Persimmon's Cautious Update Drags Down Fellow House Builders

Persimmon's Cautious Update Drags Down Fellow House Builders

0850 GMT - Persimmon's cautious business update has pushed a number of key U.K. house builders to the bottom of the FTSE 100 in early trading, after warning that it expects few completions in 2023, Interactive Investor says. Persimmon has shed more than 55% of its stock market valuation year-to-date, underperforming the FTSE 100 and its rivals as it grapples with cost inflation and macroeconomic pressures, Interactive Investor head of investment Victoria Scholar says in a market comment. "It is languishing at the bottom of the U.K. index today dragging other housebuilder stocks down with it," Scholar says. Persimmon shares are down 7.8% at 1,220.5 pence, Barratt Developments is down 2.4% at 376.4 pence while Taylor Wimpey is down 3.3% at 93.34 pence. ([e-mail])

 
Companies News: 

Persimmon Sales Fell; Backs 2022 View But Sees 2023 Sales Slipping

Persimmon PLC said Tuesday that sales over the first four months of the second half of the year fell against a strong comparative and macroeconomic headwinds, and while it sees 2022 meeting views, it expects 2023 sales to fall.

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ALD Acquisition of LeasePlan Gets UK Competition Regulator Clearance

The U.K. competition regulator said Tuesday that it has cleared the acquisition of LeasePlan Corp. by Societe Generale SA's vehicle-leasing business ALD SA.

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Aveva 1H Pretax Loss Widened on Amortization Relating to Schneider Deal

Aveva Group PLC said Tuesday that its pretax loss for the first half widened due to amortization of intangible assets relating to the combinations with the Schneider Electric industrial software business and OSIsoft.

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WPP CFO John Rogers to Step Down; Britvic's Joanne Wilson Named Successor

WPP PLC said Tuesday that Chief Financial Officer John Rogers has decided to step down from the company, and named soft-drink company Britvic PLC's CFO Joanne Wilson as successor.

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AB Foods FY 2022 Pretax Profit Rose on Robust Pricing; Launches GBP500 Mln Share Buyback

Associated British Foods PLC said Tuesday that pretax profit for fiscal 2022 rose on robust pricing amid a normalization of customer behavior, and raised its dividend payout and launched a buyback program.

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IMI 3Q Organic Revenue Rose; Upgrades 2022 EPS Guidance

IMI PLC said Tuesday that third-quarter organic revenue growth was 4% and that it is upgrading its full-year earnings per share guidance.

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Irish Government Sells 134 Mln AIB Group Shares at EUR2.96

J.P. Morgan Securities PLC said Tuesday that it has now sold 134 million ordinary shares in AIB Group PLC on behalf of the Irish Government at 2.96 Euros a share ($2.97), as first announced late Monday.

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Hilton Food's 2022 SeaFood Business Profit to Miss Expectations

Hilton Food Group PLC said that volume and revenue performance have been in line with the board's expectations, although it expects a drop in its U.K. seafood business operating profit for the full year amid macroeconomic pressures.

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Hammerson 3Q Rental Income, Sales Rose; Sees 2022 Adjusted Earnings Rising

Hammerson PLC said Tuesday that its third-quarter rental income and sale increased on further postpandemic recovery, and it expects full-year adjusted earnings to rise.

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Seraphine Sees 1H Loss Amid Tough UK Conditions

Seraphine Group PLC said Tuesday that it expects to post a loss for the first half after experiencing a challenging retail environment and softer trading during the summer months.

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IMI PLC to Buy U.K. Smart Thermostatic Control Manufacturer for Up to GBP118 Mln

IMI PLC said Tuesday that it is buying U.K. smart thermostatic control manufacturer Heatmiser UK Ltd. for up to 118 million pounds ($135.9 million), as part of its plan to accelerate growth in smart buildings.

