Next's Shares Drop as Peer H&M's 1Q Disappoints
Next is the FTSE 100's second-top faller in early trading, following H&M's results for the first quarter of 2022 and wider worries over inflation, AJ Bell says. "The Swedish fast-fashion retailer's shares are down by more than 9% in early trade on the Stockholm exchange. That may be weighing on sentiment toward other retailers, including Next," AJ Bell says. However, the U.K. clothing retailer's share price has slipped by more than a quarter since December, the U.K. brokerage says, adding that today's decline should also be seen in this context. "The effects of inflation on retailers' margins and consumers' ability and willingness to spend (and perhaps borrow to do so) are the bigger issue." Shares are down 2.7% at 6,102.00 pence.
Companies News:
Provident Financial Swung to 2021 Pretax Profit; Resumes Dividend Payout
Provident Financial PLC on Thursday reported a swing to pretax profit for 2021 on the back of a positive macroeconomic environment as the company rebuilds its business with the launch of its personal loans business and the closure of consumer credit division, but it was below market consensus.
---
Royal Bank of Canada to Buy Brewin Dolphin for $2.1 Bln
Brewin Dolphin Holdings PLC said Thursday that it has agreed to a 1.6 billion-pound ($2.10 billion) takeover by Royal Bank of Canada after being hit by the effects of Russia's invasion of Ukraine.
---
James Halstead 2021 Earnings Fell Slightly
James Halstead PLC reported Thursday a slight fall in 2021 pretax profit, noting that higher prices don't seem to have slowed demand, with sales increasing in February and March.
---
Euromoney Institutional Investor on Track to Meet FY 2022 Expectations
Euromoney Institutional Investor PLC said Thursday that its first-half performance was encouraging and that it continues to be well placed to post fiscal 2022 results in line with the board's expectations.
---
NWF Group Upgrades FY 2022 Earnings Guidance for Second Time in Month
NWF Group PLC said Thursday that it has continued to perform strongly and that the board now expects to report earnings for fiscal 2022 ahead of its recently upgraded guidance for the year.
---
Time Out Group 1H Pretax Loss Narrowed as Economy Began to Reopen
Time Out Group PLC said Thursday that its pretax loss for the first half of fiscal 2022 narrowed on higher revenue as the economy began to reopen after the pandemic had hit the business environment.
---
Mosman Oil & Gas 1H Loss Narrowed on Higher Oil Prices, US Acquisitions
Mosman Oil & Gas Ltd. on Thursday reported a narrowed loss for the fiscal first half ended Dec. 31, as revenue rose on the back of higher oil prices and following the acquisition of new assets in the U.S.
---
Hostelworld 2021 Pretax Loss Narrowed; 2022 Performance Strong So Far
Hostelworld Group PLC on Thursday reported a significantly narrowed pretax loss for 2021 and said it is benefiting from a strong start to 2022 following the hit suffered in the last six weeks of 2021 as a result of the effects of the Omicron variant of coronavirus.
Market Talk:
Strix Seen With More Work Ahead to Grow Value
1013 GMT - Strix Group has more work to do and it needs to capitalize more convincingly on its growth potential to achieve a value that would reflect a leadership status in its market, says Peel Hunt. The U.K. brokerage says further mergers and acquisitions by the U.K. kettle-safety-controls supplier look affordable and could enhance value. Peel Hunt cuts its rating on the stock to hold from buy and lowers its target price to 260 pence from 380 pence. Shares trade down 5.3% at 204 pence.
---
HICL Infrastructure Disposal Strategy Set to Boost Net Asset Value
1007 GMT - HICL Infrastructure's disposal of its 100%-owned Queen Alexandra project for GBP108 million represents a 1.5 pence a share increase to the net asset value of the company, RBC Capital Markets says. The infrastructure investment company is actively selling and rotating out of assets where they believe there is an opportunity for NAV accretion in the portfolio, which is a strong move, the Canadian bank says. HICL's shares are priced by the market at a discount to its other infrastructure fund peers, which is unjustified given its management and strong position to benefit from rising inflation, RBC says. The bank retains its outperform rating and 195 pence price target on HICL's stock. Shares are up 0.3% at 177.6 pence.
