Sterling's Recent Losses Seen as Slightly Overdone
1115 GMT - Sterling's declines in recent days following the Bank of England's last meeting look somewhat overdone, Ebury says. Markets perceived the BOE's meeting last Thursday as cautious on the policy outlook but sterling's move lower is "perhaps a slight overreaction," Ebury market strategist Matthew Ryan says in a note. "Comments from BOE chief economist Huw Pill on Monday seem to support this view," he says. "Pill noted that the Monetary Policy Committee had not yet reached a turning point on rates, while reiterating that the bank would do whatever was necessary to bring down rates of U.K. inflation." GBP/USD rises 0.4% to 1.2093 after reaching a one-month low of 1.1960 on Tuesday, according to FactSet. (renae.dyer@wsj.com)
Companies News:
Barratt Developments 1H Pretax Profit Rose; Reservation Rate Improved in January
Barratt Developments PLC said Wednesday that it saw a rise in pretax profit for the first half of fiscal 2023 and said its private reservation rate has modestly improved in January.
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Smurfit Kappa 2022 Pretax Profit Rose, Boosted by Investment Program
Smurfit Kappa Group PLC said Wednesday that pretax profit rose in 2022, with performance reflecting the continuing benefits of the investment program.
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Severn Trent Backs FY 2023 View
Severn Trent PLC said Wednesday that there have been no material changes to the business performance or outlook since its half-year earnings in November and backed its fiscal 2023 outlook.
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Ashmore Group 1H Pretax Profit Halved; Sees Outperformance As Markets Recover
Ashmore Group PLC said Wednesday that pretax profit more than halved in the first half of fiscal 2023 as market volatility in the period led to losses on investments, and that emerging markets are set to outperform as markets recover.
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Grainger Early FY 2023 Rent, Occupancy Rose
Grainger PLC said Wednesday that rent and occupancy rose in the first four months of fiscal 2023.
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Tate & Lyle Updates Five-Year Targets for Revenue, Earnings Growth
Tate & Lyle PLC said Wednesday that it expects to deliver revenue growth of 4% to 6% a year in the five years to March 2028, underpinned by high single-digit growth in its food and beverage solutions division.
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M&C Saatchi Sees 2022 Net Revenue at GBP271.4 Mln, Headline Pretax Profit at GBP31.8 Mln
M&C Saatchi PLC said Wednesday that 2022 net revenue is expected to be 271.4 million pounds ($327 million) and headline pretax profit is seen at GBP31.8 million.
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Sosandar to Raise up to GBP4.5 Mln to Fund Growth
Sosandar PLC said Wednesday that it is planning to raise up to 4.5 million pounds ($5.4 million) via a share placing and will use the money to capitalize on the opportunities in its markets and to accelerate future growth.
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FirstGroup to Buy Ensign Bus Company for Undisclosed Sum
FirstGroup PLC said Wednesday that it is buying Ensign Bus Company Ltd. for an undisclosed sum.
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Future Sees FY 2023 Adjusted Operating Profit in Line on Continuing Good Performance
Future PLC said Wednesday that it expects to deliver fiscal 2023 adjusted operating profit in line with expectations as its diversification of revenue streams and content verticals, together with the operational leverage, continue to deliver.
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PZ Cussons 1H Pretax Profit, Revenue Rose; Backs Full-Year Guidance
PZ Cussons PLC said Wednesday that pretax profit significantly rose for the first half of fiscal 2023 together with revenue, and backed its full-year guidance.
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Renold Sees FY 2023 Profit Ahead of Views on Strong Performance
Renold PLC said Wednesday that it now sees fiscal 2023 underlying operating profit above current market forecasts as it has performed strongly since its interim results, with order intake running ahead of sales.
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Cenkos Securities Sees 2022 Underlying Profit at Break Even
Cenkos Securities PLC said Wednesday that it expects to break even at underlying profit level for 2022 due to significantly depressed market conditions over the year, and that it has seen an encouraging start to 2023.
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Speedy Hire Expects One-off Writedown After Identifying GBP20.4 Mln Equipment Shortfall
Speedy Hire PLC said Wednesday that it expects a one-off non-cash writedown after a count of its hire equipment identified a shortfall worth around 20.4 million pounds ($24.6 million).
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Beazley Names Clive Bannister as Chair Designate
Beazley PLC said Wednesday that it has appointed Clive Bannister as chair designate and non-executive director with immediate effect.
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Renalytix Shares Fall on $20.3 Mln Fund Raising
London-traded shares of Renalytix PLC fell as much as 14% on Wednesday after the company said it is raising $20.3 million via a placing of ordinary and American depositary shares, and that it will use the money for sales and marketing, clinical product development, and corporate support and financing costs.
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Cellular Goods Shares Fall After Cannaray Brands, Love CBD Deal Collapses
Shares of Cellular Goods PLC fell 30% on Wednesday after the company said that it no longer plans to buy Cannaray Brands Ltd. and Love CBD Health Ltd. from Cannaray Ltd. as announced in September.
Market Talk:
Redrow Investors Set to Eye Sales, Costs, Pricing at 1H
1156 GMT - Redrow investors look likely to eye recent sales data, the outlook for build-cost inflation and pricing in the U.K. house-builder's half-year results on Thursday, Numis Securities says. Whilst it is difficult to say that forecast risk has gone, trends so far this year are encouraging, Numis says. "Whilst below last year, they are materially better than 4Q 2022 and reflect improving mortgage rates/availability, a very strong rental market and the impact of incentives," Numis analyst Chris Millington says in a note, adding that the group's average net cash is also strong. "On this basis, we continue to see good value in Redrow." (philip.waller@wsj.com)
Barratt Developments Lower Dividend Highlights Complicated Backdrop
1147 GMT - Barratt Developments shareholders will be reassured by a slight improvement in the housing market in January, but its decision to cut the dividend suggest the company is reacting to new realities, AJ Bell says. The house builder is continuing buybacks in a show of confidence, but while reservations per outlet improved in January, the metric is still markedly down on-year with many others also pointing in the wrong direction, AJ Bell investment director Russ Mould says. "One thing is for certain, after years of having things their own way, with substantial state support for the sector, rock-bottom rates and soaring house prices, the backdrop for these companies is now a lot more complicated," Mould says in a market comment. Shares are up 2.2% at 470.1 pence. (joseph.hoppe@wsj.com)
M&C Saatchi to Look to Mergers and Acquisitions
1143 GMT - M&C Saatchi produced a solid set of results for 2022 despite management's focus being diverted by bids from Next 15 and AdvancedAdvT, Peel Hunt's Jessica Pok says in a research note. The U.K. advertising company's new strategy sees a shift from building organic startups to seeking external merger-and-acquisition opportunities, Pok says, adding that this is due to the ambition to add new tech and digital capabilities. "With the takeover process behind us, management can focus its attention solely on the future of the group as a standalone business," she adds. Peel Hunt has a buy rating on the stock with a 200-pence price target. Shares trade up 3.1% at 175.20 pence.(kyle.morris@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
02-08-23 0729ET
