Wickes Delivers Strong 2021, Shares Look Cheap

Wickes 2021 results were very strong, and its shares still look far too cheap for the value on offer, Liberum says. The home-improvement retailer's current share price fails to reflect the quality of the business and its valuation creation opportunities, the brokerage says. Wickes has raised pretax profit guidance by 5% for 2022, dividends are up with the payout higher than forecast, and capital allocation is an exciting split between investing in faster growth and market share gains, and return excess cash to shareholders, Liberum says. The brokerage retains its buy rating and target price of 450.0 pence on the stock. Shares are up 6.3% at 183.4 pence. 


 
Companies News:

Anglo American Sells Remaining Stake in Thungela Resources for $115 Mln

Anglo American PLC said Friday that it has sold its remaining shareholding in Thungela Resources Ltd. via a discounted accelerated bookbuild placing aimed at major financial institutions.

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Smiths Group 1H Pretax Profit Rose on Strong Demand; Backs Guidance

Smiths Group PLC said Friday that first-half pretax profit and revenue rose, and that it is confident in meeting guidance for the full year.

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United Utilities Expects 3% Revenue Rise for FY 2022

United Utilities Group PLC said Friday that it expects a 3% rise in revenue for fiscal 2022, and that its performance was in line with the board's expectations for the year.

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Everyman Media 2021 Pretax Loss Narrowed as Covid-19 Measures Eased

Everyman Media Group PLC said Friday that its pretax loss for 2021 narrowed while revenue more than doubled as coronavirus pandemic restrictions were relaxed compared from the year before, though not entirely eliminated.

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Petropavlovsk Says It Can't Pay Gazprombank Loan Due to Sanctions

Petropavlovsk PLC said Friday that it is currently prohibited from making a $560,000 loan payment due to the inclusion of Gazprombank on the U.K.'s sanctions list in relation to Russia's invasion of Ukraine.

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Aeorema Communications Swings to 1H Pretax Profit on High Demand

Aeorema Communications PLC said Friday that it swung to a pretax profit for the first half of fiscal 2022 on increased revenue after it experienced strong demand.

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Wickes 2021 Pretax Profit Rose on Market Share Gains

Wickes Group PLC on Friday reported an increase in pretax profit for 2021, driven by further market-share gains and its digital strength.

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Hibernia REIT Shares Rise on EUR1.09 Bln Takeover by Brookfield Unit

Hibernia REIT PLC shares rose Friday after Brookfield Asset Management Inc. said it has agreed on a takeover of the Irish real-estate investment trust, valuing Hibernia at around 1.09 billion euros ($1.20 billion).

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Gemfields Group Swung to 2021 Profit; Declares Special Dividend

Gemfields Group Ltd. reported on Friday a swing to net profit in 2021 due to a strong revenue recovery and declared a special dividend payout.

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Co-Operative Group's CEO to Step Down in May; Interim Successor Appointed

The Co-operative Group Ltd. said Friday that its Chief Executive Steve Murrells will step down following its annual general meeting, to take place in May. 


 
Market Talk:

Smiths Group Seen Performing Well in Challenging Conditions

1055 GMT - Smiths Group's first half interim results were good and against a challenging macro backdrop the group is executing well, Jefferies says. The British engineering group's sales and earnings before interest, taxation and amortization are ahead of market consensus, with its Interconnect and Flex-Tek businesses both doing much better than expected, the U.S. bank says. "Management's full-year organic revenue growth guidance is unchanged at 3%, which is robust, although there will be price benefit in here, and we are not expecting much change to consensus earnings," Jefferies says, retaining its buy rating and 1,865.0 pence price target on Smiths' stock. Shares are down 1.2% at 1500.5 pence.

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Next Set for Double-Digit Shareholder Returns Over Next Few Years

0950 GMT - Next remains very well positioned to deliver solid double-digit returns to investors over the next few years despite its downgraded outlook for fiscal 2023, Liberum says. The clothing retailer's store profitability declines have been halted and its online business has reached material scale, the U.K. brokerage notes, adding that sales so far in fiscal 2023 are growing ahead of expectations in the U.K. Liberum reiterates its buy recommendation on the stock but lowers its target price to 8,400 pence from 8,900. Shares are up 2.4% at 6,322.00 pence.

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United Utilities Update Implies Pretax Profit Miss, But Net Profit Beat

0909 GMT - United Utilities pointed to a year-on-year 3% revenue increase which implies an above consensus figure of GBP1.87 billion, Jefferies says. The water supply company said it expects year-on-year EBIT to be flat with a GBP175 million rise in interest costs, implying a pretax profit of GBP292 million, in line with Jefferies expectations but 7% below consensus of GBP313 million. Still, the company expects GBP60 million underlying tax credit for FY 2022 on temporary super deductibility of capex spend and prior-year tax effects, the U.S. bank says. This implies a net profit of GBP350 million, 16% above consensus, the bank says. Jefferies rates the stock hold, and has a 1,065.50 pence target price. Shares are up 0.5% at 1,070.50 pence.

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Keystone Law Share Price Could Be Good Entry Point

0904 GMT - Keystone Law Group's share price is down 32% year to date with no negative news and despite its saying that 2022 earnings would be above expectations, making its current valuation a good entry point, Shore Capital says. The London-listed law firm's business model is robust and recent EPS upgrades suggest that the company has strong fundamentals. Shore forecasts a fair value of 758 pence a share, 34% above its current price. The firm upgrades its recommendation on the stock to buy from hold. Shares are up 0.9%, at 570.0 pence.

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UK Retail Sales Outlook Faces Concerns Amid Cost of Living Crisis

0843 GMT - The 0.3% on month fall in U.K. retail sales in February is a sign of what is to come in the next few months, when further rises in both inflation and interest rates are likely to hit consumer spending, Capital Economics says. Households are in for a prolonged period of negative real wage growth, and in this context it seems inevitable that consumers will continue to pare back spending in the coming months, the economic-research firm says. "It is hard to see how overall consumer spending growth will make much headway over the remainder of this year," CE says.


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

(END) Dow Jones Newswires

03-25-22 0715ET