FTSE 100 Rises After Corporate Updates, UK Inflation Data
0844 GMT - The FTSE 100 rises 0.1% to 7857 points after a number of company trading updates and following the latest U.K. inflation data. Smiths Group rises 2.3% after the engineering group raised its full-year guidance after a strong second quarter. Antofagasta gains 1.6% after the miner reported higher copper and gold production for the fourth quarter and reaffirmed its 2023 guidance. Pearson climbs 0.3% after the education group said its 2022 profit beat forecasts. Burberry is up 0.9% after the luxury fashion group said it remained confident it could achieve its medium-term targets despite a tougher macro-economic environment. Meanwhile, data Wednesday showed U.K. inflation fell to 10.5% year-on-year in December from 10.7% in November while core inflation held at 6.3%. (renae.dyer@wsj.com)
Companies News:
Pearson to Report Rise in 2022 Underlying Sales
Pearson PLC said Wednesday that it expects to report a rise in underlying sales for 2022, and that it finished the year ahead of the board's expectations.
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Burberry 3Q Store Sales Rose but Missed Market Views Due to China Covid-19 Disruption
Burberry Group PLC said Wednesday that third-quarter comparable store sales rose slightly, but missed market views due to the impact of the Covid-related disruption in China, while retail revenue rose.
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Smiths Group Raises FY 2023 Forecast After Strong 2Q Performance
Smiths Group PLC on Wednesday raised its full-year guidance after a strong second-quarter performance.
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Antofagasta Expects Higher Costs in 2023; 2022 Output in Line With Guidance
Antofagasta PLC on Wednesday said that it expects both its net cash costs and production to rise in 2023, and reported that production for 2022 was in line with its guidance.
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QinetiQ Says 3Q Operational Performance Was Good; FY 2023 in Line With Views
QinetiQ Group PLC said Wednesday that its operational performance in the third quarter of fiscal 2023 was good, and that it remained on track to deliver results in line with expectations for the year.
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Currys Christmas Sales Slipped, Backs FY 2023 Guidance
Currys PLC on Wednesday said sales during its peak Christmas period fell as weak performance in its international market was partly compensated by stronger U.K. and Ireland sales, and backed its full-year guidance.
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Vistry Sees 2022 Adjusted Profit Rising, Increased Order Book
Vistry Group PLC said Wednesday that it expects to report that full-year 2022 adjusted pretax profit rose in line with guidance on higher selling prices, and that its order book grew on year.
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H&T Says 2022 in Line With Views After Strong 4Q
H&T Group PLC said Wednesday that its performance in the fourth quarter remained strong, and that the board was confident full-year results will be in line with market forecasts.
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WH Smith Sees Further Growth in FY 2023 Driven by Travel-Business Performance
WH Smith PLC said Wednesday that revenue for the 20 weeks to Jan 14. rose, supported by a robust start to the financial year, and that it is confident for growth in fiscal 2023.
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Ibstock 2022 Revenue Rose; Sees 2023 Demand Hurt by Inflation, Market Uncertainty
Ibstock PLC said Wednesday that it expects to report a 25% rise in 2022 revenue with adjusted Ebitda seen ahead of the board's expectations, and that it expects demand in 2023 to be hurt by inflation, high interest rates, and market uncertainty.
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Rathbones Group Funds Under Management and Administration Fell in 2022
Rathbones Group PLC said Wednesday that total funds under management at Dec. 31 fell as market volatility hit its investments.
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S4 Capital 4Q Performance Met Views; Expects 2022 Operational Ebitda Rose
S4 Capital PLC said Wednesday that its fourth-quarter performance met its expectations, and that it expects to repost at least 120 million pounds ($147.4 million) of operational earnings before interest, taxes, depreciation and amortization in 2022.
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Team17 Group to Beat 2022 Revenue, Adjusted Ebitda Forecasts After Strong 2H
Team17 Group PLC said Wednesday that it expects to beat revenue and adjusted Ebitda market forecasts for 2022 after a strong second-half performance.
