Sterling Could Benefit if UK-EU Relations Improve
1034 GMT - Sterling stands to benefit from potentially improved U.K.-EU relations following progress in talks over Northern Ireland's post-Brexit trading relations, MUFG Bank says. The U.K. and EU on Monday reached an agreement providing the EU access to the U.K.'s live database tracking goods moving from Great Britain to Northern Ireland. There remains hope of an agreement over the Northern Ireland protocol by the 25th anniversary of the Good Friday Agreement in April, MUFG analyst Derek Halpenny says in a note. "Whether or not that deadline is achieved we still can see a new approach here and an improvement in relations between the U.K. and the EU is a clear positive for the pound relative to what has passed in previous years." (renae.dyer@wsj.com)
Companies News:
JD Sports Sees FY 2023 Profit at Top End of Views After Strong Christmas Performance
JD Sports Fashion PLC said Wednesday that it expects to report fiscal 2023 adjusted pretax profit toward the top end of market expectations after it booked a strong performance during the Christmas period.
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J Sainsbury Sees FY 2023 Profit Toward Upper End of Views on Robust Christmas Period
J Sainsbury PLC said Wednesday that it expects to deliver profits for fiscal 2023 toward the upper end of its current guidance following record trading during the Christmas period.
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Barratt Developments 1H Sales Rates Fell; Names Chair Designate
Barratt Developments PLC said Wednesday that its first-half sales rate fell and its order book declined, and named Caroline Silver as chair designate, effective from June 1.
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Topps Tiles 1Q Sales Rose on Positive Christmas Trading
Topps Tiles PLC said Wednesday that performance for the first quarter was robust and driven by positive trading during the Christmas period.
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PageGroup Lowers 2022 Operating Profit Guidance After Tough 4Q
PageGroup PLC on Wednesday lowered its full-year operating profit guidance after tough trading conditions in the final quarter of the year lead to a fall in productivity.
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Darktrace Sees Strong 1H Growth But Cuts FY 2023 Revenue Guidance
Darktrace PLC said Wednesday that it delivered significant growth over the first six months of fiscal 2023, but lowered full-year revenue guidance as the effect of macroeconomic uncertainty on customer growth was greater than expected.
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Direct Line Scraps 2022 Dividend on Higher Weather, Motor Inflation Claims in 4Q
Direct Line Insurance Group PLC said Wednesday that it has ditched dividend plans for 2022 due to higher weather-related and motor inflation claims in the fourth quarter, affecting its underwriting result for the year.
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Reach Expects 2022 Profit Below Views as Revenue Fell After Advertising Drop
Reach PLC said Wednesday that 2022 operating profit will be below market consensus by a mid-single-digit percentage after revenue fell 2.3%, with advertising revenue dropping 15.9%.
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Nightcap 2Q Revenue Rose Despite Rail Strikes; Expects to Meet 2H Views
Nightcap PLC said Wednesday that revenue for the second quarter of the fiscal year rose 61%, despite rail strikes across the U.K. during the key Christmas period, and that it expects to meet management expectations for the second half.
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Standard Chartered Mulling Alternative Ownership for Aviation Business
Standard Chartered PLC said Wednesday that it was exploring alternatives for the future ownership of its global aircraft leasing and financing operation.
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Ten Entertainment Sees Rise in 2022 Sales, Profit at Higher End of Views
Ten Entertainment Group PLC said Wednesday that it expects to report strong 2022 sales growth compared with both the prior year and prepandemic levels, and profit at the upper end of market views.
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Nichols Sees 2022 Pretax Profit In Line With Views, Names New Nonexecutive Chair
Nichols PLC on Wednesday said it expects to report adjusted pretax profit for 2022 in line with market expectations and has named Elizabeth McMeikan as nonexecutive chair to succeed John Nichols.
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Warpaint London Expects to Beat 2022 Guidance After Strong 4Q Performance
Warpaint London PLC said Wednesday that sales for the year have exceeded the board's expectations after a strong fourth quarter, leading to both adjusted pretax profit and Ebitda beating forecasts.
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Johnson Service Sees 2022 Results in Line With Views After Revenue Rose
Johnson Service Group PLC said Wednesday that it expects to report a revenue increase of more than 40% for 2022, supported by improved business in the second half, and that its performance is expected to be in line with market views.
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Hostelworld 2022 Net Bookings Rose; Early 2023 Meeting Views
Hostelworld Group PLC said Wednesday that 2022 net bookings significantly rose on year, and early performance in 2023 was in line with expectations.
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Physiomics' Shares Rise on New Cancer Research UK Contract
Shares of Physiomics PLC rose 11% in early trade Wednesday after the company said that it has been awarded a new contract with Cancer Research UK.
