Sterling Lost Ground to Some Emerging Market Currencies in 2022

Sterling Lost Ground to Some Emerging Market Currencies in 2022

1127 GMT - Sterling lost ground to a number of emerging market currencies in 2022, according to a study by CMC Markets. Between January and November last year, the Ghanaian cedi was the biggest riser against sterling, surging 73.43%. The Sri Lankan rupee was the second best performer versus the pound, up 53.94%, while the Lao kip was third with a 30.18% jump. Meanwhile, the Ukrainian hryvnia and the Chinese yuan rose 15.72% and 12.06%, respectively, against sterling despite the Ukraine war and China's strict Covid-19 curbs that weighed on growth. ([e-mail])

Companies News: 

B&M European Value Narrows FY 2023 Guidance After 3Q Revenue Rose

B&M European Value Retail SA on Thursday narrowed its fiscal 2023 guidance for adjusted Ebitda as the group reported a 12% rise in its third-quarter revenue.

---

Next Raises FY 2023 Profit Guidance; Sees Profit Falling in Fiscal 2024

Next PLC on Thursday raised its pretax profit guidance for fiscal 2023, but said it expects earnings to fall in fiscal 2024 as the economy is squeezed by inflation.

---

Greggs Sees 2022 Sales Rising; Reports Strong End to Year

Greggs PLC said Thursday that it had a strong final quarter of 2022, and that it expects full-year sales to rise 23%.

---

Glenveagh Properties 2022 Revenue Rose, Starts Share Buyback

Glenveagh Properties PLC said Thursday that it expects to report a significant rise in revenue for 2022, driven by a strong performance in its suburban business segment, and launched a share buyback program.

---

Live Company Starts Cost-Saving Measures; Reviewing Debt Structures

Live Company Group PLC said Thursday that it is initiating cost-saving actions as it expects to book a loss in 2022 and it is reviewing debt structures with the view of renegotiating repayment schedules.

---

Mattioli Woods 1H Revenue Rose; FY 2023 Outlook in Line With Views

Mattioli Woods PLC said Thursday that first-half revenue was 10% higher than last year and that its outlook for fiscal 2023 remains in line with management expectations.

---

Angle 2022 Revenue Was Flat; Sees 2023 Revenue Rising but Missing Market Views

Angle PLC said Thursday that it expects to report flat revenue for 2022, though its loss widened, and sees 2023 revenue growing but likely materially below current market expectations.

---

Proteome Sciences Gets GBP870,000 Milestone Payment

Proteome Sciences PLC said Thursday that it has received a milestone payment of around 870,000 pounds ($1.0 million), for sales of TMT and TMTpro.

---

Hydrogen Utopia International's London Listing Prospectus Approved by FCA

Hydrogen Utopia International PLC said Thursday that its supplementary prospectus for the company's planned trading on the London Stock Exchange's official list has been approved by the U.K. Financial Conduct Authority.

---

Next Raises FY 2023 Profit Guidance But Expects Tighter Year Ahead -- Update

Next PLC on Thursday raised its pretax profit guidance for fiscal 2023 after better-than-expected Christmas sales, but said it expects earnings to fall in fiscal 2024 as the economy is squeezed by inflation and consumers deal with increased mortgage payments as fixed interest-rate deals expire.

 
Market Talk: 

B&M's Strong Cash Generation Boosts Outlook

0946 GMT - B&M European Value Retail's impressive cash generation, reflected in special dividend payouts over the past three years, gives confidence for the convenience retailer's performance in the months ahead, Liberum says in a note. The brokerage flags an impressive 3Q noting that "gross margin--the main risk over Christmas--has improved with 'excellent' sell-through in general merchandise," which is a key positive. B&M's leading value proposition should drive strong trading resilience for the rest of the year and into fiscal 2024, says Liberum, reiterating its buy rating on the stock. Shares rise 1.1% at 450.0 pence. ([e-mail])

---

Greggs Gains After Strong 4Q, Higher FY Sales

0959 GMT - Shares in Greggs rise 1% after the U.K. bakery-shop chain reported a strong final quarter of 2022 and higher full-year sales. Greggs is capitalizing from providing simple and relatively cheap products and cost-cutting, helping it to underpin full-year margins and to continue expanding its shop estate and opening hours, Hargreaves Lansdown says. "However, it will be crucial to closely monitor how out-of-home spending shapes up, because any worse-than-expected drop-off would be bad news for profits when combined with soaring costs," HL analyst Sophie Lund-Yates writes. ([e-mail])