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Marks Electrical 1H Pretax Profit Flat; Backs FY Guidance

Marks Electrical Group PLC said Tuesday that pretax profit for its fiscal first half was flat on year in a tough trading environment and that it was well positioned to achieve full-year targets.

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Direct Line Insurance 3Q New Business Sales Fell

Direct Line Insurance Group PLC said Tuesday that new business sales in the third quarter fell as it raised prices in order to restore margins in the motor division.

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CVS Group Plans to Double Ebitda, Boost Revenue Over Five Years

CVS Group PLC said Tuesday that it plans to double its Ebitda over the next five years and significantly increase revenue growth.

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ZOO Digital Posts Maiden 1H Pretax Profit on Localization Growth, Media-Services Expansion

ZOO Digital Group PLC said Tuesday that it booked its first-ever pretax profit for the first half of fiscal 2023, and that it is backing its full-year guidance.

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Chesterfield Resources to Drop Some Cyprus Licenses to Focus on Most Prospective Ones

Chesterfield Resources PLC said Tuesday that it will drop a number of licenses in Cyprus as they expire over the next six months, and that this will allow it to focus on the most prospective licenses.

 
Market Talk: 

AB Foods Looks Able to Weather Economic Storms

0843 GMT - AB Foods showed a resilient performance in FY 2022, with robust growth despite a challenging environment, and Primark coming back to its feet, Interactive Investor head of markets Richard Hunter says in a research note. The British conglomerate's robust results rely in its business diversification and scope, which provides a protection during periods of economic uncertainties, Hunter notes. "Unfortunately, September's profit warning on prospects for next year is still ringing in investors' ears. An outlook which incorporates further cost inflation, some ongoing supply chain pressures and, in particular, an increasingly cash-strapped consumer all look likely to weigh on the numbers to come," Hunter adds. ([e-mail])

AB Foods' Buyback Program Viewed Positively Given Cheap Price

0835 GMT - Associated British Foods reported a mixed set of fiscal 2022 results, but the announcement of a share-buyback program should be welcomed by investors, RBC analysts Richard Chamberlain and Manjari Dhar say in a research note. Shares rise 3.5%. The U.K. conglomerate's share price is fairly depressed and should be supported by the GBP500 million buyback program and its robust balance sheet, the analysts add. AB Foods is also expected to have a robust recovery in sales, driven by continuing positive recovery trends for store-based retailing, they say. However, margins are likely to be affected by currency and other inflation pressures, RBC notes. ([e-mail])

Persimmon's Soft Update Means Low End of 2023 Estimates Likely to Fall

0820 GMT - Persimmon delivered a somewhat soft business performance update, with weekly sales rates falling broadly in line with expectations and cancellation rates increasing to 28% from 21%, Citi says. The house builder has a wide range of market consensus expectations, but Citi believes the bottom end of the range is likely to edge lower by around 3%-4% on the back of the softer outlook on outlet growth and average selling prices, analyst Ami Galla says in a research note. "Focus...will be on the scale of ordinary dividend payouts, the increased building safety provisions and the pressures on underlying house prices," the U.S. bank says. Citi retains its neutral rating and 1,207 pence price target on the stock. Shares are down 8.7% at 1,208.0 pence. ([e-mail])

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Aveva's Weak 1H Largely Academic Due to Schneider Bid

0818 GMT - Aveva Group delivered weak results for the first half, as was expected after it had been preannounced, though this is largely academic due to the continuing bid situation with Schneider Electric, Jefferies analysts Charles Brennan and Alex Nguyen say in a research note. The U.K. engineering and industrial-software company is transitioning to a subscription model, which deflates license growth in favor of annualized recurring revenue, they say. However, licenses were down 35%, with ARR growth of 11.6%, and management had originally seen ARR growth accelerating with licenses being broadly flat, the analysts note. Jefferies has a hold rating on the stock with a target price of 3,250.00 pence. Shares trade down 0.1% at 3,134.00 pence.([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-08-22 0406ET