Activist Chatter Puts Vodafone Among FTSE 100 Leaders

Vodafone Group is the latest in a string of FTSE 100 companies set to be shaken up by investor activism, AJ Bell says, as such chatter puts it among the FTSE 100 leaders. The Times of London on Sunday reported that Sweden's Cevian had taken a stake in the telecoms group. "Looking at the classic list of activist strategies, Vodafone is the sort of name which might pop up on a hit list--terrible share price performance, unwieldy group structure and potential for strong cash generation," AJ Bell says. Cevian may push for portfolio refinement through mergers or sales in a sector which has recently seen quite a bit of activity, AJ Bell notes. Shares in Vodafone trade up 3% at 131.50 pence. 


 
Companies News:

React Group FY 2021 Revenue, Adjusted Pretax Profit Rose

React Group PLC said Monday that adjusted pretax profit and revenue rose for fiscal 2021 after like-for-like organic growth and the acquisition of Fidelis in March.

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Vast Resources Shares Fall on Increased 1H Loss

Vast Resources PLC shares fell Monday after it said that its first half pre-tax loss widened on the back of increased overhead expenses, costs of sales and foreign exchange losses, though its revenue rose.

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Tribal Group Sees 2021 in Line

Tribal Group PLC said Monday that it expects results for 2021 to be in line with market expectations.

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Xpediator Sees 2021 Earnings Boost After Strong Performance; Shares Rise

Shares in Xpediator PLC rose as much as 12% in early trade Monday after the company said that it expects to report a much improved revenue and adjusted pretax profit for 2021 after a strong performance from all three units.

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Maintel Holdings 2021 Revenue Grew Despite Challenges

Maintel Holdings PLC said Monday that revenue grew 1% in 2021 despite coronavirus-related lockdowns in the early part of the year and the Omicron wave in the later, as well as supply chain issues.

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Powerhouse Energy Group Appoints Paul Drennan-Durose as CEO

Powerhouse Energy Group PLC said Monday that it has appointed Paul Drennan-Durose as its new chief executive officer starting Feb. 14.

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Sensyne Health 1H Pretax Loss Widened, Revenue Fell After Disappointing Commercial Progress

Sensyne Health PLC said Monday that its pretax loss widened for the first half of fiscal 2022 as revenue decreased after disappointing commercial progress.

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Tandem Group Expects 2021 Revenue Rise; Reports Slow Start to 2022

Tandem Group PLC said on Monday that it expects 2021 revenue to rise, and that 2022 has started more slowly as some customers have delayed orders into future months.

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MetalNRG Begins Legal Proceedings Against Former JV Partner, Director

MetalNRG PLC said Monday that it has begun legal proceedings against former joint-venture partner BritEnergy Holdings LLP, BritNRG Ltd. and former director Pierpaolo Rocco to recover money it paid in 2021.

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Faron Pharmaceuticals Appoints Juho Jalkanen as COO

Faron Pharmaceuticals Oyj said Monday that it has appointed Juho Jalkanen as chief operating officer.

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Vector Capital Expects 2021 Revenue Rise

Vector Capital PLC said Monday that it expects 2021 revenue to rise, and that it will be ahead of market expectations.

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Future Metals Appoints Jardee Kininmonth as CEO

Future Metals NL said Monday that it has appointed Jardee Kininmonth as chief executive officer and that Executive Chairman Greg Bandy has retired from the board.

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Sirius Real Estate Names New CFO; Current CFO Takes On Investment Role

Sirius Real Estate Ltd. said Monday it has appointed Diarmuid Kelly as its new chief financial officer, with current CFO Alistair Marks taking on the new role of chief investment officer. 


 
Market Talk:

Belvoir Is Delivering on Its Growth Strategy

1053 GMT - Belvoir's 2021 update provides further evidence of the strength of its long-term growth strategy and the continued strength of the U.K. housing market at the end of 2021, FinnCap says. The London-listed property company now expects its results to comfortably exceed its expectations, and FinnCap raises its earnings-per-share forecast by 5% to match. "While we maintain our view that next year will likely see more normal housing sales transactions, this should not detract from the attractions of Belvoir's highly cash-generative, franchise-based model and the potential to continue to acquire and grow the lettings and financial services-based income organically," the brokerage says, retaining its 365.0 pence price target on Belvoir's stock. Shares are up 6.9% at 257.5 pence.

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Purplebricks' Difficult 1H Results Could be Turning Point

1046 GMT - Purplebricks first-half results were hit by one-off charges and high investments, but the company remains cash positive and January performance is showing some early signs of improvement, Citi says. The U.K. online estate agent isn't making itself an easy buy case, given that management doesn't expect better recent trading to filter through until fiscal 2023, and 2022 consensus forecasts are likely to slip again, the U.S. bank says. Investor sentiment will be slow to recover, but these results could a turning point and the start of a gradual share price recovery, especially as the shares currently stand at net asset value, Citi says, retaining its buy/high-risk rating and 75-pence target price on the stock. Shares are up 1.3% at 20.25 pence.

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Pearson's Credly Acquisition Is a Smart Move

1036 GMT - Pearson's acquisition of digital-credentialing firm Credly for a total firm value of $200 million is a sensible move and should be well received, Citi says. The FTSE 100 education company's acquisition coherently expands its suite of services in what is currently an underscale professional learning operation, and at a group level it underlines the shift of emphasis away from higher education--something of a monomaniacal focus for the market, the U.S. bank says. Pearson using its financial net cash position of around GBP200 million to accelerate its business mix shift also makes good financial sense, Citi adds. Citi retains its buy rating on Pearson's stock. Shares are down 0.4% at 604.0 pence.

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Ryanair's 3Q Suggests Industry Recovery, But Share Turbulence Remains

1029 GMT - Ryanair's 3Q numbers show how far the airline industry has come since the start of the pandemic, Adam Vettese at eToro says. With year-on-year and 3Q revenue up, and an 84% load factor--a measure of how full a plane is--the budget airline's recovery is fairly advanced, Vettese says. However, as has been proven in the past 18 months, the airline sector is probably more sensitive to shifts in coronavirus-related policy than most others, with airlines suffering over the Christmas period due to the Omicron variant, Vettese says. "A lot of investors are treating airlines such as Ryanair as a 'reopening play', which makes sense, but they should expect some share-price turbulence until the sector is completely out of the woods," Vettese says.

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Short-Sellers Build Bets Against Pound Despite Expected BOE Rate Rise

1012 GMT - Short-sellers built bets against sterling in the week to Jan. 25 despite expectations the Bank of England will raise interest rates again this Thursday, Rabobank says, citing the latest data from the Commodity Futures Trading Commission. "The money market has been positioned for a fair amount of tightening this year," Rabobank forex strategist Jane Foley says. "That said, fears of a spike in the cost of living in the U.K. questions whether the BOE will be able to match these expectations."

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BOE Will Likely Struggle to Rule out Consecutive Rate Rises

1004 GMT - The Bank of England may find itself, like the Federal Reserve last week, unable to rule out consecutive interest-rate rises this Thursday, Mizuho says. "The message may be similar as that from the Fed," analysts say, adding that it will be difficult for BOE Governor Andrew Bailey to rule out hiking scenarios when the questions inevitably come. Fed Chairman Jerome Powell's comments signaling that the Fed could raise rates several times in consecutive months prompted investors to dump stocks and bonds. The BOE is expected to lift the policy rate by 25 basis points to 0.5% this Thursday, which would trigger a stop to the reinvestments of proceeds of maturing gilts and open the door to a further rate rise in March.


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

(END) Dow Jones Newswires

01-31-22 0636ET