Sterling to Fall if UK Data Boost Case For BOE Pause

Sterling to Fall if UK Data Boost Case For BOE Pause

0921 GMT - U.K. economic data this week could support the case for the Bank of England to leave interest rates on hold at its next meeting, potentially weakening sterling, ING says. The chances of a pause in the BOE's rate-rise cycle at the May 11 meeting is underappreciated by markets, with a 19 basis points rate increase priced in, ING analyst Chris Turner says in a note. "We suspect EUR/GBP could trade 0.89+ were the market this week to price out the chances of that May hike." Key U.K. releases this week include employment data on Tuesday and inflation data on Wednesday. EUR/GBP rises 0.1% to 0.8863 and GBP/USD falls 0.3% to 1.2380. ([e-mail])

 
Companies News: 

Network International Could Recommend Consortium Offer Proposal of 387 Pence a Share

Network International Holdings PLC said Monday that it has received a 387 pence-a-share takeover proposal from Capital Partners Ltd. and Francisco Partners Funds that it would be minded to recommend to shareholders if a formal offer was made.

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S4 Capital Executive Chairman Martin Sorrell to Have Preventative Medical Treatment Following Tumor

S4 Capital PLC said Monday that Executive Chairman Martin Sorrell will have preventative medical treatment over the coming months, but that he should be able to work as normal for most of that time.

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PageGroup 1Q Gross Profit Rose on EMEA Performance

PageGroup PLC said Monday that gross profit in the first quarter of 2023 rose driven by growth in its Europe, Middle East and Africa market, and it expects full-year operating profit to meet market expectations.

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Quiz FY 2023 Profit Rose on Higher Demand, Warns of Increasing Headwinds Ahead

Quiz PLC said Monday that it expects to report that pretax profit for fiscal 2023 rose on the back of higher consumer demand, but warned of increasing headwinds in the coming year.

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Ashmore Assets Under Management Rose Slightly in 3Q

Ashmore Group PLC on Monday said that its assets under management rose 1% over the third quarter of fiscal 2023.

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QinetiQ Sees FY 2023 Beating Guidance, Market Views

QinetiQ Group PLC said Monday that it expects fiscal 2023 results to exceed both previous guidance and market consensus expectations.

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Nuformix Raises GBP70,000 in Discount Share Subscription

Nuformix PLC said Monday that it has raised 70,000 pounds ($86,905) through a discounted share subscription with a single investor, to advance its NXP002 program.

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Cerillion Books Record 1H Revenue, Earnings on Strong Demand

Cerillion PLC said Monday that its performance in the first half of fiscal 2023 was strong, with new records for revenue and adjusted Ebitda on strong demand.

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Cordel 3Q Ebitda Loss Narrowed; Confident on FY 2024 Growth

Cordel Group PLC on Monday posted narrower core earnings for the third quarter of fiscal 2023 as its revenue rose while costs declined and said its growing sales pipeline gives it confidence for growth in fiscal 2024.

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Deepverge's Reported 2022 Revenue Inflated Due to Accounting Error

Deepverge PLC said Monday its issued revenue figure for 2022 was inflated due to an accounting error.

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Block Energy 1Q Revenue Fell on Lower Oil Sales, Prices -- Energy Comment

Block Energy PLC on Monday reported a rise in first quarter production compared with the previous quarter although revenue fell on lower oil sales and prices. Here is what the Georgia-focused energy company had to say:

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Renold Sees FY 2023 Profit, Margin Materially Ahead of Views

Renold PLC on Monday said it expects to report that its underlying trading profit and margin for fiscal 2023 was materially ahead of market views as its strong performance momentum continued into its fourth quarter.

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Thor Explorations 1Q Nigeria Mine Production Slips; Backs 2023 Guidance

Thor Explorations Ltd. said Monday that first-quarter production at its Segilola Gold mine in Nigeria slipped on quarter, and backed its 2023 production guidance.

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Intercede Sees FY 2023 Profit Improvement on Revenue Beat, Cost Control

Intercede Group PLC said Monday that it expects to report that fiscal 2023 profit rose on the back of increased revenue and cost control.

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SysGroup FY 2023 Revenue Increased on Organic Growth, Acquisitions

SysGroup PLC said Monday that revenue rose in fiscal 2023 on organic growth and acquisitions.

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Supreme Sees FY 2023, 2024 Ahead of Market Views

Supreme PLC said Monday that performance for fiscal 2023 is anticipated to beat market expectations on the back of both organic growth and acquisitions.

