FTSE 100 Falls as Investors Weigh Disappointing Earnings

FTSE 100 Falls as Investors Weigh Earnings

0857 GMT - The FTSE 100 falls 0.5% to 7897 points, led by online grocer Ocado, testing company Intertek and specialty chemicals group Croda International after their full-year results. Ocado shares slump 8.1% after reporting a wider annual loss. Intertek sheds 3.4% after reporting full-year pre-tax profit that missed analysts' expectations. Croda declines 3.0% as it expects its 2023 performance to be more second-half weighted than 2022 due to the divestment of the majority of its Performance Technologies and Industrial Chemicals business and the phasing of lipid systems shipments to Covid-19 vaccine customers. Abrdn drops 2.0% after the asset manager swung to a full-year pre-tax loss. Investment manager St James Place gains 2.8% after well-received final results. ([e-mail])

 
Companies News: 

Unite Group 2023 Profit Rose on Increased Rental Income, Outlook Positive

Unite Group PLC said Tuesday that its 2023 profit rose on increased rental income, and said the outlook for the 2023-24 academic year is positive.

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Ocado Group FY 2022 Pretax Loss Widened on Higher Costs as Revenue Missed Market Views

Ocado Group PLC reported on Tuesday a widened pretax loss for fiscal 2022, dragged by costs pressures and investments at Ocado retail, and as revenue missed market expecations.

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Croda International 2022 Pretax Profit Boosted by Disposal Gain

Croda International PLC on Tuesday reported a 90% rise in pretax profit for last year with growth across all three sectors, after booking a 356 million pound ($429.5 million) gain from a disposal .

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St. James's Place 2022 Pretax Profit Dropped Amid Inflation, Investment Market Volatility

St. James's Place PLC said Tuesday that pretax profit dropped in 2022 amid rising inflation, macroeconomic and geopolitical uncertainty and investment-market volatility.

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Intertek 2022 Pretax Profit Rose But Missed Consensus; Is Confident on 2023

Intertek Group PLC said Tuesday that pretax profit for 2022 rose but missed consensus, and that it is entering 2023 confidently.

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Man Group 2022 Profit Rose on Higher Fees; Plans to Extend Buyback

Man Group PLC said Tuesday that pretax profit in 2022 rose on higher management and performance fees, and that it intends to repurchase more shares.

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Abrdn to Sell Abrdn Capital for GBP140 Mln

Abrdn PLC said Tuesday that it is selling its discretionary fund management business, Abrdn Capital, for 140 million pounds ($168.9 million).

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Serco Group 2022 Pretax Profit Rose; Launches GBP90 Mln Buyback

Serco Group PLC said Tuesday that 2022 pretax profit rose and backed its guidance for 2023, and said it is launching a share buyback.

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Rotork 2022 Pretax Profit Rose on Higher Volumes, Prices

Rotork PLC said Tuesday that pretax profit for 2022 rose, supported by higher positive price and volumes, which offset cost inflation and partially funded investments.

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Man Group Chairman John Cryan to Retire; Anne Wade Named Successor

Man Group PLC said Tuesday that Chairman John Cryan plans to retire at the end of this year after serving on the board since January 2015, and that Anne Wade will replace him.

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Travis Perkins 2022 Profit Slips on Higher Costs; Revenue Rose

Travis Perkins PLC said Tuesday that its 2022 pretax profit fell on lower property profits and higher costs despite increased revenue.

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Benchmark Holdings Swung to 1Q Pretax Profit on Growth Across Businesses

Benchmark Holdings PLC said Tuesday that it swung to pretax profit for the first quarter of fiscal 2023 after a strong start to the year, with growth in all business areas and a significant uplift in health.

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Abrdn Swung to 2022 Pretax Loss on Adjusting Items

Abrdn PLC said Tuesday that it swung to a pretax loss for 2022 due to adjusting items, missing consensus, and that it intends to return capital to shareholders in 2023 on a level similar to 2022.

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Image Scan Started FY 2023 With Strong Momentum

Image Scan Holdings PLC said Tuesday that its performance for fiscal 2023 started with a strong momentum and that it was increasingly confident in its sales pipeline for the year ending Sept. 30.

