Gilt Yields Rise After Above-Forecast UK Services PMI Data

UK Gilt Yields Rise After Above-Forecast UK Services PMI Data

1036 GMT - Gilt yields rise after U.K. services PMI data in March came in stronger than expected, adding to prospects of further interest-rate rises by the Bank of England. The S&P Global/CIPS U.K. services purchasing managers index in March stood at 52.9, a decline from 53.3 the previous month, but above the 52.7 consensus by economists in a WSJ poll and above the flash estimate of 52.8. The U.K. 10-year gilt yield is up around 7 basis points to 3.504%, versus 3.461% before the data. The U.K. 2-year gilt yield also rises around 7bps to 3.419%, up from 3.397% previously, Tradeweb data show. ([e-mail])

COMPANIES NEWS:

Entain Buys 365scores for Up to $160 Mln to Add Data-Driven Sports Media Expertise

Entain PLC said Wednesday that it has bought sports-media business 365scores for $150 million, with contingent payments of up to $10 million.

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Topps Tiles 1H Revenue Rose to Record Highs on Robust Sales

Topps Tiles PLC said Wednesday that revenue for the first half of fiscal 2023 rose to a record high on the back of improved sales, benefiting from the acquisition of Pro Tiler Tools and the launch of Tile Warehouse in 2022.

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RS Group 4Q Revenue Slowed But FY 2023 Adjusted Operating Profit Beat Views

RS Group PLC said Wednesday that revenue momentum for the fourth quarter of fiscal 2023 slowed, but that adjusted operating profit for the year was slightly ahead of consensus expectations.

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Futura Medical 2022 Loss Widens But Expects Maiden Revenue Soon

Futura Medical PLC said Wednesday that its 2022 loss widened though it made significant strategic and commercial progress over the year and into 2023 and expects to report maiden revenue soon.

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Lookers 2022 Pretax Profit Fell Against Strong Comparative, Revenue Rose on Higher Selling Prices

Lookers PLC said Wednesday that pretax profit fell in 2022 against a strong comparable year, as revenue rose thanks to growth in most divisions.

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Distribution Finance Sees 2022 Expectations Beat on Net Interest Income, Cost Management

Distribution Finance Capital Holdings PLC said Wednesday that it expects to report 2022 results materially ahead of expectations, mainly thanks to increased net interest income and cost management.

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Home REIT Gets Proposals for New Advisor; Reduces Lender Debt

Home REIT PLC said Wednesday that it has received proposals from six candidates to act as its investment adviser, reduced debt with a lender and received an initial draft of an investigation report.

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Fulham Shore Agrees to GBP93.4 Mln Takeover by Japan's Toridoll Holdings

Fulham Shore PLC said Wednesday that it has agreed to a 93.4 million pound ($116.8 million) takeover by Great Sea Kitchens Ltd., a new company formed by Japan's Toridoll Holdings Corp.

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Speedy Hire Sees FY 2023 Profit in Line With Views; Warns of Worsening Backdrop

Speedy Hire PLC said Wednesday that it expects adjusted profit before tax for fiscal 2023 in line with the board's expectations, but flagged softening demand in recent weeks.

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Northern Bear Shares Jump on Dividends, FY 2023 Adjusted Operating Profit Seen Exceeding GBP2.75M

Shares in Northern Bear PLC jumped 24% on Wednesday after it said that it plans to declare an ordinary dividend of 4 pence a share and a special dividend of 1 pence a share for fiscal 2023 and that adjusted operating profit should exceed 2.75 million pounds ($3.4 million).

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Fulham Shore to Report FY 2023 Revenue Rise on Pandemic Recovery, New Restaurant Openings

Fulham Shore PLC said Wednesday that it expects to report a rise in revenue for the year ended March 26 as its performance benefited from new restaurant openings and the end of pandemic-related closures.

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Shield Therapeutics Appoints Andy Hurley as Chief Commercial Officer

Shield Therapeutics PLC said Wednesday that it has appointed Andy Hurley as chief commercial officer from April 10.

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Co-Operative Group 2022 Pretax Profit Rose on Petrol Business Sale

Co-operative Group Ltd. said Wednesday that pretax profit for 2022 rose on the back of selling its petrol forecourt business.

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EnQuest 2022 Earnings, Revenue Rise on Higher Production, Prices

EnQuest PLC said Wednesday that earnings and revenue rose in 2022 as it booked higher production and amid higher oil prices.

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Drumz Shares Fall on Discount Fund Raise; Investee Reverse Takeover

Drumz PLC shares fell Wednesday after it agreed to buy investee Acuity Risk Management Ltd. in a 3.6 million pound ($4.5 million) reverse takeover, hold a discounted fund raising and share reorganization as well as change its name.