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Ebiquity Appoints Julia Hubbard as CFO

Ebiquity PLC said Monday that it has appointed Julia Hubbard as chief financial officer with effect on 28 April.

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Griffin Mining 1Q Production Rose on Quarter

Griffin Mining Ltd. on Monday said production hit a record for any first-quarter since the commissioning of the Caijiaying mine in China in 2005.

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Diaceutics 2022 Pretax Profit Rose on Growing Demand

Diaceutics PLC said Monday that pretax profit rose 22% in 2022 partly due to a rise in demand, as the company continues to shift toward a platform-based subscription model.

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Access Intelligence FY 2022 Pretax Loss Narrowed as Revenue Rose

Access Intelligence PLC said Monday that its pretax loss narrowed and revenue jumped in fiscal 2022 following the integration of Isentia.

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Surface Transforms Shares Rise After Seeing Return to Profit in 2Q

Surface Transforms PLC shares rose Monday after it said it should return to profitability in the second quarter of 2023, though its 2022 pretax loss widened on higher costs despite more-than-doubled revenue.

 
Market Talk: 

Coca-Cola HBC Looks Set to Return to Growth

0857 GMT - Coca-Cola HBC is expected to return to more than double-digit adjusted EPS growth from 2024 as the group manages to navigate through macroeconomic headwinds and foreign-exchange volatility, Goodbody analyst Fintan Ryan says in note. The bottler for Coca-Cola Co. is likely to benefit in the short term from a rebound in Nigerian and Egyptian markets despite the fall in Russia, while continued raw-material costs reduction from 2H are expected to support both earnings and investor sentiment, he says. "Over 2024/25 we model +6% organic sales, +9% organic EBIT...as raw materials turn more favorable," Ryan says. Goodbody starts its coverage on the stock with a buy rating. ([e-mail])

John Wood Takeover Talks Further Signals Rush of Private Equity Activity in UK

0857 GMT - John Wood Group says it is willing to engage with private-equity firm Apollo over its GBP1.66 billion takeover offer, adding to a flurry of private equity mergers and acquisitions activity in recent days, Interactive Investor says. The consulting and engineering company's shares have been well-supported by speculation of a takeover, rising 68% in the year-to-date, Interactive head of investment Victoria Scholar says in a market comment. The offer adds to the sense among international investors the U.K. is ripe with takeover targets, Scholar says. "The recent rebound for the pound suggests opportunistic buyers need to make the most of sterling's weakness before it appreciates further and is too late as the FX discount subsides," Scholar says. Shares are up 7.1% at 226.8 pence. ([e-mail])

Griffin Mining's Seen With Scope For Dividend Policy

0850 GMT - Griffin Mining's figures show there is scope for a dividend policy to be announced and drive additional returns given its net cash balance sheet, says Berenberg in a note after the miner posted a record first-quarter production. "This is a good result from Griffin and it is encouraging that the mine was able to operate uninterrupted through the seasonal New Year holidays," analyst Richard Hatch says. The German brokerage expect production to take a material step-up versus 2022 levels, leading to material increases in Ebitda and free cash flow, as the approval mine design of Zone II at its Caijiaying site in China has been granted. Berenberg has a buy rating on the stock. Shares rise 10.2% at 82 pence. ([e-mail])

Diageo Faces Short-Term Concerns on US Spirits Slowdown, New CEO

0845 GMT - Diageo's performance is likely to benefit from global alcohol premiumization trends--the strategy to make brands more appealing by emphasizing their superior quality--as its valuation returned to historical averages, Goodbody analyst Fintan Ryan says in note. However, the London-based maker of Johnnie Walker Scotch whisky faces short-term uncertainties given the slowdown of the pandemic-related U.S. spirits boom and the CEO transitions, he adds. Diageo counts few positive catalysts as the outlook normalizes toward the organic sales growth range of 5% to 7% and organic Ebit range of 6% to 9%, he says. Goodbody starts the coverage on the stock with a hold rating. ([e-mail])

Ashmore's Weak Underlying Trends Seen Continuing

0838 GMT - Ashmore Group's third-quarter weaker negative margin mix implies small downgrades to consensus fee margins and points to investor bearishness, which is seen continuing into the fourth quarter, Citi says in a note. "We expect investor sentiments [to] remain bearish over near term as recession risk remains a key concern... Against this backdrop, valuations remain elevated and we see downside risks to share price," analyst Samarth Agrawal says. Citi has a sell rating on the stock and price target of 210 pence. Shares edge down 0.1% at 248.8 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

04-17-23 0539ET