SSE Lifts EPS Guidance on Higher Profits
1113 GMT - SSE lifts fiscal 2023 adjusted earnings per share guidance to more than 150 pence from at least 120 pence, an uplift that reflects higher profit from combined-cycle gas turbines and contribution from gas storage optimization, Citi says. The energy company is benefiting from reduced risk around the electricity generator levy and lower commodity prices reducing potential costs, Citi analysts Jenny Ping and Rory Graham-Watson say in a note. "For us, key is to understand the sustainability of the earnings and while a better balance sheet is definitely a positive for the shares, it remains to be seen how the company delivers value on its overseas investments," the bank says. Citi retains its neutral rating and 1,664 pence price target on the stock. Shares rise 1.7% to 1,731.0 pence. (joseph.hoppe@wsj.com)
Companies News:
UnitedHealth's EMIS Group Acquisition Faces UK Competition Probe
The U.K. Competition and Markets Authority will investigate the acquisition of EMIS Group PLC by UnitedHealth Group Inc., it said Friday.
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SSE Raises FY 2023 Adjusted EPS Guidance to More than 150p
SSE PLC said Friday that it has raised fiscal 2023 adjusted earnings per share expectations to more than 150 pence ($1.86) from at least 120 pence, reflecting the strength of its business mix and certainty from strong operational performance.
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Spirent Sees 2022 Revenue Growth, Adjusted Operating Profit Ahead of Market Views
Spirent Communications PLC said Friday that it expects its 2022 results to meet expectations, with full-year revenue growth and an adjusted operating profit slightly ahead of market views.
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TheWorks.co.uk Backs FY 2023 Amid Continuing Economic Uncertainties
TheWorks.co.uk PLC said Friday that pretax loss for the first half of fiscal 2023 widened driven by higher costs and despite increased revenue, and that full-year guidance remains unchanged given the challenging macroeconomic backdrop.
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Mirriad Advertising Hangs Up 'for Sale' Sign
Mirriad Advertising PLC said Friday that it has started a strategic review of its options to maximize value, including an equity capital raising and formal sale process.
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Character Group Sees FY 2023 Sales, Profit Missing Market Views
Character Group PLC said Friday that it expects fiscal 2023 sales and underlying pretax profit to marginally miss market views.
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4imprint to Report 2022 Pretax Profit at Top End of Forecasts
4imprint Group PLC said Friday that it expects to report a pretax profit for 2022 at the upper end of analysts' forecasts, with revenue 45% higher after a strong finish to the year.
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TruFin Sees 2022 Performance in Line With Market Views, Boosted by Satago Revenue
TruFin PLC said Friday that it expects to report a full-year adjusted pretax loss in line with expectations, mainly supported by a robust revenue increase at its Satago business.
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Close Brothers Sees Resilient Five-Month Performance But Winterflood Activity Subdued
Close Brothers Group PLC said Friday that performance in the five months to Dec. 31 was resilient, but activity at its Winterflood division remained subdued.
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Circle Property Plans Capital Reduction, at Least GBP30 Mln Capital Return
Circle Property PLC said Friday that it intends to carry out a capital reduction and return capital to shareholders through the issue of B shares, subject to shareholder approval.
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Land Securities Names Ian Cheshire as Chair Designate; Cressida Hogg to Retire May
Land Securities Group PLC said Friday that it has appointed Ian Cheshire as an independent nonexecutive director and chair designate, replacing Cressida Hogg who will retire from the board after five years in the role.
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City of London Investment Group Funds Under Management Rose on Quarter
City of London Investment Group PLC said Friday that funds under management as at Dec. 31 were up on quarter, but were flat when compared with its fiscal 2022 year-end total on June 30.
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Petershill Partners' 2022 Aggregate Assets Under Management Rose
Petershill Partners PLC said Friday that aggregate assets under management as of Dec. 31 rose, and that it is well positioned to navigate the challenging macroeconomic backdrop given its asset diversification.
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Supply@Me Capital Sees Client Company Pipeline Growth in Late 2022
Supply@Me Capital PLC said Friday that it has seen a growth in the pipeline of client companies with warehouse-goods inventories suitable for monetization in the final months of 2022.
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Devro 2022 Adjusted Operating Profit to Beat Board Views; Revenue Grew 11%
Devro PLC said Friday that it expects adjusted operating profit for 2022 to be ahead of the board's expectations, with revenue up by 11% on a constant currency basis.
