Low Liquidity Could Dampen Demand at UK's Green Gilt Auction

Low Liquidity Could Dampen Demand at UK's Green Gilt Auction

0933 GMT - The less liquid nature of green bonds compared with non-green bonds is likely to dampen demand for the U.K. Debt Management Office's sale of GBP2.75 billion in the July 2033 green gilt on Wednesday, say RBC analysts in a note. "Green bonds are less liquid compared to non-green issues, given that a certain portion of these green gilt issues are relatively tied-up by ESG investors with green mandates," the analysts say. "In the current climate of structurally higher uncertainty, this potentially makes green gilts less desirable given this characteristic." ([e-mail])

 
Companies News: 

Smiths Group 1Q Organic Revenue Grew 13%, Backs FY 2023 Guidance

Smiths Group PLC on Wednesday reported a 13% rise in organic revenue growth for the first quarter of the new fiscal year, and backed its full-year guidance.

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Taylor Wimpey Sees 2022 Profit Rising In Line with Market Views; 2H Sales Rate Fell

Taylor Wimpey PLC said Wednesday that it expects full-year operating profit to rise in line with market views and continues to see good levels of home-buying interest, though it has seen its second-half sales rates hit by wider economic uncertainty.

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Ashtead Group Shareholder Arab Petroleum Sells 4.8M Shares at 260P Each

Numis Securities Ltd. said Wednesday that it has placed 4.8 million ordinary shares of Ashtead Group PLC on behalf of Arab Petroleum Investments Corp. at 260 pence each, as first flagged late Tuesday.

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Purplebricks Shareholder Lecram Calls for Chairman Removal and Replacement

Purplebricks Group PLC said Wednesday that it has received a requisition notice from a shareholder calling a general meeting to remove Chairman Paul Pindar, and replace him with former Countrywide Chief Executive and Rightmove PLC founder Harry Hill.

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Flutter Entertainment Raises US Guidance After 3Q Revenue Growth

Flutter Entertainment PLC said Wednesday that it was upgrading its 2022 guidance for U.S. revenue after strong growth in the country and that group revenue for the third-quarter rose 22%.

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Marks & Spencer 1H Pretax Profit Rose; Sees Worsening Backdrop in FY 2024

Marks & Spencer Group PLC said Wednesday that pretax profit for the first half of fiscal 2023 rose despite increased costs, and that it expects fiscal 2024 market conditions to become more challenging.

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ITV Nine-Month Revenue Grew on Increased Digital Revenue, Studios Strength

ITV PLC said Wednesday that revenue for the first nine months of 2022 rose after it booked growth in digital and from ITV Studios.

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Aviva's Nine-Month General Insurance Gross Written Premiums Rose; Mulls Buybacks

Aviva PLC on Wednesday reported a rise in general insurance gross written premiums for the first nine months of the year and said it anticipates additional capital returns to shareholders.

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Watches of Switzerland 1H Revenue Rose on U.S. Robust Sales; Lifts FY 2023 Views

Watches of Switzerland Group PLC said Wednesday that performance for the first half of fiscal 2023 has been robust, driven by broad based sales growth, and raised its full-year guidance.

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Taylor Wimpey Sees 2022 Profit Rising in Line With Market Views; 2H Sales Rate Fell -- Update

Taylor Wimpey PLC said Wednesday that it expects full-year operating profit to rise in line with market views and continues to see good levels of home-buying interest, though it has seen its second-half sales rates hit by wider economic uncertainty.

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FirstGroup Swung to 1H Pretax Profit on Increased Passenger Volumes

FirstGroup PLC said Wednesday that it swung to a pretax profit for the first half of fiscal 2023 as revenue rose on the back of higher passenger volumes, and that the board's expectations for the year are broadly unchanged.

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J.D. Wetherspoon Has Seen Slowdown in Sales in Past Five Weeks

J.D. Wetherspoon PLC said Wednesday that it has experienced slower sales in the five weeks ended Nov. 6 than for the first nine weeks of the fiscal year, but remains cautiously optimistic about future prospects.

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Smiths News FY 2022 Pretax Profit Slipped on Higher Provisions; Raises Dividend

Smiths News PLC said Wednesday that pretax profit slipped in fiscal 2022 due to bad debt provisions, but raised its dividend and said it was confident heading into fiscal 2023.

 
Market Talk: 

FirstGroup 1H Results Won't Prompt Changes to Consensus

0947 GMT - FirstGroup's 1H reported an adjusted attributable profit of GBP30.8 million, which was in line with expectations, Citi analyst Sathish B. Sivakumar says in a note. Performance of the Bus business was hurt by inflationary pressure, but its Rail segment benefited from a strong recovery in the electric open-access rail service due to leisure travel across Lumo and Hull trains, Sivakumar says. "Overall, we do not expect any material change to FY 2023 consensus adjusted operating profit," he says. Citi rates the stock buy/high risk, and has a 133 pence target price. Shares are down 5.5% at 101 pence. ([e-mail])

Next's Acquisition of Made.com Shows Business Strength

0921 GMT - Next's agreement to snap Made.com out of administration shows that the U.K. online homeware and furniture retailer is a market share winner amid the current macro backdrop and despite short-term volatility, Shore Capital analysts Eleonora Dani and Clive Black say in a research note. The acquisition is expected to add around GBP16 million in losses to Next's FY 2023 bottom line and around GBP6 million of debt, they note. Made.com's collapse shows the vulnerability of online pure players, with direct-to-consumer brands needing retailers to survive, they add. ([e-mail])

Taylor Wimpey Update's Lack of Curveballs Should Be Reassuring

0853 GMT - Taylor Wimpey's market update was similar to the downbeat messages from its peers, though it sales per site per week should be somewhat reassuring given it doesn't throw any curveballs, Jefferies says. The house builder sees 2022 operating profit meeting market views of GBP922 million, which on the basis of flat volume guidance suggests an improvement in selling price and margin, Jefferies analysts say in a research note. Taylor Wimpey's sales per site per week of 0.51 since the end of the first half--down from 0.91 at the same time in 2021, is still a touch above those of its peers, the bank says. Jefferies retains its buy rating and 105 pence price target on Taylor Wimpey's stock. Shares are up 0.4% at 96.36 pence. ([e-mail])

Aviva's Solvency II Ratio Miss Will Dent Hopes of More Generous Returns

0829 GMT - Aviva's weaker-than-expected Solvency II ratio of 223%, which missed Citi's forecast of 240%, overshadows the good news in the insurer's 3Q results, analyst James A. Shuck says in a note. Although surplus capital rose to GBP2.5 billion, from GBP2.3 billion, the solvency miss is expected to be the focus of the day, as it is likely to undermine hopes of more aggressive capital returns, he says. Citi rates the stock neutral with a 441-pence target price. Shares are down 1.3% at 428.20 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-09-22 0505ET