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Genuit COO to Step Down, No Replacement Planned

Genuit Group PLC said Wednesday that Chief Operating Officer Matt Pullen will step down on April 28, as Martin Gisbourne assumes the duties of chief strategy and sustainability officer.

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Hilton Food 2022 Pretax Profit Fell on Higher Costs, Appoints New CEO as Philip Heffer Steps Down

Hilton Food Group PLC said Wednesday that pretax profit for 2022 fell on the back of increased expenses, and that it has appointed a new chief executive officer.

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ZOO Digital Buys out ZOO Korea for Around $1.6 Mln in Cash and Stock Deal

ZOO Digital Group PLC said Wednesday that it has acquired the remaining 49% of shares in ZOO Korea in a cash and share deal worth around $1.6 million, following the Korean hub's strong first year performance.

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Growing CEO Pay Gap Gives New York an Extra Edge Over London -- WSJ

By Josh Mitchell and Ben Dummett

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CML Microsystems Launches Share Buyback of Up to GBP1.5 Mln

CML Microsystems PLC said Wednesday that it is launching a share buyback program to repurchase up to 1.5 million pounds ($1.9 million) worth of shares.

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ECR Minerals to Buy Australia Project for GBP200,000 From Panther Metals, Bluekebble

ECR Minerals PLC said Wednesday that it has agreed to buy the Blue Mountain project in Australia's Queensland for 200,000 pounds ($250,000) worth of shares from Panther Metals PLC and Bluekebble Pty Ltd.

MARKET TALK:

EnQuest's Net Income Miss Was Driven by UK Energy Profits Levy

1010 GMT - EnQuest's net income miss, with a reported loss of $41.2 million, was because of a $81 million impairment charge related to the U.K. Energy Profits Levy, Jefferies's Mark Wilson and Ruben Dewa say in a research note. The oil-and-gas company's year-end net debt for 2022 of $717.1 million, reduced to $624 million by the end of February, suggests 0.7 times net-debt-to-Ebitda leverage overall at the end of 2022, which is progress toward the target of a 0.5 ratio, they point out. Cash performance continues to be strong even with increased taxation, they add. Jefferies has a buy rating on the stock with a 27.00 pence price target. Shares trade up 0.5% at 18.93 pence. ([e-mail])

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Hilton Food's Seafood Business Is Recovering From the Storm

0953 GMT - Hilton Food's 2022 performance indicates that its challenging backdrop is now broadly stabilized while management struck a positive tone for the start of the new year, Shore Capital analysts Darren Shirley and Clive Black say in a note. The food-packing business faced a "perfect storm" in 2022, with unprecedented raw-material cost increases, a tightened consumers budget causing an under-recovery in the U.K. seafood business and two subsequent downgrades to earnings, they say. "For 2023 and beyond, the outlook looks brighter, with UK seafood recovering and the core in rude good health, we see a final dividends per share increase of 5% as a strong sign of confidence," they add. ([e-mail])

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European AT1 Bond Market Needs Unified Write-Down Clauses

0929 GMT - European countries have different clauses on Additional Tier 1 (AT1) bond conversion or write-down when banks become non-viable, says Scope Group senior consultant Sam Theodore in a note. "In Spain, Denmark, Netherlands, and the U.K. AT1s are converted into equity, not written down," he says, "France, Italy, and Germany, write-down is temporary and can be written up if or when the bank's strength is restored." Theodore says that European banks and regulators should "harmonise AT1 conversion or write-down clauses" to strengthen the AT1 market. "Ideally, regulators should adopt the equity conversion route so that AT1 investors are not at a disadvantage to equity investors," he says. ([e-mail])

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Just Group's Strong Balance Sheet Positions It for Growth

0917 GMT - Just Group is well-placed to grow in 2023 and beyond given its strong balance sheet, Jefferies says in a note. The provider of retirement-income products and services' solvency II ratio, at 199%, is its highest ever, analysts at the brokerage say. "This is a major milestone for Just, not only because Solvency II has been a key area of concern in the past amongst investors, but also because Just Group now has the capability to write a [more than] GBP1 billion deal on its own balance sheet," they say, adding that positive capital generation is a guide for its future sales potential. Jefferies raises its target price on the stock to 140 pence from 120 pence. Shares rise 1.4% at 88.4 pence. ([e-mail])

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Fulham Shore's GBP93.4 Mln Takeover Bid Possibly Best Deal on the Table

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04-05-23 0656ET