The FTSE 100 closed fractionally down on Tuesday at 7013.48 after weakness in banks and basic resources acted as a drag. "HSBC shares have dropped sharply after reporting 3Q revenue of $11.6 billion, while profits after tax came in at $2.56 billion. This was significantly lower than the numbers in 2Q," CMC Markets UK's Chief Market Analyst Michael Hewson says. Part of the reason for the lower profits was a provisions increase for non-performing loans of $1.1 billion, doubling the year to date amount set aside to $2.2 billion, Hewson notes. HSBC shares in London closed down 6.8%. Segro led the gainers, finishing up 7.1%, followed by Land Securities, up 5.9%, and then Flutter Entertainment, up 5.6%.
Companies News:
Whitbread Swung to 1H Pretax Profit on Strong UK Leisure Demand
Whitbread PLC reported Tuesday a swing to a pretax profit for the first half of fiscal 2023 as revenue rose on strong leisure demand in the U.K., but said trading conditions in the value end of the pub-restaurant market remain challenging.
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Shoe Zone FY 2022 Boosted by Full-Year Store Openings, Back-to-School Performance
Shoe Zone PLC said Tuesday that revenue for fiscal 2022 rose 31% as its stores benefited from a full year of trading and a positive back-to-school performance during the second half.
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Eurowag Sees Strong 2022 To-Date; CFO to Step Down
W.A.G Payment Solutions PLC said Tuesday that it has performed strongly in the first nine-months of 2022, and Chief Financial Officer Magdalena Bartos intends to step down.
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THG 3Q Revenue Boosted by Beauty, Nutrition; Backs 2022 Guidance
THG PLC on Tuesday reported a 2.1% rise in third-quarter revenue--which was boosted by beauty and nutrition, its two largest units--and backed its full-year guidance.
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Sika-MBCC Merger Remedy Considered by U.K.'s CMA
The U.K.'s Competition and Markets Authority said Tuesday that it was considering a solution to address concerns relating to the merger of Sika AG and MBCC Group.
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Pendragon 3Q Underlying Profit Hit by Higher Costs, Interest; Backs FY Guidance
Pendragon PLC said Tuesday that underlying pretax profit for the third quarter of the year fell 41% as it booked higher interest charges and operating costs, and compared with a strong comparative performance, but said it remains on track to meet the board's full-year profit expectations.
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Deepverge's Chief Executive Steps Down, Nigel Burton Appointed Interim CEO; Shares Fall
Deepverge PLC shares fell on Tuesday after it said that Chief Executive Gerard Brandon will step down with immediate effect and that Nigel Burton has been appointed interim chief executive.
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Corero Sees Lower 2022 Earnings Despite Higher Revenue
Corero Network Security PLC said Tuesday that it expects adjusted earnings for 2022 to fall as customer order timing has been hit by extended decision making and buying cycles, though revenue is expected to rise.
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Upland Resources to Raise GBP310,000 for Malaysian Onshore Project
Upland Resources Ltd. said Tuesday that it will raise 310,000 pounds ($349,649) via a placing, and that it will use the proceeds to progress activities at Malaysia's onshore Block SK334.
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Genuit 9-Month Revenue Rose; Sees 2022 Profit at Lower End of Views
Genuit Group PLC said Tuesday that revenue rose in the first nine-months of 2022, but that due to uncertainty hitting performance in the latter part of the third quarter it expects to report full-year profit at the lower end of analyst expectations.
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On the Beach FY 2022 Sales 16% Ahead of Prepandemic Level; Underlying Pretax Profit in Line
On the Beach Group PLC said Tuesday that group sales for fiscal 2022 were 16% ahead of fiscal 2019, and that underlying pretax profit for the year was in line with market expectations.
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Various Eateries to Miss FY 2022 Profit Forecasts but Beat Sales Estimates
Various Eateries PLC said Tuesday that it will miss fiscal 2022 profit expectations due to its decision not to pass on price increases to customers in full, but sales are expected to be beat forecasts at over 40 million pounds ($45.1 million).
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Ingenta Plans to Return GBP2.1 Mln to Holders via Discounted Tender Offer
Ingenta PLC said Tuesday that it plans to return up to 2.1 million pounds ($2.4 million) to shareholders via a tender offer given its continued strong cash generation, which is expected to continue.
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Altitude Group Sees 1H Revenue Rising; Expects to Meet 2022 Market Views
Altitude Group PLC said Tuesday that it has delivered strong revenue growth in the first half of fiscal 2023, and it expects to at least meet market expectations for the full-year.
Market Talk:
Genuit's Guidance Cut Seen as Inevitable on Weak Backdrop
1121 GMT - Genuit reported a weaker third-quarter performance on a combination of lower demand and continued supply-chain issues, cutting 2022 guidance as a result, Peel Hunt says. The climate-management company's guidance cut was somewhat inevitable given the weak market backdrop, and operating profit consensus is likely to fall around 5% in 2022 with further cuts expected in 2023, Peel Hunt analysts say in a research note. "Longer term, the group remains a quality business, with structural demand drivers and an excellent track record of cash generation," the brokerage says. Peel Hunt retains its add rating and 370 pence price target on the stock. Shares are down 2.6% at 260.5 pence. (joseph.hoppe@wsj.com)
Genuit's Swift Outlook Deterioration Likely to Trouble Investors
1107 GMT - Once a real mid-cap star in the market, Genuit is facing big blockages to its business which are disturbing the flow of profit, AJ Bell financial analyst Danni Hewson says. The climate-management company said Tuesday that due to uncertainty hitting performance in the latter part of the third quarter it expects to report full-year profit at the lower end of analysts' expectations. "It's the speed of the deterioration in outlook which will trouble shareholders, with weak trading over the last part of the third quarter enough to prompt the company to guide for profit to be at the lower end of expectations," Hewson says in a research note. Shares are down 3.6% at 258.0 pence. (joseph.hoppe@wsj.com)
Whitbread's 1H, Germany Prospects Might Prompt Estimate Upgrades
1029 GMT - Whitbread's 1H was highly encouraging with strong U.K. hotel demand and the phasing of costs resulting in achieving market estimates at the halfway stage, Shore Capital analyst Greg Johnson says in a note. Germany has seen a strong rebound from the pandemic with fully-established hotels said to be profitable, and the company expecting a lower loss for FY 2023 in the GBP40 million to GBP50 million range, better than previously guided, Shore says. Despite higher costs coming through for the hotel-and-restaurant company, the continued strength in demand means analysts expect to upgrade full-year pretax profit estimates by around GBP60 million to around GBP320 million, the U.K. investment group says. Shore Capital rates the stock buy. (anthony.orunagoriainoff@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
10-25-22 1251ET