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Derwent London Swung to 2022 Pretax Loss on Valuation Losses; Outlook Positive

Derwent London PLC said Tuesday that it swung to a pretax loss for 2022 on a fall in property values, though rental income rose and it said its outlook was positive.

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McBride 1H Pretax Loss Widens on Energy, Labor Costs; Expects Return to Profit in 2H

McBride PLC on Tuesday reported a widened pretax loss for the first half of fiscal 2023, but said it has seen improving market conditions since the period end and expects a return to adjusted operating profit in the second half.

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Various Eateries FY 2022 Pretax Loss Widened on Higher Costs

Various Eateries PLC said Tuesday that its pretax loss for fiscal 2022 widened on the back of higher costs despite reporting a robust revenue increase.

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St. James's Place 2022 IFRS Profit Rose Despite Dip in Pretax Profit -- Update

St. James's Place PLC said Tuesday that profit rose in 2022 despite rising inflation, macroeconomic and geopolitical uncertainty and investment market volatility.

 
Market Talk: 

Ocado's Dismal Performance Points to Further Losses

0915 GMT - Ocado reported a negative performance for 2022, with a pretax loss of GBP501 million following a material equity fund raise in 2022, Shore Capital analysts Clive Black and Darren Shirley say in a note, as shares fall 9.3%. The online grocer and retail-technology specialist anticipates mid-single digit sales in retail, indicating that FY 2023 could be a heavy loss-making year, they note. Ocado's results highlight that it is unable of making a positive economic contribution despite delivering considerable innovation, they say. "The business is heavily capital-consumptive and makes equally heavily negative returns," the analysts add. ([e-mail])

Ocado Could Be Struggling to Make Profitability Sustainable

0847 GMT - Ocado's FY 2022 earnings show that the group is having issues in achieving sustainable profitability given heavy investments and widened losses, Interactive Investor's head of markets Richard Hunter says in a note as shares fall 9.6%. The online grocer and retail-technology specialist's required investment continues to drain resources, while overall revenues grew by just 0.6% and Ebitda loss was worse than expected, he says. Ocado's retail business is also facing a tougher backdrop given that customers are trading down for cheaper products elsewhere, Hunter says. "It is also evident that while customers are still coming to Ocado, it tends to be more selective," he says. ([e-mail])

Serco's Ebita Beat Helps Support EPS Growth

0838 GMT - Serco Group's 2022 EPS is 5% above consensus due to a modest Ebita beat and lower tax and interest, Jefferies' equity analysts Kean Marden and Allen Wells say in a research note. The U.K. outsourcing company announced a GBP90 million buyback, and this is supported by free cash flow well above expectations. Unchanged 2023 guidance also supports consensus EPS estimates going forward. Jefferies has a buy rating on the stock with a 220 pence price target. Shares trade up 3.8% at 154.60 pence. ([e-mail])

Intertek's 2023 Margins Remain a Concern

0837 GMT - Although Intertek's 2022 results were in line with analyst forecasts, the sustainability of margins in the core products business is still questionable, Shore Capital analyst Robin Speakman says in a note. The inspection and product-testing company issued 2023 guidance of mid-single digit revenue growth with modest margin accretion, but analysts retain a cautious view on margin and note the expectation to achieve GBP15 million in cost reduction per year. "Intertek has to generate higher group organic growth than the historic low to mid-single digit level and deliver the higher Group EBIT margins promised by the management narrative to justify the current share price and a higher valuation target price," Speakman says. Shore rates the stock hold.([e-mail])

St. James's Place 2022 Print Solid, With Some Tailwinds to 2023 Cash Result

0826 GMT - St. James's Place's 2022 results are a solid update with some tailwinds for the 2023 cash result which should be well received, Citi's Andrew Baker says in a research note. The FTSE 100 wealth-management business's 2023 cash result should benefit from a one-off reduction in regulatory fees and higher continuing shareholder interest, he says, adding that the combined impact might imply around 7%-1% consensus upgrades to 2023 underlying cash. Citi has a neutral rating on the stock with a target price of 1,356 pence. Shares trade up 3.3% at 1,277.50 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

02-28-23 0435ET