The FTSE 100 closed up 0.6% on Monday after Rishi Sunak won the Conservative leadership election and was confirmed as U.K.'s next Prime Minister. "Markets have signalled Rishi Sunak will be given time to deliver, with gilt yields falling and the British economy getting a tentative second chance to get back on track. But there's no getting away from the scale of the challenge that faces the new prime minister. The last few weeks have left the U.K. economy badly bruised, and the volatility of the pound today lays bare the huge task ahead," AJ Bell financial analyst Danni Hewson says. Meanwhile, Pearson reported strong progress in the first nine months of the year, and that it expects to meet the full-year adjusted operating profit market consensus, with shares closing up 8.7%. Prudential on the other hand was the day's biggest loser, ending down 9.3%.
Companies News:
Pearson Made Progress in 2022 to Date; Sees Full-year Meeting Market Views
Pearson PLC said Monday that it has made strong progress in the first nine months of the year, and that it expects to meet the full-year adjusted operating profit market consensus.
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Auto Trader Sells Webzone for EUR30 Mln
Auto Trader Group PLC said Monday that it has sold Webzone Ltd. for 30 million euros ($29.6 million) as the company focuses on its U.K. businesses.
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Helical Met or Beat 1H Targets; Collects Most of Rent Due
Helical PLC said Monday that it has met or exceeded its development and leasing targets for the first half of fiscal 2023, and has collected most of the rent due.
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Pendragon Gets UK Takeover Panel Extension to Hedin Mobility Deadline
Pendragon PLC said Monday that the U.K. Takeover Panel has agreed to extend the deadline for Hedin Mobility Group AB to either make an offer for the company or walk away until Nov. 21 so that the parties can continue talks.
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Benchmark Holdings Expects FY 2022 Adjusted Ebitda Ahead of Consensus on Good 4Q Performance
Benchmark Holdings PLC said Monday that it expects adjusted Ebitda for fiscal 2022 to be ahead of consensus expectations due to a better-than-expected performance across its business areas in the fourth quarter.
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Kavango Resources Raises GBP3 Mln to Fund Exploration Costs
Kavango Resources PLC said Monday that it has raised 3 million pounds ($3.4 million) via a share placing and subscription, and will use the money towards the costs of its exploration program and for working capital.
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Fulcrum Utility Expects 1H Revenue Fall, Swing to Ebitda Loss
Fulcrum Utility Services Ltd. said Monday that it expects to report a fall in revenue and a swing to an adjusted earnings loss for the first half of fiscal 2023 as it has experienced significant challenges from energy and wider market conditions.
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Supreme Says Retail Sales Recovery Point to Temporary Nature of Lighting Category Slowdown
Supreme PLC said Monday that the early indications of recovery seen in September and October's retail sales reaffirmed the temporary nature of the slowdown seen in the lighting category's market during the first half of fiscal 2023.
Market Talk:
Pearson Shares Outperform as Turnaround Strategy Pays Off
1029 GMT - Pearson's strategy to reposition itself away from traditional educational textbook publishing towards technology-enabled training is paying off with shares sharply outperforming the wider stock market this year, Interactive Investor says. The FTSE 100 education publisher's shares have staged an impressive turnaround over the two years since CEO Andy Bird's appointment, reversing the prior downtrend to gain more than 60% off the lows, Interactive Investor Head of Investment Victoria Scholar says in a research note. "With the cost-of-living crisis as well as the rising cost of higher education, more and more people across age categories are looking for alternative ways to upskill, a trend that Pearson is successfully capitalizing on," Scholar says. Shares are up 7.6% at 955.2 pence. (joseph.hoppe@wsj.com)
Union Jack Oil's Dividend, Buyback a Welcome Move
1019 GMT - Union Jack Oil has declared a welcome maiden special dividend and share buyback, under which it could repurchase up to 10% of its issued share capital, Shore Capital says. The oil-and-gas company's share price already looks well underpinned by existing production--before accounting for even further development potential--so a buyback is a shareholder-friendly capital allocation strategy, Shore analyst Craig Howie says in a research note. "Overall, we believe that Union Jack's decision to return excess cash should be taken very positively by investors, signaling confidence in the future and expectations to a continued strong financial performance accompanied by the maintenance of a robust balance sheet with zero debt," the investment group says. Shore has Union Jack as a house stock. Shares are up 18% at 29.5 pence. (joseph.hoppe@wsj.com)
Pearson's Update Shows Digital Transition is Succeeding
1008 GMT - Pearson's digital transition continues to pay off, AJ Bell says. The FTSE 100 education publisher was able to keep full-year guidance in place as third quarter underlying sales saw solid growth, despite inflationary pressures, AJ Bell financial analyst Danni Hewson says in a research note. "The company's English language learning products are notably enjoying strong demand and the robust update suggests that after a difficult decade and transition from big academic textbooks to a more internet-based offering, Pearson is in a good position," Hewson says. Shares are up 7.4% at 952.8 pence. (joseph.hoppe@wsj.com)
Auto Trader's Sale of Irish Subsidiary Makes Sense
0946 GMT - Auto Trader Group gains 3% to 502 pence after the car-listing publisher said it was selling its Ireland-based subsidiary Webzone for EUR30 million. Auto Trader said it had sold the business, which trades under the Carzone brand, to print and digital media publisher Mediahuis Ireland. The deal is small and is likely to dilute earnings per share in the year to March 2023 by less than 1%, Peel Hunt says. Webzone is non-core and the disposal shows Auto Trader's dedication to its key U.K. market, the brokerage says. "We make no changes to our 650 pence target price, but given the recent weakness in the shares, we upgrade to buy from hold," Peel Hunt analyst Jessica Pok writes. (philip.waller@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
10-24-22 1243ET
