FTSE 100 Falls in Early Trade as China Concerns Weigh; Compass Slides
0903 GMT - The FTSE 100 index falls 0.4% to 7359.16 in early trade on concerns about the possibility of renewed Covid-related lockdowns in China. "The week begins with markets in a cautious frame of mind following the news that Covid outbreaks in China had resulted in several areas imposing curfews to control outbreaks," IG analysts write. Traders may also be reluctant to take on risk ahead of the Thanksgiving holiday in the U.S. later this week, they say. Compass Group drops 2.5%, with analysts citing concerns about the catering group's future prospects despite reporting better-than-expected full-year earnings. Falling oil prices weigh on oil-linked stocks and miners, though Endeavour Mining rises 1.6% following a major greenfield gold discovery in Ivory Coast. (jessica.fleetham@wsj.com)
Companies News:
Zinc Media Sees 2022 Revenue Ahead of Views; Ebitda in Line With Guidance
Zinc Media Group PLC said Monday that it anticipates 2022 revenue to be ahead of market expectations, and second-half Ebitda to be profitable.
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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 Dec. 9 in order to finalize the necessary documentation.
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TT Electronics Completes Pension Buy-in for GBP6 Mln Cash Flow Benefit
TT Electronics PLC said Monday that it has completed a buy-in of all its U.K. defined benefit pension liabilities, giving it an immediate 6 million-pound ($7.1 million) cash-flow benefit.
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Compass Group FY 2022 Pretax Profit Rose on Sector Reopening, To Buy Back GBP250 Mln
Compass Group PLC reported on Monday a better-than-expected pretax profit increase for fiscal 2022 driven by a robust recovery on volumes and new business growth amid lower costs, and announced a further capital return to shareholders as it expects further growth in fiscal 2023.
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Keywords Studios Sees 2022 Revenue, Adjusted Pretax Profit Ahead of Views
Keywords Studios PLC said Monday it expects 2022 revenue and adjusted pretax profit to be comfortably ahead of current consensus, and that its 2023 performance will be at the upper end of current analysts' forecast range.
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Pod Point Market Growth Slowed in 2H; Sees 2022, 2023 Earnings Losses
Pod Point Group Holdings PLC said Monday that market growth slowed significantly in the second half of the year on supply chain issues and it expects to report earnings losses for both 2022 and 2023.
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Real Good Food Secures GBP2.5 Mln in Extra Funding to Support Reform
Real Good Food PLC said Monday that it has secured 2.5 million pounds ($3.0 million) in additional funding from Hilco Private Capital, to support its turnaround.
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Virgin Money FY 2022 Pretax Profit Rose on Robust Income, to Buy Back Shares
Virgin Money UK PLC said Monday that pretax profit for fiscal 2022 rose driven by stronger income and well-controlled costs, and that it will further return capital to shareholders.
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Diploma FY 2022 Pretax Profit Rose on Strong Organic Revenue Growth
Diploma PLC said Monday that fiscal 2022 pretax rose on an increase in organic revenue, driven by initiatives, demand and pricing, and that fiscal 2023 has begun well, consistent with its guidance.
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Accrol Saw Significant Growth in 1H; Sees FY 2023 Revenue, Profit Rising
Accrol Group Holdings PLC said Monday that it performed well in the first half of fiscal 2023, with significant growth in volumes, revenue and profit and a stronger market position, and sees its full fiscal year results rising.
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Ncondezi Energy to Raise GBP520,000 for Mozambique Project
Ncondezi Energy Ltd. said Monday it conditionally raised 520,000 pounds ($618,176) via a discounted share placing and a subscription, and that it will use the proceeds for general working capital purposes.
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Trafalgar Property to Buy Hydroponic Facility for GBP30,000; Shares Rise
Shares in Trafalgar Property Group PLC rose Monday after the company said that it has entered a conditional agreement to buy assets and leasehold premises for a hydroponic research and development facility for 30,000 pounds ($35,664) from May Barn Horticultural Consultancy Ltd.
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Headlam Group Appoints Adam Phillips as Chief Financial Officer
Headlam Group PLC said Monday that it has appointed Adam Phillips as chief financial officer, and that he will join the board by April at the latest.
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Genedrive Shares Fall on Widened FY 2022 Pretax Loss
Genedrive PLC shares fell Monday after the company said fiscal 2022 pretax loss significantly widened on lower revenue due to a lack of coronavirus-related income, and reported material uncertainty that could impact its ability to continue as a going concern.
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Allergy Therapeutics Appoints Martin Hopcroft as Interim CFO
Allergy Therapeutics PLC said Monday that it has appointed Martin Hopcroft as interim chief financial officer, replacing Nick Wykeman who is stepping down at the end of the month.
Market Talk:
Compass' Guidance Looks Achievable Due to Outsourcing, Strict Costs
0856 GMT - Compass' FY 2023 outlook is achievable considering the company's accelerated outsourcing trend, pricing power, and proven capability in cost savings, Bryan Garnier analyst Yizhi Long says in a note. The catering contractor delivered an excellent FY 2022 performance boosted by robust growth in North America, which represented 67% of the company's revenue and 44% of organic growth, the analyst says. Compass has also benefited from a rebound in the segments of business & industry and sports & leisure, Long notes. Bryan Garnier has a buy rating on the stock. (michael.susin@wsj.com)
Endeavour Mining's Potential Project Should Get Positive Reception
0827 GMT - Investors are likely to react positively to Endeavour Mining's next potential growth project at Tanda-Iguela in Ivory Coast, which it outlined on Monday, RBC Capital Markets says. The miner's disclosure demonstrates significant potential to add another robust project to its growth pipeline, while development could be fast-tracked similar to the Fetekro site, RBC analysts say in a research note. "Overall, we believe the update showcases Endeavour's in-house exploration capabilities, which continues to outline greenfields discoveries with 15-20 million ounces in targeted...additions through 2025," the Canadian bank says. RBC retains its outperform rating on Endeavour's stock. Shares in London are up 1.8% at 1,669.0 pence. (joseph.hoppe@wsj.com)
Compass' Outlook Looks Reassuring Given New Business Wins, Pricing
0804 GMT - Compass reported a FY 2022 performance above market expectations after a strong finish to the year and its optimistic view for the next fiscal year is reassuring, RBC Capital Markets analysts Karl Green and Andrew Brooke say in a research note. The catering contractor 4Q organic growth came in at 31% amid tough comparatives against the previous quarter, the analysts say. This tops with a positive FY 2023 guidance as the group continues to benefit from new business wins and pricing initiatives, they add. Compass also isn't likely to face any macro slowdown in the near-term, they say. RBC has an underperform rating on the stock. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
11-21-22 0420ET
