to Appoint Domino's Croatia CEO to Top Job as Part of Acquisition

DP Poland PLC said Wednesday that it has proposed the conditional appointment of Nils Gornall, chief executive officer of All About Pizza d.o.o as its incoming CEO.

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IGas to Pay GBP2 Mln in 2022 Under New UK Windfall Tax -- Energy Comment

IGas Energy PLC on Wednesday forecast that it will pay around 2 million pounds ($2.4 million) in respect of 2022 under the new U.K. Energy Profits Levy. Here's what the London-listed onshore hydrocarbon producer had to say:

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Castings FY 2022 Pretax Profit, Revenue Rose

Castings PLC said Wednesday that pretax profit and revenue rose for fiscal 2022.

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Tertiary Minerals Managing Director Resigns

Tertiary Minerals PLC said Wednesday that its Managing Director Patrick Cullen has resigned, effective June 20.

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Antofagasta Expects 2022 Copper Production at Bottom of Guidance Range

Antofagasta PLC on Wednesday warned that its 2022 copper production will be at the bottom end of the 660,000-690,000 metric tons guidance range.

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WH Smith Sees FY Performance at Higher End of Market Views

WH Smith PLC said Wednesday that revenue for the third quarter of fiscal 2022 has been ahead of 2019 levels, driven by the recovery across key travel markets, and that it expects its full-year performance to be at the higher end of market expectations.

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Bloomsbury Publishing FY 2022 Pretax Profit, Revenue Rose on Strong Consumer, Non-Consumer Divisions

Bloomsbury Publishing PLC said Wednesday that pretax profit and revenue rose for fiscal 2022 as the consumer and non-consumer divisions performed strongly.

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Whitbread 1Q FY 2023 U.K. Accommodation, Comparative Sales Rose; Confident of Strong 1H

Whitbread PLC said Wednesday that total U.K. accommodation and like-for-like sales for the first quarter of fiscal 2023 rose, and that given improved visibility into the second quarter it is confident it will deliver a strong first half.

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Motorpoint FY 2022 Profit Doubled as Car Prices Rose

Motorpoint Group PLC on Wednesday reported that its profit more than doubled in fiscal 2022, although it warned that inflation and supply-chain issues are likely to continue to have a negative impact.

 
Market Talk: 

Whitbread Seen Well Positioned to Weather Current Environment

0850 GMT - Although Whitbread's 1Q accommodation was trading ahead of FY 2023 estimates and U.K. market outperformance continues, higher costs are likely to offset Ebitda, Jefferies analysts say in a note. The hotel-and-restaurant company said that a combination of higher labor costs, extra IT spend and refurbishment projects are expected to increase costs by GBP20 million to GBP30 million in FY 2023. "We argue Whitbread is best positioned to weather the current environment with sticky customers, competitive pricing, resilient business, a robust balance sheet and majority freehold assets," the U.S. bank says. Jefferies rates the stock sell and has a GBP35.50 target price. Shares are up 5% at 2,694 pence. ([e-mail])

Motorpoint Outlines Tough Outlook, Shares Fall

0822 GMT - There were no surprises in Motorpoint's results for the year ended March 31, Sanjay Vidyarthi from Liberum says. However, market conditions in fiscal 2023 have continued to toughen, with supply constraints persisting and softer demand, the analyst says in a note. Shares in Motorpoint fall 6.9% after the earnings release. The vehicle retailer's market share gains aren't expected to be enough to offset volume pressures across the market, Vidyarthi says. As a result, the analyst cuts adjusted pretax profit forecasts for fiscal 2023 by 31% to GBP14 million, although he maintains a buy rating on the stock. ([e-mail])

WH Smith's US Pipeline Could Drive Growth

0816 GMT - WH Smith is expected to benefit from strong momentum in travel retail and a has a robust growth opportunity in the U.S. given its pipeline, Richard Chamberlain and Manjari Dhar, analysts at RBC Capital Markets, say in a research note. The analysts expect the U.S. unit to grow at an average annual rate of 7% over the next five years. The U.K.-based retailer could also benefit from the summer season given its competitive position and the current trend among airlines of cutting back on catering, they say. "Travel demand remains strong, with the background of travel booking looking very healthy in the U.K. and the U.S.," the analysts say. ([e-mail])

Whitbread's 1Q Update Shows Model Remains Sound, Gets Positive Reception

0753 GMT - Whitbread's 1Q update showed U.K. accommodation sales being significantly higher than in FY 2021 and, more importantly, 31% ahead of what was anticipated so far for FY 2020, Richard Hunter, head of markets at Interactive Investor, said in a note. The company is determined to maintain its prepandemic growth, however investors haven't always agreed, with the share price having fallen by 21% over the last year, he says. "The strong share-price reaction to the update suggests that, even allowing for the increasing pressure on the consumer, the model remains robust, with the market consensus of the shares as a strong buy echoing this optimism on prospects," Hunter says. Shares are up 3.4% at 2,652 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

06-15-22 1223ET