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M Winkworth Sees 2022 Pretax Profit Modestly Beating Market Views
M Winkworth PLC said Wednesday that it expects 2022 pretax profit to be modestly ahead of current market forecasts as the full year saw buoyant levels of activity in both sales and rentals.
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WANdisco Sees 2022 Revenue Jump on Contract Growth
WANdisco PLC said Wednesday that it expects to report revenue of no less than $24 million for 2022 as it booked significant contract growth in the period.
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Steppe Cement Shares Fall on Kazakhstan Inflation Hit to Costs
Shares of Steppe Cement Ltd. fell 15% on Wednesday after the company said that inflation in Kazakhstan, which was 20.3% in December, will affect production costs this year.
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AB Dynamics Early FY 2023 Performance Meeting Views, Backs Guidance
AB Dynamics PLC said Wednesday that its business performance has shown encouraging momentum and backed its fiscal 2023 guidance.
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Kibo Energy Shares Rise After Trading Resumption
Kibo Energy PLC shares rose on Wednesday following the resuming of its shares trading after it has appointed a London Stock Exchange nominated adviser.
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Grafton Sees 2022 Operating Profit Beating Market Views After Revenue Rose
Grafton Group PLC said Wednesday that it expects 2022 operating profit to have slightly exceeded the top end of market forecasts, while revenue rose on good underlying demand and geographic diversity.
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Hurricane Energy 2022 Revenue Rose; Received Interest in Formal Sales Process
Hurricane Energy PLC said Wednesday that revenue rose in 2022, and it has received several proposals in its formal sales process.
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Surface Transforms 4Q Revenue Hit By Production Issues, Leaves 2023 Guidance Unchanged
Surface Transforms PLC on Wednesday said production issues in its fourth quarter dented its 2022 revenue but that it isn't changing its 2023 guidance despite foreseeing capacity constraints in the first half of the year.
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RM PLC Names Mark Cook as CEO
RM PLC on Wednesday said Mark Cook will become its chief executive officer as of Jan. 16, replacing Neil Martin.
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Argo Blockchain Shares Fall After December's Lower Bitcoin Mining
Argo Blockchain PLC shares fell on Wednesday after the company said it has mined fewer bitcoins in December due to the impact of the U.S. winter storm in its operations.
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Quartix Technologies Sees 2022 Revenue, Adjusted Earnings Meeting Market Views
Quartix Technologies PLC said Wednesday that it expects 2022 revenue and adjusted earnings to meet consensus market forecasts, and further growth in annualized recurring revenue.
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Creo Medical Flags 2022 Revenue, Ebitda Loss in Line With Market Views
Creo Medical Group PLC said Wednesday that it expects to post revenue and an adjusted Ebitda loss for 2022 that are in line with market expectations amid strong growth of its core electrosurgical products.
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Digital 9 Infrastructure Adjusted Gross Asset Value Was GBP1.3 Bln at Sept. 30
Digital 9 Infrastructure PLC said Wednesday that pro forma adjusted gross asset value was 1.3 billion pounds ($1.58 billion) at Sept. 30.
Market Talk:
Sainsbury's Christmas Was Impressive But Consumer Pressure Remains
1041 GMT - Sainsbury's record performance in Christmas is impressive given the challenging consumer backdrop, but there are uncertainties ahead given the remaining pressures on spending, AJ Bell investment director Russ Mould says in a note. On the positive side, the grocer's guidance increase for cash flow looks significant while its market share gains suggests that shoppers selected Sainsbury to trade down from retailers like Waitrose or Marks & Spencer, Mould says. "However, Sainsbury's ownership of Argos could be an Achilles heel--it performed creditably over the Christmas period but it is more exposed to discretionary spend than the core groceries business," he says. (michael.susin@wsj.com)
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Direct Line's 2023 Dividend Also At Risk, Says Citi
1039 GMT - After Direct Line Insurance Group's profit warning and 2022 dividend scrapping, Citi suspects no dividend will be paid in 2023 either, analyst James Shuck says in a note. "[Direct Line] was carrying too much risk (Nat Cat retention and asset risk) at a time of considerable uncertainty over core earnings delivery which has all come home to bite," he says. Though shares have dropped, the analyst recommends avoiding bottom fishing, pointing to the company's outlook, pressure on management's credibility and its need to rotate the income-focused investor base. Citi, which has a neutral rating on the stock, adds that securing reinsurance capital relief also looks more challenging. Shares fall 65.2 pence, or 28%, at 167.2 pence. (elena.vardon@wsj.com)
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Direct Line Insurance Slumps as Update Sparks Questions
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01-11-23 0557ET