---

Ryanair on the Up After Difficult Pandemic Years

1009 GMT - Ryanair is now storming ahead after a challenging few years during the Covid-19 pandemic, Interactive Investor's head of investment Victoria Scholar says in a note. The low-cost airline is outpacing its pre-Covid traffic figures and is on track to achieve better-than-expected full-year earnings, she says after the company raised its fiscal 2023 guidance late Wednesday. "However, investors have had a difficult year with the stock which is down by more than 30% over a one-year period suggesting there is still a long way to go to restore investor confidence," Scholar warns. Shares trade up 6.0% at EUR13.62. ([e-mail])

---

Expensive Pricing Makes UK 4.125% January 2027 Gilt Less Attractive

1042 GMT - The U.K.'s 4.125% January 2027 gilt which is due to be auctioned on Thursday looks less appealing due to its expensive valuation, say RBC analysts in a note. "Ahead of the last tap on December 6, the bond cheapened-up sharply and was trading at much cheaper levels than today. At current levels, we do not think the bond looks particularly interesting," they say. Nonetheless, the bond has cheapened sharply on asset-swap terms, and its auction should go reasonably well, the analysts say. The DMO is due to auction GBP3.5 billion ($4.21 billion) in this gilt. ([e-mail])

---

Greggs Stays on Track Despite Cost Rises

1044 GMT - Greggs's prospects look steady despite rising costs, Panmure Gordon says after the U.K. bakery-shop chain reported a strong fourth quarter and higher full-year sales. The trading update matched expectations, with 4Q like-for-like sales rising 18.2%, Panmure says. About 3% of the gain came from a weak comparative period, while a low double-digit proportion resulted from price inflation and the rest came from volume growth, the brokerage says. "Whilst Greggs does continue to see material cost inflation, we believe there is no change to the long-term investment case," Panmure analyst Alex Chatterton says in a note. "We therefore maintain our buy recommendation and target price of 3170 pence." Shares rise 0.5% to 2454p. ([e-mail])

---

HSBC Should Get Capital Returns, China Boost, Jefferies Says

1045 GMT - HSBC's capital return prospects and positive gearing to China's reopening are underappreciated, Jefferies says as it raises its rating on the stock to buy from hold. The lender's favorable return/risk asymmetry make it Jefferies's top pick in its U.K.-listed coverage. The reopening of the Chinese economy is expected to drive higher loan demand and boost activity for HSBC, while an estimated $14 billion in returns should be unlocked from the completion of the disposal of its Canada business in 4Q, Jefferies says. "We believe the market is now being too bearish around HSBC's exposure to China/HK in our view, having penalized HSBC with a higher implied cost of equity than the European banks sector since 4Q 22," the U.S. bank says. Shares rise 2.0% at 554.3 pence. ([e-mail])

---

Next and B&M Look Set to Perform on Value Offering

1057 GMT - The latest updates from Next and B&M showed that the bricks-and-mortar retail channel in the U.K. was resilient throughout 2022 and, and look set to benefit from value proposition and low prices, AJ Bell investment director Russ Mould says in a note. Next, which raised its FY 2023 guidance after increased Christmas sales, has products that are considered to be durable and of good quality, he notes. On the other hand, B&M has a winning business model amid the current backdrop, benefiting from people who want to trade down from more expensive options, Mould says. Rail strikes in the U.K. also made retail parks a preferred alternative to city-center shops, Mould notes. ([e-mail])

---

Next's Guidance Looks Tougher Despite Its Merry Christmas

1122 GMT - Next comprehensively beat its footfall-driven estimates for the nine weeks to Dec. 30 but it will need to reestablish a trend of market-share gains to deliver expectations across calendar 2023, Citi analysts say in a research note. As a consequence of the fashion retailer's current share price relative to fiscal 2024 guidance--full-price sales of GBP4.5 billion and pretax profit of GBP795 million--Citi is cautious heading into the apex of U.K. consumer pressure. Citi has a sell rating on the stock with a target price of 4,850 pence. Shares trade up 7.1% at 6,532.00 pence. ([e-mail])

---

Greggs Brings Hopes for Brick-And-Mortar Retailers

1136 GMT - Greggs is proving to be resilient in the face of weakening economic conditions, showing brick-and-mortar retail is far from dead, AJ Bell says. The on-the-go food retailer as well as other retailers Next and B&M have provided figures that suggest they can still draw in crowds if the proposition is good value for money, AJ Bell investment director Russ Mould says in a market comment. "None of these companies are blind to the fact that consumers are still under significant financial pressure, yet if they've been able to successfully navigate a tough end to 2022, there is good reason to suggest they could continue to keep their chins up as we move through 2023," Bell says. Greggs shares are flat on 2,442.0 pence. ([e-mail])

---

Angle PLC Hobbled by Macroeconomics But New Clients Secured

(MORE TO FOLLOW) Dow Jones Newswires

01-05-23 0707ET