Brexit, UK Rate Rise Bets Warrant Caution Over Sterling

The negative implications of Brexit for the U.K. and the market having already priced in aggressive interest rate rises by the Bank of England warrant caution over sterling's outlook, Amundi says. "We think the GBP has risen sufficiently vs the CHF and we are no longer optimistic on sterling, given that the highly aggressive sequence of hikes from the BOE is already priced in by the market," the asset manager's analysts say. Amundi maintains a "cautious view" on EUR/GBP as the U.K. will remain "geopolitically isolated in the post-Brexit world versus the U.S. and EU," they say. Amundi expects EUR/GBP to rise to 0.84 in the second quarter from 0.8285 currently. 


 
Companies News:

Admiral Group 2021 Pretax Profit Rose on UK Motor Insurance Performance

Admiral Group PLC reported on Thursday a rise in pretax profit for 2021 and said its stronger performance for the year was mainly driven by its U.K. Motor insurance business.

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Taylor Wimpey 2021 Pretax Profit Rose; Declares GBP150 Mln Share Buyback

Taylor Wimpey PLC said Thursday that pretax profit and revenue grew in 2021 and declared it would return 150 million pounds ($201.1 million) to shareholders through a share buyback program.

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Mondi 2021 Profit, Revenue Rose on Higher Sales Volumes

Mondi PLC said Thursday that its pretax profit and revenue for 2021 rose 28% on the back of higher sales volumes and significantly higher selling prices.

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Meggitt Swung to 2021 Pretax Profit as Costs Fell; Won't Pay Final Dividend

Meggitt PLC said Thursday that it swung to pretax profit last year after booking lower costs, and that it wasn't paying a final dividend for 2021.

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Rentokil 2021 Pretax Profit Rose, Raises Dividend

Rentokil Initial PLC reported Thursday a increase in pretax profit for 2021 driven by a strong momentum in its core business, and increased its dividend payout.

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Entain 2021 Pretax Profit, Revenue Increased After Good Performance in All Major Markets

Entain PLC said Thursday that revenue and pretax profit for 2021 rose after a good performance in all major markets, particularly for BetMGM in the U.S. which delivered a five times increase in net gaming revenue.

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Schroders 2021 Pretax Profit Rose; Assets Under Management Reached New High

Schroders PLC said Thursday that its pretax profit rose 25% in 2021 and that assets under management increased 10%, reaching a record high.

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Melrose Industries 2021 Pretax Loss Narrowed; Shareholder Return Under Review Due to Ukraine War

Melrose Industries PLC said Thursday that it 2021 pretax loss narrowed after booking lower costs, and that the board was reviewing the timing of a second return of capital to shareholders due to the war in Ukraine.

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Darktrace Posts 1H Profit, Raises FY 2022 Guidance

Darktrace PLC on Thursday reported a profit for the first half and raised revenue growth and margin guidance for the full year.

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ITV 2021 Pretax Profit, Revenue Rose on Strong Performance in Studios, Media and Entertainment

ITV PLC said Thursday that 2021 pretax profit and revenue increased after experiencing strong performance in both its Studios and Media and Entertainment divisions, as well as a record year for total advertising revenue.

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Avation 1H Pretax Loss Narrowed on Reduced Impairments

Avation PLC said Thursday that its pretax loss narrowed for the first half of fiscal 2022 on the back of reduced impairments and provisions for credit losses.

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London Stock Exchange 2021 Pretax Profit Rose; Good Momentum Carrying Into 2022

London Stock Exchange Group PLC on Thursday reported a more-than-doubled pretax profit for 2021 after strong growth across all of its businesses, and said that it is confident about its outlook.

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Chemring Sees FY 2022 Earnings Slightly Ahead of Consensus

Chemring Group PLC said Thursday that it expects adjusted operating profit for the year ending Oct. 31 to be slightly ahead of consensus expectations of 62.2 million pounds ($83.4 million).

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N. Brown Backs FY 2022 Guidance; Expects Adjusted Ebitda to Slip in FY 2023

N. Brown Group PLC said Thursday that it expects its fiscal 2022 results to meet expectations laid out in January, but escalating inflation will likely hit adjusted Ebitda in fiscal 2023.