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Allergy Therapeutics 1H Revenue Fell on Production Pause, Streamlining
Allergy Therapeutics PLC said Friday that revenue fell in the first half of fiscal 2023 due to paused U.K. production and streamlining.
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Croma Security Solutions Finance Director to Stand Down; Appoints Teodora Andreeva to Role
Croma Security Solutions Group PLC said Friday that Finance Director Richard Juett will stand down on March 31 for personal reasons, and that Teodora Andreeva has been appointed to the role on April 1.
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Octopus Renewables Raises 2023 Target Dividend to Match Inflation
Octopus Renewables Infrastructure Trust PLC said Friday that it has increased its target dividend for 2023 to 5.79 pence (7.17 cents) a share.
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DSW Capital Shares Fall After Warning of FY 2023 Expectations Miss
Shares in DSW Capital PLC fell Friday after the company warned that it wouldn't be meeting market expectations for fiscal 2023 as its historically weighted second half was being hurt by "the wider macro-economic conditions and uncertainties.
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EMIS Sees 2022 Revenue, Adjusted Operating Profit in Line With Views
EMIS Group PLC said Friday that it performed strongly during 2022 and expects to report revenue and adjusted operating profit in line with its expectations.
Market Talk:
Spirent Communications Set for Tricky 2023
0922 GMT - Spirent Communications' 2022 update indicates it will slightly beat expectations despite a slow 4Q, but its outlook suggests incremental demand softness, and 2023 guidance to be more second-half weighted than usual, Canaccord Genuity says. The test, assurance, and analytics services provider's tougher spending environment limits scope for an outperformance this year given macroeconomic difficulties and U.S. client capital expenditure cuts, Canaccord analysts say in a research note. "A trickier cyclical top line backdrop will likely mute growth and earnings growth and momentum this year, leading us to lower our rating from buy to hold," the Canadian investment bank says. Canaccord cuts its target price on Spirent's stock to 280 pence from 310 pence. Shares are down 14% at 239.6 pence. (joseph.hoppe@wsj.com)
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Whitbread's Accelerated Growth Should Drive a Rerating
0948 GMT - Whitbread's positive data shows U.K. momentum is strong and Germany is continuing to recover,Jefferies analysts say in a note. The hotel-and-restaurant company has strong growth prospects in its core U.K. business while balance sheet strength should boost growth in Germany, meaning shares should trade at a premium, the analysts say. Whitbread reported a 26% rise in U.K. accommodation revenue in the five-weeks to Jan. 5 compared with prepandemic levels, which implies it is gaining market share, they say. The German business meanwhile enjoyed a second consecutive profitable quarter in 3Q with its balance sheet implying GBP750 million in cash firepower to acquire freehold and leasehold contracts, the bank says. "Accelerated growth should drive a rerating," the analysts say. (anthony.orunagoriainoff@dowjones.com)
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AB Foods' Primark Margins Expected to Fall Given Pricing Halt
0951 GMT - Associated British Foods is expected to set a revenue growth for the first quarter of fiscal 2023, while Primark's margins will be the focus of investor debate, AJ Bell investment director Russ Mould and financial analyst Danni Hewson say in a note. The British conglomerate is expected report FY 2023 revenue estimate of GBP18.7 billion, an year-on-year growth of 10%, they say. Attention will then switch to Primark, which is likely to have an impact on operating margins given its decision to hold price increases in order to help customers and also boost market share, they add. AB Food expects Primark's FY 2023 operating margin below the 8% reported the previous report, they highlight. (michael.susin@wsj.com)
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Doubts Over BOE's Determination to Tame Inflation Could Weigh on Pound
1016 GMT - Scepticism over the Bank of England's determination to fight inflation could put pressure on sterling ahead of the central bank's next meeting, Commerzbank says. The BOE is largely expected to raise rates 50 basis points at its February 2 meeting as data this week showed U.K. inflation remains elevated and the labor market is still tight, Commerzbank currency analyst You-Na Park-Heger says in a note. "Of course, it remains to be seen whether the BOE will actually deliver, as two of the nine members had already voted in favor of unchanged rates at the last meeting in December." BOE Governor Andrew Bailey also suggested Thursday that the BOE won't lift rates aggressively as he sees inflation falling rapidly, Park-Heger says. (renae.dyer@wsj.com)
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Diageo's Price-Increase Strategy Might Be Under Test
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01-20-23 0653ET
