Pound's Weakness May Be Driven by Month-End Rebalancing Flows
Sterling's weakness is most likely the result of investors rebalancing their portfolios for the end of the month and third quarter, rather than due to concerns about supply-constraints hitting the U.K. economy, Bank of America says. Sterling was relatively stable during U.S. and Asia trading hours but would have continued falling if the "narrative was one of fundamental deterioration in the U.K. economy," BofA forex strategist Kamal Sharma says. With sterling's declines concentrated in the London time zone, the currency has probably succumbed to month- and quarter-end rebalancing pressures, he says. GBP/USD falls 0.2% to 1.3514, having earlier reached an eight-and-a-half-month low of 1.3500, according to FactSet. EUR/GBP rises 0.1% to 0.8636 after hitting a two-month high of 0.8644 earlier.
Amigo Says Current Collection Levels Are Strong
Amigo Holdings PLC said Wednesday that its collections have remained strong since its fiscal 2021 ended.
Kropz Secures ZAR200 Mln Convertible Facility to Complete Elandsfontein Phosphate Project
Kropz PLC said Wednesday that it has agreed on a convertible equity facility of up to 200 million rand ($13.2 million) with its major shareholder to fund the Elandsfontein phosphate project in South Africa.
TruFin Says 1H Performance of Some Companies Affected by Covid-19; Shares Fall
Shares in TruFin PLC fell Wednesday after the U.K. holding company said the performance of some of its companies during the first half had been affected by the coronavirus pandemic, although it reported a narrowed pretax loss after booking lower costs.
ImmuPharma to Merge French Subsidiaries into One to Save Costs
ImmuPharma PLC said Wednesday that it will merge its two wholly owned French subsidiaries, ImmuPharma France SA and Ureka SAS, into one company to save costs.
Stranger Holdings Agrees to Reverse Takeover
Stranger Holdings PLC said Wednesday that it has entered into a deal to acquire certain Africa-based resource assets, which will constitute a reverse takeover of the company given the scale of acquisition.
Arbuthnot Banking Sells Further Stake in Secure Trust
Arbuthnot Banking Group PLC said Wednesday that it has raised gross proceeds of around 2.5 million pounds ($3.4 million) via the sale of a further 220,000 ordinary shares of Secure Trust Bank PLC.
CMO Group Swung to 1H Pretax Profit
CMO Group PLC reported Wednesday a swing to a pretax profit for the first half of 2021 and said that its forecast on delivering double-digit sales growth in the second half is in line with full-year expectations.
Avingtrans Swung to FY 2021 Pretax Profit
Avingtrans PLC said on Wednesday that it swung to a pretax profit for fiscal 2021 as revenue increased, and that despite, the effects of the pandemic, its markets continue to develop and M&A opportunities remain a priority.
Fintel PLC Chairman Gary Hughes Steps Down, Ken Davy Named Interim Chairman
Fintel PLC said Wednesday that Nonexecutive Chairman Gary Hughes is stepping down with immediate effect for personal reasons, and that Deputy Chairman Ken Davy will replace him on an interim basis.
Sanderson Design Names Mike Woodcock as New CFO
Sanderson Design Group PLC said Wednesday that Mike Woodcock will become the company's chief financial officer and a board director of the group on Nov. 1.
Roquefort Preliminarily Agrees to Buy Lyramid for GBP1 Mln
Roquefort Investments PLC said Wednesday that it has entered a preliminary agreement with Provelmare Holding SA to purchase Lyramid Ltd. for 1 million pounds ($1.4 million) in a reverse takeover.
Harvest Minerals 1H Pretax Loss Narrowed, 2H Performance Seen as Robust
Harvest Minerals Ltd. said Wednesday that its first-half pretax loss narrowed as revenue increased, and that the board expects a robust performance in the second half.