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Morses Club Backs Fiscal 2022 Guidance; Shares Rise

Shares in Morses Club PLC rose Thursday after the company backed its guidance for fiscal 2022 amid strong performance due to the easing of the pandemic, and that it will review its dividend payout. 


 
Market Talk:

ITV Drops as Market Ponders Cost of Digital Strategy

0946 GMT - Shares in ITV are among the biggest FTSE 100 fallers, down 15% as investors fret about the potential extra investment needed to fund the broadcaster's digital strategy, despite higher annual revenue and profit. "Leading up to these results, the market had reacted with some cynicism to ITV's lofty ambitions and the share-price reaction today reflects a mauling by the bears, with a concentration on the investment spend needed and the strength of the competition, rather than improving prospects," Interactive Investor says. "It remains to be seen whether the current market consensus of the shares as a buy remains intact, given the reaction to what should otherwise have been a reasonably upbeat strategic outlook."

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Darktrace Shares Jump After Exceptionally Strong Results

1010 GMT - Shares in cyber security company Darktrace rise 13% after it reported results for the six months through the end of December and raised guidance for the whole fiscal year. The first half earnings were exceptionally strong, with better-than-expected top-line metrics and profitability far exceeding market expectations, Berenberg says. In addition, the company has raised guidance for the fifth time since the IPO last year, the bank notes. "With the backdrop for demand as strong as it could be and the share price remaining suppressed since highs, we think the investment case for Darktrace is becoming increasingly obvious. We remain buyers," Berenberg says.

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Darktrace Seen Proving It Has a Highly-Profitable Future

1022 GMT - Darktrace results for the first half of the fiscal year were impressive, with an adjusted Ebitda margin of 24% which took adjusted Ebitda to $46.7 million, well ahead of consensus expectations, Jefferies says. As costs build in the second half, this run rate can't be extrapolated going forward, the bank notes. However, it shows that the cyber security company will become highly profitable in the future, consistent with management's steady-state model of consistent margins in the mid-20%, Jefferies says. Shares soar 13%.

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Admiral's Investors Had Hoped for More After 2021 Dividend Miss, International Business Loss

1029 GMT - Most of Admiral's reported key metrics for 2021 were in line with consensus expectations, but its dividend was a miss, Jefferies says. The U.K.-listed car-insurance company's pretax profit of GBP769 million was ahead of forecasts of a profit of GBP768.2 million, but investors are likely to have a neutral to negative reaction to the dividend that is 5% below consensus and return to a loss for its international business, Jefferies says. Investors had hoped for more, the U.S. bank says. Jefferies has a target price of 2,600 pence a share. Shares are down 12% at 2,612.00 pence.

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N. Brown's Inflation Warning Leads to Forecast Cuts

1039 GMT - N. Brown's fiscal 2022 results met expectations but it signaled major inflationary pressures will persist in freight, along with elevated fulfillment and labor costs, Shore Capital says. The U.K. online clothing and footwear retailer is mitigating costs and maintaining marketing support of key brands, but the guidance leads Shore to materially downgrade forecasts. N. Brown's fiscal 2023 Ebitda forecast has been cut 16% to GBP86.8 million and its EPS forecast lowered 30% to 5.9 pence, the U.K. investment group says. "While unwelcome, we don't believe N. Brown will be the last business to warn on the spike in recent costs in the U.K. consumer arena," Shore says. Shore has N. Brown as a house stock. Shares are down 19% at 29.34 pence.

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Chemring Could Benefit From Higher NATO Expenditure

1050 GMT - Chemring is the world's leading supplier of countermeasure systems for air and naval forces with a 55% market share, and more military aerial missions should drive up near-term demand, Jefferies says, reflecting on the implications of the Ukraine war for the company. The bank also expects higher demand for Chemring's cybersecurity and electronic warfare products. On a medium-term basis, higher NATO spending resulting in more aircraft would have a positive effect on demand for countermeasures and energetics, Jefferies says, adding that Germany may purchase a small fleet of F-35's and that Chemring derives 13% of its revenue from this aircraft model. Shares in the FTSE 250 company have risen 30% in the last week.


Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

03-03-22 0644ET