The FTSE 100 closed down 0.48% on Thursday, dropping again together with other stock markets. Weakness in emerging markets is spreading across to their developed peers, with inflation and slowing growth concerns making themselves felt once again, IG Group Chief Market Analyst Chris Beauchamp said. "Stock markets, particularly in the U.S., continue to suffer a hangover from the end of earnings season, while the continued weakness in crude oil has meant that energy stocks are the main detractor in markets like the Dow and the FTSE 100," Beauchamp added.
Wynnstay Properties 1H Pretax Profit Increased on Lower Costs
Wynnstay Properties PLC on Thursday reported a rise in pretax profit for the first half of fiscal 2022 as it booked lower costs.
Eagle Eye Solutions Sees FY 2022 Adjusted Ebitda Above Views
Eagle Eye Solutions Group PLC said Thursday that it expects to report adjusted earnings before interest, taxes, depreciation and amortization for fiscal 2022 ahead of management expectations thanks to revenue growth of 35% in the first quarter.
Zambeef Products Sees Swing to FY 2021 Earnings Per Share; Backs Forecasts
Zambeef Products PLC said Thursday that it expects to report a swing to per-share profit for fiscal 2021 and backed guidance for revenue and adjusted pretax profit to be above market forecasts.
Roquefort Investments Plans Up to GBP3 Mln Placing to Fund Acquisition
Roquefort Investments PLC said Thursday that it will place up to 3 million pounds ($4 million) of shares to finance the cash component of its acquisition of Lyramid Pty Ltd., as well as pre-clinical drug development and for working capital.
Chill Brands' Shares Rise on Distribution Deal in U.S.
Shares in Chill Brands Group PLC on Thursday rose after the company said that U.S. company BettermentRS has implemented its CBD flavor pouches and other CBD products into more than 300 stores across the country.
Mobile Streams Says Revenue in Argentina Was Ahead of Views in October
Mobile Streams PLC said Thursday that its LiveScores Argentina service generated higher revenue than expected in October.
PCF Group Sees Publishing of FY 2020 Accounts Around Year-End
PCF Group PLC said Thursday that it expects to publish its fiscal 2020 report and accounts in late December to early January, with its interim results following shortly afterward.
Abingdon Health Shares Fall on Going Concern Warning
Abingdon Health PLC shares fell as much as 26% in early trade Thursday after the group warned over its ability to continue as a going concern due to the continuing dispute with the U.K. Secretary of State for Health and Social Care over unpaid monies for Covid-19 test kits.
Close Brothers Asset Management CEO to Step Down
Close Brothers Group PLC said Thursday that the chief executive officer of its Close Brothers Asset Management business has decided to step down.
Begbies Traynor Is an Attractive Opportunity, Says Shore Capital
1403 GMT - Begbies Traynor offers an attractive opportunity for investors looking to gain exposure to the expected increase in insolvency volumes, Shore Capital says, adding that any material increase in volumes could offer further upside to its forecasts. Results will be more second-half weighted due to the expected timing of the increase in insolvency volumes and the number of company administrations is still well below pre-pandemic levels, Shore says. Furthermore, government support measures are coming to an end and with high levels of debt, increasing pressure from creditors and rising inflation, vulnerable businesses are under increasing pressure, it adds. Shares in the London-listed company are down 0.7% to 137.8 pence.
Metro Bank's Branches Might Have Sparked Carlyle Exit
1353 GMT - Metro Bank shares fall 18% after the U.K. "challenger" bank said private-equity firm Carlyle Group had terminated takeover talks. Metro Bank's branches in town and city centers may have been a factor in Carlyle's exit, Hargreaves Lansdown says. "While other challenger banks have focused on apps and an online presence, Metro has also been locked into long leases in city centers, at a time when footfall in once-busy streets has struggled to recover," HL analyst Susannah Streeter says. "With other banking upstarts gaining market share, Carlyle may be tempted to look elsewhere, particularly at a time when expected rising interest rates create the opportunity for banks to increase earnings substantially."