Lukoil Acquires 25% Interest in Offshore Project in Caspian Sea from BP
Lukoil PJSC said Wednesday that it has agreed to acquire a 25% interest in the Shallow Water Absheron Peninsula exploration project in the Azerbaijan sector of the Caspian Sea from BP PLC for an undisclosed sum.
MyCelx Technologies Swung to 1H Profit on Higher Revenue
MyCelx Technologies Corporation on Wednesday reported a swing to pretax profit for the first half of 2021 as revenue increased amid a resurgence in bidding activity across the industries where the company operates.
UK Consumer Caution Increases Risks to the Recovery
1013 GMT - U.K. consumer credit increased modestly in August, and households continue to add to their stock of savings, data from the Bank of England show. This suggests that the fall in August retail sales was not offset by a surge in spending elsewhere, providing more evidence that the U.K. economy didn't regain much momentum in August after stagnating in July, Capital Economics' chief U.K. economist Paul Dales says. With the current fuel crisis restraining activity--outside of spending on fuel--there's a risk that at some point the economy will take a step backwards, he says.
Next Lifts Outlook, But Supply and Cost Issues May Weigh
0949 GMT - Shares in Next top the FTSE 100 risers, up 2.7% after the U.K. fashion and homeware retailer reported a swing to a first-half pretax profit and increased full-year profit and sales guidance. Whilst Next has benefited from online expansion, supply-chain issues and rising costs may hold back progress, Hargreaves Lansdown says. "The high-street giant hasn't escaped labor, supply and cost issues sweeping the country unscathed," HL analyst Sophie Lund-Yates says. "While things are stable for now, a lack of foreign workers means some Christmas deliveries might take longer to arrive during the peak trading season."
Next's Online Channel Seen as Jewel in Its Crown
0909 GMT - Next might not be the most innovative name on the U.K. market, but its online channel has quietly become the jewel in its crown over the past few years, Freetrade's senior analyst Dan Lane says. The FTSE 100 listed fashion retailer's style isn't as targeted on fast fashion as Boohoo's and ASOS's brands are, but it will be more than thankful for that, Lane says, noting that Next's homeware and children's clothes boosted sales over the Covid-19 pandemic. "With both sales and profits up on 2019 figures, it has clearly been navigating the pandemic well and upping profit guidance is a real show of confidence from the group," Lane says. Shares are up 2.9% at 8,314.00 pence.
Pound Falls Vs Dollar as Investors Consider Potential Fed, BOE Policy Changes
0727 GMT - Sterling falls versus the dollar on the prospect of the Federal Reserve starting to withdraw stimulus and on concerns that the Bank of England could raise interest rates to stem inflation despite weak economic growth. BOE Governor Andrew Bailey on Monday signalled that interest rates could rise before Christmas, which helped fuel speculation of a "toxic mix" of supply-constrained weak growth coupled with high inflation forcing the BOE into monetary tightening that hits confidence and weakens sterling, MUFG Bank analyst Derek Halpenny says. This "crisis of confidence scenario" is more akin to emerging markets foreign exchange than G10 forex, he says. GBP/USD falls 0.3% to an eight-and-a-half-month low of 1.3504, according to FactSet. EUR/GBP trades flat at 0.8631.
Next Online Platform Potential Seen as Sales Boost
0708 GMT - Next, whose results for the first half of fiscal 2021 were ahead of RBC Capital Markets expectations, could continue seeing its sales increase further by developing its online Total Platform business for other brands, the Canadian bank says. The FTSE 100 listed fashion retailer is seeing product return rates returning to normal, boosted by a particularly strong performance of its branded Label offer, RBC notes. "We think Next is relatively well positioned in the sector and has potential to recapture its status as a strong online and cash-returns story. Longer term, Next should benefit from a further shift of sales online and from growth in its brands and international sales channels," RBC says. RBC has a target price of 9,500 pence a share. Shares are up 3% at 8,324.00 pence.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at email@example.com
(END) Dow Jones Newswires