---
NWF Group's Improved Guidance for 2021 Leads to Upgrades
1000 GMT - NWF Group's upgraded guidance for 2021 and strong trading for 2022 is driving Shore Capital's expectations higher. Shore's views on the adjusted pretax profit of the London-listed distributor of fuel, food and feed have been raised by around 30% to GBP17.2 million, with adjusted diluted earnings per share also increased by around 30% to 28.2 pence a share. The U.K. investment group leaves its forecasts on NWF Group's fiscal 2023 earnings unchanged for now. "We believe the company has a strong management ream and is in a very good position following prior and continued investment across the business," Shore adds, noting that it believes NWF's strategic development will strongly position the group. Shares are up 3.1% at 230 pence.
---
Trainline to Be Challenged by Rail Industry's New Ticketing Platform
0948 GMT - Trainline may still benefit from a cut to third party ticket sellers following proposed changes to its commission rates but it may be too soon to celebrate, AJ Bell says. The rail and bus tickets website has a bigger issue to face in the shape of the rail industry's new ticketing platform, AJ Bell says. The best-case scenario is to be picked as the behind-the-scenes platform provider, offering a version of its own website which it already provides to various train companies, the brokerage says. "But if these white label services move under the Great British Railways umbrella, it means Trainline will have to find a new seat at the table otherwise it could be left out in the cold," AJ Bell says.
---
Sportech Shareholders Could Be in Line for Further Cash Returns
0934 GMT - Sportech is well-placed to return further cash to shareholders in 2022 following the disposal of its lottery contract in the Dominican Republic, Peel Hunt says. The board will need to consider working capital requirements and any potential Covid-19 aftershocks when assessing further capital returns, Peel Hunt says, estimating that up to half the free cash, or around 5 pence a share, could be available for distribution. On a sum-of-the-parts basis, shares in the betting-technology company are materially undervalued, the U.K. brokerage says. Peel Hunt has a buy rating on the stock with a target price of 50 pence.
---
Provident Financial Looks Set For Consistent Growth
0932 GMT - Shares in Provident Financial Group rise 1.6% after the U.K. lender reported a swing to pretax profit for 2021 on the back of a positive macro-economic environment. The results were ahead of expectations, estimates look well underpinned despite obvious macro headwinds and the company has returned to paying a dividend, Panmure Gordon says. "In our view, the company is set for a period of consistent growth," Panmure analysts say. "Our target price and estimates are unchanged at this stage, but each feels ever more conservative," they say, adding that Panmure rates the stock at buy.
---
Tate & Lyle's $237 Mln China Deal Makes Strategic Sense, Goodbody Says
0922 GMT - Tate & Lyle's $237 million deal for Quantum Hi-Tech (Guangdong) Biological Co. is consistent with the FTSE 250 food-and-beverage ingredients provider's strategy to become focused on the high-growth ingredient solutions offering, Goodbody says. The transaction for the dietary fiber business in China will expand its exposure to the country--where the market is growing at around 10% a year--and to the wider Asia region, the Irish brokerage says. Furthermore, it adds complementary products to the existing fiber portfolio. Goodbody has a buy rating on the stock. Shares trade up 2.5% at 737.40 pence.
---
Mears Group's Balance Sheet May Result in Higher Shareholder Distributions
0908 GMT - Mears Group's 2021 results were in line with guidance and shares in the housing and care-sector services provider are now trading in line with historic levels, Liberum says. The company is managing its staff and supply chain challenges and its much-improved balance sheet may eventually result in increased distributions to shareholders, the U.K. brokerage says. "We believe Mears is well positioned to benefit from the widespread ambition to reduce carbon emissions and the business has started to generate some positive momentum," it says. Liberum rates the stock buy and has a 230 pence target price.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
03-31-22 0639ET