Eagle Eye Forecasts Upgraded on Increased Views, Says Shore Capital
1352 GMT - Eagle Eye Solutions Group is now expecting full-year adjusted Ebitda comfortably ahead of management expectations on the back of continuing strong momentum, and this leads Shore Capital to upgrade its metric forecast by 7%. The brokerage also raises its revenue forecast for the U.K. marketing-software company to GBP27.4 million from GBP25.3 million previously, representing on-year growth of 20% versus 11% before. Eagle Eye's new GBP5 million funding facility, with an additional GBP2.5 million accordion facility, will provide extra flexibility to the growth strategy. Shore Capital acts as joint broker to Eagle Eye. Shares rise 4.8% to 597.5 pence.
Close Brothers Had Strong 1Q; Winterflood Slowdown Weighs
1316 GMT - Close Brothers shares edge 0.9% higher to 1,408 pence after the merchant-banking group reported a strong 1Q. Panmure Gordon says bank lending has progressed slightly ahead of the brokerage's 6% growth forecast, and net-interest margin and credit quality are strong. "Winterflood, however, saw a further moderation of activity to pre-Covid levels, which impacts our profit estimates and reduces our target price modestly," Panmure analysts say. "Our view remains unchanged, that what made Close unique among specialist lenders emerging from the financial crisis is no longer the case. The rating is fair for the balance of risk and opportunity, we believe. Hold," it says. Panmure cuts its price target to 1,497p from 1,534p.
UK Inflation-Linked Bonds Are Expensive, says Barclays Private Bank
1251 GMT - U.K. inflation-linked government bonds looks expensive, says Michel Vernier, head of fixed income strategy at Barclays Private Bank. "Inflation protection comes at a cost in the form of the breakeven yield which...is already well over 4%" over the next 10 years, he says. This means that 10-year index-linked gilts would only be "worthwhile" if inflation stays durably above 4%, or if stagflation--a period of higher inflation and slower economic growth--materializes, he says.
Market UK Inflation Expectations Look Aggressive, Says Barclays Private Bank
1150 GMT - Market-derived U.K. inflation expectations look very aggressive, says Michel Vernier, head of fixed income strategy at Barclays Private Bank says. Annual inflation has jumped 4.2% in October and the Bank of England seems to support a faster start to the normalisation of monetary policy, he says, adding that the market has started to price in a rate rise this year, with an additional 80-100 basis-point increase in the base rate by the end of 2022. Longer term, the 10-year breakeven inflation rate prices in an average retail price index rate of around 4%, a level last seen in 1996, which "appears very aggressive" since long-term inflation has been between 2.4% and 3.2% in the past 10 years, he says.
Biffa's Company Shop Impairment Undermines Interim Results
1143 GMT - Biffa has reported interim results in line with expectations, demonstrating a solid core business and benefiting from bolt-on acquisitions, Peel Hunt says. However, the GBP25 million impairment at Company Shop, which was bought earlier this year for GBP88 million, is surprising and disappointing, the brokerage says. The waste management company had already reported that its performance was down on the initial business case, Peel Hunt notes. "Our target price therefore moves from 430p to 395p, and our rating from Add to Hold. There is still some opportunity for upgrades as Viridor is integrated and the investment programme comes onstream, but the degree of leverage suggests that further bolt-ons will be limited for a while," it says.
Share Buyback Is Coming for Imperial Brands, Will Be Essential to Lift Share Price
1117 GMT - A share buyback is coming for Imperial Brands and it will be essential to reviving the share price, RBC Capital Markets says. It isn't a matter of if, but when, according to the company, RBC says, adding that the second half of the fiscal year ending in September 2022 looks more likely. "We wanted Imperial Brands to go big and go early, but having seen some (moderate) signs of improving momentum in the business, we understand its tentative approach." The Canadian bank has an outperform rating on the tobacco company and raises the target price to 2,100 pence from 1,900 pence on increased revenue expectations.
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