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Liontrust 3Q Assets Under Management Edged Up
Liontrust Asset Management PLC said Wednesday that assets under management and advice for the third quarter of fiscal 2023 rose 2.9% over the period.
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Gateley 1H Pretax Profit Rose on Higher Consultancy Services Revenue
Gateley (Holdings) PLC said Wednesday that pretax profit rose for the first half of fiscal 2023 as revenue from its consultancy services grew, but flagged a more challenging second half.
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Galliford Try 1H Met Views; Well Placed for Fiscal 2023
Galliford Try Holdings PLC said Wednesday that its performance in the first half of fiscal 2023 was in line with its expectations, and that it was well placed for the full year.
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Streaks Gaming New Registrations Soared in 2022 on AI Improvements
Streaks Gaming PLC said Wednesday that it has seen a significant increase in 2022 key metrics compared with the previous year driven by further investment in artificial intelligence.
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Midwich Shares Rise on Expected 2022 Revenue, Profit Growth
Shares of Midwich Group PLC rose Wednesday after the company said that it expects to report strong 2022 revenue growth and adjusted pretax profit comfortably ahead of market expectations following a positive finish to the year.
Market Talk:
Smiths Group Delivers Positive Momentum in 1H
0858 GMT - Smiths Group's persistently strong first-half performance and earnings momentum is positive and supports the idea that demand remains high across the sector, helped by robust order backlogs, RBC Capital Markets says. The U.K. engineering group has raised organic sales guidance to at least 7%, from 4%-4.5%, which still takes into account a second-half slowdown driven by areas such as U.S. construction, RBC analyst Mark Fielding says in a note. "We continue to see the growth strategy as sound, but in terms of reassessing the long-term growth capabilities of the group we would like to see more proof before pricing it in," the Canadian bank says. RBC retains its underperform rating and 1,600 pence price target on the stock. Shares are up 2.7% at 1,727.0 pence. (joseph.hoppe@wsj.com)
Pearson Delivers a Strong 2022 But Shares Still Look Cheap
0849 GMT - Pearson's 2022 update was solid, extending a sequence of positive news and confirming the outturn for the year will beat original expectations, Shore Capital says. The education company's headline performance, financial strength and operational and strategic progress were pleasing, given its growing exposure to digital products and status as a beneficiary of the positive long-term outlook for global learning spend, Shore analyst Roddy Davidson says in a research note. "[We] regard the group's current stock valuation as undemanding despite a period of strong share price performance through 2022. We also regard Pearson as a highly attractive strategic asset," the investment group says. Shore retains its buy rating and fair value assessment of 1,244 pence on Pearson's stock. Shares are up 0.5% at 921.0 pence. (joseph.hoppe@wsj.com)
UK Inflation Likely to Ease Further in Coming Months But Upside Risks Remain
0839 GMT - U.K. inflation is expected to continue to fall in the next month or two driven by further falls in natural gas and petrol prices, Daniel Casali, chief investment strategist at Evelyn Partners, says in a note. Still, inflation remains elevated and the Bank of England will need to see more evidence of receding price pressures before it stops increasing interest rates, he says. The main risk to the inflation outlook is the potential impact of workers demanding higher wages to keep up with the high cost of living, Casali says. "With the unemployment rate still near cyclical lows, there is a possibility that higher wage rates become entrenched in the economy, increasing the risk of a wage-inflation upward spiral," he says. (xavier.fontdegloria@wsj.com)
Burberry Could Benefit From Pent-Up Demand in China
0827 GMT - Burberry Group's revenue is likely to improve on an easing of covid restrictions in China, head of markets at Interactive Investor Richard Hunter says in a note. "Traditionally the group has reaped the benefit of Asian tourism spending, and the possibility of pent-up demand from locked-down consumers could well lead to a coiled spring effect which would complement the progress being made elsewhere," Hunter adds. Despite the sector's uncertain outlook, the luxury group is benefiting from its geographical diversification, while marketing campaigns are making the brand increasingly relevant to a new generation of customers, he says. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
01-18-23 0420ET
